Chapter 2: Building Resilience in a Complex Environment
Summary
In today's unpredictable global landscape, pharmaceutical companies are prioritising supply chain resilience. According to our research, companies employ various methods to enhance resilience, with financial impact assessments leading at 67%, followed by internal risk assessments (65%), third-party tools (64%), and KPIs (62%).
All respondents reported having formal risk assessment methods, underscoring the industry's commitment to preparedness. Regulatory changes emerged as the top logistics-related risk (72%), followed by supply chain disruptions (70%) and data security (67%). This highlights the sector's vulnerability to evolving compliance requirements and global events.
Interestingly, labour shortages (22%) and counterfeit products (26%) were perceived as less pressing concerns. Key themes in Business Continuity Planning included improving responses to disruptions and preparedness for unforeseen circumstances.
Many respondents emphasised the importance of partnerships with other providers to enhance resilience.
The pharmaceutical industry is taking a multifaceted approach to building resilience, focusing on financial assessments, risk management, and strategic partnerships.
Companies are striving to create supply chains that can withstand regulatory changes, disruptions, and data security challenges. This collective commitment to resilience reflects the sector's adaptation to an increasingly complex logistics environment.
Skip to:
Question 1: Which initiatives are most effective in providing resilience in your supply chain?
Question 2: What are the biggest logistics-related risks your organisation currently faces?
Question 3: What are the most critical components of your Business Continuity Planning (BCP) for ensuring supply chain resilience?
Question 1: Which initiatives are the most effective in providing resilience in your pharma supply chain? (Respondents were asked to select five options)
Through financial impact assessments (e.g., cost of potential disruptions)
Regular internal risk assessments (e.g. in-house teams)
Using third-party tools or external risk providers (e.g. Validaide)
Key performance indicators related to logistics risks
Using a formal risk scoring or ranking system (e.g., probability and impact matrix)
Based on historical data and past disruptions
Using real-time data and predictive analytics tools
Scenario planning and modelling
Qualitative risk assessments
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Lorem ipsum dolor sit amet
Question 2: What are the biggest logistics-related risks your organisation currently faces? (Respondents were asked to select five options)
Question 2: What are the biggest logistics-related risks your organisation currently faces? (Respondents were asked to select five options)
"I believe recent challenges have demonstrated that supply chain disruptions have led to significant cost increases. While regulatory changes are notified well in advance, allowing for proactive assessment, and do pose a risk, I believe supply chain disruptions present a greater threat.
Since COVID-19, supply chain resilience has improved significantly. However, supply chains are often not agile due to the specific requirements of the products being shipped. Additionally, natural disasters caused by global warming are increasingly likely to have an impact. We have seen this in recent events, such as hurricanes in the U.S., which necessitated emergency measures to ship IV fluids via air from around the globe. This, in turn, led to a significant reduction in available airfreight capacity for regular product flows. For these reasons, I would rank supply chain disruptions above regulatory changes."
Eric ten Kate, Global Sector Leader – Healthcare, Ceva Logistics
"In regard to the biggest logistics-related risks, from Kuehne+Nagel's perspective, supply chain disruptions and overall network resilience are the most critical. This is due to the role we play in the supply chain and the expectations our customers place on us as an organization.
Jon Chapman, Vice President Healthcare Services, Kuehne + Nagel
Question 2: What are the biggest logistics-related risks your organisation currently faces? (Respondents were asked to select five options)
Regulatory changes
Supply chain disruptions
Data security
Cybersecurity threats
Transportation delays
Supplier reliability
Economic uncertainty
Natural disasters
Counterfeit product
Labour shortages
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Lorem ipsum dolor sit amet
