Pharma Industry is Severely Impacted<\/strong><\/h2>\n\n\n\n

Companies in the pharmaceutical industry deal with a complex network of suppliers, manufacturers and logistics companies. These cold chain companies operate in a highly regulated, tightly controlled cold chain logistics system. To overcome these obstacles, pharmaceutical companies need a granular view of all products moving through the supply chain.<\/p>\n\n\n\n

Incredibly, 99% of respondents in the pharmaceutical industry said they were using some sort of manual process to achieve supply chain visibility. Over half of the respondents (53%) in the pharmaceutical industry are not using supply chain software to achieve supply chain visibility.<\/p>\n\n\n\n

According to the Sapio study, the top challenges for the pharmaceutical industry include:<\/p>\n\n\n\n

• Product damage or spoilage (34%)<\/li>
• Temperature excursions (28%)<\/li>
• Unexpected delays (25%)<\/li>
• Lost or misplaced inventory (21%)<\/li>
• Compliance issues (20%)<\/li><\/ul>\n\n\n\n

  Due to the lack of cold chain visibility, pharmaceutical companies reported a loss of $95 million on average in medical product spoilage. For companies that have 1,000 or more employees, the loss increased to $179 million.  An additional 6% of pharmaceutical industry respondents claimed that lost $500 million \u2013 $1 billion due to product spoilage.<\/p>\n\n\n\n

  Food & Beverage Industry Also Challenged<\/strong><\/h2>\n\n\n\n

  Close to $71 million is lost every year due to fresh food spoilage that\u2019s caused by cold chain failures. This number increased to $179 million for companies who have 1000 or more employees. 3% of food & beverage respondents claimed to have lost $1 billion or more annually from fresh food spoilage caused by cold chain failures.<\/p>\n\n\n\n

  One of the causes of supply chain blind spots could be tied to the outdated methods that organizations use to track shipments. 79% of food & beverage respondents reported using a manual process to achieve supply chain visibility.  44% of respondents still used spreadsheets, 43% still used pen and paper, and 27% used alarm clocks.<\/p>\n\n\n\n

  The top challenges for the food & beverage industry include:<\/p>\n\n\n\n

  • Product damage or spoilage (28%)<\/li>
  • Temperature excursions (28%)<\/li>
  • Unexpected delays (28%)<\/li>
  • Lost or misplaced inventory (19%)<\/li>
  • Compliance issues (19%) – tie<\/li>
  • Inaccurate data (19%) – tie<\/li><\/ul>\n\n\n\n

    This lack of supply chain visibility has a dramatic impact on both food waste as well as on access to fresh foods for those who most need it.<\/p>\n\n\n\n

    Using AI\/ML to Address Weak Points in Supply Chain<\/strong><\/h2>\n\n\n\n

    These failures in supply chain visibility can create a rippling effect across the entire organization, negatively affecting customer experience, product quality, regulation compliance, and inventory management.<\/p>\n\n\n\n

    The implications of these findings are significant given their impact on both operations and finances. Furthermore, given the changing expectations across the supply chain that require agility and speed in order to deliver as efficiently as possible, the stakes are only getting higher. Fortunately, the COVID-19 pandemic has acted as a springboard for modernization in the cold chain, putting the industry 18-24 months ahead of schedule on digital transformation.<\/p>\n\n\n\n

    Organizations will look to newer data strategies beyond the current descriptive analytics. IoT sensors, digital twins, artificial intelligence (AI) and machine learning (ML) enabled technology will help process fragmented operational data sets across the organization, real time sensor data streams and contextual data from planes, trucks, customs, weather, traffic etc., to provide predictive and prescriptive analytics, which use historical data to predict failures and provide recommended actions before <\/em>an incident occurs based on previous actions. \u00a0<\/p>\n\n\n\n

    Leveraging AI\/ML for prescriptive remediation can help avoid the millions of dollars companies are losing and deliver a better experience to their customers. \u00a0By processing billions of real-time events every second, they provide companies with the greater context of insight around their products traveling through the supply chain, including real-time location data, traffic, weather, condition, utilization data, anomaly and risk detection.<\/p>\n\n\n\n

    Reliable end-to-end visibility is a capability that cannot be compromised in the highly regulated pharmaceutical and food and beverage industries. The ability to know everything that\u2019s going on will soon be the defining factor for success in supply chain management, and those who don\u2019t embrace real-time supply chain management will find it even more difficult to catch up to those who do with growing losses in finances and operations. <\/p>\n\n\n\n

    Those who do will be equipped to not only overcome their most costly gaps in visibility but take it a step further to revolutionize their supply chain monitoring to drive greater efficiency, productivity, better business outcomes and customer delight.<\/p>\n","protected":false},"excerpt":{"rendered":"

    For companies with complex supply chains, 2020 has been a year of coming to terms with their blind spots, poor communication up and down the chain, and lack of resilience …<\/p>\n","protected":false},"author":121,"featured_media":4501,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_glsr_average":0,"_glsr_ranking":0,"_glsr_reviews":0,"footnotes":""},"categories":[181,1],"tags":[],"class_list":["post-4499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-future-of-ai","category-manufacturing"],"_links":{"self":[{"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/posts\/4499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/users\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/comments?post=4499"}],"version-history":[{"count":1,"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/posts\/4499\/revisions"}],"predecessor-version":[{"id":4500,"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/posts\/4499\/revisions\/4500"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/media\/4501"}],"wp:attachment":[{"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/media?parent=4499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/categories?post=4499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aijourn.com\/wp-json\/wp\/v2\/tags?post=4499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}