Study highlights pharmaceutical supply chain problems
More than 40% of patients say they fear they could get sicker or die because of contaminated or tainted medications stemming from poor handling, storage, and other supply chain-related issues.
Many patients don’t trust the pharmaceutical supply chain and are calling for greater transparency and accountability among stakeholders and government agencies, according to a study from supply chain technology provider Zebra Technologies, released today.
The company surveyed more than 3,500 patients and pharmaceutical industry leaders to evaluate perceived supply chain stability, gauge supply chain responsibility and trust in its entities, and identify needs for improving supply chain visibility and transparency. The researchers found that many patients distrust certain elements of the supply chain, including those who make, distribute, prescribe, and dispense medications, and that 43% worry they could face more illness or even death if certain supply chain problems go unaddressed.
Patients said they are worried about drug effectiveness (75%), as well as labeling errors, contamination due to poor handling or storage, and receiving counterfeit medicines (70%).
“Patients know a compromised supply chain puts medication quality and efficacy at risk and want better assurances their medications are safe and authentic,” the authors wrote. “Nine-in-10 say it is somewhat or very important they can verify a medication is not counterfeit [or] tampered with and confirm temperature sensitive medications have stayed within the prescribed range.”
Patients surveyed also said they expect drug manufacturers to disclose how their medications are manufactured and handled (81%) as well as transported and stored (82%). Eighty percent said it’s important to verify the sources of medication ingredients, including the country of origin and local standards for the medication itself. In addition, 79% of those surveyed said they want to know the source of their medication is sustainable with confirmation the manufacturer is using techniques to protect the environment, animal welfare, human communities, and public health.
“These evolving patient demands will certainly be a wake-up call for pharmaceutical industry leaders who, for years, have been primarily focused on meeting regulatory standards,” John Wirthlin, industry principal for manufacturing, transportation, and logistics at Zebra Technologies, said in a press statement Tuesday. “Manufacturers, government agencies, pharmacies, and healthcare providers must work together to win consumers’ trust in the supply chain.”
Business and government leaders in Europe and the United States have taken steps to address some of these problems. In Europe, the Falsified Medicines Directive aims to improve safety and protect the public from counterfeit or inauthentic drugs, and in the United States, the Food and Drug Administration (FDA) is requiring product tracing systems to be in place by 2023 as part of the Drug Supply Chain Safety Act.
More than 80% of pharmaceutical industry decision makers said they feel prepared to comply with traceability and transparency mandates, according to the Zebra study, and many said they are implementing technology solutions to help with those goals. Three-quarters of those surveyed said they have already deployed location services technology or plan to in the next year–steps that would improve production workflows and drug tracking, reduce inventory loss and tampering, and give patients the visibility and information they want, according to the study.
“The biggest challenge these leaders are facing is being able to make–and move–enough medications to meet patients’ needs,” the authors also said. “ In addition to regulatory delays, industry decision-makers say they are also dealing with production limits, distribution and storage problems, shipping capacity constraints, and transportation delays. Consequently, 92% plan to increase investments in pharmaceutical manufacturing and supply chain monitoring tools next year.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.
Shippers are actively preparing for changes in tariffs and trade policy through steps like analyzing their existing customs data, identifying alternative suppliers, and re-evaluating their cross-border strategies, according to research from logistics provider C.H. Robinson.
They are acting now because survey results show that shippers say the top risk to their supply chains in 2025 is changes in tariffs and trade policy. And nearly 50% say the uncertainty around tariffs and trade policy is already a pain point for them today, the Eden Prairie, Minnesota-based company said.
In a move to answer those concerns, C.H. Robinson says it has been working with its clients by running risk scenarios, building and implementing contingency plans, engineering and executing tariff solutions, and increasing supply chain diversification and agility.
“Having visibility into your full supply chain is no longer a nice-to-have. In 2025, visibility is a competitive differentiator and shippers without the technology and expertise to support real-time data and insights, contingency planning, and quick action will face increased supply chain risks,” Jordan Kass, President of C.H. Robinson Managed Solutions, said in a release.
The company’s survey showed that shippers say the top five ways they are planning for those risks: identifying where they can switch sourcing to save money, analyzing customs data, evaluating cross-border strategies, running risk scenarios, and lowering their dependence on Chinese imports.
President of C.H. Robinson Global Forwarding, Mike Short, said: “In today’s uncertain shipping environment, shippers are looking for ways to reduce their susceptibility to events that impact logistics but are out of their control. By diversifying their supply chains, getting access to the latest information and having a global supply chain partner able to flex with their needs at a moment’s notice, shippers can gain something they don’t always have when disruptions and policy changes occur - options.”
That strategy is described by RILA President Brian Dodge in a document titled “2025 Retail Public Policy Agenda,” which begins by describing leading retailers as “dynamic and multifaceted businesses that begin on Main Street and stretch across the world to bring high value and affordable consumer goods to American families.”
RILA says its policy priorities support that membership in four ways:
Investing in people. Retail is for everyone; the place for a first job, 2nd chance, third act, or a side hustle – the retail workforce represents the American workforce.
Ensuring a safe, sustainable future. RILA is working with lawmakers to help shape policies that protect our customers and meet expectations regarding environmental concerns.
Leading in the community. Retail is more than a store; we are an integral part of the fabric of our communities.
“As Congress and the Trump administration move forward to adopt policies that reduce regulatory burdens, create economic growth, and bring value to American families, understanding how such policies will impact retailers and the communities we serve is imperative,” Dodge said. “RILA and its member companies look forward to collaborating with policymakers to provide industry-specific insights and data to help shape any policies under consideration.”