FEATURE Logistics NAVIGATING SUPPLY COMPLEXITY


Pascal Degen, Vice President of Global Supply Chain Management at Bachem, explains the challenges faced by pharmaceutical CDMOs in a VUCA world


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harmaceutical supply chains are becoming increasingly vulnerable to a range of disruptions. From geopolitical upheavals to natural disasters, the unpredictability of the modern world demands innovative strategies for maintaining stability in the face of disruption. Contract Development and Manufacturing


Organizations (CDMOs) play a critical role in navigating these challenges by ensuring the consistent production and delivery of life-saving medications. There is a pressing need for CDMOs to address these supply chain challenges in a volatile, uncertain, complex, and ambiguous (VUCA) environment, and to implement strategies for resilience in the face of global uncertainty.


Since 2000, the pharmaceutical industry has faced a series of global crises that have exposed vulnerabilities in supply chain operations. For   and early 2022, 255 trials were initiated or completed  mid-2023, this number plummeted to 33, an 87% reduction. This stark drop underscores the ripple  operations.


Pharmaceutical manufacturing involves managing extensive, intricate supply chains. CDMOs – tasked with ensuring compliance with regulations,   • International regulatory requirements  complicating cross-border operations. • Over-dependence on certain geographic


regions and manufacturing makes companies vulnerable to localised disruptions. • Batch manufacturing limitations


 with longer lead times and risks such as workforce shortages and logistical challenges These challenges were made more prominent during the COVID-19 pandemic, which caused widespread shortages of essential drugs and materials.


CDMOs are implementing proactive measures


to strengthen supply chain resilience. A robust framework for resilience is built on four  1. Visibility


ensures early detection of potential disruptions. 


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processes allows for swift corrective measures, minimising downstream impacts. 2. Flexibility


sourcing materials from a more diverse pool of suppliers and scalable manufacturing processes, enable CDMOs to respond to changing conditions  single-source suppliers and mitigates bottlenecks. 3. Collaboration suppliers, manufacturers, and logistics providers   4. Control and Transparency communication, robust data management, and  trust across the supply chain. Transparency in operations ensures alignment with stakeholders and mitigates risks.


Innovative technologies are playing a pivotal


role in reinforcing pharmaceutical supply chains. Tools such as predictive analytics and blockchain analytics are helping to improve traceability and decision-making, and streamline operations. CDMOs are also seeing technological advancements in production methods, such as   manufacturing methods remain commonplace, the integration of cutting-edge technologies is gradually reshaping the industry for the better. The pharmaceutical industry must adapt to a world where disruption is the norm. Key  • Diversifying supply chains


 mitigate risks. • Strengthening partnerships


relationships with stakeholders to promote more collaborative relationships. • Investing in technological innovation


 resilience. • Improving agility systems capable of responding to sudden changes in demand or supply conditions.


Bachem www.bachem.com


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