On day 2 of DCAT Week, attendees gathered in the Grand Ballroom on the second floor of the InterContinental Barclay for a Research & Benchmarking Executive Summary on the emerging role of artificial intelligence (AI) in supply chain management, followed by a panel discussion.
 
The allure of AI is undeniable. It has generated enormous interest across all industries for its potential to create new products, increase productivity, and enhance sustainability efforts, including procurement and supply-chain management. Despite its potential, however, separating reality from the promise of AI has been a challenge, and its adoption has been slowed by perceptions relating to its cost and the complexity of applying it.
 
Although the bio/pharma industry is readily adopting AI in drug discovery and marketing, companies are just starting to pilot use cases for AI in supply chain management. Still, bio/pharma companies and their suppliers need to understand what AI’s potential is in supply chain management and how may it shape how companies do business in the supply of direct materials used in bio/pharma development and manufacturing.
 
To gain a perspective on the role and potential of AI in supply chain management in the bio/pharma industry, the Drug, Chemical & Associated Technologies Association (DCAT), through the DCAT Research & Benchmarking Committee, conducted a study on how companies are using AI or view its potential in supply chain management. The survey was fielded to senior and mid-level executives in DCAT Member Companies—bio/pharma companies and suppliers—to gain their feedback.

Key Takeaways from the Study

The full report will become available in April, but attendees at DCAT week were treated to key takeaways from the study, The Emerging Role of Artificial Intelligence (AI) in Supply Chain Management, presented by Jim Miller, consultant and content advisor, DCAT.
 
The benefits of AI are real, the report claims. AI can add value to supply chain planning, including production, inventory and product distribution. According to the study results, the most common uses for AI in the supply chain include demand forecasting, logistics, inventory management, purchase order generation and supplier risk management.
 
Miller warns that companies that hesitate or don’t adopt AI in supply chain management are at risk of being left behind. According to the study, only 27% of responding companies are using AI for supply chain management.
 
The biggest barrier to AI adoption? The study cites a lack of understanding. Other reasons for not engaging with AI include a lack of internal knowledge and expertise, leaders not understanding how it might be useful, and the belief that the tech is not ready for deployment. Education on the benefits of AI is the best way to combat these barriers.

Panel Discussion

In addition to the preview of the upcoming study, an expert panel discussion was held on how AI is changing supply-chain management and procurement and is helping companies be more proactive in managing their supply chains.
 
Moderated by Vishal Bhandari, partner, healthcare and life sciences practice and co-leader, global life sciences’ sector, Kearney, the panel included:
 

• Koray Köse, chief industry officer, Everstream Analytics
• Martin Rand, CEO, Pactum
• David McCarthy, senior director, enablement and strategic insights, Pfizer
• Jeet Sarkar, global head of IT, SK pharmteco

 
Koray Köse of Everstream Analytics, a provider of services to monitor and anticipate potential supply-chain disruptions used by a number of bio/pharmaceutical companies, explained how AI is and can be used by companies to more proactively manage their supply chains.
 
Martin Rand from Pactum, a leader in AI-driven supplier-management applications, count Walmart and Medline among its clients, explained how AI is now being used in negotiations between suppliers and customers.
 
Providing a perspective from an industry view was David McCarthy, who leads Pfizer’s overall third-party risk management for the enterprise, with a particular focus on supply assurance and risk mitigation for direct materials.
 
Lastly, Jeet Sarkar from SK pharmteco, a partner specializing in the manufacture of APIs and intermediates, cell and gene therapy technologies, registered starting materials and analytical services for the pharmaceutical industry worldwide, was able to provide practical examples of how AI and ML can be used as tools to increase efficiency and reduce errors.