What are the most effective ways to overcome supply chain disruptions in the pharmaceutical industry?

The pharmaceutical industry faces many challenges in ensuring the continuity and quality of its supply chain, especially in times of crisis, such as the COVID-19 pandemic. Supply chain disruptions can have serious consequences for the health and safety of patients, as well as the reputation and profitability of pharmaceutical companies. How can the industry overcome these disruptions and build more resilient and sustainable supply chains? Here are some of the most effective ways.

1 Assess and mitigate risks

The first step to overcome supply chain disruptions is to identify and evaluate the potential risks that could affect the sourcing, production, distribution, and delivery of pharmaceutical products. These risks could include natural disasters, geopolitical conflicts, regulatory changes, cyberattacks, quality issues, demand fluctuations, and supplier failures. By conducting a comprehensive risk assessment, pharmaceutical companies can prioritize the most critical and vulnerable areas of their supply chain, and develop contingency plans and mitigation strategies to reduce the impact of disruptions. For example, they can diversify their supplier base, establish alternative sourcing options, increase inventory buffers, implement quality control measures, and monitor risk indicators.

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Louis Henry 𝘉𝘈, 𝘔𝘚𝘤

Global Quality Manager specialising in Cold Chain Logistics
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Risk must be assessed not only from the limited scope of the interested party, but for the whole supply chain holistically. I worked with a customer on a recurring issue that caused product to be held in quarantine due to damage on arrival into the consignee site. Following the process from the start, all the way through we could not find root cause until we looked at the consignee unloading process, which by the nature in which it was being completed, was causing the damage that was being reported. Instruction to mitigate the risk of this happening was communicated between party 1 and party 2, but not relayed to party 3 leading to these issues.

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2 Leverage digital technologies

The second step to overcome supply chain disruptions is to leverage digital technologies that can enhance the visibility, agility, and efficiency of the supply chain. Digital technologies can help pharmaceutical companies to collect, analyze, and share real-time data across the supply chain, enabling them to track and trace the status and location of their products, materials, and equipment, and to identify and respond to any issues or opportunities. For example, they can use cloud computing, artificial intelligence, blockchain, and Internet of Things to optimize demand forecasting, inventory management, production planning, logistics coordination, and quality assurance.

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3 Collaborate with stakeholders

The third step to overcome supply chain disruptions is to collaborate with stakeholders, such as suppliers, distributors, customers, regulators, and industry associations, to create a more transparent and coordinated supply chain. Collaboration can help pharmaceutical companies to share information, resources, and best practices, to align their goals and expectations, and to resolve any conflicts or challenges. For example, they can establish long-term partnerships with strategic suppliers, engage in joint planning and problem-solving with distributors and customers, comply with regulatory standards and requirements, and participate in industry initiatives and networks.

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4 Adopt circular principles

The fourth step to overcome supply chain disruptions is to adopt circular principles that can make the supply chain more sustainable and resilient. Circular principles aim to reduce waste, reuse materials, and regenerate resources, by designing products and processes that minimize environmental impact and maximize resource efficiency. By adopting circular principles, pharmaceutical companies can not only reduce their carbon footprint and operational costs, but also improve their supply chain security and reliability. For example, they can use renewable or recycled materials, design products for durability and recyclability, implement waste reduction and recovery practices, and promote circular consumption models.

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5 Invest in innovation

The fifth step to overcome supply chain disruptions is to invest in innovation that can enable the supply chain to adapt to changing market conditions and customer needs. Innovation can help pharmaceutical companies to develop new products and services, improve existing ones, and create competitive advantages. By investing in innovation, pharmaceutical companies can not only meet the current and future demand for pharmaceutical products, but also anticipate and overcome potential supply chain disruptions. For example, they can explore new ways of manufacturing, such as 3D printing and continuous manufacturing, new modes of delivery, such as drones and smart packaging, and new sources of value, such as personalized medicine and digital health.

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6 Develop a culture of resilience

The sixth and final step to overcome supply chain disruptions is to develop a culture of resilience that can foster the mindset and behavior of the supply chain workforce. A culture of resilience can help pharmaceutical companies to cope with uncertainty and volatility, to learn from failures and successes, and to embrace change and innovation. By developing a culture of resilience, pharmaceutical companies can empower their supply chain employees to be proactive, flexible, collaborative, and creative, and to deliver high-quality and reliable products and services to their customers. For example, they can provide training and development opportunities, encourage feedback and communication, reward performance and improvement, and celebrate achievements and milestones.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Alan Kennedy

GDP Universal Compliance Initiative
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To overcome disruptions in the pharma supply chain: 1. it is generally important to avoid 'having all your eggs in one basket'. Consider diversifying suppliers and logistics modes. 2. Focus on developing long-term collaborative relationships where interdependence and common goals drive trust, transparency and mutual commitment. 3. In conjunction with these partners, develop and adopt practical and robust risk management strategies including appropriate contingency plans. 4. Invest in digital technologies to improve supply chain visibility and pre-emptive action. 5. Review your inventory management strategy to minimise supply and demand vulnerabilities.

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BHAVESH V AGARWAL

Associate Vice President & Deputy Site Head | Plasma Fractionation | Sterile Manufacturing | Operational Leadership | Strategic Growth & Business Excellence
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In my experience , every company should have business continuity strategic plan to overcome supply chain disruptions and other risk factors. In Covid era , companies have witnessed disruption in entire supply chain whether we talk about sourcing, manufacturing and distribution. It is utmost important to ensure consistent supply of raw materials and manufacturing of products to meet market demand. As a company , we need to perform VSM ( Value stream mapping) on entire SIPOC ( Supplier- Input- Process-Output-Customer) and assess the risks and develop mitigation plan on same. Critical areas / materials need to be identify and strategic plan to be prepared for ensuring their availability all the time.

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Tiffany Brewer

GTM Strategy | Supply Chain | Operations Excellence | Integrated Business Planning | Strategic Analytics | PMO | SaaS | AI | Product Management | Leadership | Customer Leader | Sales Strategy | Business Development
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When thinking about how to limit the impact of disruptions in the pharmaceutical supply chain, a multi-pronged approach is needed. First, it must be understood that disruptions can’t be eliminated but their impact can be. There will always be external factors that impact the pharmaceutical supply chain, whether weather, geopolitical, or health events. Next, it is important to map out the entire supply chain for your company. This is a complex exercise, as the supply chain for a given company is quite vast. It begins with raw materials, extends into the supplier network, manufacturing network for your own company and contract manufacturers, logistics networks, warehousing and distribution networks, and finally into the end consumer.

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What are the most effective ways to overcome supply chain disruptions in the pharmaceutical industry?

1

2

3

4

5

6

7

1 Assess and mitigate risks

2 Leverage digital technologies

3 Collaborate with stakeholders

4 Adopt circular principles

5 Invest in innovation

6 Develop a culture of resilience

7 Here’s what else to consider

Sustainability

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What are the most effective ways to overcome supply chain disruptions in the pharmaceutical industry?

1

2

3

4

5

6

7

1 Assess and mitigate risks

2 Leverage digital technologies

3 Collaborate with stakeholders

4 Adopt circular principles

5 Invest in innovation

6 Develop a culture of resilience

7 Here’s what else to consider

Sustainability

Rate this article

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