**London**: Drug shortages in the healthcare sector have declined to 271 as of December 2024, yet critical medications remain at risk. McKesson leads efforts to enhance supply chain resilience through technology and collaborative strategies to ensure continued availability of essential drugs for patients in need.
Drug shortages in the healthcare sector have remained a significant concern for the past decade, prompting industry stakeholders to innovate and adapt in order to navigate these challenges. As of December 2024, the number of active drug shortages has seen a decline, dropping to 271 from an all-time high of 323 earlier in the year. This reduction has been accompanied by ongoing disruptions in the supply of critical medications, particularly in oncology, central nervous system drugs, antimicrobials, hormone agents, and cardiology therapies. The situation underscores the need for a coordinated effort among all parties involved in the healthcare supply chain to ensure the continued availability of essential drugs.
The US pharmaceutical supply chain is intricate and interconnected globally, presenting both challenges and opportunities for innovation and resilience. The significance of drug shortages is not lost on healthcare providers, systems, and, most importantly, patients. Collaborative efforts across the healthcare supply chain are deemed essential for bolstering systems and mitigating potential shortages.
McKesson, a prominent wholesale distributor of medicines in the US with nearly two centuries of experience, has taken proactive steps to enhance resiliency within the pharmaceutical supply chain. The company has invested in effective sourcing and inventory management strategies to quickly adapt to fluctuations in supply. These approaches include ongoing process improvement, alternative supplier strategies, and the application of artificial intelligence (AI) and machine learning (ML) for better inventory oversight.
“The need for a unified approach across all industry stakeholders is critical to maintain drug availability,” stated McKesson, highlighting its commitment to equitable product distribution. The focus on developing a reliable sourcing strategy is crucial, given that the availability of active pharmaceutical ingredients (APIs) can fluctuate due to manufacturing concentration, regulatory changes, and disruptions in key starting materials. McKesson is actively evaluating risks to ingredient availability while diversifying geographical sources to optimise inventory levels and secure backup products.
Incorporating advanced technology is also a critical component of McKesson’s strategy. By leveraging AI and ML to analyse historical sales data, market trends, and external influences, the company aims to proactively identify potential shortages and inform inventory decisions more accurately. Understanding the factors influencing supply chain resilience—including the cost analysis of ingredient sourcing—plays a crucial role in mitigating financial risks.
Transportation logistics, alongside political and economic stability in regions supplying key ingredients, further affect the movement of pharmaceutical products. Awareness of these factors is vital for maintaining an uninterrupted supply chain.
Health systems face unique challenges amid the broader issue of drug shortages, often requiring significant resources to manage these complications. This management includes sourcing alternative medications, negotiating new contracts, and ensuring safe administration of alternatives. In response, health systems are encouraged to collaborate closely with wholesale distributors, fostering two-way communication to enhance supply chain visibility and preparedness during shortages.
Additionally, during the COVID-19 pandemic, McKesson established the Critical Care Drug Task Force, comprising clinical pharmacists and supply chain professionals tasked with monitoring and responding to supply chain fluctuations. The task force aims to provide insights into supply volume trends, enabling more effective inventory management.
Data sharing is also essential for accurate demand projection and inventory management, with some organisations collaborating with wholesalers to refine AI capabilities or developing in-house systems. The information derived from such efforts is invaluable for healthcare providers, assisting in prioritising resources during shortages to ensure patients receive necessary therapies.
Despite the longstanding nature of drug shortages, the industry continues to seek solutions. Stakeholders throughout the drug supply chain must engage in proactive strategies to foster resilience, mitigate shortages, and ultimately ensure patient access to vital medications. Moving forward, the healthcare ecosystem’s ability to collaborate and implement risk mitigation strategies will be critical in addressing these persistent challenges.
Source: Noah Wire Services
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