Biopharma Supply Chains and the Impact of COVID-19

The supply chain is a critical function in the highly regulated biopharma industry. Prior to the pandemic, there was a tendency to operate slowly and reactively due to the risks associated with drug distribution. However, in March 2020, the industry's standard practices were no longer sufficient.

Challenges Faced by the Biopharma Industry

As COVID-19 spread, upstream partners faced shortages of key ingredients and active pharmaceutical ingredients (APIs), while downstream supply chains and their commercial development teams struggled with restricted access to healthcare provider offices.

Additionally, research and development teams had to pivot towards remote clinical trials, a concept that had shown promise but was slow to gain widespread adoption.

Over-Reliance on Foreign APIs

One of the earliest supply chain issues revealed during the pandemic was the U.S.'s heavy reliance on APIs produced in other countries. According to the FDA's Center for Drug Evaluation and Research, over 70% of API manufacturers were based outside the U.S., with major sources in the EU, India, and China.

Go Time for Digital Enablers

The pandemic also pushed supply chain providers to enhance their tracking and transparency capabilities, making it an ideal time for the implementation of track-and-trace technologies and IoT solutions. This aligns with the 2023 deadline for Phase II of the Drug Supply Chain Security Act (DSCSA), which requires full unit-level traceability within the entire pharmaceutical supply chain.

Telemedicine and Supply Chain Adaptation

The shift towards telemedicine, driven by the pandemic, set the stage for new care delivery models, such as home-based healthcare and same-day prescription deliveries. This rapid adoption of digital healthcare created new workflows and opportunities for providers and patients alike.

Strengthening Supply Chains Post-COVID

Today, vaccines are more accessible worldwide, and new treatments for COVID-19 are in development. While the pandemic exposed weaknesses in the biopharma supply chain, the industry has rebounded, becoming more resilient and prepared for future crises.

© 2024 Biopharma Insights. All rights reserved.

Spimaco's Pharmaceutical Warehouse Automation Success

To look at it today, you'd never guess that Spimaco's gleaming pharmaceutical production and storage facility in Qassim, Saudi Arabia, was once its biggest obstacle to growth. But that was indeed the case. Just some years back, the power was a cramped, manual operation that was struggling to stay pace with the company's daily throughput needs never mind provide room to grow.

For company leaders, those constraints were fast becoming a cause for concern. That concern eventually led to the choice to give the facility, which was inbuilt 1988, a much-needed makeover and convey it into the 21st century. Spimaco tapped Germany-based Lödige Industries, a manufacturer of fabric handling solutions, for the work of modernizing the operation. After some consultation, the partners chose the automation and expansion route: that's, they decided to reinforce the existing facility with the addition of an automated high-bay distribution and storage center.

OLD VS. NEW

The first step for the Lödige team was to conduct a detailed analysis of Spimaco's existing infrastructure and processes in order to determine what equipment and systems would best meet its future needs. Acting as a general contractor for the installation, Lödige then designed and implemented new handling and fulfillment systems incorporating solutions from different suppliers into one custom-made system where necessary.

The results of its efforts are a new state-of-the-art warehouse that allows for palletizing, picking, automated storage and retrieval, and therefore the dispatch of pharmaceutical goods in full compliance with pharmaceutical regulations. Among other upgrades, the power features more than 5,000 storage spaces, several hundred meters of conveyors for cases and pallets, two palletizing robots, and over 30 automated shuttle vehicles.

To make sure the new facility ran smoothly across all production lines during the initial period of operation, Lödige maintained operational management of the power and provided "resident maintenance" services as well.

A MULTITUDE OF BENEFITS

The results of the project are impressive. With the new automated systems in situ, Spimaco has almost doubled its throughput rates for handling finished goods. additionally, the upgrade has given the corporate full inventory control and high-quality track and trace programs, while improving its ability to handle extremely delicate products governed by strict industry rules and regulations.

In the ongoing Covid-19 pandemic, having a highly capable infrastructure has helped the corporate to grow and prosper. "Our old distribution center was starting to limit our capabilities. But now with the new facility, we've modernized the existing systems, and our potential for growth has become unlimited," said, chief military officer of Spimaco, during a statement. "Since pharmaceutical products are very sensitive, it had been important to have a highly reliable solution.

Smart Warehouse Technology Solutions

Customers today expect things quickly, and 69% of them would be more likely to purchase online if they had access to one-day shipping. However, 77% of warehouses struggle to meet same-day delivery. Finding ways to accelerate the supply chain and maximize efficiency is critical to meet changing customer expectations and for suppliers to remain competitive. The need for speed, accuracy, and efficiency is a priority, with 80% of operational leaders agreeing that new technology is needed for work advancement to achieve this. The warehouse is at the center of any producer or distributor's supply chain, so implementing a smart warehouse system is an effective way to streamline processes, maintain control, and keep up with the competition.

Redesigning Legacy Cycles and Technology

Many warehouse processes are labor-intensive and inefficient, with some organizations still relying on pen-and-paper processes or outdated technology. This can lead to errors in order handling, stock management, shipping delays, and resource wastage. In a recent survey of 1,403 IT and operational leaders, 77% agreed they needed to upgrade their warehouse technology but admitted they were slow to do so. While some have introduced new technologies to accelerate processes, an incomplete smart warehouse solution will result in technical fragmentation. A fully integrated smart warehouse solution can increase efficiency, accuracy, and reduce costs in time, money, and resources, as well as leverage data to help shape future strategies.

Integrating a Smart Warehouse Management System

An effective Warehouse Management System (WMS) is a vital record that manages everything from goods to assets to people, through to transactions and shipping. By 2024, 90% of operational leaders plan to introduce a WMS to modernize work planning and management. A successful WMS also helps support a well-trained workforce, integrate automation, and generate useful data for decision-making. It can also create an essential link between the warehouse and transportation.

Introducing Smart Technology in the Warehouse

It is now possible to integrate smart technology at every stage of the warehouse process, from goods in, stock management, to picking, packing, and shipping. A recent study showed that 94% of repetitive tasks were performed with human input, but 75% plan to improve workforce performance by equipping them with purpose-built technologies to increase efficiency, accuracy, and reduce downtime. From wearable scanners, mobile and vehicle-mounted computers, to smart labeling and voice-directed picking solutions, a connected smart warehouse can streamline workflows and support quick turnaround.

Automation in the Warehouse

Automation and new technologies are essential for warehouse operators to remain competitive. Over 75% of leaders plan to equip the workforce with smart technology to introduce automation in the warehouse. Many are investing in devices such as smart watches, mobile printers, wearable computers, and smart glasses. Voice-integrated picking devices, which can increase efficiency by 15-30%, are now being incorporated into processes.

A Smart Workforce for a Smart Warehouse

Equipping the workforce with smart technologies not only increases productivity but can also help retain key talent. As of 2020, half of the workforce comprised millennials, a generation that grew up with tablets and smartphones and expects a digital work environment. Using outdated technologies and pen-and-paper processes will not appeal to this workforce. A smart warehouse will attract a smart workforce and enable companies to retain key talent. Additionally, smart solutions can make repetitive tasks less tedious and more fulfilling, improving worker satisfaction. Voice-Directed Picking (VDP) solutions, for example, allow workers to perform tasks naturally while reducing cycle times. New lightweight wearable technology can also reduce muscle strain compared to older handheld devices.

How to Integrate Smart Working

Talk to our team about our range of cutting-edge technologies to keep your warehouse and supply chain moving. Whether it's a mobile computer, scanner, printer, or wearable technology, we have solutions to complement your strategy.