Tag: Pharmaceutical companies

inventory management

Taking a Step Forward towards Better Inventory Management of Pharmaceutical Supplies

Inventory management in the pharmaceutical industry involves complex systems that consist of interrelated and interlocking subsystems. Changes made in one part of the inventory management system have both anticipated and unanticipated consequences in the other part of the system. In recent years, we have witnessed several pathbreaking discoveries in the pharmaceutical industry’s inventory management. However, even small mistakes in inventory management can quickly lead to confusion, increased turnaround times, unnecessary expenses or worse, prescription errors that endanger patient health. Furthermore, the advancements in the pharmaceutical industry also entail several challenges in the global health pharmaceutical delivery supply chain, particularly in meeting the demands for new and personalized therapeutics. 

Inventory related challenges affecting pharmaceutical companies

Inventory management

Inventory management in global health pharmaceutical delivery supply chain involves complex processes which include quantification and replenishment decisions. However, due to the lack of accurate information, there is often uncertainty that results in a negative impact on the company’s inventory management system.

Dependency on human resources

The lack of qualified individuals to fill the logistics-related positions in pharmaceutical companies is being recognized as a threat that results in heavy workload and ineffective role performance. Aside from this, it also leaves key responsibilities that include making supply chain calculations and decisions unattended. On the other hand, along with the utilization of accessible and user-friendly IT systems, pressure on HR capacity can be alleviated by hiring a dynamic team of responsible and trained people equipped with enough knowledge and skills.

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Order management

Demand information or data about the availability of products in the different levels of the supply chain are the primary decision-making factors in order management. This translates to the fact that lack of accurate information would make order management to solely rely on assumptions and experience. Consequently, orders may arrive incomplete, inaccurate or delayed, which can negatively affect product availability and overall inventory management of pharmaceutical supplies.

Warehouse management

Most warehouses do not possess adequate facilities to support large inventories. Relying on third-party logistics might not always be effective due to poor organization and not enough designated area for different functions such as receiving, shipping and storage for both damaged and expired products. In the long run, such unfavorable conditions may ultimately lead to discrepancies in logistics and inaccuracies in inventory management.

Temperature control

Factors such as environmental conditions, particularly temperature could greatly affect drug potency. Hence, failure to provide the right temperature during storage and shipment of pharmaceutical products may result in major product wastage. Refrigerated containers or storage rooms might be available in the warehouses. However, there are chances of gaps in ensuring and monitoring of temperature level. This makes cold chain difficult to maintain.

Shipment visibility

Once the manufacturer sends out the product for delivery, it becomes difficult to track its status at different levels of the supply chain. Besides, the exact date when the products will arrive becomes unknown to both the manufacturer and the recipient.

Shake-off inventory management troubles with informed decisions from our pharmaceutical industry experts. Get in touch!

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Overcoming pharmaceutical inventory management challenges

Some of the top pharmaceutical companies are already doing a stellar job at inventory management, but almost everyone has some room for improvement. Here are some best practices for companies in the pharmaceutical industry to optimize their inventory levels:

Get an accurate count

Pharmaceutical companies can’t manage what they don’t measure. Also, a visual scan of the shelves often proves insufficient to provide the sort of accuracy needed. One of the best solutions to combat this is to conduct an annual physical inventory, supported by a computerized inventory system, and monitored by a designated employee.

Maximize the value of inventory management system

Most computerized inventory management systems lack a perpetual inventory management model. Such systems help in keeping tabs on all products in stock and automatically places an order for more product needed to maintain a certain inventory level. The company will need to adjust the parameters depending on the demand. This ensures that the order threshold and amount match the new future demand. Even a computerized system needs to be monitored and maintained for accuracy.

Shed excess inventory

Pharmaceutical inventory loses value as it ages. So, carrying excess inventory amplifies the risk of losing thousands of dollars on expired, unsaleable products. A pharmaceutical company can’t sell products once they pass their expiration date. Although demand can fluctuate from day to day, a week’s worth of inventory should be more than enough to accommodate even unusual spikes in daily demand.

With a capable supply chain and inventory management process in place, there is no looking back for companies in the pharmaceutical industry. But are you there yet? If not, SpendEdge is here to help. Request a free proposal now!

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inventory management

Supply Market Intelligence for a Leading Pharmaceutical Drugs Manufacturer

Supply Market Intelligence Engagement Overview:

The client, a pioneer in the pharmaceutical drugs manufacturing sector, wanted to gain detailed supply market insights to devise suitable strategies to maximize profits while minimizing the associated supplier risks. The client wanted to study the supply market forces and implement a comparative analysis of the pharmaceutical drugs market. To succeed in implementing such a strategy, they approached SpendEdge to leverage its strong expertise in supply market intelligence.

About the Client:

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A market leader in the pharmaceutical drugs segment.


Business Challenge:

Supply market intelligence is crucial for pharma companies looking to devise an efficient supply chain management system. The pharmaceutical drugs manufacturer realized that their supply chain management goals overlapped with market intelligence. Hence, they wanted to leverage supply market intelligence and combine the market intelligence needs of their organization’s SCM system with the solutions available in the global market.


How did SpendEdge Help the Client?

The pharmaceutical drugs manufacturer joined hands with our supply market intelligence experts to devise precise strategies to overcome shortfalls in market intelligence.

Our supply market intelligence experts developed a comprehensive approach that responds to the long-term trends within the pharmaceutical drugs market. The development process was split into the following three stages:

  • Step 1: Development of a commodity profile

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The commodity profile development phase is a pre-requisite for analyzing the supply market to gain a better understanding of the market landscape. This initial phase of this supply market intelligence engagement started with the development of a commodity profile. This enabled the pharmaceutical drugs manufacturer to gain in-depth insights into the supplier’s segments and the cost of commodities.

Our supply market intelligence experts assisted the pharmaceutical drugs firm in conducting a detailed analysis of the supply market and develop a precise commodity profile. This process involved extensive interviews with market leaders, industry stakeholders, and leading suppliers to identify and classify all the potential suppliers that are capable of meeting their needs.

  • Step 2: Determine cost structures

The essential information required to understand the cost structures of suppliers is standard throughout the world. It includes – labor costs, material costs, energy, transportation, and other such expenses.

An external review of the pharmaceutical drugs market enabled the firm to identify major players in the segment. Also, leveraging market intelligence helped them uncover industry best practices and business strategies of market leaders. This, in turn, helped the pharmaceutical drugs client to compare their SCM strategies with that of the industry’s best and accordingly adjust their existing strategies.

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  • Step 3: Identify key market indicators

It is essential to identify and keep track of the potential market indicators for the particular market segment, commodity, and geography. However, this is also one of the most challenging tasks in any supply market intelligence assessment.

To help the pharmaceutical drugs manufacturer identify the supply market trends, we developed a three-step process that leverage supply market intelligence and offered detailed insights into supply and demand fluctuations in the market. Such an approach enabled the client to effectively manage the dynamism of the value chain by minimizing the time dedicated to information gathering and analysis.


Key questions answered in this supply market intelligence engagement include:

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Benefits of the Engagement:

With the help of SpendEdge’s supply market intelligence solutions, the pharmaceutical drugs client was able to study the global supply market scenario and make unbiased business decisions while developing an appropriate SCM system.

Importance of supply market intelligence in the pharmaceutical drugs segment

Increasing uncertainties in economic markets are forcing organizations to track and closely monitor market conditions in order to devise appropriate supply chain strategies. Supply market intelligence, when used with precise sourcing strategies, empowers organizations to reduce supply chain risks while establishing and maintaining a competitive advantage.


Our Findings:

This supply market intelligence engagement helped the client to visualize the importance of leveraging ‘Market Intelligence’ in procurement decision making. In today’s market scenario, the dynamic nature of procurement challenges antagonizes organizations to leverage supply market intelligence in every aspect of their procurement process.


A must-read case study for procurement specialists and decision makers looking to develop an understanding of the pharma sector

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Pharmaceutical Industry

Top 5 Trends to Watch out for in the Pharmaceutical Industry in 2018

Today, to succeed in the pharmaceutical industry, keeping a check and reassessing strategies is of high importance to pharma companies. This will help pharmaceutical companies to understand and identify the new pharmaceutical industry trends and stay a step ahead of their competitors. Leaders in this industry should retrospect and ask questions on their strategies to grab the best opportunities, mitigate challenges, and fulfill the demands created by the dynamic pharmaceutical industry trends.Get More Info_SE

At SpendEdge, we continuously analyze the latest market trends and developments to help companies devise effective strategies to reduce spend and boost profits.  

Pharmaceutical Industry Trends

 

Entry of tech giants in the pharmaceutical industry

The pharmaceutical industry is going to be a hunting ground for tech giants like Google and Amazon this year. This is one of the emerging pharmaceutical industry trends that will create a huge opportunity for growth and investments in the industry. These giants are expected to make extensive investments in pharma and biotech initiatives, which is good news for the pharmaceutical companies.SE RP

Quality checks and safeguards

Manufacturing products that are of suboptimal quality are going to be a big “NO” for pharma companies in 2018. This is one of those pharmaceutical industry trends that will ensure that only high-quality drugs enter the market. Huge investments in this industry over the past few years have filled the required pipeline of drugs.

Advent of GDPR

EU’s General Data Protection Regulation (GDPR) marks the introduction of a new set of regulations that are related to assembly and collection, storage, and processing of personal data of the customers. With the advent of this new set of rules for the protection of personal data, breach of data and information may lead to greater financial and legal complications for companies in the pharmaceutical industry. This is one of the evolving pharmaceutical industry trends that will compel companies to safeguard the privacy of personal data of the patients and customers.Request Demo

Arrival of artificial intelligence

The benefits of using advanced technologies are going to contribute towards the growth of the pharmaceutical industry, even more in 2018 through artificial intelligence, machine learning, and the Internet of Things (IoT). Through such technologies, benefits like information deployment and analysis of data to keep clinical operations updated of upcoming pharmaceutical industry trends can be achieved. Also, this will help in auditing reports and simplifying unexpected events for the practitioners of pharmacovigilance. According to many market analysts, decisions made by AI and humans will be compared a lot, in the days to come. But a thing that is obvious is that standardization of data will be required to finally make this trend a success. 

Patient-centric approach

2018 is going to witness the ruling out of traditional push marketing and it will be replaced with pull marketing, which basically means that the pharma companies will target its consumers through high-quality content, prime and valuable services, and will be more focused on building a long-term relationship through various groups that engage customers. Digital health and enhanced user experience are going to be the two prime concerns of companies in this business. This is one of the critical pharmaceutical industry trends that will define the patient-centric approach of the industry in the days to come.

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biosimilar drugs

Why are Pharmaceutical Fine Chemicals Witnessing High Demand?

Pharmaceutical fine chemicals are complex, single, and pure chemical substances that are mixed with generic commodity chemicals to form complex molecules. Within the chemical industry, fine chemicals are produced in limited volumes and sold at relatively high prices. The market for these chemicals is highly fragmented with multiple privately owned companies contributing towards the global supply alongside large chemical enterprises. Pharmaceutical fine chemicals can be further categorized into building blocks, intermediaries, and APIs. A recent procurement market intelligence report from SpendEdge on the global pharmaceutical fine chemicals market has estimated the market to grow at an impressive CAGR of 7.7% over the next couple of years. The analysts attribute this growth to the increasing number of patent expiries, which will drive the demand for generics and biosimilars; thereby, driving the demand for fine chemicals.SE_Demo2

Growth drivers in the global pharmaceutical fine chemicals market

New drug approvals

The number of drug approvals in the US by the FDA and EMA in EU has been on a rise, providing significant opportunities for players in the pharmaceutical industry. Pharmaceutical fine chemicals are widely used in the drug formulation process, and this increase in the number of drug approvals will result in the increased demand for such fine chemicals. Furthermore, new drug approvals and patent cliffs are leading to the bulk production of several drugs. This, in turn, will be a direct driver for the pharmaceutical fine chemicals industry.

Growth of the biologics industry

The introduction of targeted therapies along with rising adoption of personalized medicine is anticipated to fuel the demand for biologics. Additionally, biologic drugs have also been known to treat chronic diseases better and with lesser side effects. Since pharmaceutical fine chemicals are required in bulk quantities to produce biologics drugs, the growth of the biologics market will directly drive the demand in the fine chemicals market. Furthermore, the market for global biologic drugs is expected to grow at a CAGR of over 10% during the forecast period with companies such as Eli Lilly and Company, Novartis, and AstraZeneca investing heavily in developing biologics.

Growth of the pharmaceutical industry

The global pharmaceuticals market is expected to record a robust growth rate of around 6% during the forecast period, driven by consumer spending to cure medical ailments. Such an impressive growth rate is subsequently fueling the demand for innovation in the market. As a result, pharmaceutical companies are investing heavily in R&D activities to formulate effective medicines, especially in the field of oncology, cancer, and nervous system disorders. Additionally, companies are increasingly investing in novel formulations as well as reformulation approaches to support and sustain the rising demand. This, in turn, will drive the demand for pharmaceutical fine chemicals as they are used as raw materials in advanced formulations.

Increasing number of patent expiries

The pharmaceutical industry is highly dependent on patents to protect their innovation and recover a large part of their R&D costs. However, after a predefined period, the patent expires, and any manufacturer can formulate the medicine, which often results in a reduction of prices. Since the monetary value of fine chemicals used in the formulation of medicines is low as compared to the overall drug development cost, this market is largely dependent on the volume of sales for attaining value growth. As a result, the demand for fine chemicals will surge due to increased production of generics and biosimilars.


Read more about the growth drivers in the pharmaceutical fine chemicals market along with supply market insights, procurement best practices, sourcing strategy, and pricing insights in SpendEdge’s upcoming report on the global pharmaceutical fine chemicals market.

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Pharmaceutical Testing

Top Trends in the Pharmaceutical Analytical Testing Services Market

The rising cost of drug development process has urged pharmaceutical companies to look out for ways to reduce the overall cost and time. The pharma industry turns towards highly specialized contract research organizations (CROs) who depict expertise in drug discovery assistance, regulatory compliance, lead identification, clinical data management, consultation, clinical trials, and project management. Pharmaceutical analytical testing is one of the research support services rendered by CROs and contract laboratories to pharmaceutical manufacturers. These organizations use various processes to analyze the intermediate drug ingredients and final drugs, so that the quality of the medication can be ensured. Toxicological risk assessments, environmental monitoring, clinical and non-clinical bioanalysis, stability testing, method validation, preclinical research, and biological assay development are some of the services under pharmaceutical analytical testing. The procurement market intelligence report predicts a healthy growth rate of 7.71% for the pharmaceutical testing market.

Request Free SampleTrends in the Pharmaceutical Testing Market

Capability Enhancement Toward Analytical Testing of Biosimilars

Numerous drugs in the pharma industry are nearing the end of their patent lifetime. This has led pharmaceutical companies to divert their attention to biosimilars from biologics. Such move has motivated pharmaceutical testing companies to enhance their capabilities in the analytical testing of biosimilars. Compatibility studies for biosimilars, stability testing, product release testing, and protein analysis of biosimilars are some of the capabilities suppliers have been focusing. Consequently, enhancement of such capabilities reduces the risks associated with drug development.

Rising Demand from Nutraceuticals Industry

Traditionally, the pharmaceutical testing services were availed mainly by the pharmaceutical companies. However, today that trend looks to be slowly changing as nutraceuticals industry is also emerging as an active consumer of these services. This surge in demand can be attributed to increasing regulations for nutraceutical manufacturing companies demanding them to get their raw materials tested for quality and conduct release testing for their products.

Adoption of FTE-based Contracts

Since a long time, pharmaceutical testing service providers have been charging their clients on a per contract or per sample basis. Such pricing strategy is slowly changing as suppliers are looking to charge their clients on FTE-based contracts irrespective of workload, compound, or analytical technique used. The supplier allocates a dedicated team during the tenure of the project and manages the project resources along with the client. Such contracts ensure that the dedicated team members acquire a strong knowledge of the procedures and requirements of the project leading to fewer errors and higher consistency in the output.

Technological Advancements in Analytical Testing Equipment

The pharma industry is pressurizing pharmaceutical testing companies to reduce the testing time for drug ingredients forcing the suppliers to use advanced equipments and processes. For the same reason, the majority of the suppliers are now using HRAM instruments that allow users to identify the target molecule confidently. Additionally, several suppliers are now actively using morphologically-directed Raman spectroscopy, which is based on a combination of Ramana spectroscopy and automated imaging. Use of advanced equipment eliminates the need to perform multiple trials and subsequently increases the reliability and accuracy of pharmaceutical testing.

Read more about the trends in the pharmaceutical testing market along with sourcing strategies, pricing insights, top pharmaceutical analytical testing service providers, procurement challenges, and pricing models in SpendEdge’s upcoming report on the global pharmaceutical analytical testing services market.

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CRO Companies

Top 5 CRO Companies to Depend on for Drug Development

Typically, the cost of developing a drug costs pharmaceutical companies millions of dollars and sometimes even touching the billion dollar market. The development process goes through multiple stages which can last about 10-12 years. In the changing economy, pharmaceutical companies have to look for ways to control such costs and ensure compliance against stringent regulations. As a result, the pharma industry is looking to outsource the drug development process to Contract Research Organization (CRO) companies. CRO companies partner with various drug companies and thereby gather vast experiences in conducting clinical trials and testing out the efficacy of the new drug. CRO service providers offer services including drug discovery assistance, clinical data management, consultation, regulatory compliance, lead identification, clinical trials, and project management. The recent procurement market intelligence report on global pharmaceutical drug development services market estimates the market to grow at a rate of 7.35% during the forecast period.

Request Free SampleTop CRO Companies to Watch Out

IQVIA

IQVIA, formerly known as Quintiles IMS Holdings, is one of the leading CRO companies involved in the field of biopharmaceutical development and outsourcing services alongside depicting expertise in healthcare database and analytical services. The company is the world’s largest contract research organization and specializes in phase II-IV trials. The company was formed as a result of the merger between Quintiles Transnational and IMS Health in 2016. It is also the world’s largest CRO company based on market revenue with the company posting revenues of US$6.87 billion in 2016.

LabCorp

LabCorp is an American company and one of the leading CRO companies in the world. Currently, with close to 40 clinical laboratories in the US, it has one of the largest networks of clinical labs in the world. With more than 50,000 employees serving more than 220,000 clients across 60 countries, the company generated revenues of US$9.43 billion in 2016. The company is the pioneer in the field of using polymerase chain technology for genomic technology and also exhibits expertise in oncology trials, HIV genotyping, and phenotyping.

PAREXEL

PAREXEL is a world-renowned life sciences consulting firm that helps pharma companies develop approximately 95% of the 200 top-selling biopharmaceuticals on the market. Leading pharma companies such as Catalent Inc, Merck & Co. Inc., Pfizer Inc., ICON plc, and GlaxoSmithKline plc all depend on PARAXEL for new drug development. In June 2017, the company announced that it is set to be acquired by Pamplona Capital for US$5 billion.

ICON

ICON is a global provider of outsourced drug development services depicting expertise in the field of late phase services. In fact, it is the world’s second-largest player in the field of late phase services in terms of market share. Their services range from clinical, consulting, and commercial services, which incorporate trial design and full study execution. The company is renowned for its exceptional quality management system subjected to more than 1,700 successful audits by buyers, regulatory bodies, and ISO. They also offer knowledge, software, and systems for adaptive trials.

INC Research

INC Research is one of the leading CRO companies known for ‘The Trusted Process,’ a proprietary trial management methodology developed by the company. The company recently merged its operations with inVentive Health to expand the global scale and add capabilities. Their key services include early phase trials, phase II and III trials, late phase trials, consulting, and clinical monitoring.

Read more about the top CRO companies along with CRO services, clinical trials, drug development, pricing strategy, procurement challenges, and supplier evaluation criteria in SpendEdge’s upcoming report on the global pharmaceutical drug development services market.

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Pharmaceutical Raw Materials

The Biggest Problems with Pharmaceutical Raw Materials Market, And How You Can Fix It

If you were to ever glance on the packaging of medicines, it would enlist the chemicals and composition used to manufacture that drug. However, chemicals are not the only raw material used in the pharmaceutical manufacturing process. Pharmaceutical raw materials also include natural raw materials like leaves, flowers, fruits, fungi, and seeds, in addition to synthetic materials and biologics. Pharmaceutical raw materials are classified into three groups namely active pharmaceutical ingredients (APIs), intermediaries, and additives. The pharmaceutical industry relies heavily on chemical suppliers and biologics manufacturers for their pharmaceutical supplies. The pharmaceutical industry has been witnessing stable growth with higher growth prospects in emerging regions such as the APAC, which is expected to grow at a CAGR of nearly 9%-10% by 2021. (SpendEdge Procurement Market Intelligence Report – Bulk Drug Raw Materials Market) Although the growth prospects look promising for the pharmaceutical industry, suppliers of pharmaceutical raw materials have been facing tough challenges that affect their growth.

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Top Challenges in the Pharmaceutical Raw Materials Market

Threat from Counterfeit Products

Falsified medicines or counterfeit drug products can easily enter the pharma supply chain across the world. Counterfeit drugs, usually contain low-quality APIs, wrong ingredient, or even the incorrect dosages. Such counterfeit products are then fraudulently mislabeled without compliance with intellectual property rights and can cause side-effects and other complexities when consumed. Pharmaceutical raw materials manufacturers will be negatively affected by such acts. As a result, medicine surveillance services and fake -identification technologies such as mass spectrometry (MS), infra-red (FTIR) spectroscopy, nuclear magnetic resonance (NMR) spectroscopy, Raman spectroscopy, and gas chromatography-mass spectrometry (GC-MS) are gaining prominence.

Increase in Trade Taxes

Manufacturing hubs of the final drug products are located in the primary markets such as the US and Europe. However, these companies procure pharmaceutical raw materials from emerging countries like Brazil, China, India, and Israel. The problem arises when drug manufacturers have to incur additional expenses in the form of trade taxes and customs expenses. To promote “Made in America” movement, the Trump administration has slapped a double-digit tariff for companies outsourcing drug manufacturing activities. Such regulations will discourage drug manufacturers to obtain pharmaceutical raw materials at a lower cost.

Increase in Regulatory Delays

Drugs and medicines being a sensitive matter regarding public health, are heavily regulated by governments and medical associations. Pharmaceutical raw materials suppliers, therefore, must obtain approval from regulatory bodies such as FDA and EMA to bring the final products to the market. Delays in the approval process can slow down the time-to-market, and risk expiry of patent validity along with other operational issues. Such delays severely affect the drug manufacturers profitability, thereby hindering the overall growth of the market.

Read more about the top challenges in the pharmaceutical raw materials market along with competitive landscape analysis, contract and SLA terms, pricing strategies, sourcing strategy, and procurement market intelligence in SpendEdge’s upcoming report on the global beef market.

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Top 4 Trends Driving the Productivity of Pharmaceutical Supply Chain

It is very characteristic of a pharma company to invest millions of dollars in new drug development with very little success rate. They then face pressure from governments and consumers to keep the prices of such medicines low for it to be accessible to everyone. Consequently, pharma companies are looking for new ways to increase their revenue stream and improve efficiency in every aspect of their business. Innovations in pharma procurement along with advancements in technology can significantly boost profitability in the pharma industry and provide them a competitive advantage.SE_Demo2

Current Trends in Pharmaceutical Industry

Reinvesting in R&D Process

For a very long time, big pharma players in this industry were relying on old techniques and technology for drug discovery. Since companies started using big data analytics, they have significantly improved their success rates for drug discovery. Additionally, using real-world evidence has equipped them to speed up the drug discovery process, decrease R&D costs, and improve time-to-market.

Resource Reallocation in the Emerging Markets

The pharma industry has been shifting its focus from developed nations to emerging markets as the growth curve in the developed parts of the world continues to flatten. The emerging markets which are relatively underserved have a vast growth potential for key suppliers in the pharma industry. The suppliers are exploring ways to increase the efficiency of the pharmaceutical supply chain by identifying potential locations for developing and manufacturing medicines. For instance, the developed parts of the world are looking at the Asian and Latin American region to outsource the process of clinical research.

New Modes of Healthcare Delivery

Hospitals and healthcare specialists are driving up the overall cost of healthcare. Companies are looking for ways to cut down costs and improve outcomes by trying to reduce reliance on hospitals and specialists. The recent advancements in medicines along with technological advancements such as fitness tracker and health monitoring devices has made self-medication and telemedicine possible. Such disruption in the pharmaceutical supply chain could significantly improve the costs, efficiency, and profitability of the pharma industry.

Increasing Emphasis on Outcomes

The increasing emphasis on outcomes is the most prominent pharma trend currently. Majority of the players in the pharma industry are modifying their existing models such as a fee for service models in favor of outcome-based models. Such measures help reduce wastages and fraud mostly in the healthcare reimbursement sector. The pharmaceutical supply chain needs to be highly active by closely supervising and monitoring the value delivery process to the patients in order to improve outcomes.

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Pharma Manufacturing

Improving Efficiency in Pharma Manufacturing Through IoT Technologies

The unprecedented power of the Internet of Things (IoT) has urged a vast majority of the companies in the manufacturing sector to make use of this technology to unlock limitless potential. Pharmaceutical manufacturing companies are no exception to this, as IoT has the potential to revolutionize all aspects of the pharmaceutical manufacturing process from drug discovery to manufacturing. IoT in pharma manufacturing coupled with big data and advanced analytics can scrutinize massive amounts of data that can be harnessed to improve manufacturing efficiency.SE_Demo2

IoT in Pharma Manufacturing

Connected Equipment

Pharma manufacturing companies rely heavily on batch manufacturing and equipment is usually self-contained. So it requires men and materials to move constantly on the shop floor. Although industrial automation and control technologies are widely used, real-time status of equipment is not readily accessible to make informed decisions that can improve equipment effectiveness. IoT technology can assist to maintain the safety and efficacy of drug products by maintaining specific storage condition and providing extended visibility into shop-floor activities.

Real-Time Visibility into Warehouse Operations

Warehousing is a critical component for every pharmaceutical manufacturing companies. Shortage of certain medicines can have serious consequences, on the other hand overstocking can lead to product wastages and higher inventory holding costs. Since pharma companies maintain numerous warehouses spread across vast geographies, warehousing operations amount for a vast majority of the pharma logistics cost. Smart warehouses can increase real-time visibility into the operations by tracking products in the warehouse and optimally utilize operators and transport equipment. IoT technology is essential in pharma supply chain as it can report inconsistencies, optimize warehouse floor space, and monitor storage of sensitive medicines.

Controlling Cold Chain Conditions

Pharmaceutical manufacturers need to be very careful while handling biologics, which are highly sensitive to storage conditions. Such biologics are high-value items with shorter shelf lives carrying strict temperature requirements. IoT technology makes it possible to remotely monitor the condition of the drug and ensure that ambient temperature is maintained at temperature-controlled containers.

Remote Fleet Management

Use of digital technology such as GPS systems can allow remote monitoring of the transport process and ensure shipment visibility throughout the supply chain. A multitude of data regarding vehicle location, vehicle performance, and view of the driver can be collected which can be processed and decisions to optimize fleet management can be taken remotely. Consequently, it can drastically reduce the time-to-market, prevent product spoilage, and lower carrying costs.

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Pharma industry

The Imperative Need of Procurement Process in the Pharma Industry

Today, we can see an increasing trend amongst top companies opting for better procurement management to save costs and remain competitive in the marketplace. Procurement is more than just a cost-cutting tool. By reducing waste and optimizing resources, pharma companies can significantly boost their efficiency. The pharma industry has to tackle a lot of modern-day challenges right from generic drugs, personalized medicines, rising research and development cost to expensive clinical trials. Improvement of the procurement process in pharma industry can solve such problems and improve the industry profitability.SE_Demo2

Why should the pharma industry opt for better procurement practices?

Driving Innovation

Innovation in Pharma industry does not concern only towards drug innovation. Innovation in procurement and sourcing processes could lead pharma companies to achieve monumental savings opportunities. For instance, successful pharma companies can create innovative incentive models for suppliers to suggest new ideas on ways to reach new market via new sales channel. By ensuring spend control and collaboration across divisions and functions with their supplier network as well as internal stakeholder’s, companies can create more opportunities for innovation.

Collaboration Across Business Functions

When it comes to conducting a clinical trial, business managers are looking to outsource the process to a capable strategic partner. However, they are quite reluctant to place such decisions in the hand of the procurement team. It has been evident that when procurement function takes over the execution of such activities, they strive to find the best partner and negotiate better terms that will drive the overall performance as well as the output. Additionally, clear procurement roles and responsibilities are a must to ensure smooth flow of operations.

Managing Indirect Spend

A vast majority of spend in a typical pharma company goes to indirect spend categories such as IT, MRO, office supplies, travel, logistics, and marketing. Such spends account for millions of dollars that could be saved because of a better procurement process. By improving the procurement process in the pharma industry with strict policies, proper tools, and providing full spend visibility, companies can improve savings from indirect spends and force regulatory compliance.

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