The pharmaceutical supply chain system is one of the most fragmented systems in India. While every imaginable process in other major businesses such as the automotive and banking has moved on to digitize themselves, the traditionally resistant Pharma supply chain is yet to accept the move to its full potential. As we talk about the digitization of the Pharma supply chain, we should also consider its impact on the various layers of the supply chain. The biggest impact will be seen on the distributors as they connect two ends of the supply chain.
For distributors, digitalization acts as a promising change as they are benefited by this to a large extent by using the digital front to list their products in the market. They can also run various schemes and offers to attract retailers and grow their business. The hurdles faced due to the traditional ways of ordering and doing business can be eliminated from start to finish via the use of technology. The retailers who place their order from these distributors will have greater visibility and transparency of their order, i,e from placing their orders to tracking them.
Distributors will find it easier to maintain their data. All their transactions will be stored digitally in cloud-based systems which can be retained and reviewed when required. According to a recent study by Centre for Global Enterprise (CGE) research, it has been found that a digital supply chain can lower procurement costs by 20%, reduce supply chain process costs by 50%, and increase revenue by 10% (Courtesy CGE report). This indicates that a digital transformation is becoming a prerequisite for ensuring supply chain visibility, speed, and quality.
The impact of digitizing the Pharma supply chain is vast, and its effect is of great value in the coming years. After demonetization in India, the need for a digital supply chain system has gained momentum and is becoming a necessity. Hence, the impact is tremendous on all layers involved in the Supply chain.
Pharma companies, including their logistics, warehouses, suppliers, researchers, production facilities, and patients are so intricately linked, it can become difficult to cater to the various demands coming in from all directions. The onset of these requirements, alongside a growing global population, means that the sector must rethink its supply chain today to keep up with the demands of tomorrow.