Pharmaceutical Supply Chain Disruption – Critical Best Practices with Rx-360

“Know your supply chain. Make sure you have it well mapped. The biggest thing that we’ve seen coming out of COVID was investments in technology – that’s what’s helping manufacturers respond to the unexpected.”

Ryan Kelly, Senior Director of Supply Chain Security and Brand Protection at Rx-360, delivered this stark assessment of pharmaceutical supply chain management during a live podcast recording at CDMO Live 2025 in Rotterdam.

Ryan brings extensive experience in pharmaceutical supply chain security from his role at Rx-360, a nonprofit consortium representing approximately 130 manufacturers, suppliers, distributors and contract logistics providers. His organisation focuses on safeguarding the quality and security of pharmaceutical supply chains through information sharing and collaborative risk management.

In this video Ryan explains how pharmaceutical companies can build resilience against increasingly frequent supply chain disruptions whilst maintaining patient access to critical medications.

Building Supply Chain Visibility Through Comprehensive Mapping

The foundation of effective supply chain risk management lies in understanding every component of your network. Ryan emphasises that many companies fail to recognise hidden dependencies that can create unexpected vulnerabilities.

“Make sure you understand your supply chain. Know who your suppliers are, know who their suppliers are. Many times your primary supplier and your secondary supplier may be sourcing from the same supplier,” Ryan explains.

This deeper level of mapping becomes critical during crisis situations. Ryan cites recent examples where Rx-360 members successfully navigated disruptions because they had comprehensive visibility into their operations.

“When we had the power outage on the Iberian Peninsula affecting Spain, Portugal, and France, our members were able to implement already existing continuity plans quickly. They knew which products they had in market, they had redundant power systems, and they had triage plans in place to prioritise patient needs.”

Leveraging Technology for Real-Time Supply Chain Intelligence

The COVID-19 pandemic accelerated technology adoption across pharmaceutical supply chains, creating new opportunities for proactive risk management. Ryan highlights how regulatory requirements are simultaneously driving transparency improvements.

“The biggest thing that we’ve seen coming out of COVID was investments in technology. That could be sensors, integrating IoT with ERP systems, capacity planning, demand planning and forecasting systems, pharmaceutical traceability,” Ryan notes.

These technological advances work alongside regulatory frameworks to enhance supply chain visibility. “In the United States, we have the FDA’s Drug Supply Chain Security Act. In Europe we have the falsified medicines directive. These legislative requirements are increasing transparency and visibility into the supply chain.”

The combination of voluntary technology investments and mandatory regulatory compliance creates a powerful foundation for supply chain intelligence that enables faster response to disruptions.

Managing Geopolitical Risk Through Collaborative Information Sharing

Current geopolitical tensions present unprecedented challenges for pharmaceutical supply chains, particularly given the concentrated nature of global drug manufacturing. Ryan describes how Rx-360 members are addressing these complex risks through structured collaboration.

“The geopolitical risks right now are seeing an uptick. We meet biweekly for different areas to discuss challenges in the Red Sea, challenges in Eastern Europe and Ukraine. Now we’re focused on events happening between India and Pakistan and the potential implications on the pharmaceutical supply chain,” Ryan explains.

The scale of potential impact from geopolitical disruptions requires coordinated industry response. “India is one of the leading manufacturers in the world. Any type of disruption to product supply, ports, or global trade could be drastically significant. For generics, which are 80 plus percent of all drugs consumed, the global leader is India.”

Ryan emphasises that addressing these risks requires both redundant supply strategies and enhanced partnerships with contract manufacturers. “A key strategy is looking to CDMOs to help bridge gaps and potentially produce those products, or identifying where you have redundant supply and alternative production facilities.”

Preparing for Innovation-Driven Supply Chain Transformation

Looking ahead, Ryan identifies patient-centric innovation as the primary driver of supply chain evolution. Technological advances are enabling new care delivery models that require fundamental changes in how pharmaceutical companies approach distribution.

“If we look at innovative models from Eli Lilly with partnerships with Amazon for direct-to-consumer pharmacy models, we’re seeing disruption in this space. Given the advent of telehealth services and increased analytics, patients are managing their own healthcare more actively,” Ryan observes.

This shift towards patient empowerment creates new requirements for supply chain agility. “Manufacturers and suppliers are going to have to work backwards from patients who are expecting faster delivery, more insights into their health and wellness, and taking more ownership.”

The implication for pharmaceutical companies is clear: supply chain strategies must evolve beyond traditional wholesale distribution models. “It becomes more imperative that our members know their supply chain very well and are flexible at a product level. Every single product has its own unique set of supply chains in the market.”