Supply chain management (SCM) entails the successful administration of supply chain operations designed to increase profits and provide a better customer experience. The process ensures that pharmaceutical products are manufactured as planned and become available in hospitals, pharmacies, and other health services on time. According to Inkwood Research, the global pharmaceutical supply chain management market is projected to progress with a CAGR of 8.84% between 2023 to 2032, capturing a revenue share of $5289.53 million by 2032.
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The success of a manufacturing organization depends greatly on the efficacy of the supply chain as a whole. If a certain link in the chain is disrupted or weak, it could jeopardize the entire chain. Supply chain management, in this regard, is essential to help organizations remain agile while handling unexpected issues or variability that may occur. By streamlining supply chain processes and increasing visibility, pharmaceutical businesses can diagnose problems and find suitable solutions more swiftly. According to Inkwood Research, the solution segment within pharma supply chains is set to grow with a CAGR of 8.67% between 2023 to 2032.
An effective and streamlined pharmaceutical supply chain includes the implementation of various strategies and technologies to provide customers with unique added value. Aligning with this, this blog explores how leading companies are focusing on the development of advanced technologies to enhance supply chains for the pharmaceutical industry globally:
● Infor Cloverleaf® Integration Suite: This suite streamlines clinical data exchange to enhance business operations and medical outcomes. Utilized by more than 1/3 of hospitals in the United States and deployed in 36 nations, it enables healthcare organizations to securely resolve complex interoperability difficulties at scale using the latest standards, including Fast Healthcare Interoperability Resources (HL7® FHIR®).
● Tecsys’ Elite™ Pharmacy Inventory Management System (PIMS): In August 2021, Tecsys Inc (Canada), a leading supply chain management software company, announced its collaboration with Indiana-based Parkview Health to fortify its pharmacy operations with Elite™ PIMS. This system allows Parkview Health to source the best drug pricing advantages while ensuring regulatory compliance, auto-generate replenishment orders, and manage vendor and purchasing invoice matching via EDI data exchange.
● Vizient Supply Chain Operations Services: In 2021, Vizient (United States) launched a set of solutions aimed at improving healthcare supply chain resiliency through greater predictability and transparency across trading partners. These solutions provide risk management services for a provider’s critical supply list and improved visibility into supplier distribution and manufacturing sites.
● McKesson’s Healthcare Distribution Center: In October 2022, McKesson Corporation (United States) established a new state-of-the-art pharmaceutical distribution center in Jeffersonville, Ohio. This facility distributes over-the-counter (OTC) pharmaceutical and home healthcare products, as well as consumer-packaged goods (CPG), to customers across several states. Equipped with automated putaway, replenishment, and order-filling processes, it also includes a robotic palletizer and tote washer to handle significant volume growth over time.
● SAP Information Collaboration Hub for Life Sciences: Operating on the SAP Business Technology Platform (SAP BTP) and leveraging SAP Blockchain Business Services, this hub is the first public-cloud, industry-specific business network utilized by over 45 pharmaceutical firms. It is implemented across 1,500 trading partners and 80% of COVID-19 vaccine manufacturers, showcasing the future of the pharmaceutical supply chain.
● TotalVue™ Analytics: OptiFreight® Logistics, a Cardinal Health (United States) company, launched TotalVue™ Analytics in January 2021. This tool enables healthcare supply chain leaders to use predictive technology and data to detect logistics savings and benchmarking. TotalVue™ Analytics provides health systems with visibility into shipping trends, helping identify opportunities to reduce freight costs and optimize transportation expenditures through real-time shipment tracking.
To mitigate future risks and minimize dependence on foreign suppliers, various pharmaceutical manufacturers are diversifying their supply chains and establishing local production facilities with the latest technologies.
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Improving Patient Safety: AI’s Role in Optimizing Pharmaceutical Supply Chains
The novel coronavirus pandemic has expedited the adoption of digital solutions such as blockchain, cloud computing, the Internet of Things, and artificial intelligence (AI) in supply chain management. AI is a disruptive, cutting-edge technology that, when integrated with predictive analytics and machine learning, can significantly enhance the digital pharmaceutical supply chain management, contributing to improved efficiency and patient safety.
AI-enabled decision support systems facilitate patient safety by improving error detection, drug management, and patient stratification. These advancements play a pivotal role in strengthening pharmaceutical supply chain functions, addressing some of the greatest challenges in managing the drug supply chain. For example, an AI-based pharmaceutical supply chain can help validate product legitimacy, authenticate medical devices, and track counterfeit products, contributing to effective patient care.
In conclusion, the future of the pharmaceutical supply chain is increasingly reliant on advanced technologies and strategic innovations. By embracing these developments, Pharma Supply Chain Leaders can ensure greater supply chain transparency, enhance supply chain operations, and support the fundamentals of the pharmaceutical supply chain to meet the evolving needs of the healthcare industry.
Frequently Asked Questions (FAQs) –
1. What are cold supply chain pharmaceutical products?
A: Cold chain pharmaceutical products are characterized as goods that must be stored at a certain temperature in order to maintain optimum safety and quality. These products include vaccines, gene therapies, biologics, and components of cells.
2. What are some of the key challenges addressed by pharmaceutical supply chain management?
A: Drug counterfeiting, compliance-related issues, risk of OTIF (a measurement of logistics or delivery performance within a supply chain) failures, and problems in the collection and analysis of large volumes of data are some of the key challenges addressed by pharmaceutical supply chain management.
