Supply chains key to Life Sciences transformation

Supply chains key to Life Sciences transformation

Supply chains key to Life Sciences transformation

New DHL report identifies six key trends and technologies that Life Sciences and Healthcare supply chains would need to exploit to support the increasing cost pressures and consumer demands for new and more convenient, affordable care models.

Advanced supply chains could be the vital catalyst for transforming Life Sciences to better meet increasing demand cost-effectively, says a new report by DHL, the world’s leading logistics service provider. The report ‘Future of Life Sciences and Healthcare Logistics’ highlights the urgency for the sector to transform in response to evolving patient needs and technology advancements. A recent report ranks the sector in the bottom 20th percentile of the McKinsey Global Institute Industry Digitization Index , lagging behind the public sector.

“The Life Sciences and Healthcare sector is currently going through a transformational phase of its operating models and supply chains: The industry is affected by cost pressure from governments and regulatory authorities, changing consumer behavior as well as the effects of digitalization,” said Bill Meahl, chief commercial officer, DHL. “At DHL, we are helping Life Sciences and Healthcare companies harness the right technology in support of their customers and patients. For those companies who leverage the power of technologically advanced supply chains, there will be a clear competitive advantage that could ultimately prove the difference between surviving or prospering.”

DHL’s new report ‘The Future of Life Sciences and Healthcare Logistics’ provides insights on key trends in the industry and how the evolving patient-centric healthcare approach will require more complex, capable and cost effective supply chains. It identifies six key trends and technologies that healthcare supply chains can leverage to help it thrive in an environment where demand is set to rise faster than the funds available to pay for it.

Scott Allison, president Life Sciences and Healthcare, DHL Customer Solutions & Innovation, said, “We are only just beginning to understand the huge changes the Life Sciences sector is facing in terms of how patients are diagnosed and treated, what new care challenges it faces and the technology-driven tools to address them. DHL’s new report focusses on the transformation in the way medical products and services are produced, distributed and consumed. It is clear that logistic providers have a key role to play in this transformation to deliver healthcare to the world with cost-effective, agile and highly responsive supply chains.”

Six transformational trends and technologies
Advancing Data Analytics (Big Data) lets healthcare providers make more informed decisions about the management of their operations by connecting all members of a healthcare system and combining data. This helps better predict demand and can cut cost and improves efficiency in Life Sciences logistics and supply chain operations. Internet of Things (IoT) enabled technologies allow increased visibility and connectivity across the supply chain, with tighter control of product inventories across the supply chain, reducing loss and waste. Stronger links between physical products and data will also aid the industry in it is ongoing battle against theft and counterfeiting.