How to navigate supply chain disruptions in the pharmaceutical industry

In recent times, the pharmaceutical supply chain has gone from being a stable model to an uncertain one. Until recently, the disruptions in pharma supply chains were short-term and less frequent. The delays caused by them were manageable up to a certain extent. But now things have changed a lot, and these disruptions have become much more frequent and a lot more significant. Especially after the 2020 COVID-19 pandemic and subsequent lockdowns, the need for more resilient, diversified and risk-aware supply chain strategies is felt more strongly.

Some of the top strategies that pharma companies can consider implementing to navigate these disruptions include:

Understanding the cause

Every disruption in the pharma supply chain has an underlying cause. From manufacturing delays to regulatory changes, the reason might be anything. Additionally, unforeseen events like pandemics or geopolitical events can also trigger these disruptions. The first thing you need to do is determine the root cause. This allows you to take steps to effectively navigate these challenges.

Utilizing advanced technologies

Demand fluctuations are a major cause of supply chain disruptions. Pharma companies often have to deal with shortages and overstock because of this. But this can be avoided with the help of technology. Organizations can use artificial intelligence (AI) for things like demand forecasting, inventory optimization, etc. This not only helps deal with supply chain disruptions but also enhances overall efficiency.

Strengthening business relationships

Strong business relationships are the foundation of every successful organization. Pharma companies should focus on building resilient relationships with their suppliers and other stakeholders. During a crisis, these business relationships can prove to be very beneficial.

Leveraging consulting expertise

Sometimes, it may become a little difficult for pharma companies to identify vulnerabilities in their workflows and supply chains, which hinders their ability to develop resilient strategies that can address them effectively. In such cases, pharma supply chain consulting services can offer companies the best way to streamline their operations. Consulting firms have the required expertise and capabilities to start comprehensive diagnostics to identify potential bottlenecks and craft contingency plans. This helps pharma companies ensure that they are well-prepared for dealing with supply chain disruptions, so that there is minimal impact on their supply and revenue.

Enhancing sales force effectiveness

Pharma companies that are operating in the market require a well-equipped sales force. It is imperative for maintaining a strong market presence, especially during disruptions. From field force training to starting incentive compensation programs, there is a lot that can be done to enhance sales force effectiveness. If the sales team is well aligned with supply chain realities, things can be handled in a better way during shortages. For instance, a few critical deliveries can be prioritized, followed by transparent communication with stakeholders.

As supply chain disruptions are becoming very common in the pharmaceutical industry, it has become imperative for companies to adopt a holistic, strategic approach to build resilient and agile supply chains. From utilizing technology and leveraging consulting services to strengthening business relationships and enhancing sales force effectiveness, there are several actionable strategies that companies can use. This helps them navigate these uncertainties while safeguarding their revenue streams.