The importance of visibility for pharma supply chains

For pharma supply chains, given the particularity of their cargo, time and quality control are key. As medicines and biotech products are distributed with time and temperature sensitivity, for the companies moving this type of cargo across the world the ability of having visibility is super important.

What is visibility for pharma supply chains? Visibility in the case of pharmaceutical supply chain is intended as in the use of technology that allows a continuous and updated overview on the location of the product, on the temperature range and on its conditions. The use of new technologies such as artificial intelligence and automation can also boost opportunities for pharmaceutical distribution.

As visibility, supply chain security and quality control dominate the top concerns for pharmaceutical companies – how can innovative technology help?

Why is it important to achieve visibility in pharmaceutical supply chains?

Pharmaceutical distribution is complex, and its supply chain is populated by multiple stakeholders, each using a different reporting tool for their data management. Multiple stakeholders mean multiple risks to handle, as a lot of the data can end up being siloed. In the case of pharmaceutical cargo, there is an importance difference with other products being moved across the world: their cargo is essential for human (and animal) life. It is therefore vital for pharma businesses to document their supply chain in detail, monitor temperature, and account for every touchpoint during transportation since their products will be used on or inside the human body. “Every product has a certain temperature threshold, or maximum deviation of such temperature that it can have, so if exceeded the quality managers within those pharmaceutical companies will have to recall the product not releasing it into the market. And that means that certain patients will have to wait before they can get their medicine, which at times can be lifesaving” warns Gaetan Van Exem, Global Vertical Lead Pharma and Healthcare at Maersk.

How can better visibility then help a pharmaceutical supply chain? What is the type of visibility needed to provide end-to-end smooth and seamless logistics from manufacturing to customer?

How can better data help visibility on pharma supply chains?

Here below are the specific types of supply chain visibility that pharmaceutical companies can truly benefit from:

1. Visibility on a product’s location: Having great visibility over the location of cargo is crucial to improving and optimizing supply chains. Through the use of 24/7 control towers, and GPS tracking devices placed in the container, data can be collected to provide with real time geo-location, thus helping pharmaceutical decision makers to adjust their logistics route on a particular service. “The ability to have full visibility in transit - no matter whether it is on deep sea ocean, air or land – allows integrated logistics providers to truly manage containers and avoid disruptions” says Steen Aunstrup, Cold Chain Specialist at Maersk. The data captured through the devices can help businesses redesign their supply chains, making informed decision on their cargo’s route.
2. Visibility on a product’s temperature: Any temperature deviation or excursion during the transportation process can have a significant impact to the quality of the product and if disrupted, can eventually lead to companies having to not release that specific batch. Today, temperature data loggers can be attached to cargo pallets, transmitting the temperature range and humidity via a real-time dashboard. Through this technology pharma companies can have visibility on the conditions of their cargo during its journey and see if they are in line with their expectations. The data can seamlessly integrate with their systems via an Application Programming Interface (API) and help in case of need. If a malfunction on a container is flagged - which could cause a temperature deviation - the team in the control tower can notify the issue to the terminal or vessel crew, who will then be able to intervene and react quickly.
3. Visibility on future strategies: Where are the gaps in your supply chain? Which lanes are performing best? “Businesses are always on the hunt for a visibility solution that give end to end visibility as it greatly impacts their decision-making on their product” confirms Samuel Okon, Global Pharma and Healthcare Quality Manager at Maersk. This data helps companies redesign their supply chains so that they know they have the best route, the best mode of transportation for a particular lane, etc. Even if containers are extremely well insulated, maintained, and prepared for such scenarios, there might be airports or terminals which a brand prefers to avoid because of disruptions. In this case, big data can be compiled to showcase the level of power that containers are exposed to and show that even if a cargo might be stuck on location and therefore subjected to temperature excursions, the cargo hasn’t been impacted in a negative way.

What can we expect in the future for visibility for pharma’s supply chains?

Working within a highly regulated industry is complex, and therefore needs high level of expertise. The key is also to collaborate with a trusted global logistics provider that can offer solutions and assets, including data integrations and the use of updated cold store warehouses. These providers can offer services to enhance visibility and traceability in the pharmaceutical supply chain, for every stage of a products' lifecycle.

In the near future, when moving cargo by ocean, air or inland transportation, pharma supply chain visibility will see the advent of systems allowing for a “one stop shop”, from one integrated provider where they will see the whole journey, providing greater insight to support decarbonisation efforts, minimise cost and product waste. Even more interestingly, the traceability that businesses are using will be soon available for customers. Given the vital importance of pharmaceutical cargo, customers will be able to have direct visibility on the journey of their medicines, being able to track it, check the temperature, etc.

Click here to learn more about Pharma Cold Chain Management (P-CCM).