Global Procurement Strategy for Stable Pharmaceutical Supply: Addressing Wholesaler Stockouts | TASAKI PHAMA

The Background of Stable Drug Supply as a Management Issue

In recent years, ensuring a stable supply of pharmaceuticals has become a critical management issue for healthcare institutions. The following factors contribute to this:

• Complex Supply Chains: The manufacturing of pharmaceuticals involves numerous processes, including the procurement of active pharmaceutical ingredients (APIs), manufacturing, quality control, and distribution, and relies on global supply chains.
• Geopolitical Risks: Conflicts and political instability increase the risk of disruptions in the supply of APIs and finished drugs.
• Pandemics: Pandemics like COVID-19 can cause simultaneous surges in demand and disruptions in supply, leading to severe drug shortages.
• Manufacturing Issues: Aging manufacturing facilities and quality control problems can lead to temporary shutdowns of pharmaceutical production.
• Drug Pricing System: Revisions to drug prices may cause pharmaceutical companies to discontinue the production of certain drugs or reduce their supply.

These factors interact in complex ways, making it difficult for healthcare institutions to secure the necessary drugs when needed. In particular, orphan drugs and drugs used only for specific patient populations tend to be more susceptible to supply instability.

Current Status of Pharmaceutical Wholesalers and the ‘Out of Stock’ Problem

Healthcare institutions typically procure pharmaceuticals through pharmaceutical wholesalers. However, in recent years, there has been an increase in cases where wholesalers report being ‘out of stock,’ which has had a significant impact on medical practice.

Pharmaceutical wholesalers play a role in purchasing drugs from pharmaceutical companies and selling them to healthcare institutions. Wholesalers support the pharmaceutical management operations of healthcare institutions by providing services such as drug storage, distribution, and information provision. However, wholesalers are also affected by the supply chain issues mentioned above, manufacturing problems at pharmaceutical companies, and the impact of the drug pricing system, which can lead to situations where they cannot secure sufficient inventory.

The ‘out of stock’ problem not only hinders medical institutions’ ability to provide care but can also adversely affect patient treatment. For example, if necessary drugs are unavailable, alternative drugs may have to be used, but alternative drugs may not always be suitable for the patient. In addition, delays or interruptions in treatment can negatively impact patient prognosis.

For example, temporary shortages have been observed for anticancer drugs such as Cisplatin and Doxorubicin. These drugs are important agents used in the treatment of various cancers, and their shortage has a significant impact on treatment plans.

Benefits of Contracting with Pharmaceutical Trading Companies with Global Procurement Networks

Contracting with pharmaceutical trading companies that have global procurement networks is an effective strategy for healthcare institutions to ensure a stable supply of pharmaceuticals. Trading companies with global procurement networks can diversify drug procurement routes by collaborating with pharmaceutical companies and wholesalers around the world.

The benefits of contracting with a trading company with a global procurement network are as follows:

• Ensuring Stable Supply: Having multiple procurement routes allows for the procurement of drugs from other routes even if the supply from a specific region or company is disrupted.
• Improving Price Competitiveness: Obtaining quotes from multiple suppliers and promoting price competition can reduce drug procurement costs.
• Access to the Latest Drugs: The latest drugs approved overseas can be procured before they are approved domestically. (Note: Handling unapproved drugs requires compliance with relevant regulations.)
• Thorough Quality Control: Compliance with GDP (Good Distribution Practice) ensures that only pharmaceuticals with guaranteed quality are procured.
• Information Provision: Providing the latest information on overseas pharmaceuticals and regulatory information supports the pharmaceutical management operations of healthcare institutions. For example, safety information based on information from the FDA (U.S. Food and Drug Administration) and EMA (European Medicines Agency) is provided.

For example, immune checkpoint inhibitors such as Pembrolizumab and Nivolumab are used in the treatment of various cancers, but demand is very high, and supply can be unstable. Trading companies with global procurement networks can procure these drugs from multiple routes and supply them stably to healthcare institutions.

When choosing a pharmaceutical trading company, it is important to pay attention to the following points:

• Scale of the Global Network: How many pharmaceutical companies and wholesalers are they affiliated with?
• GDP Compliance Status: Do they comply with GDP and thoroughly implement quality control?
• Information Provision Capability: Can they provide the latest information on overseas pharmaceuticals?
• Track Record: Do they have a track record of importing drugs on behalf of others?

Summary

Ensuring a stable supply of pharmaceuticals is an important management issue for healthcare institutions and has a significant impact on patient treatment. Healthcare institutions struggling with the ‘out of stock’ problem can ensure a stable supply of pharmaceuticals and stabilize their management by considering contracting with a pharmaceutical trading company with a global procurement network.

Ensuring a stable supply of pharmaceuticals is not only a management issue but also an important social responsibility to support the health and well-being of patients. It is important for healthcare institutions, pharmaceutical companies, wholesalers, and pharmaceutical trading companies to work together to build a stable pharmaceutical supply system. In particular, greater consideration is needed for orphan drugs and drugs used only for specific patient populations.

In addition, to ensure a stable supply of pharmaceuticals, it is important to increase the transparency of the entire supply chain and build a system that can detect and respond to risks early. To that end, supply chain visualization using digital technology and demand forecasting using AI are effective.

In the future, ensuring a stable supply of pharmaceuticals is expected to become an increasingly important issue. Healthcare institutions need to actively collect information and develop optimal strategies.