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Weak Links
How does the current pharmaceutical supply Figure 7: Supply chain pinch points
chain look when faced with these changes? The
truth is it contains many weak links that will
Funding and regulation
almost certainly break should the perfect storm
hit. Over and above the new products and new
life-cycle management challenges, an entirely
new level of complexity will exist with multiple
Clinical Production Processing Distribution
types of product and multiple variants, supplied
development Manufacturing Packaging Fulfilment
Dispensing Patient
using multiple channels. Gaining visibility and Danger Danger Danger Danger
pinch point pinch point pinch point pinch point
control will be critical to ensuring the global
supply chain does not buckle under pressure,
Including: Including: Including:
compromising patient safety and further
• Raw materials • Storage • Retail pharmacy
• QC & QA • Wholesale • Hospital pharmacy
eroding consumer confidence in the industry.
• Logistics • Dispensing doctor
• Mail order
These weaknesses exist partly because the
structure and function of the pharmaceutical
Influence of demand
supply chain has evolved in an ad hoc fashion
Upstream and downstream integration
creation (i.e. doctors)
over many decades as it has responded to various
pressures and events. Multiple mergers and acquisitions have left
their mark and supply chains have become long, cumbersome and
complex, leading to inefficiencies. They are also fragmented along
their length and run in a linear fashion, resulting in bottlenecks or
‘pinch points’ between component functions (see Figure 7).
The pinch points in the diagram are where systems should be
connected to facilitate joined-up and collaborative working. This
would ensure that the right resources (people, training, processes,
licences, systems, data, etc.) can be applied appropriately, and
managers are able to track and oversee operations in real time
throughout the supply chain.
Interconnectivity is particularly important in extreme situations, for
example with a flu pandemic. A pharmaceutical firm would need to
have visibility into available manufacturing capacity in its own
facilities and with partners. This includes having the right assets and
appropriately qualified and skilled people, and being able to
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