Why Life Science Companies Need An Agile And Reliable Supply Chain

By Jamie Hintlian of Ernst & Young

In today’s global business environment, supply chain reliability and agility are more critical, yet more difficult than ever to achieve. Companies face three inescapable realities: supply chains have become more complex; they involve more risk; and cost and margin pressures have never been greater. And the competitive stakes are higher, especially in terms of gaining access and share in emerging markets. To succeed in this environment, leading life sciences companies are discovering the path to supply chain agility and reliability by focusing on performance improvement and risk management with a comprehensive, disciplined approach and relentless application of the organization’s collective tenacity to implement it; those not adopting such an approach face consequences.

Limited supply chain agility increases the odds that your company will not be able to respond adequately and rapidly enough to changing market conditions or competitive moves. At best, a less reliable supply chain puts supply continuity at risk; at worst, it puts patient safety at hazard.

Ernst & Young’s recent Growing Beyond survey* reveals that while life sciences companies are consistent in their recognition and prioritization of industry issues, there are clear differences in how leaders and laggards are mobilizing to address those issues. The industry is no longer moving as a pack and the performance gaps are spreading.  Leaders, for example, are creating more reliable supply with global sales and operations planning capabilities, or even leveraging their investments in serialization compliance to improve visibility across the supply chain.  And it appears that leading companies are characterized by more agile and reliable supply chains. Those in a “wait and see” mode may soon find the gaps difficult to close.

The time to start is now

Begin with the basics. The first vital steps are to improve the accuracy and transparency of customer, item, batch and inventory data. Companies that can see clearly across their supply chain operations can be more flexible and respond quickly to get the right product at the right time to the right place, at the right cost – and securely. With global supply chains spanning continents, visibility of product pedigree, manufacturing facility reliability, efficient regulatory compliance, product margins and customer service performance levels is a foundational capability.