Introduction
The COVID-19 pandemic has exposed the vulnerabilities in many industries especially, the pharmaceutical supplier chain, which is the forefront victim of this crisis. To, manage the challenges posed by disruptions the pharmaceutical companies prioritised many changes within it and one of them is Building Resilience.
Ahead of this article, we explain Resilience, the role of resilience in the pharma industry, and key ways to discuss how resilience building is a key factor in pharmaceutical companies and many more.
What is resilience?
Resilience is a way one can mould themselves according to changing scenarios and environments. With COVID-19, the pandemic outbreak, and many changes in the pharmaceutical industry at that time, it’s a wake-up call to be ready for any scenario, as no one knows what the future holds.
What are the ways Pharmaceutical companies can make their supply chain more resilient?
The challenges are indeed numerous, but by beating them and acquiring the strategies, pharmaceutical companies can make their chain supply network more resilient. Some of these include:
Diversify Supplier Networks
Pharmaceutical companies are dependent on global supply chains, interconnecting various suppliers worldwide. The COVID-19 outbreak has already shown the numerous risks associated with concentrated or limited supply networks. To combat such risks, pharma companies need to work on diversifying their supplier networks.
By building strong relationships with suppliers, pharmaceutical companies can reduce the chances of such future disruptions. This approach enables a broad base of suppliers capable of quickly responding towards emergency needs, preventing bottlenecks in the supply chain.
Strengthen Collaboration and Communication
A resilient pharmaceutical company requires good collaboration and communication among all stakeholders. In tough times of crisis, communication becomes a great mode of coordinating efforts and sharing relevant information.
Regular communication, not only allows better planning among manufacturers but also brings transparency to all levels, whether it be manufacturer, supplier, distributor or regulatory authority holders. By working efficiently on collaboration and communication sync their strategies with market demand. Similarly, collaborators with Globela Pharma build successful collaborative partnerships at every step of the value chain at a global distributor network.
Enhance Digitalization and Data Analytics
The combination of digital technology and data analytics is necessary for promoting visibility and predictability for improving supply chain resilience. By collecting data from all authentic sources such as suppliers, manufacturers and customers, pharmaceutical companies can quickly get an idea of any situation.
Implementation of Risk Management Strategies
Risk management strategies are key to success in building a resilient supply chain. The companies should ensure to conduct comprehensive risk assessments to identify the areas of indefensible conditions and implement required changes.
Developing efficient plans, establishing emergency supplies and securing capacity for critical supplies are crucial initiatives to prevent the effect of disruptions. Additionally, regular checks on risks and planning to combat those risks can allow pharmaceutical companies to adapt easily to the changing scenario of today’s era.
Invest in Supplier Relationship Management
Building a fine and sound relationship with suppliers should be the very first strategy to be adopted by a pharmaceutical firm to establish a resilient supply chain. Establishing a relationship based on trust, transparency and shared concerns are must. This relationship management involves regular evaluations, constant checking on supplies and long-term partnerships. This approach not only benefits both parties (the suppliers and the company) but also helps to reduce lead times and quickly address disruptions.
Develop a Robust Contingency Plan
Planning a proper contingency strategy is essential for managing unforeseen situations to prevent any interruption in the supply chain. Pharmaceutical companies should prioritise their planning strategy that outlines the precise steps for emergency management.
These plans include alternative sourcing arrangements, alternative production sites and stockpile management strategies. Regular testing and refining of these plans are based on the situations faced during the time of crisis.
What are the benefits of making a chain supply more resilient by Pharma companies?
Developing a more resilient supply chain brings numerous benefits to pharmaceutical companies. These include:
Enhanced Business Continuity: A resilient supply chain of a pharmaceutical company always ensures the continuous operation and delivery of medications even at times of disruption. By reducing the impact of disruptions, companies maintain a continuous supply of drugs and also ensure access to every medicine the consumers need.
Such as we at Globela Pharma are serving 42+ nations around the world aligned with the industry’s gold standards with enhanced business continuity.
Improved Risk Management: A proper supply chain helps in the management of all the known and sudden risks. By regular risk assessments and management strategies, pharmaceutical companies can easily find the vulnerabilities and reduce the chances of disruptions. This proved to be a successful step towards improved Risk management and enhanced business stability.
Great Supply Chain Visibility: Processing digitalization and data analytics in the supply chain can enable pharmaceutical companies to gain better transparency towards the whole process. This transparency helps to track and trace products, monitor inventory levels and identify late or delayed supplies. These insights also help companies to make more precise decisions, optimize operations and improve overall efficiency.
Faster Response Time: A resilient supply chain enables pharmaceutical companies to act fast to disruptions. By establishing efficient communication and collaboration with stakeholders and suppliers, the companies can easily coordinate efforts and timely responses to the consumers. This enables the companies to adapt to changes without disrupting the medicine supply.
Cost Optimization: A resilient supply chain enables to combat the financial crisis caused by the disruptions. Divergence of the network and applying contingency plans help pharmaceutical companies minimise expensive shipping, emergency sourcing and stockouts. Planned risk management helps to attain cost optimization and high profits in the long run.
Strengthen Customer Trust: Trust and loyalty are the pillars between companies and consumers. A resilient supply chain helps to build trust and loyalty by providing life-saving medicines even in a crisis. Ensuring a consistent supply of drugs, the pharmaceutical companies build a good reputation in the market and also demonstrate their commitment towards their consumers.
Conclusion
Pharmaceutical companies have always been the most vital part of society to provide essential and required medications at the time of need. In this era of an interconnected and uncertain world, pharmaceutical companies face numerous challenges to meet resilient supply chains.
However, diversifying supplier networks, promoting collaboration, good communication, and other vital aspects are the key players in achieving the goal of building and strengthening a solid pharmaceutical supply chain.
