Allen Jacques, VP of Pharma Supply Chain at FusionOps, recently wrote that major transformations are ahead for the pharmaceutical supply chain. Below are some key drivers and anticipated changes he sees developing in 2017.
- Higher consumer expectations – In addition, an increase in scrutiny from regulators, and an unprecedented slowdown in mergers and acquisitions.
- The rise of generics – Steadily increasing and estimated to account for 91-92% of all prescriptions by 2020.
- Increasing Prescription volume – Prompted by an aging population, new drug introductions, and consumer empowerment.
- Rise of cold chain logistics – Fluctuations in demand for temperature-dependent drugs can result in exceedingly high inventory costs.
- Marked slowdown in M&A – Life sciences deal-making fell 65% behind its previous year rates.
- Digitization – The industry has begun working in earnest to digitize the supply chain.
- Push into emerging markets – Pharmaceutical companies will continue to ramp-up their efforts in emerging markets, especially the BRIC +T regions (Brazil, Russia, India, China, and Turkey).
- Shift toward global inventory management – The systems can help ensure that each region is serviced with as little overhead as possible.
- Unlocking AI, Big Data and Cloud technologies – Significant promise for ROI in supply chain automation tools. In 2017 these advancements will continue to evolve toward making the entire supply chain autonomous.
This story excerpt can also be found in the March 2017 issue of Pharmaceutical Processing.
Click here to read the full article by Allen Jacques.