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Supply Chain Best Practices for Pharmaceutical Operations

Victoria Ebel, Appian
June 28, 2024

Due to market pressures and disruptions, life sciences organizations need to reexamine their supply chain operations and how to more safely and efficiently bring products to market. However, deciding where to begin implementing change can be daunting. Here are some best practices for achieving streamlined end-to-end supply chain orchestration.

Enhancing collaboration and communication

Communication is a huge challenge across the pharmaceutical supply chain. With many internal and external teams contributing to product development and commercialization, trying to gather and handoff information among groups can be time consuming and frustrating.  The pharmaceutical industry must overcome this lack of transparency, with data often fragmented across systems and stakeholders.

Adopting a system that can integrate and connect all data and stakeholders—manufacturers, suppliers, distributors, and pharmacies—facilitates seamless communication and coordination. Harmonizing efforts across supply chain processes will promote end-to-end visibility and lead to better planning and faster response times to market demands.

Focusing on quality and compliance

Ensuring quality and compliance throughout the pharmaceutical supply chain is crucial due to the critical nature of the products involved and the significant impact they have on public health and safety.  Having heightened visibility into all supply chain processes, from deviation management to shipment tracking, is essential to ensure the best quality products are reaching the hands of patients. This improved traceability and control also helps mitigate potential incidents and reduces time spent responding to quality and compliance issues. 

Leveraging artificial intelligence (AI) capabilities can improve manufacturing and shipping management and strengthen product quality assurance. AI can help monitor production processes to ensure that quality standards are maintained. It can detect anomalies and predict potential quality issues before they become critical, thus maintaining high standards of product safety and efficacy. Process automation solutions with AI capabilities can also track shipment location, monitor cold chain distribution, and ensure the accuracy, authenticity, and safety of products in transit to protect against fraud and counterfeiting and ensure corporate responsibility.

Ensuring supply chain resilience

Supply chain disruptions, such as sourcing bottlenecks and global logistics backlogs, delay essential goods and increase inefficiencies. To address these issues, life sciences companies are moving away from reliance on single manufacturing sources to diversify sourcing and production locations. 

This move enhances end-to-end visibility and control, allowing businesses to adapt more effectively to local market conditions and respond promptly to fluctuations in supply and demand.  This also optimizes operations at a regional level, aligning them closely with specific market dynamics and customer needs. A decentralized model strengthens risk management by providing the agility to address potential supply disruptions proactively. Enhanced data integration across regional units improves the accuracy of forecasting, planning, and resource allocation, driving efficiencies and enhancing profitability while maintaining continuity and resilience in a dynamic market environment.

Leveraging process automation

As the market forces life sciences organizations to change their operations, many are looking to leverage automation capabilities to streamline processes and interactions across the supply chain. 

Process automation serves as an effective tool, along with effective integration capabilities and AI, to increase the visibility and control you have over the end-to-end pharmaceutical supply chain. The top benefits process automation can bring to supply chain orchestration include:

  • Enhanced workflow efficiency and collaboration
  • Improved accuracy and quality control
  • Ensured compliance with regulatory standards
  • Enhanced visibility into operations

Further Reading

Learn more about the power of automation in the supply chain.