How Digitization Will Bring End-to-End Visibility to the Pharma Supply Chain
Pharma supply chain leaders understand that they must digitize their operations if they want to stay competitive in today's market and keep growing. However, many pharmaceutical organizations are still struggling with manual processes that make their supply networks unreliable.
Without digitization, the supply chain becomes inefficient and siloed, leaving little room for forecasting accuracy or end-to-end visibility. Thankfully, with advancements in IoT technology, ERP software, and analytics capabilities, a more data-driven approach can enable pharma companies to take control of their processes for improved quality management and compliance.
In this blog post, we will explore how digitization can bring greater transparency to the pharmaceutical industry by creating an agile supply chain that quickly adapts to changing consumer demands.
The Pharma Supply Chain Will Only Grow More Complex
Many pharmaceutical organizations are attempting to reduce the complexity of their supply chains by focusing on strategies like localization. However, most global factors indicate the pharma supply chain will only grow in complexity as time goes on. Addressing this complexity will require digitization and the introduction of new technologies.
According to a report by Ernst & Young, "The supply chains of the future will become increasingly expensive to operate, at least until the introduction of newer enabling technologies. Digital capabilities — including automation, AI, and end-to-end supply chain systems and process integration — will be necessary to support these increasingly complex supply chains in the long term."
Pharma organizations that are currently in the process of digitization must invest in technologies that provide end-to-end visibility across their supply chain. This includes advanced applications of physical hardware, such as IoT sensors, but also digital innovations like digital twins. The goal of these implementations is to achieve the ability to track and monitor shipments, identify and predict demand patterns, minimize counterfeiting, and streamline operational processes at every step of the way.
The Challenges of Digitization
Pharma companies struggle with digitization due to a variety of factors. For example, some organizations are hesitant to invest in new technology due to the high cost of implementation, while others face difficulty with data management and integration. These obstacles must be addressed before any meaningful progress can be made toward a digitized supply chain.
One way to overcome these challenges is to enlist a digital transformation partner that specializes in pharma supply chain solutions. This type of partner should have a deep understanding of the industry, as well as experience in developing high-quality digital solutions that can be tailored to meet the specific needs of the organization.
Additionally, they should have expertise in data integration and analytics technologies so companies can leverage real-time insights from across their supply chain.
Best Practices for Digitization Initiatives
Pharma companies should also adhere to certain best practices to achieve the digitization of the supply chain:
- Measure performance: Once digitization is underway, organizations should use analytics to track the performance of their supply chain operations. This can help identify any weak spots in the process and inform decisions about where improvement measures need to be taken.
- Invest in automation: Automated processes are crucial for reducing manual data entry errors, improving accuracy, and streamlining operations.
- Engage with stakeholders: Stakeholders throughout the supply chain, such as suppliers, distributors, and customers, need to be engaged to ensure the smooth functioning of the entire system.
- Maximize visibility: Digitization should enable companies to maximize visibility across their supply chains so they can have a better understanding of their data and make more informed decisions. This can be accomplished using technologies like IoT sensors and digital twins.
By embracing digitization, pharma companies can significantly improve the efficiency and accuracy of their supply chain operations. This will ultimately lead to long-term cost savings while allowing them to create a more agile and reliable system that is ready for any challenge.
Get a Better Understanding of Supply Chain Digitization
Organizations need to take the time to understand the requirements and challenges of digitization, and then strategize accordingly on how they can begin to digitize their supply chain operations. With the right plan in place, pharma companies will be well-positioned for success in this increasingly complex environment.
To learn more about how you can achieve digitization and visibility in your supply chain, don’t miss the next LogiPharma event. It’s happening from October 4th to October 6th at Westin Copley Place in Boston, Massachusetts.
Download the agenda and register for the event today.