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The Indian pharmaceutical industry is undergoing an unprecedented evolution, driven by regulatory shifts, global disruptions, and technological advancements. While the industry is a leader in drug research and discovery, the supply chain is transforming to address emerging challenges squarely. Regulatory pressure, fluctuating demand, geopolitical tensions, and rapid technological advancements are driving the transformation. Global crises such as the Covid-19 pandemic, the Russia-Ukraine war, the overthrow of Sri Lankan, Bangladeshi, and Afghan regimes, and trade tariffs have forced the industry to adapt while continuing operations.
The sector is creating an adaptable, resilient, and reactive ecosystem, which is being backed by government policies. Most countries are adopting strategic programs and harnessing digital developments to strengthen local production. India's Production Linked Incentive (PLI) Scheme is aimed at boosting domestic active pharmaceutical ingredients (APIs), while the Inflation Reduction Act (IRA) in the United States promotes pharma innovation. While some countries have broadened sources of supply to reduce dependence on a single region, others have resorted to stockpiling to cushion against disruptions and for equitable distribution in times of adversity.
For smooth and safe operations, particularly for critical medicines, live logistics tracking is essential. Greater reliance on third-party logistics service providers throughout manufacturing and logistics has led to a network in which there are several players involved in the production, storage, and delivery of drugs.
With industry-wide lean profit margins, companies are prioritizing continuous improvements in supply chain efficiency. Flexible warehouses and advanced storage centers facilitate instant low-cost delivery to handle the top-priority orders, especially for temperature-sensitive vaccines. Cold chain transport takes top priority, with high-tech refrigeration, customized packaging, and digital tracking solutions to maintain efficacy of drugs during international transportation, especially through air.
Sustainability is another key focus area. Governments across the globe are adopting such initiatives as green packaging, carbon-free shipping, and waste elimination initiatives to stem the environmental contribution of drug production and transportation. Astonishingly, drug production and transportation are among the biggest contributors to the industry's carbon footprint. While the ethical supply chain activity is being put in the limelight, organizations are preparing themselves with more standardized compliance and sustainability measures. United Nations Global Impact, initiated in 2015, came up with Ten Principles for supply chain sustainability that emphasized environmental stewardship and transparency.
Pharmaceutical organizations build intricate networks to tackle current challenges, maintain close partnerships, and swiftly adapt to fill supply gaps or meet surging demand. They have started incorporating resilience as a standard strategy. They are using strategic planning, predictive analytics, and diversification of supply sources to tackle port strike threats, natural disasters, and external disruptions. Digital technologies equip companies with tools to manage risk more effectively and enhance efficiency.
Technology has made the industry more resilient and adaptive in terms of speedy deliveries and accuracy. The use of modern technologies, such as IoT-powered sensors, enables real-time tracking of temperature, humidity, and transit conditions for sensitive pharmaceuticals, including vaccines and biologics, ensuring their safety and efficacy throughout the supply chain. AI helps in accessing data and monitoring of shipments, ensuring the right condition of the commodities, and cutting bottlenecks caused due to trade restrictions. Cloud-based digital supply management enables end-to-end visibility, allowing pharmaceutical companies to adapt to the ongoing changes in trade policies. The 3-D printing involved in drug manufacturing helps in the easy flow of products, clearing barriers in international trade. This technique also helps in reducing the dependency on the import of raw materials, ensuring smooth production of critical drugs and encouraging local pharma hubs.
The old-school clutter of paper-based processes involved in customs clearance needed for shipping pharmaceuticals disrupts the supply chains, adding extra work for us. Therefore, digitally enabled trade platforms help to explore alternative mediums for distribution and supply. The automated regulatory compliance creates a clear and smooth approach towards global markets, especially reducing the delay caused by the customs process through proper documentation.
India’s pharma value chain has shown remarkable resilience in the face of crises. Initiatives like Vaccine Maitri supplied over 66 million vaccine doses to more than 95 countries in the context of the Covid-19 pandemic. Likewise, despite geopolitical tensions, efforts such as Operation Ganga, Kaveri, and Ajay supported drug supply, medical supplies, and vaccine supply to the crisis-affected area. Globally, India's capacity to unveil effective mobilization of medical relief in the 2020 Bihar floods was highlighted through the timely relief response. Policy integration has also been critical, with the likes of The National Cold Chain Infrastructure Project (NCCIP) and PM Gati Shakti's National Master Plan serving as the road map to a robust, future-proof cold chain for the pharmaceutical industry.
Technology is the key driver of such innovations, but the human element cannot be eliminated. There should be a capable working force that will be able to handle complicated supply chains. There must be strong collaborations between industry leaders, regulators, and technologists to foster both innovation and compliance. Regulatory and compliance experts have a significant role to play when it comes to the shipments of pharmaceutics so that they can make sure the process adheres to international laws. They aid in navigating complex trade restrictions and securing necessary approvals for cross-border transportation. The supply chain managers work to reduce disruptions by optimizing inventory management, identifying alternative routes, and establishing localized distribution hubs to reduce dependency on global supply chains.
Moreover, cold-chain specialists make sure that the shipment of temperature-sensitive pharmaceuticals, such as vaccines and biologics, is done under the required conditions using advanced monitoring technologies. The support of these specialists is needed to maintain drug efficacy and spoilage prevention. Freight forwarders and customs brokers facilitate the seamless clearance of shipments by working closely with government agencies to expedite documentation and comply with evolving trade regulations. Collectively, these human-driven efforts are reshaping pharmaceutical supply chains, making them more resilient and adaptable in the face of global trade barriers.
In the ensuing years, the pharma supply chain will become even more complex, requiring increasingly agile and responsive logistics to support the development of personalized medicine. Sustainability will be a prime issue, with manufacturers going out of their way to have a minimal environmental footprint.
Disruptions in the pharmaceutical supply chain extend beyond cost containment and efficiency - they impact patient health and access to life-saving medicines. Through technology, collaboration, and agility, the industry is crafting a tomorrow in which life-sustaining treatments are available to all patients anywhere across the globe at any time they need them.
(Author is CEO, Jeena and Company)
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