The need for resilience in pharmaceutical supply chains

In this last quarter of 2020 the European Medicines Agency (EMA) has published the European medicines regulatory network strategy 2020-25. Interesting to see that one of their six strategic pillars is focused on dealing with challenges posed by global #supplychain operations.

Covid-19 has clearly surfaced these challenges and the potential impact on product availability and environmental issues. While this may bring more regulatory supervision, supply chain professionals have an opportunity to enhance their maturity and take a more influential role within their businesses.

The first focus area is about availability of medicines and the strategy document states that investigation into factors causing medicine shortages is essential as a first step to identify measures to prevent shortages. This includes a need to better understand global supply chains and the role played by the many stakeholders involved in sourcing, manufacturing and distribution pharmaceutical products.

One of the strategic goals is to encourage supply chain #resilience. Many companies have started to take specific actions like the reduction of single sourcing of materials and API and, in particular, the reduction of dependence on one specific region of the world.

There are two capabilities that you may want to focus on if not done yet:

-       The development of a formal risk analysis on supply capacity and the definition of measures for mitigation of any potential disruption

-       A clear decision making process on the supply chain design and product availability

Managing these priorities needs to be done in a way that protects return on capital for involved parties. Hence, this should be another good reason to promote the benefits of integrated business planning #IBP as a key strategic management process.

The strategy document published by EMA can be accessed here: https://www.ema.europa.eu/en/about-us/how-we-work/european-medicines-regulatory-network/european-medicines-agencies-network-strategy

#supplychain #pharma #lifesciences #strategy #resilience