Trade & Channel Strategies 2024: Protecting the Pharma Supply Chain

Trade & Channel Strategies' “Securing the US Supply Chain and Managing Global Products" session

Day 2 of Trade & Channel Strategies took a different approach in that it offered four distinct tracks for attendees to choose from: supply chain, distribution, and logistics; pharmacy models and reimbursement strategies; data, innovation and analytics; and health systems and pharma partnering symposium.

I decided to lean into the supply chain, distribution, and logistics track, which started off with a session on “Securing the US Supply Chain and Managing Global Products.” Led by Opeyemi Odusami, a former associate director of global supply chain at Sanofi, he dove into ways to design resilient supply chains, limit risks, and tackle the operational impacts of shifting trade regulations, international product sourcing, and geopolitical tensions.

For one, dual sourcing strategies are being implemented in order to balance global efficiency and local reliability, an effort accelerated by the COVID-19 pandemic.

“During the COVID 19 pandemic, there was a lot of supply crisis issues, which have led companies to look into a dual sourcing of suppliers to ensure you have the opportunity to be able to use other suppliers, in case one of your suppliers is having supply constraints,” Odusami explained. “Any constraint—starting from raw materials—would have a trickle-down effect, through your finished goods and supply of finished goods to the market. Focusing on this KPI, and also agreeing to a service level agreement with your suppliers, is very important at this stage.”

Odusami outlined the plan for a customer-centric supply chain strategy, including:

1. Order promising: Ensuring desired delivery dates for customers while also planning for any constraints

2. Demand planning: Considering consumer trends and historical sales by forecasting for accuracy

3. Capacity planning: Utilizing resource management in order to meet demand

4. Material supply planning: Making sure materials meet requirements; undergoing supplier relationship management

5. Detailed scheduling and inventory planning

There is no doubt that there are layers to this. For instance, one could make the case that the use of resilient packaging in the pharma space is one component of the aforementioned customer-centric supply chain. Having effective packaging begins with the proper materials that are not only durable, but eco-friendly as well.

“Using durable materials basically allows the company to be eco-friendly and keep high ethics standards,” he added. “Ethics are an important part of any business in order to keep a brand image. It's not just about making money—when you have bad ethics standards, that can lead to trust issues within the market, both with the customers, as well as regulators within the industry. Having durable materials also ensure that the products will be safe along the distribution line at all times.”

Resilient packaging also requires right-size packaging (with a precise fit to product dimensions); innovative design (in order to allow for simpler handling for storage and transportation purposes); temperature control and protection (which can help provide additional integrity of any perishable products that may enter the supply chain); and regulatory compliance. The former is headlined by both accurate and comprehensive labeling, and involves incorporating the timeline of any regulatory changes into supply planning. This ensures that adequate inventory is built out in order to be able to sustain any potential timeline of regulatory approvals for lifecycle changes.

Reference

Odusami O. Securing the US Supply Chain and Managing Global Products. December 11, 2024. Trade & Channel Strategies, Philadelphia. https://informaconnect.com/trade-channel/