Pharmacy Supply Chain

We have pulled together the Biggest Challenges of Pharmacy Supply Chain Distribution Management. Never before have the challenges of pharmacy supply chain distribution management been at the forefront of the media and our country. Hospitals have been short on personal protective equipment (PPE) and the flood of patients with Covid-19 has had an uncertain future. There have always been strains and pains that go along with pharmacy supply chain management, but now the challenges are even more exaggerated. A strong plan with constant measuring for weak links is required more so now than ever before. 

So what are the challenges that face pharmacy supply chain distribution management now and always? Here are the top challenges. 

Challenge #1: Supporting the Customer

Filling an order for supplies might sound simple enough, however, it is far more complex. Each customer is unique in their needs, quantity, and desire for the quality of a product. The distributors need to know each customer, inside and out. 

Customers are used to customization. The best customer service providers know how to tailor their services respectively and efficiently. The most important factor here is communication. When suppliers are able to effectively disseminate data to the customer with regard to changes that could affect the pharmacy supply chain and how to overcome them. 

The solution in our modern-day world is, of course, technology. Many suppliers have a portal or API integration. This ensures that supply chains can function at optimal levels with little to no interruptions or surprises. A company that utilizes and excels in this technology will excel in pharmacy supply chain distribution management. 

Challenge #2: Managing Costs

Currently, the price of energy, oil, freight, labor rates, technology, regulations, and commodity pricing is all over the map. Keeping these costs at proper operating levels can be extremely difficult.

Regardless of current gas prices, transportation costs continue to be a nuisance for some companies. Many are strategizing ways to reduce those costs to find ways to save big. The solution many companies seize is visibility in the supply chain through technology. The technology here includes an arsenal of platforms like TMS (Transportation Management System) and YMS (Yard Management Systems). These types of platforms can give professionals the visibility that they need thus allowing them to witness firsthand the parts of the pharmacy supply chain that are notorious for hiding waste.

The solution goes beyond technology in some cases. Other courses of action include business intelligence. It goes beyond analyzing data and using the information to make sound business decisions.

Suppliers need to have a plan and proper way to execute that plan with precision. Adjustments will be made as things in the economy, as the state of our country continues to change. When carefully monitored and changes are anticipated, the plan can be very successful.

Challenge #3: Planning and Risk Management

No one could have anticipated the challenges that the Covid-19 pandemic placed on pharmacy supply chain distribution management. However, this is just one single planning and risk management challenge to be encountered. Regularly, other challenges include things like product launches, global sourcing issues, political conflicts, consumer demand, etc. 

All the aforementioned risks can arise at any moment and even many at the same time. To keep the supply chain distribution managed properly, these risks must be identified, assessed and ways to mitigate them must be developed. Having plans set in place to anticipate these risks, are an important piece to risk management. 

Challenge #4: Hiring Woes

Finding qualified, dedicated and consistent talent is always a challenge. The different roles that need to be filled and the duties that come with those roles typically need a specific skill set. The future of supply chain leadership depends on it. 

The old view was to just put bodies in the warehouse and not worry about the details. The shift is changing to focus on more talent that comes with a higher market value. Again, a good strategy and distribution of skills become key to making these decisions. Quality talent will always win over quantity when the numbers are put to the test. 

Challenge #5: Manufacturer Relationships

Finding manufacturers with high standards and creating long-lasting partnerships is imperative to the success of a supplier. It will set the tone for future issues, and it can be a key piece to keeping your supply chain running smoothly.

A healthy relationship between a buyer and a supplier always comes down to communication. Building strong working relationships ensures a smooth flow and when issues do arise, there can be trust that a solution will be found or managed properly. 

Bottom Line

There has been no shortage of challenges with supply chain distribution management. We have been witness to a pandemic never recorded before, on top of all the other struggles and challenges we are met with daily. Knowing what your challenges are, how to improve communication and visibility along with acknowledging your weaknesses will ensure better solutions for tomorrow.