Supply chain & logistics Lessons for the future What about biopharmaceutical supply chains?
The impact of Covid-19 has had a major effect on biopharmaceutical supply chains. Like most other industries, these manufacturers continue to struggle with sourcing raw materials and ensuring the timely delivery of finished goods. Supply chain experts believe these challenges aren’t likely to end anytime soon. Ports in America and around the world continue to deal with record levels of congestion, and labour shortages are hampering the ability of logistics companies to move goods – including vaccines and drugs – over land. Manufacturing disruptions caused by outbreaks of Covid-19 in East Asia may also make the procurement of raw materials and essential product components much more difficult than before the pandemic began. Resilience has become more important than ever for pharma supply chains. In response to these challenges, biopharmaceutical manufacturers are looking for ways to strengthen their supply chains against ongoing volatility and emerging threats, like cyberattacks. In general, biopharma manufacturers are outsourcing and regionalising more, as well as looking for second sources that can make supply chains more resilient. As a result, companies are coordinating increasingly global and distributed strategies. In 2022, these new supply chain strategies could become the norm for major manufacturers, especially as businesses continue to struggle with the ongoing impact
of Covid-related supply chain challenges. Source: International Society of Automation
the next-normal environment, companies will need to achieve resilience without unsustainable increases in their costs.”
If, as Horner suggests, the dangers of global shifts have been overplayed, then where are the big risks? Pharmaceutical companies are somewhat more insulated from supply chain shocks than other industries because they hold higher inventory levels, but many risks remain. For instance, cyberattacks such as that suffered by Merck in 2017 can cause significant losses in revenue and disrupt supply chains. “To thrive in a volatile and unpredictable post- pandemic economy, companies will need multiple levers to achieve the operational resilience needed to ride out shocks and disruptions, and the agility to exploit emerging opportunities,” says Foster. “A lack of visibility into the business practices of suppliers and suppliers’ suppliers can also be a significant risk for pharma companies,” she adds. “It is vital to have a clear understanding of exposures beyond inventory levels, including how products are developed, delivered, and stored, because each stage poses its own potential problems.”
Pharmaceutical supply chains have historically been less automated than in other industries, so there is scope for technology to improve resilience. Digitalisation will play a key role in providing visibility into suppliers’ businesses, for example, and could help to boost cybersecurity. “Converging factors are fuelling a technology revolution for pharma operations, including the use of advanced technologies such as digital analytics that can not only improve a company’s risk management, but deliver a step change in performance in the long term,” Foster believes. “Successful supply chain risk management starts with getting a clear picture of what’s happening at each phase of production – from sourcing of raw materials to final delivery – which requires gathering internal and external data sources in seven key areas: data security, finance, operations, organisational maturity, regulation, reputation, and structure,” she adds. For Horner, recent supply chain failures have been caused largely by the rapid scaling up of production to meet increased demand, which has focused attention on increasing efficiency, but much depends on policymakers, whose constituents are now more likely to vote on the issue of health security. “The problem needs a long-term approach,” he remarks. “Ultimately, the solutions lie in policy coordination. One option is digital technology that brings jobs and pharma production back on shore, but I don’t see that being sufficient. To me, it is about policy coordination to ensure the supply of ingredients.”
There is no single magic bullet that will improve the resilience of the pharmaceutical supply chain, but there are many levers that can be pulled to manage the complexity and adapt to the new normal. While technology will play a role, collaboration between countries and supply chain partners will be the most important factor. Global risks require, after all, a global response. ●
Collaboration between countries and supply chain partners is critical in overcoming a global crisis like Covid-19.
42 World Pharmaceutical Frontiers /
www.worldpharmaceuticals.net
Porthole Studio/
www.shutterstock.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53
