Re-Imagining Supply Chains

The situation which has been created following the COVID-19 virus, will very quickly bring into
question the logistics flows with zero stock.

A return to the origins of KANBAN, a local buffer stock equal to 2 times the quantity to cover the
needs of the supply period. And that wherever the products come from, whether from own
production, from subcontractors or suppliers.

If we add to it the legal constraints concerning the conditions of storage and transport of medicines,
the management of the stock and its storage conditions will become the main task of anyone in
charge of the compliance.

Controlling that the “stability budget” for each product have been respected will have to be largely
automated, in order not to delay the availability of the product or to drastically increase the costs of

The pharmaceutical industry has just completed the implementation of serialization and there is no
question of the work provided, on the contrary they must build on it. The management of the stock,
and its “climatic” conditions, to the ID of each product will become essential. Being able to launch
the supply at the right time considering all the variables, and in particular the forecast and the
conditions of the current stock.

This is why the implementation of a system allowing to follow, in real time, a product with its ID from
the production to its use will be almost compulsory, especially if one does not want to run the risk of
stock-out because the stability budget has been exceeded or receive information only when using
the product.
The new communications technologies: LTE-M or NB-IoT and the sensors of increasingly smaller size
and no longer requiring calibration, make it possible to reduce the risks almost to zero when coupling
an application to process this mass of data in real time.

The absorption of the additional cost of the stock can largely be supported by the gain in productivity
in its management.

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