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As Pharmaceutical Supply Chain Goes Global, Threat of Counterfeiting, Intellectual Property Theft and Contamination Rises, Finds New Report; New Supply Chain Management Strategies Needed
Date:10/27/2010

d global sourcing outside of the U.S. will be increasing, followed by 76 percent who said their global manufacturing outside of the U.S. will be increasing.
  • Threats that were considered limited or small scale as few as 10 years ago, such as drug counterfeiting and illegal product diversions, are becoming major concerns, with 44 percent and 35 percent of industry executives, respectively, citing them as business risks in the next five years.
  • Visibility into the supply chain is primarily based on "snapshots in time" with little sharing of common practices and information.  Seventy-seven percent of industry executives stated that the primary method used to gain visibility into their suppliers' practices is a periodic audit. Only 25 percent stated that they share common practices and information with suppliers and only 3 percent have access to suppliers' data in real time.
  • When asked about their ability to gain global visibility into the supply chain, including accessing data from multiple locations and sites to provide a global view, 66 percent said although they can do it, they need to manually aggregate the data.
  • Nearly 60 percent of industry executives said they are concerned about the willingness of suppliers to provide information to address regulatory requirements, and 44 percent are concerned about their distributors' willingness to provide information required to meet these requirements.
  • The availability of track and trace technology to enable the industry to gain better control over the supply chain exists today. However, industry executives identified four hurdles to implementing such technology: cost; difficulty of implementation; lack of industry standards; and lack of regulatory requirement and guidance.
  • Industry executives said their pre
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