Insights for FDA Regulated and HIPAA Compliant Organizations
The Connected Supply Chain
The shift towards outcomes
Trends in the Life Sciences industry are driving pharmaceutical, biotechnology, medical device, and diagnostic testing companies to rapidly transform their business operations.
These trends in the Life Sciences industry are putting new pressure on companies' manufacturing and supply chain organizations to simultaneously improve the quality of products, increase the speed of delivery, and lower costs.
We're at the early stages of a fundamental transformation, marking what could be one of the most significant disruptions to the life science and healthcare industry since the Industrial Revolution.
Manufacturers of medical devices and instrumentation are increasingly adding software, sensors, and wireless connectivity to their products, providing a foundation for the Internet of Things (IoT), which IDC defines as a network of uniquely identifiable endpoints (or "things") that communicate without human interaction using IP connectivity.
IDC forecasts that by 2020, there will be 30 billion connected devices / products in use by consumers and businesses. These smart and connected products in turn become critical components in the connected supply chain and smart manufacturing.
The world we live in is smart and connected. The number of devices connected to the Internet recently surpassed the total number of humans on the planet. According to industry reports, we're accelerating on our way to an "Internet of Things" that will include as many as 50 billion connected products by the end of the decade.
In this new world all manner of sensors, tags, and controls will become a part of both the manufacturing process as well as the smart products that such manufacturers produce. This transformation is taking shape across all manufacturing sectors.
The more connected your supply chain the more data is made available for analysis and that information represents a wealth of potential. For example, consider the value of real-time or nearly real-time data that makes it possible for you to respond to changes in supplier availability, which further reduce your risk of inventory shortfall or even excess product.
The same applies to improving your ability to optimize and gain more visibility throughout the supply chain.
Previously advances were made by increasing the scale or speed of production, the new paradigm focuses on increasing efficiency, reducing resource consumption and eliminating waste to find opportunities for greater profit.
With a clear view of current and future industry challenges, Life Science companies benefit from supply chain solutions that are tailored to their needs as manufacturers of connected devices such as:
Enhanced supply chain integrity and visibility
Higher Overall Equipment Effectiveness
Improved regulatory compliance
Better asset utilization
Reduced Cost of Goods Sold
Finer control over inventory
Few industries face the demand for innovation and quantifiable results like the life sciences. Life Sciences companies must consistently deliver the right combination of products, at the right time, at the right cost—especially when a changing marketplace leaves little or no room for inefficiency.
These complex core activities can pose financial, operational and technological challenges during rapid growth and commercialization. Along with other internal processes and core competencies to handle commercialism through a connected supply - kitting, warehousing and distribution of materials internally can be a tipping point.
To offset the cost of these complex core activities, manufacturers often look to streamline processes with experienced suppliers who offer more connected end-to-end supply chain services under one roof.