Bachem: Maintaining Visibility in the Pharma Supply Chain

In an era marked by global upheavals, from geopolitical conflicts to environmental crises, the pharmaceutical supply chain faces unprecedented challenges.

For the healthcare sector, these disruptions are not merely inconvenient; they can have life-altering consequences, particularly when it comes to the supply of Active Pharmaceutical Ingredients (APIs) – the critical components that make drugs effective.

Pascal Degen, VP of Global Supply Chain Management at Bachem, a Swiss company specialising in peptides and oligonucleotides, points to the evolving nature of the API supply chain.

"The API supply chain has evolved to meet increasing demand," Degen notes, "but it remains vulnerable, like all supply chains, to shocks and headwinds."

Mitigating risks 

The complexity of the pharmaceutical supply chain is evident in its multi-stage process.

It begins with sourcing upstream chemicals for API manufacturing, proceeds through chemical synthesis of APIs and culminates in the distribution of finished APIs to formulation sites. Here, they are combined with other globally sourced ingredients to produce the final medication.

To mitigate risks in this intricate system, Degen advises a proactive approach: "To plan against threats in the global pharmaceutical supply chain, companies must implement strategies to ensure consistency. This includes maintaining strategic stock levels, validating transportation routes and establishing relationships with multiple suppliers for key starting materials."

Bachem has implemented a robust three-pronged strategy to maintain visibility in its supply chain: risk management, business continuity management and a stringent emergency management system.

Degen elaborates: "Risk management allows us to identify and manage risks through annual deep-dive analyses from demand, supply, and manufacturing perspectives."

Flexibility and collaboration key

Flexibility and collaboration, according to Degen, are crucial elements in maintaining a resilient supply chain.

He continues: "Flexibility is not limited to organisational agility. It also includes the adaptability and intuition of employees. Personnel must be versatile in adopting new methods, recognising issues, and integrating problem-solving skills into their daily routines."

Control and oversight of processes and personnel are equally essential for predicting and managing potential outcomes.

"Many companies implement processes and KPIs to measure their status and provide alerts when a system becomes unstable," Degen goes on. "Global ERP systems can facilitate this control across internal and international networks."

Clearly, the importance of a comprehensive approach to supply chain management in the pharmaceutical industry cannot be overstated.

Degen concludes: "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."

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