Karsten Smet of ACI Group shares insight into today ’ s pharma supply chain challenges
What more needs to be done in the pharma supply chain to ensure a sustainable future ?
Today , the pharmaceutical supply chain is almost unrecognisable compared to just 12 months ago . Having learned from its failings during the COVID-19 pandemic , key industry players are becoming more resilient to vulnerabilities and more adept at handling key pressure points . Between rising geopolitical tensions , a zero tolerance COVID-19 policy in China and volatile market demand , the pharma industry may have been slow to wake , but it is beginning to navigate these challenges with increasing efficiency . Even so , some difficulties remain . Lead times for raw materials and APIs are extending , mainly due to continuing dependence on China and India . This leads to many suppliers believing the best course of action is to overstock in anticipation , causing bottlenecks within distribution . Fortunately , dual sourcing is a much more viable solution here , where eliminating dependency on one supplier can help mitigate the risks of supply chain disruption .
Speciality chemical manufacturers are also expected to navigate new regulatory processes , including changes made to the EU ’ s pharmaceutical legislation by the European Commission this December 1 , alongside complying with new Medical Device Regulations and seeking MHRA licensing approval . Regulatory compliance then influences product recalls and increases the need for digital transformation to improve traceability and visibility . Rumbling in the background – like the ominous and unavoidable thrum of a distant thunderstorm – is the issue of climate change . In 2019 , it was reported that the pharma industry produced 48.55 tonnes of
CO 2 equivalent for every one million dollars it generated , placing it above the automotive industry at 31.4 . 2 Rising demand for cold storage supply chains only exacerbates the issue , causing further surges in emissions and energy consumption . This was a hot topic at COP26 last year , with many key opinion leaders debating the industry ’ s contamination of water supplies , inefficiencies in transport and logistics , and packaging waste . 3 The good news is that approximately 80 % of biopharma companies have now set either net zero or carbon neutrality targets , with some of the biggest household names signing up to the ‘ Energize ’ programme , a renewable energy initiative that hopes
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