Supply Chains in the Pharma Industry | With Supply Chain Guru Govind Jaju | TBCY

Summary

In this episode of 'The Brand Called You,' host Ashutosh Garg interviews supply chain expert Govind K Jaju, discussing unique challenges in the pharma industry such as quality focus, complexity, regulatory hurdles, and patents. They explore the impact of the pandemic on supply chain strategies, the importance of reducing dependency on China for APIs, and the role of technology like AI, robotics, and drones in streamlining operations. The conversation also touches on the government's part in ensuring efficient supply chains and the future of pharmaceutical distribution with the rise of e-commerce platforms.

Takeaways

• 💊 The pharmaceutical industry faces unique supply chain challenges such as quality focus, complexity, regulatory compliance, and patents.
• 🔄 Reverse Supply Chain is a significant challenge in pharma, requiring the return and disposal of expired or unsold products from a vast distribution network.
• 🌐 The global nature of the pharma supply chain mandates compliance with the laws of each country, leading to multiple product variations and regulatory hurdles.
• 🛂 Patent expiration presents an opportunity and a challenge for Indian pharma companies to quickly supply markets with generic versions of drugs.
• 🚫 The pandemic highlighted the need to reduce dependency on China for APIs and other critical pharmaceutical ingredients due to stockouts and supply chain disruptions.
• 🛣️ Government initiatives like PLI schemes and technology parks aim to boost domestic manufacturing capacity and reduce reliance on imports.
• 📈 The role of the Chief Supply Chain Officer has evolved from a simple manager to a strategic leader within the C-Suite, driven by technology and competition.
• 🤖 Technology, including ERP systems, AI, Machine Learning, Robotics, and potentially drones, plays a crucial role in modernizing and optimizing the supply chain.
• 🛒 E-commerce platforms are changing supply chain dynamics, moving from delivering to numerous retailers to serving a few large platforms, which requires digital management and efficiency.
• 🏛️ The government plays a pivotal role in ensuring supply chain efficiency through infrastructure development and strategic interventions, especially in times of crisis.

Q & A

What are the unique challenges faced by the pharmaceutical supply chain?

The pharmaceutical supply chain faces unique challenges such as quality focus, complexity, regulatory compliance, and patents. Quality is paramount due to the life-saving nature of medicines. Complexity arises from managing a vast array of products and ensuring accurate demand forecasting. Regulatory challenges involve complying with the laws of different countries where the products are sold. Lastly, patents play a significant role, with the expiration of patents often leading to a surge in demand that supply chains must quickly adapt to.

How does the Reverse Supply Chain work in the pharmaceutical industry?

The Reverse Supply Chain in pharma involves the process of retrieving products from various points in the distribution network that are unsold due to being expired, near expiry, or having quality complaints. This complex process requires the supply chain to collect these products from thousands of retailers, distributors, and wholesalers, and ensure they are properly disposed of.

What role does technology play in modernizing the pharmaceutical supply chain?

Technology, particularly ERP systems, plays a crucial role in modernizing the pharmaceutical supply chain by providing an integrated platform for forecasting, manufacturing planning, distribution planning, sales, invoicing, and warehousing. This enables real-time monitoring and action, which is essential given the complexity and dynamic nature of the industry.

How has the COVID-19 pandemic impacted supply chain strategies in the pharmaceutical industry?

The COVID-19 pandemic has led to a significant increase in demand for certain drugs overnight, causing stockouts even with increased production efforts. This has highlighted the need to reduce dependency on countries like China for APIs and other critical materials. The pandemic has also underscored the importance of robust cold chain networks for vaccine distribution, reaching even the most remote areas.

What is the significance of reducing dependency on China for the pharmaceutical industry?

Reducing dependency on China is significant for the pharmaceutical industry due to geopolitical issues like border disputes and the pandemic, which have exposed the risks of relying heavily on a single source for critical materials. This has led to initiatives by governments and industries to increase domestic manufacturing capacities and diversify supply sources.

How has the role of the Chief Supply Chain Officer evolved over time?

The role of the Chief Supply Chain Officer has evolved from managing simple procurement tasks to becoming a strategic C-Suite role. Today's Chief Supply Chain Officers are responsible for managing complex supply chains, leveraging technology for efficiency, ensuring regulatory compliance, and contributing significantly to the company's profitability.

What is the potential impact of e-commerce platforms on the pharmaceutical supply chain?

E-commerce platforms have the potential to significantly change the pharmaceutical supply chain by centralizing distribution through digital management, reducing manual intervention, and increasing efficiency. They also enable better inventory management and faster, more transparent procurement processes.

How can artificial intelligence and robotics improve pharmaceutical supply chain operations?

Artificial intelligence can automate mundane tasks, speed up data analysis for better demand forecasting, and optimize production scheduling and routing in distribution. Robotics, particularly in automated warehouses, can improve picking accuracy and speed, leading to better warehouse and inventory management.

What is the potential role of drones in the pharmaceutical supply chain?

Drones have the potential to revolutionize the 'last mile' delivery in the pharmaceutical supply chain by offering a quick and cost-effective method to deliver small packages directly to end customers, which could improve efficiency and reduce costs.

What role should the government play in making supply chains more efficient?

The government should play a role in improving supply chain efficiency by investing in infrastructure, maintaining good international relationships to ensure smooth flow of goods, and intervening to reduce dependencies on single countries for critical medicines. Additionally, the government can support domestic manufacturing and innovation in the supply chain sector.