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Supply chain & logistics


“Economic pressures such as trade wars, inflation and instability – particularly in Europe – will further strain supply networks,” she adds. “The increasing complexity of integrating new technologies, coupled with the growing risk of cyber-attacks targeting physical infrastructure, presents significant vulnerabilities.” Beyond those risk factors, natural disasters and climate change will continue to disrupt logistics and production. There is also the prospect that stricter regulations will demand greater transparency and compliance, which would add another layer of complexity to global operations. At the same time, a shortage of skills in key areas such as data analytics and automation will demand investment in training to maintain supply chain resilience.


Challenge and opportunity


Disruptions to air freight can have a hugely negative impact on the supply chain, perhaps more so than any other, as effective alternatives to key air routes are limited where time-sensitive and temperature- sensitive pharmaceutical products are concerned. The risk of delays to critical shipments, including vaccines, medications and biological samples, could adversely affect patient care and research timelines. “Without proper temperature control, these products may degrade or spoil, resulting in financial losses and potential health risks,” says Ben Hamida. “Additionally, disruptions can drive up transportation costs as companies are forced to seek alternative, often more expensive, shipping solutions. Regulatory non-compliance due to delays or mishandling can lead to fines and reputational damage.” Several key risk factors contribute to these challenges, including severe weather causing flight cancellations, conflicts and political instability leading to airspace restrictions, and security concerns. “Furthermore, issues with tracking systems, temperature monitoring and evolving regulatory requirements add further complexity, making proactive risk management essential for maintaining pharmaceutical supply chain integrity,” she adds. So, what can the industry do to not only manage risk, but also surmount these problems as they arise? Many options present themselves, each with its own unique pros and cons. For instance, integrating contingency strategies into supply chain management processes is key. It improves preparedness, mitigates risk and introduces a welcome degree of flexibility. Coordinating backup plans is, however, costly and brings an additional layer of complexity. Predictive crisis management techniques also have their benefits. Taking a proactive approach to derive insight from large data sets to model future scenarios can bring additional efficiency and preparedness, which can greatly improve the decision-making process and save valuable time. On the downside, a significant investment is required in both systems


World Pharmaceutical Frontiers / www.worldpharmaceuticals.net


and technical expertise, and there may be concerns about the quality of data going into the models. There is always scope to introduce innovative technologies. Blockchain, for example, can be deployed to improve data transparency and security. Creating an immutable ledger of transactions using blockchain technology can ensure that each step on the cargo journey is documented and can be viewed by key stakeholders.


Drones are also heralded as the next leap forward in air freight, though it could be a decade before they are fully integrated. Promising an efficient, sustainable and flexible means of delivery to remote regions, they are best suited to the last-mile element in the logistics chain and will complement air freight shipping rather than be an alternative. Any new technology – be it drones, blockchain or anything else – could bring additional efficiency, flexibility and transparency, but there will always be regulatory hurdles to clear, as well as complex processes for integration. “Diversifying transportation routes brings risk mitigation, cost efficiency, improved reliability and enhanced flexibility, but that, too, has complications,” says Ben Hamida. “Managing multiple routes and modes of transport increases logistical complexity. Different routes may involve navigating various regulatory environments, which can complicate compliance efforts.”


“Ensuring visibility and tracking across multiple routes can require advanced technology and real-time data integration,” she adds. “Finally, different routes and modes may offer varying levels of service quality, which can affect overall supply chain performance.”


Collaboration is the key There is no single answer for how to build resilience into the pharma supply chain. Instead, many elements must combine to ensure disruptions are navigated effectively. Relying on multiple suppliers from different regions can reduce the risk of disruption should one supplier face problems. Contingency plans certainly play a role, provided that they are specific to various types of disruption scenarios.


From a technology perspective, implementing end- to-end visibility tools can help companies to monitor the supply chain in real time, allowing for quicker responses to potential disruptions. AI and IoT solutions could also improve forecasting and tracking. “To ensure supply chain quality, pharma companies should invest in robust contingency planning and the adoption of the highest standards such as the Center of Excellence for Independent Validators in Pharmaceutical Logistics – CEIV Pharma – certification,” stresses Ben Hamida. “The programme ensures that all parties involved meet all the required requirements for temperature- controlled transport.”


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