Building a patient-centric supply chain through end-to-end visibility and IIoT
Across life sciences clients, supply chain is increasingly looked at as an opportunity to add value to patients, not just reduce costs.
There are many trends supporting more patient-centric supply chains. The image below summarizes many common topics our life sciences clients are discussing across supply chain and manufacturing.
Specifically, today I’d like to discuss two key trends that will support a more patient-centric supply chain: innovative data capture powered by connected manufacturing devices an industrial internet of things (IIoT) and traceability powered by end-to-end visibility.
End-to-End Visibility
Across all industries, making something meaningful out of the increasing amount of supply chain data available to companies has been a high priority. In fact, according to Gartner, projects focusing on visibility/traceability across end-to-end supply chain were the most likely to be funded in 2019.
Nowhere is this supply chain visibility more important than in a highly regulated, highly-time sensitive industry like the life sciences. A recent Wall Street Journal article states that on average, pharmaceutical companies carry 156 days of inventory, compared to 78 days of inventory held by retailers selling consumer products, in order to avoid any product shortages.
By creating a global visualization of supply chain activity, life sciences companies can make better predictions about how much inventory should be held where. They can also more strategically make decisions about consolidation and deconsolidation points to increase speed and decrease cost.
Hand-in-hand with any conversation about supply chain visibility often comes a conversation about using blockchain to increase transparency throughout the supply chain.
While many companies see the benefits blockchain has to offer conceptually, putting it into production is another question. In a recent survey by Gartner’s supply chain community, 61% of Chief Supply Chain Officers said that while blockchain is interesting, they do not understand its usefulness.
Generally, we advise clients to first clarify the business problem they are trying to solve before proposing a blockchain solution. Otherwise, blockchain can be a hammer in search of a nail. While blockchain can be an effective tool for life sciences companies, begin conversations with the design thinking prompt “how might we [resolve X business problem]” to keep the end in mind. Focusing on the actual business problem seeking to be solved may lead to more cost-effective solutions, such as better access and visibility into the company’s own global data.
Industrial Internet of Things
A second trend that is exciting to me comes in manufacturing: companies are becoming increasingly savvy at creating an industrial Internet of Things (IIoT) in their manufacturing sites.
Gartner defines industrial Internet of Things as a set of integrated software capabilities that improve asset management decision making and operational visibility. Unlike general IoT, IIoT technologies are focused and architected for asset-intensive industries.
“Integration of information technology with all steps of production, people and equipment, known as the industrial internet of things (IIoT), is penetrating the biopharmaceutical industry at a fast pace.”
BCC Research Report on Bioprocess Optimization and Digital Bio-Manufacturing
According to a recent report from BCC Research, the number of wireless IIoT devices is expected to grow at a CAGR of 27.2%.
However, in order to get the most out of IIoT, strong data analytics capabilities must exist. There are four steps to getting meaningful insights from IIoT data:
1. Data collection — using smart sensors and collectors to gather data across the manufacturing process
2. Data storage — storing all this data so that it can be accessed real-time
3. Data analytics — combining real-time data with offline data as needed
4. Making data actionable — generating needed visualizations and putting data in the hands of decision makers
While making this process run smoothly takes an intentional effort, it can save thousands of hours of manual data collection. It also leads to more accurate results for patients and a reduction of risk across the supply chain.
If you’d like to talk about how increased data analytics can transform your pursuit of a patient-centric supply chain, I’d love to chat!
