How will supply chain bridging technology transfer in Asia Pacific

As one of the most rapidly growing healthcare providers in Southeast Asia, Malaysia-based IE Direct supplies niche and high-value products using innovative, cutting-edge technology.

Fais Adha, Head of Supply Chain for IE Direct is passionate about adding value through the latest use of technology and is passionate about propelling pharma forward! In this outstanding post - Fais talks us through the impact of technology and how supply chain bridging tech has evolved in recent years. We discuss the role of data in shared supply chain services and delve into the ways ChatGTP and AI play an important role in giving valuable support and insights but human expertise and judgment remain crucial in the pharmaceutical industry - and why.

In this guest post, Fais tells us why Blockchain’s 'immutable record' feature is a huge benefit to Pharma and key challenges facing pharma in Regulatory Compliance, Intellectual Property Protection and Collaboration & Trust and what can be done to address them.

What has changed over the past two years, and what is next for supply chain bridging tech?

The cornerstone of any business model is the customer value proposition. The way that resources, processes and pricing are arranged to deliver that value proposition is, essentially, a system. In the past, a dominant business model or system would tend to emerge over time, and, in the absence of market distortions, the model would reflect the most efficient way to allocate and organize resources.

However, this steady evolutionary process is not where many industries are sitting currently. Adaptation is essential as a way of moving forward, the pharmaceutical industry cannot afford not to keep up.

How will supply chain bridging technology transfer in Asia Pacific?

Technology trend meets the market need

Our experience suggests that most large enterprises are operating several business models - competing in different parts of the market with a different combination of resources and value propositions. Many of these models need to be refined further and fine-tuned to their markets, with a clear focus on the value proposition and viability. To counter the risk posed by new models and to support growth, every organization needs a parallel stream of activity focused on the current juxtaposition of market and technology trends.

Shared supply chain assets

This concept of shared supply chain is extending beyond bulk handling and resources to the 'Uberization' of freight and warehousing. Wherever there is under-utilized capacity, there exists the possibility of new business models emerging to leverage it - often for mutual advantage, involving what would have once been unlikely commercial partners.

In both transport and warehousing of packaged products, the natural pattern that seems to be emerging is that the established format of stable, owned and third-party provider contracts takes care of 'baseload', and regular requirements. At the same time, the shared platforms are used to manage unplanned surges on top. Beyond the cost implications, sustainability, resource frugality and city congestion are strong drivers pointing towards the need for more efficient use of transport resources.

Central business district last-mile delivery consolidation hubs are an obvious solution in this vein, enabling fewer delivery vehicles and lower emissions. We are implying the concept in Malaysia by identifying the right partner through our local association. It is quite hard to find a partner to engage with in such a plan considering each of them is pretty much occupied with their existing schedule. However, we manage to find a few partners through MOU, we utilized the shared facilities for our unplanned surges which in this case is cold chain facilities.

The data as an enabler for shared supply chain models

One of the barriers to leveraging full value from extended networks, shared supply chains and any form of serious horizontal collaboration is the ability to share data. Data and selected analyses can be disseminated back to contributing stakeholders -they receive feedback on their own individual position, along with the aggregate position, but they do not see the data of their co-contributors. This maintains the strict confidentiality protocols that this type of facility relies on.

It is a lead box which receives demand data such as sales, contracts and forecasts from collaborators which cater to short-term (daily operating plan), medium-term (capacity allocation) and long-term (capacity planning) needs. Every update can be accessed by each party which will ensure a smooth transfer of technical know-how, research finding and expertise.

What can new innovative AI and tech like ChatGPT bring to the table?

It's important to note that while Al can provide valuable support and insights, human expertise and judgment remain crucial in the pharmaceutical industry. Al should be seen as a complementary tool that enhances the capabilities of professionals involved in technology transfer, rather than a substitute for human knowledge and experience. Here a few AI can contribute.

Knowledge and Information Sharing

Al models like ChatGPT, can provide instant access to a vast amount of knowledge and information. Pharmaceutical professionals involved in technology transfer can interact with Al models to obtain insights, ask questions, and receive accurate and up-to-date information on various topics, including drug development, manufacturing processes, regulatory requirements, and quality control.

Virtual Training and Education

Al-powered platforms can be utilized to provide virtual training and education for personnel involved in technology transfer. These platforms can simulate real-world scenarios, allowing employees to practice their skills and acquire hands-on experience in a risk-free environment. Al can also assist in creating interactive training modules and provide personalized learning experiences tailored to the needs of individual learners.

Data Analysis and Decision Support

Al can analyze vast amounts of data generated during the technology transfer process, including research data, clinical trial results, manufacturing data, and quality control data. By applying machine learning algorithms, Al can identify patterns, detect anomalies, and provide valuable insights to support decision-making. This can help identify potential risks, optimize processes, and ensure the successful technology transfer from one site to another.

Process Optimization and Automation

Al can assist in optimizing and automating various aspects of technology transfer, such as documentation management, regulatory compliance, and quality assurance processes. Al-powered systems can analyse, and interpret regulatory guidelines, generate required documentation, monitor compliance, and streamline the transfer process, reducing manual effort and improving efficiency.

Predictive Modeling, and Risk Assessment

Al models can analyse historical data and generate predictive models for technology transfer. These models can assess potential risks and bottlenecks, forecast outcomes, and aid in decision-making. By identifying and mitigating potential challenges in advance, pharmaceutical companies can streamline technology transfer, reduce costs, and accelerate the time to market for new drugs.

The benefits of using blockchain technology in this regard moving forward?

An important aspect of blockchain development has been the emergence of 'smart contracts'. One of the key benefits of blockchain is expected to be the increased efficiency and thus reduced cost, of conducting transactions, particularly those associated with the transfer of ownership of goods or assets. The other key benefit is traceability - the ability to capture real-time (and to thus build historic) information about the origin of a product or material, and its physical condition and location at any time along the supply chain. This history and record-keeping aspect is known as the 'immutable record' feature.

Can the industry keep up?

Regulatory Compliance

The pharmaceutical industry operates in a highly regulated environment with stringent requirements for quality control, traceability, and data privacy. When implementing shared supply chain assets and data sharing, companies must ensure compliance with regulations such as Good Manufacturing Practices (GMP), Good Distribution Practices (GDP), and data protection laws. It requires careful planning, collaboration, and establishing robust processes to maintain regulatory compliance while leveraging shared resources.

Intellectual Property

Protection Intellectual property (IP) is a critical asset for pharmaceutical companies. Sharing supply chain assets and data raises concerns about protecting confidential information and proprietary knowledge. Companies need to establish trust and implement appropriate measures to safeguard their IP while collaborating and sharing resources. This can involve contractual agreements, data anonymization techniques, and access controls to ensure the confidentiality of sensitive information.

Collaboration and Trust

Successful implementation of a shared supply model relies on fostering collaboration and trust among supply chain partners. Pharmaceutical companies need to establish clear communication channels, develop shared goals, and build strong relationships with their partners. Collaboration platforms and tools can facilitate real-time information exchange, enable visibility across the shared supply chain, and strengthen partnerships.

While there are challenges, the pharmaceutical industry can benefit significantly from a shared supply model. By sharing supply chain assets and data, companies can enhance operational efficiency, reduce costs, improve agility, and accelerate technology transfer. It requires careful planning, collaboration, and addressing industry-specific considerations to ensure compliance, protect intellectual property, maintain data security, and uphold product integrity.

Fais Adha, Head of Supply Chain of IE Direct, will be speaking at LogiPharma Asia 2023 on 20th June, 4 30PM on "Fireside Chat: Confessions of the supply chain leaders – Why it’s crazy that people think pharmaceutical SCM is nothing more than imports, exports, downstream execution and other misconceptions". Find out more here!