Pharmaceutical Industry Supply Chain Challenges

Pharmaceutical Industry Supply Chain Challenges

The pharmaceuticals industry is currently estimated to reach USD $155 billion in 2024 and is expected to reach USD $194.10 billion by 2029 with an expected CAGR of 4.71%. Multiple layers in the supply chain involve several parties, making integration and communication difficult. Consequently, the industry faces challenges in the quality distribution of biologicals, impacting the efficacy of the products delivered and raising health concerns for the end consumers.

Challenges faced by Pharmaceutical Industry in Supply Chain

  1. Inventory Management - Medications and biologicals are expensive to produce and store for an extended period. Drugs are perishable, leading to a potential loss in potency and consumer value if not stored and transported correctly, and it is for this reason that delays or other issues in shipments and distribution processes may have a detrimental effect on them. Also, abnormal temperatures can manage medicines making them less effective thus in order to maintain their effectiveness. The results indicate that medicines were unsafely stored in a 21.4% number of homes, which can contribute to the vulnerability of children to poisoning from medicines.

  2. Maintaining Compliance - In health care, there’s no room for error. Rigorous government and industry standards outline procedures, quality standards and documentation requirements. While they’re essential to ensuring public safety, these requirements increase medical supply chain challenges. After all, we all know government procedures are not only long but hectic also, continuous visibility might be difficult, but if it’s the only way to ensure that a life-saving medication is still effective, it’s worth the hassle.

  3. OTIF failures - On-time in-full (OTIF) delivery is an accepted standard in the pharmaceutical industry that assesses whether a supplier delivers shipments that:

    • Have the right items
    • Have the right number of items
    • Go to the right location
    • Arrive on time

    Suppliers must meet all elements of OTIF. Missing one is akin to not delivering the shipment at all. Delays or partial damage thus require complete replacements in expensive, rushed timeframes. Many retailers have different shipment requirements, too. Packaging procedures for one buyer may lead to a rejected shipment for another. Keeping track of these varied demands and ensuring OTIF shipments can be a significant challenge.

  4. Technological bottlenecks are prevalent - The pharmaceutical industry has been highly apprehensive and traditional in adopting newer technologies. While the last decade has seen major leaps, there are still many bottlenecks in leveraging technologies to their full potential.

  5. Cold chain management - Many medicines and vaccines require specific conditions in transport – regarding temperature, humidity, and storage. Therefore, maintaining the cold chain can be challenging, especially in regions with inadequate infrastructure or extreme climatic conditions.

Now is Genme to the Rescue?

  1. Diversification of the supply chain - Relying on a single supplier or region for key raw materials or finished products can increase the risk of disruption in the medical supply chain. Diversifying the supply chain can reduce this risk.

  2. Fresh ideas drive Genme forward - We’re constantly on the lookout for groundbreaking solutions to optimize the pharmaceutical supply chain. This relentless pursuit of innovation keeps us ahead of the curve, ensuring our clients always benefit from the latest advancements.

  3. Improvement of supply chain - Improved supply chain visibility can help identify potential disruptions early and enable proactive mitigation strategies. Digital technologies such as the Internet of Things (IoT) and cloud computing can improve supply chain visibility, enhance data sharing and enable real-time tracking of critical supply chain parameters. We could also move forward with Digital Supply Chain.

  4. Digital twins - As a digital version of your entire supply chain, a digital twin can help you monitor all aspects of your supply chain, share information with others and predict issues that might prevent OTIF delivery. These insights provide a host of powerful tools that support collaboration, agility, resilience and other qualities required for a strong supply chain.

Envisioning a Healthier Tomorrow

At Genme, our focus extends beyond the present as we look ahead to the future. We envision a pharmaceutical supply chain that is efficient, reliable, and adaptable to the evolving needs of the healthcare industry. By adhering to our core values and leveraging the latest technological advancements, we are shaping a healthier and more accessible future for everyone.

Join Us on Our Journey

As we revolutionize the pharmaceutical supply chain, we invite you to join us on this exciting journey. Whether you are a healthcare provider, a pharmaceutical company, or a patient, Genme is dedicated to making a positive impact in your life. Together, we can create a more efficient, innovative, and compassionate healthcare system.