Supply Chain 4.0: Building a Resilient Supply Chain Ecosystem

In a risk-averse sector like pharma, the conservative approach to implementing new technologies has resulted in a slower uptake of innovative digital solutions that could revolutionise supply chain management. Overcoming this inertia requires a shift towards embracing emerging technologies that can drive efficiency and competitiveness. In this article, we look at how embracing Supply Chain 4.0 can help build a future-ready and resilient pharma supply chain ecosystem.

At its core, Supply Chain 4.0 embodies the digitalisation of supply chain processes through the seamless integration of advanced technologies such as AI and IoT into the manufacturing process. It has created a disruption and requires companies to rethink the way they design their supply chain.

However, as we know, the pharma industry has historically been cautious in adopting new technologies due to regulatory constraints and a focus on product development over operational optimisation. According to a study by PWC, many companies still rely on traditional supply chain and manufacturing paradigms, which limits their ability to leverage cutting-edge technologies effectively.

One of the primary obstacles hindering the full-scale adoption of digital technologies in pharma supply chains is the presence of outdated legacy systems, as discussed in a previous article. These systems are deeply ingrained in the industry's operations, making it challenging to transition to more advanced digital solutions seamlessly. More pharma organisations are also outsourcing production to contract manufacturers, adding new complexities to their supply chain network.

In addition, during the pandemic, cyberattacks against organisations skyrocketed, and the healthcare sector was no exception. Today, the pharma supply chain is fragmented more than ever, involving many different stakeholders all at varied stages of digitisation. The interconnected nature of digital systems exposes them to potential cyber threats, including data breaches and ransomware attacks. 

The PWC study highlights that companies need structured roadmaps for implementation that address risk factors like cybersecurity to ensure the integrity and security of sensitive supply chain data. A 2023 CheckPoint Security Report notes that cyberattacks reached an all-time high in response to geo-political conflict, and the rise of ‘disruption and destruction’ malware, with attacks on the healthcare sector registering a 74% increase in weekly attacks in 2022 vs 2021. According to them, email-based attacks in 2023 across all industries continued to be the dominant initial infection vector, with 88% of all malicious file deliveries occurring through email, with the remainder downloaded directly from the internet. 

In contrast to these challenges, leveraging some of the latest technologies such as the cloud and AI presents a myriad of benefits for managing supplier system integrations at scale and safeguarding data integrity. By applying integrated, cloud-based digital technology, companies can significantly increase visibility into their supply chain operations and make better and  faster decisions. 

Let’s look at some of those benefits:

• Cloud-based information architecture offers pharmaceutical companies the ability to develop global integrated supply chain networks that streamline interactions with all their suppliers, from contract manufacturers, to wholesalers, distributors, and healthcare providers. By using a platform that seamlessly integrates with diverse supplier systems, companies can overcome legacy system integration issues and enhance end-to-end visibility across the supply chain.
  
  
• As supply chains continue to produce more and more data from their operations, it will become increasingly important for them to become more accurate. An integrated cloud based platform enables real-time data collection from multiple sources, facilitating efficient third party data integration and standardisation. By transforming suppliers’ data sets into standardised and accurate information, pharma companies can make informed decisions based on reliable insights from their suppliers.
  
  
• Cloud technologies coupled with AI-driven predictive analytics can expedite product development cycles, and ensure safe and timely delivery of pharmaceutical products. This accelerated pace enhances operational agility and responsiveness to market demands. 
  
  
• Digitalisation allows companies to fully integrate their supply chains and improve operational processes, making them more adaptive and responsive. Addressing drug supply challenges requires a concerted effort from all stakeholders involved, as without seamless supply coordination, a sudden demand surge could strain supply chain networks and worsen disruptions. 

In a previous post, we discussed the importance of solutions architecture when planning and designing partner integrations to ensure seamless communication between a pharma company and their different suppliers. By leveraging the power of data, technology, and automation, and embracing innovative technologies brought on by Supply Chain 4.0, pharmaceutical companies can future-proof their operations and drive sustainable growth.

Veratrak operates in accordance with the strictest industry regulations, and operational excellence is a key focus of our work. We carefully consider how data will be shared and synchronised between new and existing systems via our supply chain platform, the Hub. By implementing best practices, we help pharma organisations reduce costs, minimise downtime, and maximise productivity across their supply chain. We help protect sensitive data and safeguard against cyber threats by proactively addressing security concerns.

Get in touch with our team to learn more about our Hub Platform supply chain integration capabilities.