Supply Chain Advancements Are Meeting the Moment and Beyond

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Photo Credit: Milken Institute

The Milken Institute Future of Health Summit is an annual forum that brings together policymakers, patient advocates, healthcare leaders and other leading public health experts to discuss critical issues shaping the industry landscape. This year’s event featured a panel on how pharmaceutical supply chain advancements are meeting the moment and beyond to support patient access to the medications and medical solutions they rely on.

Sarah Karlin-Smith, senior writer at the Pink Sheet, a leading pharmaceutical regulatory and policy publication, moderated the panel which included:

• Kirk Kaminsky, president, U.S. Pharmaceutical, McKesson
• Laura Bray, chief change maker, Angels for Change
• Shami Feinglass, managing director, Manatt Health
• Vimala Raghavendran, vice president, Informatics Product Development, US Pharmacopeia (USP)

Below are key takeaways from this moderated panel discussion.

Takeaway 1: There’s a need for a more robust and resilient supply chain that keeps patients at the forefront.

To start the discussion, Raghavendran cited a USP report noting 2023 had the highest drug shortages in 10 years. Panelists identified several factors contributing to this issue, including surges in patient demand, availability of active pharmaceutical ingredients (APIs), declining drug reimbursement rates and manufacturing challenges.

In terms of solutions, panelists emphasized the need to ensure the robustness and resilience of the pharmaceutical supply chain.

 “It’s really easy to start swirling around the financial flows and the product flows, and the investments and all the challenges,” Kaminsky shared. “But if you start with the patient and you think about the fact that there are patients not getting the medication they need, it becomes a lot more compelling… I think that’s the focus and the clarity mission and vision we need: we always have to keep the patients at the front.”

“We have to build in additional redundancies, additional capacity, both nationally and globally,” said Bray. “But we have to make sure patient care is at the center of that design."

Takeaway 2: Coordinated efforts are critical between the federal, state and local governments, nonprofits, the private sector and the public.

A consistent theme throughout the discussion was the crucial role of public-private partnerships in supply chain resilience, particularly for managing critical supplies and emergency response.

In addressing drug shortages, Kaminsky shared his support of measures to create a robust and competitive market, like implementing quality-based and supply preservation incentives, as well as strengthening access to APIs and fully manufactured products.

“This is a complex, multi-faceted problem,” he said. “But I do believe that there's more energy and conviction across the industry, the government, through the industry participants, that this is a problem we need to solve.”

Takeaway 3: The manufacturing and supply chain workforce is highly skilled and in high demand.

Panelists explored the essential role manufacturing and supply chain employees play each day and particularly in times of crisis. However, low unemployment and high demand for supply chain talent make it tough for employers to attract and retain skilled professionals in a competitive market.

Feinglass highlighted the critical need for a well-trained workforce in manufacturing complex products like diagnostics, pharmaceuticals, and medical devices. Based on her experience scaling up COVID-19 diagnostics production, she stressed the importance of supporting and empowering employees during crises.

Feinglass remarked, “…if you're not putting some surge capacity in both to your workforce and your manufacturing sites, then you will have a problem at a time of crisis…”.

At McKesson, Kaminsky highlighted recent investments in automation throughout our distribution center network to take care of redundant tasks so employees can focus on more complex, purposeful work. This leads to greater employee safety, satisfaction and retention.

Takeaway 4: Digital transformation of the supply chain is improving efficiencies and enabling more personalized care.

The panelists discussed the growing importance of data and AI in the pharmaceutical supply chain. Kaminsky noted that AI relies on robust data, and McKesson uses extensive transaction data to maintain appropriate inventory levels and allocate products during supply shortages.

Bray called for better data sharing and collaboration among different stakeholders to effectively identify and preempt vulnerabilities in the supply chain: “We have a lot of data, but we have to figure out how to share it for the purpose of pending drug shortages and to make sure patients have care.”

The dialogue shared during the panel underscored the industry's collective commitment to ensuring patients have reliable access to essential medications and medical solutions. Many of the insights and collaborative strategies discussed will be pivotal in helping to shape a resilient and innovative pharmaceutical supply chain for the future.

View a recording of the panel discussion here. Learn more about McKesson’s supply chain resilience here.