The role of technology in pharmaceutical supply chain management

The pharmaceutical industry has seen a spike in supply chain challenges over recent years. According to the latest from the Government Accountability Office (GAO), more than 50% of drug manufacturers supplying the U.S. market are overseas, an industry which is still suffering due to lingering pandemic disruptions and staff shortages which led to a backlog of foreign manufacturers needing inspection. These supply chain challenges can be seen across the economy, which have caused a spike in labor and product shortages and other disruptions.

Effective pharmaceutical supply chain management is critical for the global public health system. This worldwide system is responsible for bringing medications and vaccines to patients who need them, which could lead to negative health outcomes. When drug distribution is disrupted, challenges including pharmaceutical supply chain issues, not only does the industry suffer, but patient and citizen outcomes worldwide are also negatively impacted.

Current challenges in pharmaceutical supply chain management

Effectively moving medications and vaccines around the globe requires collaboration between transportation companies, distributors and healthcare facilities. With so many players involved, obstacles can routinely arise.

Drug companies have relied heavily for years on certain countries, particularly India and China, for key products including active pharmaceutical ingredients (APIs), the primary ingredients in generic drugs. A 2021 Biden Administration mandated review into America's supply chains found that "the United States remains critically dependent on imports for a range of key pharmaceutical products and APIs." Indeed, many companies can be heavily dependent upon a single supplier. When the global market shut down for several months, many supply pipelines available to pharmaceutical companies were unavailable.

However, in addition to these overarching issues, pharmaceutical supply chain management also faces other hurdles:

• Supply chain visibility: With limited end-to-end visibility, the pharmaceutical industry faces drug counterfeiting, shortages, subpar tracking and product safety concerns. According to Sana Commerce, a GenAI base may be the solution, stating that, “81% of B2B leaders are already using GenAI in their workplaces, with the three largest use cases being automating tasks, analyzing data, and enhancing decision-making.”¹
• Drug counterfeiting: Poorly regulated wholesalers, illegitimate distributors, bogus internet pharmacies and a variety of unmonitored distribution routes put the pharmaceutical supply chain at risk.
• Cold-chain shipping: For many pharmaceutical products, particularly high-value active ingredients, cold temperatures are necessary for preservation. This not only increases the logistical challenge but also the cost. Refrigerated freight can require capital-intensive investment and specially trained drivers while also involving increased liability and heightened risk of inspection.

The role of supply chain technology

A well-oiled, coordinated supply chain is critical to the success of all industries, including pharmaceuticals. Many of the pharmaceutical supply chain issues boil down to the need for better data management. Various digital tools can help to overcome some existing challenges that can lead to problems such as transportation delays or spoiled inventory, which can ultimately cause other issues downstream.

Fleet management and asset tracking

Fleet management software and asset tracking solutions can  significantly improve supply chain visibility. GPS data tracking and telematics location data can enable real-time awareness of where pharmaceuticals are in transit and allow for the monitoring of trailer temperature and status. Automated alerts can be set to notify fleet managers should pre-set events occur, such as temperatures moving out of safe ranges or when there is excessive door movement. Geofence notification alerts provide warnings for dock managers when a shipment is near, allowing for quick unloading to the next temperature-controlled location.

Near-real-time logistic controls

Implementing AI and augmented reality (AR) technologies can lead to improved end-to-end near-real-time logistic control in pharmaceutical supply chain management by gathering and analyzing more data to effectively deconstruct production and distribution blockages, as well as track product arrival times. They can also pinpoint the origin of defective products and automatically send out a replacement. Alerts and updates can be sent through an enterprise resource planning system, making the process more integrated into existing methods of communication.

Cold-chain monitoring

By packing IoT-enabled monitoring devices with pharmaceutical products that are temperature-sensitive, companies can track conditions during transit. Upon delivery, healthcare facilities, retailers, and pharmacies will have greater confidence in the product's viability.

In addition, these solutions provide data backup and recovery, as well as constant security monitoring that can alert pharmaceutical companies about needs in critical areas. These tools can also help to reduce the likelihood of downtime and pinpoint communication-related shortcomings.

How Enterprise Intelligence can help address pharmaceutical supply chain issues

The need for more accessible real-time data analytics is clear. This information is a critical linchpin to improving end-to-end visibility for pharmaceutical supply chain management. However, to maximize its usefulness, the industry will need a reliable network and innovative technology.

Edge computing applications can help improve response times and performance which enables companies to collect, process and analyze data faster. 5G and multi-access edge computing (MEC) can provide the fast speeds and low latency required for supply chain technology to provide the data needed for better supply chain visibility, data integration, reporting and compliance. With this vast amount of data in hand, pharmaceutical companies will be able to better predict when and where supply chain problems will occur and help to automate more and more of the process.

Enterprise Intelligence is about ensuring organizations have the right systems and solutions in place to respond to any challenge. Verizon's innovative solutions are built to help companies scale more quickly and enable faster, more agile decision-making.

When it comes to patient safety worldwide, optimized pharmaceutical supply chain management is vital. Recent years have revealed the need for better tools and systems to safeguard these medications and vaccines. Wider use of 5G-enabled technologies will open the door for greater safety and reliability.

Learn more about how Verizon is driving the evolution of healthcare technology.

The author of this content is a paid contributor for Verizon.