The traditional life sciences chain can’t keep up with the challenges and opportunities of the industry. Many companies are confronting expired patents and less profitable product extensions. Mergers, acquisition and divestitures occur with great frequency. Patient needs are changing and new therapies, devices and products are emerging. Costs and inventory levels are up; so are regulatory controls. Competition has increased, as has the pressure to expand into emerging markets. On the pharma side of the house, it’s not the same old, small-molecule kind of chemically based industry anymore. Patient therapies have grown increasingly complex, involving a convergence between products and services and between different players within the healthcare value chain. Patient-centric therapies and personalized medicine are on the rise. New technologies are enabling rapid advancements in medical devices.
This means that the traditional supply chain model must evolve. A dynamic, sense-and-respond market and patient-centric supply chain is now needed as a core prioritized strategic capability. Rather than focusing on the traditional product “push” of supply, life sciences companies must focus on the “pull” of the needs and wants of patients and healthcare providers. The traditional linear model of a supply chain in life sciences companies today must transform to enable a “value network”—a set of chains that is patient-centric, dynamic and responsive to market demands.