Actions for pharmaceutical and packaging manufacturers to mitigate disruption and boost supply chain resiliency in 2024 and beyond
Supply chain disruptions are nothing new to pharma manufacturers. From shortages of drugs for attention deficit hyperactivity disorder (ADHD) to shortages of critical cancer drugs, at some stage every manufacturer will face shortages caused by disruptions several tiers down the supply chain. Monitoring showed that the life sciences industry experienced the highest number of disruption alerts of all industries tracked in 2023.
The year 2023 also saw a notable increase in pharmaceutical drug recalls. Disruptions were widespread in the US, in particular, with shortages caused by raw materials’ shortages, manufacturing quality issues and increased demand. However, organisations worldwide have struggled to ensure continuity of supply and this is likely to continue throughout 2024. Pharma companies should expect drug supply disruption to worsen unless they take proactive steps to strengthen their supply chains.
Develop a bird’s-eye overview through supply chain mapping
A complete bird’s-eye view of the supplier network is crucial to responding quickly and efficiently in the face of disruption. Currently, many pharma manufacturers in Europe and the US are single-source dependent on China and India. Unfortunately, critical failure points in these regions are common and the biggest threat to business continuity. As long as pharma manufacturers lack transparency into impacted locations and materials, the door to further disruption remains wide open.