Bachem: Strong Pharma Supply Chain 'Mission Critical'
In recent years, several geopolitical, economic and environmental global events have placed significant strain on the supply chain.
From the blockage of the Suez Canal, to the conflict in Ukraine, and the trade war between China and the US, industries across the board have been severely impacted.
When the supply of a product is compromised, this can be hugely costly for a company and inconvenient for consumers. But in healthcare, pharmaceutical supply security can be the difference between illness and health, or even life and death.
This is especially true for the supply chain of Active Pharmaceutical Ingredients (APIs) – the critical components in drugs that produce the required effect to treat a condition. These are produced by processing chemical compounds. In a biologic drug, the active ingredient is known as a bulk process intermediate (BPI).
Their production and distribution can significantly impact the availability of essential medications.
Pascal Degen is VP of Global Supply Chain Management at Bachem, the Swiss company specialising in the development and manufacture of peptides (the building blocks of proteins) and oligonucleotides (which can modulate genes).
API supply chain evolved to meet increasing demand
Degen says that the API supply chain “has evolved to meet increasing demand", but that it is vulnerable, like all supply chains, to shocks and headwinds.
The pharmaceutical supply chain begins with sourcing upstream chemicals for API manufacturing. These materials are then used in the chemical synthesis APIs – peptides and oligonucleotides, in Bachem’s case.
The finished APIs are then distributed to formulation sites, where they are combined with other globally sourced ingredients to produce the final medication.
"To plan against threats in the global pharmaceutical supply chain, companies must implement strategies to ensure consistency,” he advises.
“This includes maintaining strategic stock levels, validating transportation routes and establishing relationships with multiple suppliers for key starting materials."
To this end, he says Bachem has implemented a three-pronged approach to maintain visibility in its supply chain. This includes risk management, business continuity management, and a stringent emergency management system.
Degen notes: "Risk management allows us to identify and manage risks through annual deep-dive analyses from demand, supply, and manufacturing perspectives."
Flexibility & collaboration 'crucial for a resilient supply chain'
He adds that flexibility and collaboration are also crucial elements in maintaining a resilient supply chain.
"Flexibility is not limited to organisational agility. It also includes the adaptability and intuition of employees. Personnel must be versatile in adopting new methods, recognizing issues, and integrating problem-solving skills into their daily routines."
Control and oversight of processes and personnel are also essential for predicting and managing potential outcomes, he stresses.
“Many companies implement processes and KPIs to measure their status and provide alerts when a system becomes unstable. Global ERP systems can facilitate this control across internal and international networks.”
He adds: "Understanding your business and its risks, fostering transparency, and integrating supply chain risk management into your governance and leadership tools are critical components of resilience.
“By implementing robust strategies, manufacturers can fulfil their commitment to ensuring drug supply and making sure patients' medications are continually accessible."