10 Ways Digitization Is Improving Efficiency in the Pharmaceutical Manufacturing Industry

Everyone wants the best outcome possible when they’re a patient or caregiver in the healthcare industry. Technology makes that easier to achieve. The advantages of digitalization enhance the industry’s efficiency, productivity, and quality control. Those in the pharmaceutical industry particularly stand to benefit from digitization.

These are the most important ways digital technologies are revolutionizing pharmaceutical manufacturing and the industry as a whole. They’re making everyone reevaluate their workflows to optimize their time and patient outcomes.

What Is Digitization in the Pharmaceutical Industry?

Digitization is the digital transformation of a business or industry. People within an organization or industry use technology to improve daily operations and make their products or services more valuable.

Leaders in the pharmaceutical industry could benefit from accelerating their digitization rate. Research shows only 44% of managers and executives¹ believe their companies are ready for the transformation. This stands even after much of the healthcare sector began relying more on technology in the last three years.²

Why Is Digital Transformation Important?

New technologies are some of the most advanced and accessible business resources. Software and hardware can boost productivity while minimizing mistakes in any business by taking on some of a business’ responsibilities. There’s little to no room for human error when a computer program operates independently.

Ways Digitization Improves Pharmaceutical Efficiency

Everyone working for or interacting with the pharmaceutical industry will see these benefits when digitization begins. They’ll make patients and employees more satisfied with their daily lives by making existing systems easier to manage.

1. Maintenance costs reduce to much less per year

Manufacturing pharmaceuticals requires numerous types of machinery at production facilities worldwide. Trained employees operate those plants, but mistakes can happen. One part of a machine could slow down or get out of sync with another. Breakdowns would set back production and cost even more in maintenance fees.

Age may cause this issue with outdated machinery too. Some parts might not last as long as others, leading to frequent maintenance updates that could even require production pauses.

Digitization would merge machine learning and artificial intelligence (AI) to create seamless responses to daily operations and potential mechanical errors.³ If something goes wrong, an AI system would catch it and make corrections automatically. Long-term cost savings are some of the greatest advantages of digitization for companies after upgrading.

1. Artificial intelligence makes the supply chain more visible

All companies rely on supply chain businesses. Pharmaceutical companies need to source raw materials and keep in touch with manufacturers. They also coordinate with wholesale distributors to provide medications to people in need. If bottlenecks occur and communication lapses, the delay in updated information could result in significant financial losses.

Artificial intelligence may prevent those situations. Software and sensors monitor things like restocking updates and manufacturing processes. If something falls behind or gets disrupted, the AI sends instant alerts to management teams. Supply chain issues happening within a supplier would become much easier to avoid.

1. Data optimizes daily workflow

Efficiency is the key to business success and consumer satisfaction. If the supply chain improves its productivity, greater volumes of high-quality goods reach those in need. It’s especially essential for pharmaceutical companies when healthcare providers write 4.76 billion prescriptions globally each year.⁴

“Demand for domestic and imported pharmaceutical items is increasing as economies grow, but the diversity of pharmaceutical needs is rising too.” Glenn Hole, PhD in Management, MBA, Diplom in Supply Chain Management, and Assistant Professor at Molde University College, told Health. “Digitization offers new and more efficient ways to meet up with this increased production demand. It improves manufacturing processes and makes them faster while maintaining the product quality.”⁵

Instant access to data also informs how pharmaceutical companies connect with customers. Digital marketing helps in the pharmaceutical industry by telling consumers what’s available or which advances are in motion.

Without data informing marketing teams of what’s happening in the industry, they can’t communicate accurately to consumers. Data is crucial to optimizing daily workflow influenced by consumer demand and communicating directly with people about their needs.

1. IoT devices monitor in real-time

Any piece of technology connected to the internet is an internet of things (IoT) device. These devices are crucial for pharmaceutical supply chain businesses because they monitor production and demand in real-time.

When consumer demand increases due to sudden spikes in disease or markdowns in medication prices, IoT devices alert pharmaceutical companies. They can respond with instant shifts in production processes instead of waiting on monthly or quarterly reports.

IoT tech also merges systems into one software or database. It provides real-time data for bottom-line improvement based on which production processes are efficient and which could use some tune-ups. The simple update becomes a significant revenue boost for companies willing to undertake the new technology.

1. Shared software creates instant communication

Distance may complicate communication between companies within the same supply chain. Many pharmaceutical brands rely on international manufacturers. Keeping in touch with people in different countries and time zones can complicate production. This is an especially significant challenge if manufacturing errors occur and there’s a lag between updates.

If suppliers and pharmaceutical companies use the same software after digitizing, they may not even need phones to communicate. The software could use instant messaging to boost collaboration and maintain a messaging history for quick reflection if confusion arises.

The improved communication might resolve other distance-related challenges as well. Machinery in two different plants could communicate between themselves and make automatic production changes to compensate for errors. Manufacturing teams would have fewer responsibilities to handle, making them more efficient with their honed focus.

1. Technology makes flexibility much easier

Digitization in other areas of the healthcare industry already makes some companies outpace their supply chain. Faster vaccine and medication production may jump ahead of traditional production processes. Both must operate at the same speed to provide essential medical supplies when in demand.

Manufacturing plants could use the latest automation and robotic technologies to refine and boost their production abilities. They’d keep up with consumer demand without increasing the odds of human error due to speed.

1. Digitization doubles as long-term storage

Using more software and AI programs creates extensive data histories. When properly stored, pharmaceutical manufacturers can learn from their saved data. It depends on how well they learn to wield the two types of analytics during their digitization updates.

Information can become structured and unstructured data. Structured data is more extensive and can contain information from any aspect of an industry. Unstructured data — or Big Data — becomes a digital landfill of information waiting for analysis.

“Integrating data stored in both structured and unstructured formats can add significant value to an organization.” Kornelia Batko, PhD and Assistant Professor at the University of Silesia, told Health. “The results of Big Data analysis can be used to predict the future and identify past trends. When it comes to healthcare, it allows identification of clusters and correlation between datasets from thousands of patients.”⁶

The data even informs the facets of the pharmaceutical industry communicating with healthcare systems and patients. Digital marketing helps in the pharmaceutical industry when it has accurate information. Teams can draw from analyzed data sets to focus on trending medications based on what healthcare providers and patients need.

1. Efficient production makes higher-quality products

People trust high-quality products. Revenue streams increase with their purchases and more global communities receive the medications or healthcare supplies they need. Digitization gathers procedural data to support this process. Pharmaceutical companies don’t have to rely on paper documentation and accidental gaps in communication to maintain their quality assurance.

Real-time data increases quality production because quality management staff can fix mistakes immediately. It’s one of the priceless advantages of digitization because it saves money for the lifetime the technology is in use. A manufacturing plant’s processes maintain long-term efficiency, resulting in high-quality products without recalls or lapses in production.

1. Competitors may lag in digitization

Although digitization technology is available to all companies, every business updates its manufacturing processes at different times. Those who lean into the latest technology early gain the competitive advantages of minimizing human errors and increasing product quality. They’ll experience more significant business outcomes and set themselves apart as industry leaders.

1. Consumers get immediate access to industry experts

Software programs connecting pharmaceutical manufacturing plants with healthcare providers provide digitized records to everyone with access. Healthcare providers will get immediate notifications when pharmacies refill, approve, or delay medications. Consumers can choose to get alerts as well.

Everyone becomes interconnected when digitization occurs. Pharmaceutical businesses will have higher customer satisfaction because their communication is instantaneous.

Look Forward to the Advantages of Digitalization

Technology is always advancing, but industries shouldn’t wait to start digitizing. Today’s cutting-edge applications are reshaping the pharmaceutical landscape. They make manufacturing plants more efficient and decrease the chance of errors. Some technology can also create datasets for trend analysis and manufacturing changes based on consumer demand.

Pharmaceutical leaders should anticipate the future implications of new technologies while using what’s available to improve their supply chains. Client satisfaction and revenue streams will continually increase when everyone operates on the same digital scale. It’s an easy way to secure high productivity and efficiency levels while boosting manufacturing quality.

Sources:

Adhikari A, Seetharaman D, Research. Digitization deployment challenges in pharmaceutical supply chain. Int J Innov Sci Res Technol. 2021;6(6). https://ijisrt.com/assets/upload/files/IJISRT21JUN322.pdf

De’ R, Pandey N, Pal A. Impact of digital surge during COVID-19 pandemic: A viewpoint on research and practice. Int J Inf Manage. 2020;55(102171):102171. doi:https://doi.org/10.1016/j.ijinfomgt.2020.102171

Lehigh, Devin. Digitalization in the pharmaceutical industry - MECO. www.meco.com. https://www.meco.com/how-digitalization-affects-pharma-industry/

Total number of retail prescriptions filled annually in the U.S. 2013-2025 | Statista. Statista. https://www.statista.com/statistics/261303/total-number-of-retail-prescriptions-filled-annually-in-the-us/

Hole G, Hole AS, Shaw IM. Digitalization in pharmaceutical industry: What to focus on under the digital implementation process? Int J Pharm X. 2021;3:100095. doi:https://doi.org/10.1016/j.ijpx.2021.100095

Batko K, Ślęzak A. The use of big data analytics in healthcare. J Big Data. 2022;9(1). doi:https://doi.org/10.1186/s40537-021-00553-4