Study highlights pharmaceutical supply chain problems
More than 40% of patients say they fear they could get sicker or die because of contaminated or tainted medications stemming from poor handling, storage, and other supply chain-related issues.
Many patients don’t trust the pharmaceutical supply chain and are calling for greater transparency and accountability among stakeholders and government agencies, according to a study from supply chain technology provider Zebra Technologies, released today.
The company surveyed more than 3,500 patients and pharmaceutical industry leaders to evaluate perceived supply chain stability, gauge supply chain responsibility and trust in its entities, and identify needs for improving supply chain visibility and transparency. The researchers found that many patients distrust certain elements of the supply chain, including those who make, distribute, prescribe, and dispense medications, and that 43% worry they could face more illness or even death if certain supply chain problems go unaddressed.
Patients said they are worried about drug effectiveness (75%), as well as labeling errors, contamination due to poor handling or storage, and receiving counterfeit medicines (70%).
“Patients know a compromised supply chain puts medication quality and efficacy at risk and want better assurances their medications are safe and authentic,” the authors wrote. “Nine-in-10 say it is somewhat or very important they can verify a medication is not counterfeit [or] tampered with and confirm temperature sensitive medications have stayed within the prescribed range.”
Patients surveyed also said they expect drug manufacturers to disclose how their medications are manufactured and handled (81%) as well as transported and stored (82%). Eighty percent said it’s important to verify the sources of medication ingredients, including the country of origin and local standards for the medication itself. In addition, 79% of those surveyed said they want to know the source of their medication is sustainable with confirmation the manufacturer is using techniques to protect the environment, animal welfare, human communities, and public health.
“These evolving patient demands will certainly be a wake-up call for pharmaceutical industry leaders who, for years, have been primarily focused on meeting regulatory standards,” John Wirthlin, industry principal for manufacturing, transportation, and logistics at Zebra Technologies, said in a press statement Tuesday. “Manufacturers, government agencies, pharmacies, and healthcare providers must work together to win consumers’ trust in the supply chain.”
Business and government leaders in Europe and the United States have taken steps to address some of these problems. In Europe, the Falsified Medicines Directive aims to improve safety and protect the public from counterfeit or inauthentic drugs, and in the United States, the Food and Drug Administration (FDA) is requiring product tracing systems to be in place by 2023 as part of the Drug Supply Chain Safety Act.
More than 80% of pharmaceutical industry decision makers said they feel prepared to comply with traceability and transparency mandates, according to the Zebra study, and many said they are implementing technology solutions to help with those goals. Three-quarters of those surveyed said they have already deployed location services technology or plan to in the next year–steps that would improve production workflows and drug tracking, reduce inventory loss and tampering, and give patients the visibility and information they want, according to the study.
“The biggest challenge these leaders are facing is being able to make–and move–enough medications to meet patients’ needs,” the authors also said. “ In addition to regulatory delays, industry decision-makers say they are also dealing with production limits, distribution and storage problems, shipping capacity constraints, and transportation delays. Consequently, 92% plan to increase investments in pharmaceutical manufacturing and supply chain monitoring tools next year.”
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.