SUPPLY CHAIN MANAGEMENT to decarbonise the supply chain . 4 Now that there is a framework in place , it is about peeling back each layer of the chain and measuring the impact it has on ESG goals .
Boosting supply chain visibility
Part of the transition to a more sustainable pharmaceutical supply chain is driving the need for digital transformation . While Big Pharma has always been an early adopter of technology like ERP systems , many SMEs have relied on data input spreadsheets for far too long . This is where headaches are caused within the value chain and a lot of the operational bottlenecks begin to take shape . The fractious disconnect is clear ; one company is working with ERP and warehouse management systems ( WMS ) via a cloud-first approach , another is on the cusp of transitioning from spreadsheets to a fully managed digital workflow , then the final company is manually inputting data into Excel spreadsheets . There is no cohesion , no single ‘ point of truth ’. This results in human error , excess labour and wasted time , and creates a catastrophic combination that is tragically easy to avoid . When businesses invest in the infrastructure and training required , it is much easier to manage risks and regulatory compliance . As a natural result , speed , accountability and transparency are improved effectively . The industry can further limit risk by bringing the Responsible Person ( RP ) for Good Distribution Practice ( GDP ) in-house , instead of outsourcing to another company . Doing so helps to foster a culture of open and transparent communication within the supply chain to optimise strategic planning following regular GDP audits – including , but not limited to , cold chain , air and sea freight , road transport and last-mile deliveries . In-house RPs can also quickly source strategically located MHRAapproved warehouses , for the storage of chilled and controlled drugs , for swift transportation via land , sea or air , saving crucial time .
Need for more accurate forecasting
With a volatile market , pharma companies must start investing in new distribution approaches , combined with software that can deliver real-time data insights to forecast supply and demand . While just-in-time manufacturing – as a more traditional management philosophy – has worked well in the past , it cannot keep pace with the market volatility and disruptions seen today accurately . We are in a market dominated by fluctuation , and this has to be accounted for in design and execution of the supply chain . Reflecting this , a modern supply chain management process is powered by artificial intelligence and driven through a collaborative and multitouchpoint approach . For example , take the milk round method in distribution . Instead of ordering one batch of raw materials , waiting for the delivery , and then ordering another once stock is low , the milk round approach delivers one container with all your orders at once . Not only does this significantly reduce the time and cost of multiple deliveries , it also decreases emissions .
Yet the milk round approach can only work efficiently with accurate forecasting methods . This , and a move by pharma companies to implement advanced technology , such as radio frequency identification or near field communication , to track and trace goods accurately , and seamlessly integrate this with their ERP , WMS or SCM systems , delivers real-time business intelligence . For example , one healthcare distribution centre in the US is already doing this with robots , where they accurately capture and validate serial and lot numbers to ensure medications are shipped to the patient at the right time . 5 With pharmaceutical product recalls in Europe increasing by 48 % in 2021 6 , primarily due to safety concerns , using AI that can prevent this from happening is a no-brainer .
Planning for the future
Over the next year , supply chain disruption is unlikely to abate . However , pharma companies that are looking to improve their resilience through dual sourcing , alongside investing in AI technology to cut back on emissions and minimise product recalls , are already putting their best foot forward during a period of increased volatility . Major distributors like ACI will be ready to help weather the storm . •
Karsten Smet
DIRECTOR
ACI GROUP k + 44 1628 601 601 J info @ acigroup . biz j acigroup . biz
References 1 : European Pharmaceutical Review , June 2022
2 : Lotfi Belkhir , Ahmed Elmeligi , Journal of Cleaner Production . 2019 . 214 : https :// doi . org / 10.1016 / j . jclepro . 2018.11.204 .
3 : Pharmaceutical Technology , October 2021 4 : Pharmaceutical Manufacturer , November 2021 5 : Inbound Logistics , August 2022
6 : Sedgewick , European product recalls spiked by over 25 % in 2021 , rising ahead of pre-pandemic levels , March 2022
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