Powerful medicine against supply chain bottlenecks and price pressures

By Martina Haas

The stress afflicting the healthcare industry didn’t just start with the pandemic. Bottlenecks in the supply chain for raw materials jeopardize production processes. Global regulations require the highest standards of transparency and quality assurance. Counterfeits make life more difficult for manufacturers. In a nutshell: Medical device and pharmaceutical manufacturers face serious health risks.

The situation calls for prescriptions to strengthen the resilience of supply chains. Tools for monitoring compliance with the latest unique device identification specifications. Answers to growing price pressures.

The good news: Many industry players are not far away from effective solutions that can put them on the road to recovery. That’s because the data needed for optimizations is often already being collected. What’s needed to achieve healthier outcomes, however, is smart data consolidation.

Woman works in medical laboratory

Digital solutions for a stable supply circulation

Digital technology is the best way to boost efficiency in the healthcare sector. Today’s digital solutions make it possible to connect the loose ends of the logistics process chain, from procurement to production to distribution—including any recalls. Order and transport data from suppliers and logistics service providers around the world is linked to internal production information for compliance with the relevant rules and regulations.

Cloud-based IT platforms are often at the heart of the digital supply chain, acting as control towers that integrate all the applications needed for smooth collaboration in logistics networks and stabilizing the circulation of the supply chain.

The supply chain control tower connects all supply chain players, provides all the necessary information, offers just-in-time control of time-sensitive shipments, and sounds the alarm proactively in the event of any deviations from delivery deadlines. The solution also ensures end-to-end monitoring of cold chains, expiration dates, and other parameters.

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Supply chain visibility:

the x-ray view of your supply chain

Supply chain visibility is one of the most effective safeguards protecting your ability to supply your customers. An x-ray view of the structure and dependencies of the entire supply chain makes it possible to recognize risks and side effects early on.

Simulation models like the digital twin take things a step further. They leverage existing data to highlight the effects of changes in the process chain, taking into account all factors and applicable regulations such as FDA compliance.

Digital rate card management is the ideal tool for shining a light on the master agreements you have with various providers, providing a basis for determining and calculating prices that lets you compare competing logistics services and speed up RFPs

The clear diagnosis: Transparent and resilient supply chains are the active ingredient in the success of medical device and pharmaceutical manufacturers. Siemens Digital Logistics is your ideal partner for efficient planning, control, and optimization.

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This article first appeared on the Siemens Digital Industries Software blog at