Novartis: Supply chain transformation through strategic cooperation

The pharmaceutical company will realign its supply chain through its collaboration with Amazon Web Services. The focus is on automation, machine learning and real-time information.

Novartis wants to transform its manufacturing and supply chains. Cloud-based “Insight Centers” are to bundle information and make it available in real time, as Amazon Web Services announced in a blog post. Access will be available to site operators as well as to users at companies worldwide. The Insight Centers will incorporate site operating figures and industrial sensor data, supplemented by contextual and environmental information.

In addition to the supply chain, production and sales will also be part of the project. The transformation will be realized through a strategic cooperation with Amazon Web Services. As a multinational pharmaceutical company with more than 60 production sites, Novartis produces therapeutics for nearly one billion patients in 155 countries every year. “Using data science and digital technologies to reimagine the way we manufacture medicines is not only at the heart of our transformation, but also core to our ambition to bring innovative medicines to patients faster,” said Bertrand Bodson, Chief Digital Officer at Novartis.

Machine Failure Forecast

The aim is to develop standard key figures for global site efficiency to assess global operating performance. Machine learning is designed to predict site performance, but also, for example, machine failures. Digital twins and demand forecasting models should enable more efficient supply.

For pharmaceutical companies, the transformation of production and supply chains has taken on great significance. New pharmaceutical therapies are more complex to produce, simultaneously increasing demands on logistics, as living organisms have to be transported. Individualized therapeutic approaches are also reducing production volumes, and the expiration of patent protection for many drugs is forcing companies to cut production costs. As a result, pharmaceutical companies need to make upstream supply chains, manufacturing processes and downstream distribution more efficient and dynamic.

Save the Date: 5th Global Pharma Supply Chain Congress, March 3-5, Dresden