The UK’s medication shortages are widely attributed to Brexit combined with an unforeseen addition: the COVID-19 pandemic. Together, they compounded pressure on the pharmaceutical supply chain by creating new regulatory obstacles and exacerbating delays in the import and export process. Drug shortages are seen as the ‘new normal’ in an environment where pharmaceutical companies are now issuing twice as many warnings of impending shortages compared to three years ago.

How can these challenges be best alleviated?

As with so many industries, the answer could lie with new AI technology.

AI’s potential within the supply chain orchestration process holds the promise of rendering drug shortages a relic of the past. This technology enables pharmaceutical companies to identify risks earlier, streamline manufacturing processes and make informed decisions to mitigate drug shortage challenges much more quickly than traditional methods. By identifying the risk of possible shortages before they happen, supply chain shortages can not only be mitigated, but even be prevented. 

How does this actually work in practice? AI will alert the pharmaceutical company of the upcoming risk, allowing them to make an informed decision around what action to take. In the case of a possible drug shortage, an appropriate action might involve ramping up production of a particular product, sourcing active pharmaceutical ingredients (APIs) from an alternate supplier or deciding to strategically stockpile medication in anticipation of a surge in demand later in the year.

In a highly complex and regulated environment, AI can also help pharmaceutical companies to optimise their process for delivering new medications to customers. Additionally, with lengthy regulatory approval timelines, AI can automate the planning process to remain compliant with stringent regulatory standards while fulfilling patient demand. 

AI promises to be an important partner in mitigating the UK’s drug shortage. However, it’s important to point out that whilst there are an increasing number of agile pharmaceutical companies implementing AI very successfully, its application within the UK’s pharmaceutical supply chain will not – and should not - be an overnight process. The industry will always need to exercise appropriate caution in adopting a new technology to remain compliant with regulations and mitigate risks, especially in a sector which directly impacts human health.

With careful navigation and strategic implementation, the pharmaceutical sector can use AI, alongside continued human oversight, to enhance supply chain efficiency, improve patient outcomes, and ultimately revolutionise the delivery of vital medication.   Fergus van Niekerk, VP, Global Partner Organization at Kinaxis