Improving Partnership Relationships in the Pharma Supply Chain
Having strong working relationships with third parties is integral to pharma manufacturers' success. Strong partnerships can result in efficient and streamlined processes, better communication between organizations, effective inventory management, more coordinated shipments, and more.
Strong partnerships with suppliers and other service providers are also becoming critical to achieving supply chain resilience. According to an article by McKinsey & Company, "Companies could better position themselves by solving multiple variables and building resilience into their operations strategy through longer-term actions like network design and dual sourcing."
In this blog post, we’ll explore how pharmaceutical companies can improve partnership relationships to better meet customer needs while also improving profitability.
Leverage Technology to Improve Transparency
Technology can be used to improve transparency and visibility in the pharmaceutical supply chain. Automation, analytics, and blockchain technology have enabled companies to gain real-time insights into their product's movement throughout the supply chain. These insights allow companies to identify potential problems and make more predictable forecasts.
Software platforms can also play a role in improving collaboration between both parties. For example, if a pharma manufacturer onboards a critical supplier onto a procurement platform, it can more easily track and manage orders, invoices, and payments. This can help to eliminate the potential for errors and delays in order fulfillment.
Transparency is also an important aspect of building trust and cooperation between the company and its supply partners. With real-time visibility into the supply chain, companies can ensure that their suppliers are meeting agreed-upon deadlines and standards of quality. This allows for quicker resolutions when issues arise.
Develop Clear Service Agreements
Pharma manufacturers should form clear and precise service agreements with their supply chain partners to ensure that expectations and responsibilities are understood. These agreements should provide details on the type of service provided, the terms of payment, legal considerations, and other important information related to the relationship.
The goal is to ensure that everyone involved has a clear understanding of the agreement between them and what their role in it will be. By developing these agreements, companies can avoid costly misunderstandings and disputes which can harm the supply chain.
Utilize Data Analytics to Monitor Performance and Quality
Data analytics can be used to monitor supplier performance, inventory levels, and product quality. Using data-driven insights, companies can identify areas of improvement in their supply and service relationships. Additionally, this data allows companies to make more informed decisions about how they manage their supply chain relationships and can even assist in negotiations.
For example, a 3PL provider may be showing a reduction in efficiency due to recent disruptions. With data on hand, both partners can collaborate to pinpoint the problem, identify potential solutions, and introduce new levels of efficiency.
Implement Regular Audits of Partnerships
Regular audits can help pharma manufacturers identify any potential issues and ensure that everyone is upholding their end of the agreement. Audits should focus on areas such as customer service, financial reporting, quality assurance, compliance, and supplier performance.
These audits can provide helpful information on how best to optimize processes and strengthen partnerships. Additionally, companies need to be honest about any issues that may arise, so that the necessary steps can be taken to resolve them.
Build Better Supply Chain Partnerships
By taking these steps, pharmaceutical companies will be better equipped to develop strong and resilient partnerships with their suppliers and other service providers. Such relationships will help increase efficiency in the supply chain, which can lead to improved profitability and resiliency.
To learn more about how you can build stronger relationships with your supply partners, 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.