Global Pharma Logistics Summit discusses supply chain resilience amid medicine shortages

The ninth Global Pharma Logistics Summit was held in Mumbai on 9 October. A panel discussion featured Manish Agrawal (Kusum Healthcare), Surendra Deodhar (Reliance Life Sciences), Aldrick Dsouza (WFS Bengaluru), Rajiv Hariramani (Skyways Air Services), and Mithilesh Shetty (Isa Logistics), moderated by Sugeet Chopra (Strides Pharma Science). Chopra cited that the US Food and Drug Administration recorded 350 active drug shortages in 2024, with the number near 250 at the time of the discussion, and noted India supplies about 25% of generic medicines globally.

Panelists said pharmaceutical supply chain disruptions often start upstream with limited suppliers of active pharmaceutical ingredients (APIs) and critical inputs. Geopolitical developments, changing trade policies, extreme weather, and volatile freight rates can cascade through the chain. They discussed supplier diversification, expanding manufacturing locations, backward integration, and strategic inventory buffers instead of relying solely on just-in-time operations. The right inventory level depends on product criticality, shelf life, patient demand, and supply reliability, balanced against financial costs.

The discussion highlighted a shift from low-cost efficiency to systems designed to withstand disruption. Deodhar noted pharmaceuticals face additional challenges like temperature sensitivity, shelf-life requirements, and consequences of unavailability. Multimodal transportation was mentioned as an alternative when routes or modes become unreliable, but panelists cautioned that not all pharma products can shift modes due to capacity, temperature control, and transit-time constraints. Visibility must lead to action, requiring operational capabilities and alternative arrangements.

Logistics service providers are expected to contribute more to planning, risk assessment, shipment visibility, and disruption management. Customers want more information on shipment location, temperature conditions, transit times, and unexpected cost changes, requiring closer coordination among manufacturers, airlines, shipping lines, airports, ground handlers, customs brokers, and transport providers. Commercial transparency was also stressed, as sudden changes in freight rates, surcharges, and capacity complicate planning. Artificial intelligence was discussed, with panelists cautioning that benefits depend on data quality, system integration, and user confidence. Shetty said supply chain companies are developing digital capabilities across warehouses, container freight stations, and other operations, but information often remains fragmented across internal and external platforms. For AI to deliver results, systems used by manufacturers, logistics providers, ports, airports, and customs brokers must exchange reliable information, enabling automation, pattern identification, disruption prediction, and support for routing and capacity decisions.