An Overview Of Supply Chain Management: Mastering The Flow Of Supply
Witnessing today’s cut-throat competition, it is crucial for every business to achieve cost efficiency, customer satisfaction, competitive advantage, risk mitigation, collaboration, and sustainable practices to rise above the noise. And, this is where supply chain management enters into the frame. The supply chain is no longer a back-office function that consumers have never heard of. Over the past decade, it’s taken on a more forward-facing role that’s a competitive differentiator and part of the corporate business model.In this globalized and interconnected business landscape, apt supply chain management is something that can’t be ignored. Integrating effective supply chain management into business can help in efficiently optimize operations, meet or surpass customer expectations, and thrive in this rapidly evolving business environment.
Cruciality of Pharmaceutical Supply Chain Management & Significant Challenges Limiting its Success
The pharmaceutical supply chain is both global distributed and complex, and faces constant pressures like demand volatility, complex regulatory environments, and supply network disruptions caused by the global events. As a result, the industry is now more focused than ever on investing in an agile supply chain management approach that can give both a competitive advantage and drive innovation to streamline pharmaceutical supply chain management. In the current scenario of a health conscious society, management of pharmaceutical supply chains has become more complex because in any health setting, delivering of medicine as a strategic product is a top priority and it involves the life-saving interest of human being. However, a strong and successful supply chain management requires the active participation of different stakeholders such as pharmaceutical manufacturers, wholesalers, distributors, customers, information service providers and regulatory agencies.
The pharmaceutical supply chain is both global and complex, and faces constant pressures like demand volatility, complex regulatory environments, and supply network disruptions caused by global events
We all have witnessed how drastically COVID has affected the industries and pharmaceutical supply chain was not an exception. Post pandemic the pharmaceutical supply chains, on of the most important player of the drug value chain have been subjected to many risks which has unwantedly interrupted the quantity and quality of supply of medicine and their delivery to the right place and customers at the expected time. Let’s discover some significant challenges in this area:
Material Scarcity: Insufficient inputs have been a concern since the pandemic began, due to an abrupt rise in consumer demand like never before. Even now, retailers and suppliers alike are struggling to meet this demand in the midst of limited availability for many parts and materials throughout the supply chain network.
Difficult Demand Forecasting: Demand forecasting in the middle of a global pandemic has added a new layer of complexity for many companies’ and their supply chain’s. The onset of COVID-19 essentially shattered the forecasts for countless retailers and suppliers of consumer goods/ services, leaving them without a guide as to how much inventory to stock or manufacture at any given time.
Evolving Consumer Interest: Consumer attitudes and interest have shifted in somewhat a big manner during the pandemic. Now the challenge comes in having an agile supply chain that can harness the power of automations to optimize fulfilment and handle accelerated demand with ease.
Skyrocketing Freight Fare: Opposite to the initial expectations, the requirement for container shipping has boomed considerably throughout the pandemic. The spreading worldwide health awareness measures inciting a surge in ecommerce sales, the response has been a greater import demand for raw materials and manufactured consumer goods. As this demand was much more substantial than anticipated, lead to an insufficient shipping capacity and an unprecedented shortage of empty or available containers.
AI & Blockchain Reinforcing Supply Chain Management: Artificial intelligence (AI) and blockchain are the most disruptive technologies of the 21st century, and their slaying combination holds the potential to transform any industry in ways that were previously considered next to impossible. Introducing AI and blockchain can widely revolutionize supply chain and logistics operations by improving efficiency, transparency, and decision-making. AI can provide intelligent insights and data-driven analysis, while blockchain secures and tracks the data, ensuring its accuracy and integrity. Together, these technologies can enhance inventory management, route optimization, provenance tracking, and end-to-end visibility across the supply chain. Also, by leveraging AI and blockchain, organizations can improve decision-making and optimize supply chain operations, leading to increased customer satisfaction and business success.
Integrating Sustainability in Supply Chain Management: Finally, we are witnessing a shift where sustainable brands sustain for longer time and leaving behind a strong impact on society. Today consumers make sure that the products they buy are not only economically sound but also manufactured through practices that are ethically and environmentally conscious. More than ever, today Supply chain management plays a crucial role in promoting sustainable and ethical practices. Consumers and stakeholders are increasingly demanding transparency and responsible sourcing. By integrating sustainability into the supply chain, companies can ensure environmentally friendly practices, reduce waste, minimize carbon footprint, and ensure fair labour practices throughout the value chain. These efforts not only contribute to social responsibility, brand reputation, and long-term business viability but also helps baging lucrative profit by attracting wide range of customers.
Overall, the bottom line is that as an increasing number of consumers expect social responsibility from brands in exchange of their loyalty, more and more companies are diving into ethical supply chain practice. It is crystal clear that it’s good for business, and those who don’t invest in it are clearly at risk of being left behind.