Supply chain digitalization is no longer optional for biopharma companies, as Deloitte’s survey reveals impressive gains and future-focused strategies.
Digitalization Benefits Unveiled
Deloitte’s recent study on supply chain digitalization, conducted by the Center for Health Solutions, establishes it as a critical imperative for biopharma companies. The research delves into digitalization strategies, investments, current capabilities, anticipated benefits, and the hurdles faced.
Key Findings Highlight Progress
Surveying 105 biopharma leaders engaged in supply chain digitalization efforts at global firms with revenues exceeding US$500 million, the study uncovers significant advancements:
- About 50% of respondents report improvements in critical areas thanks to digitalization. These gains encompass enhanced risk sensing (50%), improved yields (50%), optimized warehouse efficiencies (48%), and cost-effective sourcing (47%).
- A third of respondents anticipate scaling capabilities in the next five years, with a focus on deep learning for product development, machine vision for predictive maintenance, and digital twins for process enhancement.
- An additional third of respondents reveal ambitions to completely revolutionize their supply chains through digital technologies.
Scaling Supply Chain Visibility Initiatives
The survey also reveals that 20% of organizations have already scaled capabilities centered on supply chain visibility. These capabilities encompass real-time supplier performance dashboards (22%), operational performance monitoring command centers (20%), and visibility into product fulfillment and return processes (26%).
Deloitte underscores the potential of digital technologies like AI and digital twins in automating supply chain processes and delivering actionable insights. These innovations offer greater predictability and accelerate decision-making, enhancing overall supply chain efficiency.
Challenges on the Digitalization Path
While the benefits of digitalization are evident, various factors can hinder progress:
- Retrofitting existing systems with digital technologies can frustrate end-users and business leaders.
- Challenges may arise due to poor planning, resource allocation, and insufficient experience in executing digitalization programs.
- Budget constraints often lead to resource diversion from digitalization initiatives to immediate priorities such as new product launches.
- Underinvestment in change management, often due to resource and time constraints or inadequate planning, can hinder digitalization efforts.
The Drive for Digitalization
Pharmaceutical companies are increasingly compelled to streamline their supply chains in response to ongoing disruptions. The push for digitalization aligns with this imperative, offering a pathway to resilience and adaptability in a dynamic industry landscape.
