Faced With Complex Challenges, Life Sciences Companies Must Embrace Digitalization

Supply chain optimization might be a timeless concept, but the way we define and achieve it evolves over time — depending on demand levels, supply shortages, the competitive landscape, geopolitical conditions, technology innovations, regulations and other challenges. 

The life sciences industry — including pharmaceutical, medical technology and healthcare equipment manufacturers — is a great example. During the height of the COVID-19 pandemic, life sciences supply chains were necessarily hyper-focused on ramping up production volumes and accelerating delivery. Pharma, Medtech and healthcare manufacturers around the world bolted into action to exercise their collective strengths to combat a dire threat to global health and the life sciences supply chain.

Today, life sciences companies face an entirely new competitive landscape. They must find faster, more efficient strategies to surgically and profitably match supply with fluctuating demand and ensure operational excellence across their value chain. 

This has become incredibly challenging as supply chains grow more complex, SKUs proliferate and regulatory requirements increase. Product expiration dates, as well as temperature control and other special handling requirements, add to the challenge of accurately matching inventory to market needs. In addition, many companies lack the real-time visibility and collaboration needed across internal functions, as well as across multi-tier supply chain networks, hampering their ability to adapt strategies in real time wherever and whenever market forces require.

And let’s not forget increasing supply chain disruptions, from new tariffs and sociopolitical uncertainty to extreme weather, labor strikes and port closures. Did we mention inflation and rising cost pressures?