Designing a Network Strategy for Long Term Growth as Portfolios Evolve
Supply chains touch all areas of a business and are in a unique position to help set up pharmaceutical companies for success and long term growth.
However, developing operations that generate revenue and eliminate risk all depend on how you tailor your network strategy for the future. This means adapting to the many complexities that pharma marketplaces deal with as products revolutionize and customer demand shifts globally.
Altogether, the answer lies in adopting a digital supply chain as portfolios evolve. To give you an idea of how you can make a lasting impact amidst an ever-changing landscape, here are a few things to consider for your network strategy:
Challenges of Pharma Supply Chain Management Today
Despite the industry showing signs of financial strength with new acquisitions, there are still challenges that affect a variety of sectors, like research and development, marketing, and manufacturing.
Collectively, drug innovation is facing a decline due to a number of factors:
- Increased competition for generic drugs
- Expansion of niche products within new markets
- Strict standards for over-the-counter (OTC) medications by drugstore chains
- Firm legislation to keep drug prices down
- Regulation on product tracking to ensure safety and authenticity
With these issues in mind, supply chain management is the one area of focus to bring semblance to your operations and promote scalability in the face of affordability and service standards.
How Can Pharma Companies Plan for the Future?
To start, pharma companies must undergo digital transformation to stay competitive and leverage data in their favor throughout every step of their supply chain.
For example, transitioning to a cloud-based network that allows for real-time tracking and reliable communication between different supply chain segments means that all partners have greater visibility in terms of project execution. In addition, everyone has access to data that can enable their teams to improve output and maintain product quality.
Some other benefits include:
- Increased product availability with better shelf-lives
- Improved oversight by CMOs during shipping and handling
- Higher revenue and lower overhead from segmentation and increased margins
With a cloud-based approach at the nexus of your strategy, you can achieve a higher rate of success with greater adaptability. Not to mention, with data supporting your daily operations, you have better control over every aspect of your execution.
3 Additional Benefits to a Cloud-based Network Strategy
Once your digital transformation is underway, here are 3 additional benefits that your supply chain can take advantage of with a cloud-based network strategy:
- Customer Demand Insights: Customer data from point-of-sale (POS) interactions, along with sickness trends, weather patterns, and social media use gives you access to a bevy of information that you can share instantly with your entire supply chain to enhance collaboration.
- Product Traceability from CMOs: Tracking product quality is essential across a supply chain with many levels. With a streamlined network strategy, pharma companies can plug into manufacturing execution systems (MES) to collect data throughout production and anticipate any problems along the way.
- Inventory and Distribution Visibility: From fleet management to warehouse storage, real-time analytics generate a consistent flow of product inventory and distribution throughout multiple channels. Even for global shipments, an optimal network strategy ensures on-time deliveries and priority placement in retail stores.
Change is Necessary to Stay Competitive
In 2017, just 5 pharmacies made up over 60% of the industry's entire prescription revenue. Needless to say, these powerhouses are applying data to their network strategy and broadcasting it to every partner in their supply chain. Of course, it may seem like top providers have a clear edge on the market, but with new technologies come new opportunities to thrive.
For instance, new product types, pervasive public opinions, new delivery methods, ensuring patient wellbeing, and acquiring licensing are all factors that offer a competitive edge for pharma companies to make an impact.
With the right network strategies in place beforehand, success in a crowded market is certainly attainable.