Enabling an optimized, efficient supply chain
Operational improvements on the horizon for 2024
The main themes we expect to see in life sciences supply chains in 2024 are operational improvements centered on reduced carbon footprint and reduced costs. These improvements are being enabled by a more well-connected end-to-end supply chain, leveraging GenAI, and more accurate demand and supply planning.
Strategies for productivity
There will be a two-pronged approach to improve supply chain efficiency and effectiveness. Firstly, we will see tactical efforts, such as route optimization, that minimize transit times and reduce fuel consumption. Secondly, strategic efforts, such as logistics-informed supply planning, will enable better decisions in inventory management, demand forecasting, and supplier relations.
The rise of the AI-powered supply chain
As organizations continue to explore ways to modernize their supply chain operations, they will shift to an AI-powered model. This move is driven by the growing complexities of the global supply chain. Organizations will progress from tools and technologies that simply enhance supply chain visibility to tools that offer AI-generated recommended solutions to supply chain challenges. For example, implementing a recommendation engine will remediate a cold-chain breach more rapidly.
Refining clinical trial plans to reduce waste
Clinical trials often generate a significant amount of wasted material; our client work and industry group discussions suggest a 50-55% scrap rate. Therefore, there will be a more focused effort on process and technology improvements to refine clinical demand plans, as well as signaling demand changes during a clinical trial to the manufacturing teams more efficiently.
Overcoming the continued procurement challenges
We expect the raw materials availability challenges experienced in 2022 and 2023 to continue into 2024, necessitating innovative procurement strategies to ensure life sciences manufacturers have what they need to produce biopharmaceutical therapies and medical devices. These innovations in procurement can be achieved through initiatives in areas such as enhanced supplier management to ensure the quality and timeliness of purchased material.
Slalom contributor: Tony Stolis
