Health Care
The life sciences industry, consisting of pharma, biopharma and medical devices and equipment, is a vital sector that plays a critical role in improving the health and well-being of people around the world. However, with the changing market environment, companies need to re-examine their global manufacturing and distribution operations and supply chain to stay competitive.
Here are 6 key trends that companies in the life sciences industry should consider from an end-to-end supply chain, operations, and footprint perspective:
1. Shifting regulatory landscape
With regulatory bodies constantly changing their standards, companies need to remain vigilant and adapt to the new rules including quality, labelling and localization requirements. This is especially important when it comes to global manufacturing and distribution /final mile operations.
2. Patient centricity
Patients are at the center of everything in the life sciences industry. As a result, companies need to consider the patient's journey throughout the entire supply chain and ensure their products are accessible to those who need them at the time they need them. Especially in Cell/Gene therapies, closed loop End-2-End controlled supply chains will become the standard.
3. Governments reducing healthcare budgets
As governments continue to reduce healthcare budgets, companies need to streamline their operations to offset higher costs and improve profitability.
4. Need for end-to-end visibility
Companies need complete transparency and visibility throughout their entire supply chain. Without the right level of visibility it becomes hard to make the right management decisions to quickly react on changing circumstances.
5. De-risking the supply chain and incorporating resilience
The life sciences industry is incredibly complex and unpredictable. Companies need to identify and mitigate risks in their supply chain to ensure patient safety and business continuity. A resilient supply chain is a must, not a nice to have for Healthcare companies.
6. Need to Review the Manufacturing Footprint
To achieve success in the marketplace, companies must review their manufacturing and distribution footprint. This is a key lever for companies to remain competitive and adaptable to the ever-changing industry landscape. Streamlining manufacturing and distribution operations (including the perspective of labor availability which is a critical factor for many companies in current labor markets), setting up new operations in different regions, using potentially a contract manufacturing (CMO) strategies where logical , and reconsidering the distribution network and inventory positioning are critical steps towards success. This may include setting up new operations in South East Asia, Central and Eastern Europe, and Mexico/Central America.
In summary, the life sciences industry is evolving at a rapid pace. Companies need to be agile and adapt to the changing landscape by focusing on the six key trends mentioned above. By reviewing your manufacturing and distribution operations and supply chain, your company can create a lean and efficient organization that is well positioned to succeed in the marketplace. The key to success is to build a resilient, efficient, and adaptable value chain that can handle any disruption and continue to deliver life-saving products to patients in need.
