For pharmaceutical companies to ensure product integrity and maintain regulatory compliance, deeper product monitoring, enhanced cold chain infrastructure, and focused automation will be critical
NEW YORK, Feb. 28, 2023 /PRNewswire/ — The global pharmaceutical (pharma) industry will surpass US$1.9 trillion in revenues by 2027; online pharma revenues will surpass US$185 billion by 2027. With online healthcare, tailored medicines, and regulatory stringency all increasing alongside an elevated focus on drug supply security following the Covid-19 pandemic, pharma supply chains have drawn considerable attention. Digital transformations are being used to ensure not only supply resiliency but also as competitive differentiators. According to global technology intelligence firm ABI Research, Cold Chain Track & Trace revenue for refrigerated containers (reefers) in the pharma industry is expected to reach US$2.9 billion globally by 2027 as companies look to tackle the US$35 billion worth of products lost to failures in temperature-controlled logistics within the industry each year.
“Both profit and human well-being play a role in the industry’s structure and development. Pharma companies seek to innovate and deliver new drugs to the market. In contrast, governments and healthcare systems seek to regulate and ensure that drugs and medicines are verified and effective when reaching patients. Digital transformations offer a means to achieve both, helping to guarantee end-to-end (E2E) product integrity while delivering effectively and at a fair price. Comprehensive solutions tackling contemporary pain points are critical for pharma companies to achieve the most efficient and robust routes to market,” explains Ryan Wiggin, Supply Chain Management & Logistics Industry Analyst at ABI Research.
One of pharma’s most pressing issues is the need for increasingly granular traceability. Regulations such as the EU Falsified Medicines Directive (EU FMD) and the Drug Supply Chain Security Act (DSCSA) push companies away from manual processes and toward more sophisticated digital solutions. These include Warehouse Management Systems (WMS), such as SnapFulfil, offering inventory management and stock flow optimization, Internet-of-Things (IoT) enabled traceability at a unit level from companies like Wiliot, reefer telematics from companies like Motive, and supply chain control towers from the likes of Optel Group that provide a layer of orchestration by bringing together systems and data siloes into a centralized platform.
In addition, pharma companies and retailers are also revolutionizing their picking operations through robotic picking solutions from companies like RightHand Robotics, alongside Automated Storage and Retrieval Systems (AS/RS) in warehouses and healthcare facilities. On top of higher speed, accuracy, and picking time, robotic deployments are helping to facilitate protected environments for temperature-controlled products and better resiliency to labor supply fluctuations.
“Out of necessity, cold chain infrastructure and product traceability will see strong investment in support of growing biologics drug development and tailored medicines. From a retail and e-commerce perspective, big players like Walgreens and Amazon operating in the generics and prescription markets will continue to lead direct-to-consumer (D2C) channels with higher automation initiatives. As competition increases and operational requirements evolve, end users must focus on internal alignment and incentivize cooperation with close trading partners to support E2E solutions. Technology vendors should utilize strategic partnerships and explore as-a-service offerings to offer companies a comprehensive and managed transformation with simplified adoption,” concludes Wiggin.
These findings are from ABI Research’s Digital Transformation of the Pharmaceutical Supply Chain application analysis report. This report is part of the company’s Supply Chain Management & Logistics research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, Application Analysis reports present an in-depth analysis of key market trends and factors for a specific technology.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
SOURCE ABI Research