Pharma supply chains are highly complicated due to the involvement of stakeholders in every product, from manufacturing to the destination in different countries.
Also, the threat of adulterated drugs entering the supply chains imposes extra challenges on the pharma industry.
The current pharma supply chain issues persisted and worsened during the COVID-19 pandemic.
Pharma supply chain struggles during the COVID-19 outbreak.
The restrictions on travel between different countries, cancellations / delays of flights, and shutting down manufacturing plants during the COVID-19 outbreak have escalated the problem.
For example, two of the largest producers of generic medicines, and active pharmaceutical ingredients (APIs), India and China, restricted their exports during the pandemic.
It was in September 2020 that the United Nations’ Global Manufacturing and Industrialisation Summit (GMIS) highlighted the need to accentuate global supply chains.
Thus, pharma companies had to adopt technological innovation to strengthen their supply chains.
4 new technologies disrupt the pharma supply chain. Novartis to embrace AI.
Below, we discuss the technologies that reshape the pharma supply chain through digitization.
- Internet of Things (IoT)
IoT offers real-time visibility and can track the shipment of medications with the help of sensors such as radio-frequency identification (RFID) tags.
- Artificial intelligence (AI)
In combination with machine learning, AI can automate data analysis and offer courses of action that will improve quality and efficiency. E.g., Novartis is working to create a digitized supply chain using AI to drive greater efficiency across their operations.
- Control tower
The pharma control tower feeds data into a database by gathering real-time information from various sources and giving a readable end-to-end view of events.
- Blockchain
Blockchain tracks transactions of drugs among multiple stakeholders in a verifiable, transparent way, enhancing the visibility of complex and long supply chains and enabling faster delivery.
Steps for a tamper-proof pharma supply chain.
The following steps will ensure a successful supply chain network from planning to distribution.
- Digitally enabled planning: Cloud platforms and data analytics allow collective planning among suppliers, manufacturers, logistics partners, and end users such as pharmacies and hospitals.
- Digital sourcing and procurement: Purchase orders approval by mobile, automatic generation of the invoice, etc., are done by apps and software to make seamless procurement.
- Digital manufacturing: OEE (Overall Equipment Effectiveness) is improved in pharma companies by digitized manufacturing increasing quality and quantity, and dropping machine downtime.
- Smart warehousing and distribution: Barcoding and RFID tagging improve material flow and patient safety. Additionally, drone technology can complement the current wholesale-to-retail distribution network.
When pharma companies follow the above process, they enjoy efficiency and cost benefits. At the same time, new tech brings new threats to consider.
What are the benefits and challenges of a digitized pharma supply chain?
Digitized supply chains enable companies to get real-time information and thereby get ahead of problems, stop significant issues, and save costs. Despite the advantages of a digitized supply chain ecosystem, cyber threats and malicious activity are possible. A robust cybersecurity program should support any digitization effort.
The example of Teva Pharmaceuticals reaping the benefits of real-time supply chain monitoring is characteristic of the impact of digitization in the supply chain space. The generics’ manufacturer had successfully avoided problems with about 30 shipments within six months of starting a real-time monitoring solution. Among them was one of their most expensive and critical shipments destined for Brazil.
What does the pharma supply chain digital transformation bring to the table for the future?
As pharma companies realize the benefits of the digital supply chain and adopt it, it will become the new normal.
By minimizing human intervention with a “no-touch” or “zero-touch” approach, companies enjoy a sustainable competitive advantage, cost-effectiveness, and superior agility. Thus, they protect themselves from future crises of vital medications and eventually deliver better patient care.
Do you need a partner to discuss how you can remain or be more competitive in your market? Or perhaps you need to obtain more insights on this or other biopharma and healthcare-related topics?
Contact us and gain best-in-class market insights. Learn how we help you make informed decisions.
#pharmasupplychain #digitalsupplychain #drugshortage
Sources:
https://www.pharmaceutical-technology.com/analysis/pharma-supply-chain-digitisation/
https://www.strategyand.pwc.com/gx/en/insights/2016/digitization-in-pharma/digitization-in-pharma.pdf
https://www.mckinsey.com/industries/life-sciences/our-insights/four-ways-pharma-companies-can-make-their-supply-chains-more-resilient
https://www.forbes.com/sites/forbestechcouncil/2022/01/27/digitizing-the-pharma-supply-chain-ecosystem/?sh=2a665505315d