Geopolitical risks are redefining global pharma supply chain
Recent geopolitical events, however, have exposed the limitations of a supply chain designed primarily for efficiency. The Covid-19 pandemic, the war in Ukraine, disruptions in the Red Sea, trade tensions, and, more recently, the Iran conflict, have demonstrated that pharmaceutical supply chains can no longer rely on geopolitical stability, according to Arjit Agarwal, principal consultant, business consulting, Nexdigm.
Arjit Agarwal stated that many pharmaceutical products require strict temperature control, country-specific regulatory approvals, and uninterrupted availability.
"Pharmaceutical products often cross multiple international borders before reaching patients. While this interconnected ecosystem has improved access to medicines worldwide, it has also created significant vulnerabilities. Disruptions to shipping lanes, rising fuel costs, or restricted airspace increase sourcing costs, extend lead times, complicate inventory planning, and delay the delivery of essential medicines," added Arjit Agarwal.
Arjit Agarwal added organizations are increasingly investing in multi-regional manufacturing, dual sourcing of critical APIs, digital supply chain visibility, predictive risk monitoring, strategic inventory, scenario planning, and stronger collaboration with suppliers and logistics partners. Global pharmaceutical supply chains can no longer assume stable markets, uninterrupted transportation routes, or the absence of localized geopolitical events.
