Empowering the Future of Pharma by achieving Digital Maturity in the Supply Chain
An effective and efficient supply chain management is a competitive advantage for any organization, and this is especially true for the pharmaceutical industry as the impact of disruption could be devastating. The pharma value chain is very complex by virtue of manufacturing complexity. A well-designed supply chain ensures that pharmaceutical companies are able to manufacture and deliver their products efficiently and effectively to meet demand dynamics, while minimizing waste and ensuring product quality and safety. The pharma industry supply chain is constantly evolving to meet the changing market needs on Cost, Agility, Value, Quality and Sustainability. Adoption of Automation & Digital technologies in supply chain are indispensable to address critical business challenges hence every organization is taking several digital strategic initiatives to remain relevant and agile.
The supply chain has evolved – it has gone beyond balancing demand and supply through ad-hoc mechanism, to focus on efficiency and adaptive operations. Digital and automation technology provide data-driven intelligence for optimized manufacturing processes, adding significant leverage to logistics and partnership management through effective resource utilization, improved yield, and prediction. This industry-wide adoption of new technologies is driven by a few key factors and new market requirements that are increasing the complexity and value of the supply chain ecosystem. One example is the rise of novel therapeutics, such as personalized medicine, biologics, and vaccines, increasing demand for cheap pharma products, regulatory compliances and more. This expansion will further make technology adoption pertinent to sustain this growth.
Let us discuss what the new-age digital evolution offers to the supply chains of the pharmaceutical world:
Access to data: While traditional supply chain used to work the fragmented datasets (data from manufacturing, data from distributors use for demand planning), integration of data across the function or touch points in the supply chain would bring holistic view of data. The journey to digitally transform the supply chain must focus on building data strategy to have access to centralized data. Such massive data analysis to gain valuable insights would require tools and techniques in the form of Data Management & Analytics Platform. Having right data with context would help in taking the right decision and advance analytics led by AI/ML can help in further optimization of supply chain.
End-to-end supply chain management: The core of the supply chain in the pharma world starts right from sourcing the raw materials. This requires a manufacturer to connect and coordinate with thousands of suppliers to procure multiple raw materials and APIs (Active pharmaceutical ingredients). Manual coordination with them on such a massive scale is not feasible. Digital solutions here, enable manufacturers to automate the process with advanced dashboards and real-time tracking. This allows them to view and store supplier information, conduct risk assessments, manage quotations, ensure quality etc. all from a single window, enabling effective vendor management at scale.
Digital technology has been enabling the transition from supplier to a partner through real time sharing of current stock, forecast, and collaboration on market needs. The need of the hour for the Pharma Industry to have an effective digital enablement of supply chain that brings transparency across the stakeholders and partners. Integrated approach to supply chain is build a connected platform and it is possible to have connected supply chain where in suppliers, manufacturers, distributors, and consumers are always on the same page to act pre-actively.
Better governance and decision making: Decision-making is the most critical aspect of the value chain for any business. In the pharma world, 99% of the leadership time and mindshare is devoted to making the right decisions. In a competitive business landscape, decision-making must be backed by accurate data to ensure the success of operations. To harness credible data, pharma companies deploy multiple solutions for each function like sourcing, manufacturing, quality control, distribution, etc. There are dedicated tools for each function that work coordinated with each other to garner better actionable insights.
Gain operational excellence: One of the critical elements of supply chain is efficient manufacturing operations that ensures maximum productivity and minimal waste. Digital and Automation can plan a significant role in achieving operational excellence. This involves leveraging digital technologies such as cloud computing, analytics, and mobile devices to enhance your operations. Digitization is transforming the supply chain, from the use of IoT sensors to track inventory in real-time, to automated warehouses and robotic process automation (RPA) to streamline processes and reduce errors.
By digitizing the manufacturing processes through a software such as Bio4C Orchestrator™ from Merck, organizations can reduce manual errors and delays and gain real-time visibility into the manufacturing operations. Data analytics can help making informed decisions to optimize operations. The use of data analytics and AI enables supply chain managers to better predict demand, optimize inventory, and improve efficiency across the entire supply chain.
By using data analytics tools such as Bio4C ProcessPad™, manufacturers can identify areas of improvement to reduce costs, optimize processes, and improve customer satisfaction. A platform like Bio4C ProcessPad™ can even predict the future of an ongoing batch in terms of yield and quality further adding value in a meaningful way to manage the supply chain.
Cost optimization: Digitization and deep analytics optimise the entire operations on an end-to-end basis. Advanced solutions analyse costs involved in sales, distribution, production, etc., and give accurate reasons for any additional cost incurred during the process. Software solutions also have pre-installed cost modules that show companies the optimum inventory levels to avoid additional costs.
Different solutions for distinct functions: The advent of sophisticated platforms and portals is facilitating collaborations across customers, suppliers, and distributors and setting a new level of efficiency across the pharmaceutical supply chain. There are multiple tools and solutions dedicated to each function throughout the value chain like enabling SAP ERP at sourcing for realtime visibility, Bio4C ProcessPad at the stage of manufacturing enabling a bird’s eye view of all the processes for better control,360-degree planning solutions offered by SAP at a planning and strategy state, and effective inventory management using LIPL or SAP.
Next generation supply chain
Pharma Industry is gearing towards next gen manufacturing process that will be intensified, connected, continuous where in manufacturing operations would be autonomous and response of any internal and external change would be adaptive. An efficient supply chain will be essential to realize next gen manufacturing. The next generation of supply chain management is expected to be characterized by increased digitization and automation, greater use of data analytics and artificial intelligence, and a focus on sustainability and social responsibility. It is critical for the industry to take phased approach now to build the foundation of digital and automation led business transformation. This phased approach could be at functional level such as considering digitalization of logistics, digital manufacturing however focus must be there to integrate all of them that helps to build connected enterprise in long term. Overall, the next generation of supply chain is expected to be more efficient, sustainable, and socially responsible, driven by technology and data-driven insights.
(The author is Brajnandan Thakur, Global Product Manager-Process Automation & Analytics, Merck Life Science, and the views expressed in this article are his own)
