Pharmaceuticals

The pharmaceutical industry in India is flooded with complex procurement and supply chain challenges that directly impact production efficiency, compliance, and competitiveness. The overdependence on imported raw materials, such as Active Pharmaceutical Ingredients (APIs) and intermediates, pushes the pharma sector into global price volatility, currency fluctuations, and geopolitical risks. Guaranteeing consistent quality and adhering to strict regulations, such as those of the USFDA, EMA, and WHO-GMP, complicates sourcing. Logistics also makes the transport of temperature-sensitive products, such as vaccines and biologics, extremely challenging, requiring robust cold chain infrastructure, which is often inadequate in most parts of India. Port congestion, transportation delays, and specialized handling requirements create additional risks of spoilage, wastage, and regulatory non-compliance.

The industry also struggles with government-imposed pricing controls on essential drugs, rising raw material costs, and pressure to balance profitability with quality standards. A fragmented supply chain with numerous vendors affects vendor standardization, and at the same time, the volatile demand, especially during health crises, often leads to inventory issues. Becoming carbon neutral and ESG compliance adds to the complexity, as pharmaceutical companies are increasingly held accountable for sustainable/green sourcing. Limited digitization and poor real-time visibility across the supply chains also weaken forecasting, making the supply chain transformation a need of the hour for long-term sustainability.