Pharma Supply Chains Get Technology Booster
supply chain networks. In part, that’s due to governmental regulations that are encouraging greater onshore production of critical medicines. “Both the United States and the European Union are advancing regulations on this front,” Bhandari says. The goal is to reduce dependence on China. Concerns about cost, as well as a desire to develop domestic production capabilities, thus boosting supply chain resilience, also are behind this push.
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The raw material shortages, port congestion, reduced ights, border closures, and other disruptions to the pharmaceutical supply chain due to COVID are less severe and less widespread, says Adalheidur Palmadottir, vice president of business development with Controlant, a leader in solutions that provide real-time supply chain visibility. “Furthermore, measures put in place to counteract COVID-driven disruptions are gaining traction,” she adds. “These include the development and uptake of new, smarter technologies in the pharmaceutical supply chain, from sourcing and production to last- mile delivery.” In addition, technological advances enable more reliable and traceable logistics, with signi cantly less leeway for human error. “Technology is reducing human handling across the whole sector, making for a more predictable, dependable cold chain,” Palmadottir says. Many companies also are assessing and evaluating the lessons they learned during the pandemic to determine which are worth maintaining. “Companies that had to scramble for two years to keep the supply chain operating are now trying to gure out what to take forward,” Vadney says. As a result, the condition of the supply chain now, versus 12 months ago, is vastly different. “We expect to keep moving toward greater digitalization in the coming year,” Palmadottir says.
Supply chain monitoring pioneer Controlant has delivered more than 5.7 billion COVID-19 vaccine doses to 60,000+ destinations in 185 countries with a 99.99% success rate. Its automated visibility and tracking solutions use data from Internet-of-Things-enabled loggers.
things have been,” Bhalodia says. Another area of focus is visibility. “It’s not enough to know your supplier has safety stock,” says Vishal Bhandari, partner in the health practice of global consulting rm Kearney. “Companies also need to know how the products will get to their operations.” Pharmaceutical companies are investing in more robust inventory management strategies and real- time tracking, as well as stronger risk management for their upstream supply base, including beyond their immediate suppliers. Ef ciency and safety also are driving investments. “We’re starting to see larger investments by healthcare companies focused on improving supply chain and logistics ef ciency and safety, and reducing human error,” Wang says. While many healthcare and pharmaceutical companies had been investing in automation on the pharma side—for instance, in pill dispensing solutions—they’re now investing in their supply chains. These investments also are a tactic for managing through a tight labor market. Not all changes are focused on technology. More companies are rethinking their manufacturing and
“You have planning that feeds to purchasing, that feeds to demand, and then to an API (active pharmaceutical ingredient) supplier,” Vadney says. This ow of information offers buyers better visibility and more data they can use to decide whether to accept or reject, for instance, changes in materials or work order completion dates. Similarly, pharmaceutical companies are investing more in planning technology, such as software that incorporates algorithms to more accurately forecast supply and demand. G F A , V , R , S The recent upheavals have also heightened focus on improving an organization’s supply chain agility and responsiveness. “Those conversations have moved front and center,” says Pankit Bhalodia, managing director, healthcare and life sciences, with West Monroe. More pharmaceutical supply chains have begun transitioning away from a reliance on spreadsheets. As they do, they’re investing in the infrastructure and training needed to more effectively manage risks and compliance. “This is a huge uplift from where
52 Inbound Logistics • August 2022
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