39 TWENTYFOURSEVENBIOPHARMA Issue 3 / October 2025 DIGITALISATION commerce has rarely been a topic of much discussion … the past two years have pushed the subject to the top of the agenda.” Reshoring appeals to policymakers but carries a steep price tag, demanding heavy investment in domestic capacity and skilled labour. Regionalisation offers a different route, dispersing production closer to end markets to cut delivery times and emissions. Friendshoring sits between the two, shifting supply to politically aligned partners as a hedge against risk. The trade-offs are clear with McKinsey estimating that redesigning supply chains for resilience could raise costs by 20 to 50% in some industries. Yet it also found that companies with more resilient supply chains recover from shocks two to three times faster than peers, a performance gap that helps justify the added cost. Policy responses reflect these pressures with the European Commission recently unveiling incentives for local production of critical drugs, including subsidies for antibiotics and oncology APIs. India has introduced production-linked incentives to reduce reliance on Chinese suppliers, while marketing itself as a reliable “friend-shore” hub. The US has tightened procurement rules to tilt federal contracts toward domestic manufacturers. Each initiative reflects a different balance of politics and economics, but all point to the same conclusion: concentration is no longer viable. The impact of digital tools Resilience now depends as much on information as infrastructure yet many pharmaceutical companies still lack visibility beyond their first-tier suppliers. This leaves them exposed to vulnerabilities buried deeper in the chain. AI and blockchain are being deployed to address this. Daniels of Exiger was clear: “Today’s supply chains simply cannot be managed without AI.” Blockchain trials are being used to trace materials across borders, giving companies real-time proof of provenance. Predictive analytics add another layer, spotting irregularities in shipments before they turn into shortages. At the top level, AI-powered ‘control towers’ combine logistics, production and risk data into dashboards that give executives a live view of their networks. Yet digitisation creates fresh vulnerabilities. A 2025 academic study warned: “The pharmaceutical supply chain faces escalating cybersecurity challenges … we explore the transformative potential of zero trust architecture for enhancing security and resilience.” Cyber resilience has therefore become inseparable from supply-chain resilience. Protecting data and systems is as important as securing physical production. Driving resilience with ESG Resilience today is inseparable from environmental, social and governance (ESG) standards. Regulators and investors are pressing companies to cut emissions, safeguard labour rights and minimise waste. A supply chain that falters under climate or ethical scrutiny is no more reliable than one that breaks down operationally. ZS, a US-based consultancy, has embedded climate and social commitments directly into its procurement policies: “ZS has received approval from the Science Based Targets Initiative … to reduce absolute scope 1 and 2 GHG emissions 48.8% by 2030 … This Policy also reenforces ZS’s commitment to creating an inclusive supply chain … mitigating risks related to labour and environmental standards.” This reflects a wider reality as pharmaceutical groups begin to weigh carbon intensity and ethical practices alongside price and delivery. Choosing greener transport modes or working with suppliers who run on renewable energy is becoming standard risk management, not philanthropy. 2025 and beyond Executives remain cautiously optimistic, buoyed on by a Pharma Manufacturing report that found 75% of life-sciences leaders view 2025 as “positive to cautiously positive.” Yet 36% said supply-chain risks remain unpredictable, and 37% identified resilience as a top strategic priority.
RkJQdWJsaXNoZXIy MjY2OTA4MA==