In this blog we will be exploring a snapshot of our 2024 exclusive report 'Unleashing the Full Potential of Digitalisation in Pharmaceutical Logistics'. You can access the full report here. 

Utilising Real-Time Monitoring to Maximise End-to-End Supply Chain Visibility:

Real-time Monitoring (RTM) has long been talked about as a game-changer for the industry. Offering the promise of end-to-end visibility of the supply chain, with the ability to monitor the condition and location of products in real-time, utilising RTM enables you to identify potential issues quickly. This means that you can identify any delays, quality concerns, or temperature fluctuations and take swift action before they become major problems. However, whilst RTM does undoubtedly give an unprecedented view of the supply chain and produces vast amounts of data on product movement and delivery so that we know more about our logistics and supply chain processes than ever before, is this visibility being translated into the improvements that we want to see?

One of the issues raised by participants during the roundtable sessions is whether we need to consider more carefully what we’re monitoring, to enable us to fully leverage the benefits of this enhanced visibility. For example, if we consider air freight and we notice that we don’t see excursions occurring on the planes themselves, but at the point of unloading onto the tarmac, should we be looking at ways to monitor that part of the process more closely? Utilising the information gained from greater visibility to identify where the risks are and put more proactive mitigation strategies in place would ultimately mean fewer excursions that require intervention, which can dramatically increase efficiency and lower costs.

Another issue that was discussed at length was the case for sharing RTM data between companies to improve risk assessment and enable an organisation to qualify lanes more quickly and efficiently. However, although participants agreed that the benefits of data sharing could be highly beneficial, several questions immediately arose, including: can you really trust data that you haven’t verified yourself? What would the impact be on regulatory compliance? How would the cost be borne and where would the initiative come from? How would you ensure confidentiality? In addition, as it was widely discussed that the biggest challenge is ensuring that the gains in visibility across the supply chain are translated into improvements in efficiency, it could be argued that adding in more data is going to mean another level of complexity. With these questions in mind, it is easy to see that although data sharing could be an attractive option, there are some significant barriers to overcome to ensure it is viable.

Translating Data into Actionable Insights:

Whilst the implementation of new digital technologies has given logistics and supply chain practitioners an unprecedented view of the supply chain, this is only valuable to companies if it leads to increased efficiency, reduced temperature excursions, and lower operating costs. As one practitioner summarised during the discussions: “We must be absolutely clear on the limitations of the technology. What matters is what we do with that data”. In other words, the most important thing is translating the data generated by the tools that you use into actionable insights, which enable you to move from being reactive, to proactive in managing your supply chain and temperature excursions.

Of course, recognising this is just the first part of the challenge. One of the first issues discussed by the practitioners was the importance of verifying your master data and the fact that data quality remains a massive challenge. This is particularly important as you deploy more and more digital tools because the output from those tools is only as reliable as the data that you input. Tools like AI and Machine Learning that can scan vast quantities of data and highlight erroneous data points will be extremely valuable in improving data quality.

Another challenge discussed was that pharmaceutical companies, and especially large pharmaceutical companies, continue to operate in silos, and to recognise the true value of digitalisation and leverage the value of all the data gathered, organisations need to find a way around those silos. For example, is it possible to apply manufacturing data downstream to distribution to improve the efficiency of logistics planning? Additionally, can the information gathered by the logistics and supply chain function be applied to other parts of the business? Would this be a way to move logistics and supply chain from being seen solely as a cost centre to the business?

For more insights including regarding leveraging digital transformation to drive supply chain sustainability as well as ensuring your supply chain is reliable and resilient to meet future challenges...

Access the full report here!