Kinaxis: Why AI is Key to Solving Pharma Supply Chain Woes

The pharmaceutical sector in the UK continues to grapple with supply chain challenges, exacerbated by the lingering effects of the pandemic and the country's departure from the European Union.

These issues have created a ripple effect throughout the industry, impacting not only manufacturers and distributors but also healthcare providers and patients.

Brexit and the pandemic: A double-edged sword

Kourosh Samini, Director at supply chain management software provider Kinaxis, sheds light on the current situation.

He says Brexit and the pandemic have compounded pressure on the pharmaceutical supply chain by "creating new regulatory obstacles and exacerbating delays in the import and export process".

And it seems the consequences of these disruptions are far-reaching.

"The UK continues to face the 'new normal' of significant medication shortages, which started after Brexit and the COVID-19 pandemic," Samini notes.

"UK pharmacists now face the daunting task of navigating daily medication shortages, often spending hours on the telephone trying to source unavailable products."

A widespread challenge

While the UK has been particularly affected due to Brexit-related regulatory changes, Samini emphasises that this is not an isolated issue.

"Earlier this year, reports of a scarcity of HIV prevention drugs in Germany sparked global headlines," he adds.

"Just last month, French pharmacists staged their first industry strike in a decade, citing concerns about drug shortages as an important factor."

The Pharmaceutical Group of the European Union – a trade association representing community pharmacists – has identified gaps in information, tools, and legal solutions across the EU that are exacerbating the crisis.

This underscores the need for a coordinated, international approach to addressing these supply chain challenges.

Technological solutions: AI to the rescue

To combat these issues, the industry is increasingly turning to technological solutions, with AI at the forefront thanks, in large part, to its predictive capabilities. 

Samini explains: "AI enables pharmaceutical companies to identify risks earlier, streamline manufacturing processes and make informed decisions to mitigate drug shortage challenges much more quickly than traditional methods.

"By identifying the risk of possible shortages before they happen, supply chain shortages can not only be mitigated but even prevented. AI will alert the pharmaceutical company of the upcoming risk, allowing them to make an informed decision around what action to take."

These actions could include increasing production of specific products, finding alternative suppliers for active pharmaceutical ingredients (APIs) or strategically stockpiling medication in anticipation of future demand spikes.

Innovative solutions for complex problems

Ongoing shortages are not limited to a specific type of medication.

Samini continues: "This is affecting all sorts of medicines and each month brings a fresh wave of reports detailing drug shortages that affect patients with a wide range of conditions, including epilepsy, type 2 diabetes, cystic fibrosis and more."

Kinaxis is among the businesses working to address these challenges through its AI-powered supply chain orchestration platform, Kinaxis Maestro, unveiled in June at Kinexions 24 as the next generation of Kinaxis RapidResponse. 

"Maestro allows life sciences companies to use AI to simplify multi-year supply chain planning, predict and plan for future scenarios with smart modelling, and gain a comprehensive, always-on digital view of your supply chain to ensure maximum agility," Samini explains.

As the pharmaceutical industry continues to navigate these complex supply chain challenges, the role of AI and other innovative technologies will likely become increasingly crucial.

Samini concludes: "With careful navigation and strategic implementation, the pharmaceutical sector will increasingly use AI to enhance supply chain efficiency, improve patient outcomes and ultimately revolutionise the delivery of vital medication."

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