International pharmaceutical businesses have come under heavy criticism for a number of reasons, including uneven medicine availability, opaque environmental, social, and governance policies, and an increase in fake drugs. The fact that there is more inspection suggests that Industry 3.0’s conventional production and distribution methods are insufficient.
Based on studies, pharmaceutical businesses must significantly digitize their supply chains to include data linked to raw material monitoring and worldwide facility mobility. Pharmaceutical supply chains must be digitally advanced in order to guarantee data-driven decision-making and resilience. In the end, it protects patients and improves regulatory compliance while also assisting in the achievement of social, governance, and environmental goals.
Fulfilling Regulatory Obligations
Pharmaceutical firms need to give regulatory compliance a priority. Stricter rules are being implemented globally by governments and regulatory bodies to guarantee the safety and quality of drugs. The Drug Supply Chain Security Act (DSCSA), for example, requires computerized, serialized, and interoperable systems to monitor prescription medications along the supply chain in the United States. The November 27, 2023, deadline for compliance is drawing near quickly. Globally, similar laws are being enacted to force pharmaceutical businesses to digitize their supply chains in order to improve traceability.
Pharmaceutical businesses must now attain digital maturity in their supply chains in order to reduce rising risks. The World Health Organization (WHO), the World Economic Forum (WEF), and groups like GS1 provide advice on creating traceable best practices for the healthcare industry as a whole. In order to prevent fines and legal action that might erode confidence among investors, watchdog organizations, patients, financial institutions, and healthcare providers, compliance with these standards is essential.
Fighting Theft and Counterfeit Goods
It is essential to tackle the problems of product counterfeiting and theft in pharmaceutical supply chains. It is estimated that 11% of pharmaceuticals in developing nations are either fabricated or of inferior quality, which has a substantial negative impact on the economy, particularly in low- and middle-income nations. In 2021, there were 38% more pharmaceutical crime incidents globally, impacting 142 nations. The estimated size of the worldwide market for counterfeit pharmaceuticals ranges from $200 to $432 billion. Finding even trustworthy internet pharmacies might be difficult since most of them break the law.
Expectations for Transparency and ESG
The pharmaceutical business has been under fire for social injustice and climate change leadership shortcomings, which are blamed on greenwashing and a perceived lack of openness. It has been shown that major pharmaceutical enterprises produce 55% more emissions than the automotive sector, mostly as a result of carbon-intensive activities like cold storage. In order to satisfy environmental, social, and governance (ESG) standards, the sector is now, however, implementing more proactive measures. Examples of these steps include monitoring emissions across different scopes and participating in projects like the Pharmaceutical Supply Chain Initiative. Traceability of the supply chain is essential for verifying sustainability claims and precisely estimating the industry’s effect.
