Global Pharmaceutical Supply Chain Management & Challenges

Global drug sales are expected to climb steadily between 2024 and 2030, reaching $1.54 trillion in 2026 and $2.12 trillion by the end of 2030, according to GlobalData's pharmaceuticals database. So the demand for drugs is rising globally, especially for sophisticated drugs like anesthetics and cancer treatments. However, patients' access to necessary treatments is being hampered by ongoing drug shortages. Increased demand, supply chain interruptions, a lack of active pharmaceutical ingredients (APIs), and manufacturing problems are some of the factors causing these shortages. A robust and sustainable pharmaceutical supply chain is necessary to meet these difficulties. The industry can lower risks and increase supply reliability by streamlining manufacturing procedures, decreasing dependency on limited APIs, and improving delivery networks. Complex medications, such as gene and cell therapies, present particular difficulties because of their limited shelf lives and strict temperature requirements. Strong cold chain capabilities and backup plans are required by these variables. These difficulties are made worse by the complex production procedures and several locations that make up the pharmaceutical supply chain. [1]

According to the American Society of Health-System Pharmacists (ASHP), drug shortages in the US hit a record level in 2024. In the first quarter of 2024, ASHP reported a record 323 medicine shortages, exceeding the previous high of 320 in 2014. The anticipated August 2024 insulin replenishment has not yet occurred. There are backorders for a few Novo Nordisk medications, such as Ozempic, Novolin R Flexpens, and Novolog 10 mL vials. Back in 2023, within the US various reasons for shortage been reported by manufacturers during a University of Utah Drug Information Service (UUDIS) investigation. [2]

The sourcing of APIs is one aspect of the complicated and opaque global pharmaceutical supply chain. China, the biggest producer of APIs worldwide, is important, particularly for India, a big producer of generic medications. However, attempts to guarantee a consistent and sustainable supply of medications are hampered by the supply chain's lack of transparency. Because of confidentiality considerations, regulatory bodies are not allowed to share the information they have regarding API sources. Countries capacity to foresee and lessen supply chain disruptions, as those that occurred during the COVID-19 epidemic was hampered by this lack of public awareness. More openness is essential to solving this problem. Countries can better understand the supply chain loop holes and take proactive steps to secure important medications by carefully disclosing information on API sources, manufacturers of finished products, and marketers. New Zealand has shown practically that by applying transparency strategy can improve public health outcomes and supply chain resilience. [3]

At the moment, the best way to lower carbon emissions in the aviation sector is to use sustainable aviation fuel (SAF). SAF can assist the logistics sector, which includes the pharmaceutical industry, in reaching its sustainability objectives by drastically lowering carbon emissions. For supply chains to be optimized, pharmaceutical businesses and logistics providers must work together. Together, they can recognize and resolve logistical issues like product integrity and temperature management. Innovative solutions, such as eco-friendly packaging and effective procurement procedures, can be implemented via more cooperative approach. The environmental effects of air travel, one component of the larger pharmaceutical supply chain, are the main focus of SAF. Although cutting carbon emissions is important, a multifaceted strategy is needed to address the main issues in the pharmaceutical supply chain, such as temperature control, regulatory barriers, and supply chain interruptions. The pharmaceutical sector must concentrate on the following to overcome these issues with a more resilient cold chain infrastructure that can guarantee product integrity, make investments in cutting-edge temperature-controlled storage and transit systems. [4]

The worldwide pharmaceutical supply chain faced hitherto unheard-of difficulties as a result of the COVID-19 epidemic. Among the most impressive achievements was the quick creation, production, and distribution of COVID-19 vaccinations. In this effort, Pfizer and BioNTech worked together to great effect. Pfizer-BioNTech's vaccine needed to be stored and transported at ultra-low temperatures(-70°C), this has proven to be the most difficult and creative solution. The company had to make significant investments in specialized cold chain infrastructure, such as temperature-controlled shipping containers and delivery vehicles, to overcome the logistical challenges. They collaborated with logistics companies who have experience working with delicate biological components to guarantee the integrity of the vaccination. A strong and effective supply chain network was necessary due to the vaccine rollout's worldwide scope. Pfizer set up a sophisticated system of production plants, warehouses, and shipping lanes. They minimized delays and optimized logistics by utilizing cutting-edge technologies such as real-time tracking and monitoring. Strict adherence to quality standards and prompt regulatory clearances were necessary for the rapid development and implementation of vaccines. Pfizer regularly collaborated with regulatory bodies. It collaborated with regulatory bodies across the globe to expedite approval procedures. To guarantee the efficacy and safety of the product, they followed international standards and put strict quality control procedures into place. To prevent shortages or surpluses, accurate demand forecasting was essential. To guarantee the efficacy and safety of the product, they followed international standards and put strict quality control procedures into place. To prevent shortages or surpluses, accurate demand forecasting was essential. [4]

Another case with Teva Pharmaceutical Industries, a global generic drug leader, has made significant strides in sustainable sourcing practices. This involves ensuring that the raw materials used in their products are sourced ethically and responsibly. With ethical sourcing as by ensuring that raw materials are sourced from suppliers that adhere to ethical labor practices and environmental standards. Teva has implemented a robust supplier code of conduct that outlines specific requirements for labor, health, safety, and environmental practices. They conduct regular audits and certifications to verify compliance. More importantly there is sustainable sourcing that help reducing the environmental impact of sourcing raw materials and minimizing waste. Teva focuses on sourcing from suppliers who utilize sustainable practices, such as reducing energy consumption, minimizing waste, and conserving water. They also work with suppliers to develop more sustainable packaging materials. Ensuring the traceability of raw materials from source to final product is crucial. Teva has implemented a traceability system that tracks the origin of raw materials and the manufacturing process. This helps to identify potential risks and ensure product quality. By prioritizing sustainable and ethical sourcing, Teva has not only improved its environmental impact but also strengthened its supply chain resilience and enhanced its brand reputation. They also collaborate with vendors to create packaging materials that are more environmentally friendly. Teva's emphasis on ethical and sustainable sourcing has increased its supply chain's stability, boosted its brand's reputation, and lessened its environmental effect. [5]

Novartis employs a multi-cloud data analytics platform to enhance operational efficiency and accelerate the pace of innovation, their Gartner award-winning, multi-cloud platform supports the big data and analytics strategy employed to ultimately Reimagine Medicine. Their business is improving patient outcomes, speeding up medication development, and streamlining operations by utilizing data analytics. Novartis is well-positioned to use data-driven insights to spur innovation and influence the direction of healthcare when new scientific discoveries and medicinal solutions are developed.[6]

Overall, this highlights how crucial cooperation is to successful supply chain operations, which depend on solid alliances with suppliers, logistics companies, and government regulators. Supply chain visibility, traceability, and decision-making can be greatly enhanced by cutting-edge technologies like blockchain, IoT, and AI. A robust supply network can guarantee continuous supply even in the face of disruptions. Important strategies include contingency planning, redundant facilities, and supply diversification. Finding bottlenecks, streamlining procedures, and cutting expenses are all made possible by using data analytics to obtain insights into supply chain efficiency. Pfizer successfully delivered billions of vaccine doses globally by tackling these issues and putting creative solutions in place, proving the effectiveness of a well-run pharmaceutical supply chain. In conclusion, to guarantee the prompt and dependable delivery of necessary pharmaceuticals, a strong and sustainable pharmaceutical supply chain is necessary. The industry may minimize risks, cut expenses, and enhance patient outcomes by emphasizing sustainable sourcing, putting cutting-edge technology into practice, and cultivating solid relationships with suppliers and regulatory bodies. Addressing the intricate issues facing the pharmaceutical supply chain in the upcoming years will require an emphasis on openness, cooperation, and creativity.

References:

1. Lawrence, Clinical trials Arena Published on: August 23, 2024; Accessed on: November 17, 2024 URL: https://www.clinicaltrialsarena.com/sponsored/a-comprehensive-guide-to-supply-chain-management-for-specialty-drugs/

2. Drug shortage statistic report, asph. Accessed on: November 17, 2024URL: https://www.ashp.org/drug-shortages/shortage-resources/drug-shortages-statistics?loginreturnUrl=SSOCheckOnly

3. Ardal C, Baraldi E, Beyer P, Lacotte Y, Larsson DJ, Ploy MC, Røttingen JA, Smith I. Supply chain transparency and the availability of essential medicines. Bull World Health Organ. 2021 Apr 1;99(4):319-320. doi: 10.2471/BLT.20.267724. Epub 2021 Jan 21. PMID: 33953450; PMCID: PMC8085627

4. Manufacturing and Distributing the COVID-19 Vaccine, Pfizer. Accessed on:  November 17, 2024                                                 

URL: https://www.pfizer.com/science/coronavirus/vaccine/manufacturing-and-distribution

5. Maintaining a Responsible and Sustainable Supply Chain, Teva Published on: March 05, 2024; Accessed on:  November 17, 2024 URL: https://www.tevapharm.com/our-impact/maintaining-responsible-supply-chain/

6. Reimagining medicine through data-led transformation, Accenture. Accessed on: November 17, 2024 URL: https://www.accenture.com/us-en/case-studies/life-sciences/reimagining-medicine-through-data-led-transformation

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About the author

Shruti Talashi

boasts a dual mastery of lab research and writing. Her doctoral study outcome as M.Phil in biomedical science while studying breast cancer and an extraordinary masters degrees dissertation work on exploring role of Gal-lectin in cancer metastasis fuels her extensive research interests. She has gained few publication in journals. Bridging the science-public gap is her passion, aided by expertise in diverse techniques. From oncology to antibiotic/drugs production, she's led and managed complex projects, even clinical trials. Now, as a freelance Content Coordinator for Sinoexpo Pharmasource.com, her industry knowledge shines through valuable insights on cutting-edge topics like GMP, QbD, and biofoundry.