Vietnam’s pharmaceutical industry – the main difference is the adoption of technology
Under the influence of Covid-19, almost all economic sectors suffered heavy losses, especially in some industries such as tourism, import-export. However, there are still some industries with increasing vitality and the name that cannot be ignored in medicine and pharmaceuticals. It is just a perspective on enterprises that already know how to apply technology solutions in supply chain management. So what is the difference here, let’s find out through the following article:
The situation of Vietnam’s pharmaceutical industry in 2020
A study has shown that, during the Covid-19 pandemic period, the demand for spending on health and medical products increased sharply. In the public health sector, health insurance coverage is growing steadily year by year, in 2019 is estimated at 85% / total population. This rate will be 92% by 2020. According to Business Monitor International (BMI), the scale of health spending in Vietnam will increase to 22.7 billion USD by 2021, with a compound growth rate (CAGR) of 12.5% in 2017-2021.
According to a recent IMS Health study, Vietnam is ranked among 17 countries with the highest pharmerging markets – a group of countries expected to become the mainstay of the world pharmaceutical industry.
With 93 million people, Vietnam’s pharmaceutical market is forecast to exceed $ 7 billion by 2020. However, nearly 55% of domestic drug demand is imported. And many businesses in the field are having difficulty in logistics management, supply chain management.
Challenges are inevitable
In Vietnam and in Western countries, the development of the pharmaceutical industry is also facing great challenges. The result of biology requires increasing R&D (Research and Development), production, and distribution costs. Companies that do not correctly balance revenue growth and cost control are at a major disadvantage. Of course, a good supply chain environment can create a strategic advantage if the business has the right technology support.
Direction for businesses in the pharmaceutical industry
Today’s complex demand and supply networks require innovative, integrated logistics and supply chain planning solutions capable of taking advantage of a variety of market opportunities. And especially still cost-saving and minimizing risks. Also, all market research figures show that the pharmaceutical industry’s distribution channel has not brought into full play the strength of businesses and the advantages that the macro environment brings. Therefore, applying technology solutions to the pharmaceutical supply chain management and operation of the pharmaceutical supply chain will save costs businesses significantly.
Research on differences after using technology solutions
Blue Yonder studies third party logistics providers (3PLs) that provide a wide range of logistics management services and supply chain solutions to clients in the medical and pharmaceutical sector. From valuable lessons about customers who have served, Blue Yonder recognizes the difference between businesses that have used and have not applied technology solutions in logistics, but specifically warehouse management solutions. Old solutions cannot allocate enough orders to items that do not have sufficient quantity available to fill the order and require an additional stocking process. This is time-consuming and costly to the business.
The difference in businesses that have used the solution
On the other hand, customers who have used Blue Yonder’s warehouse management solutions are entirely different. The customer’s replenishment process has been enhanced with a new level of automation that increases productivity. Primary select positions can now be flexibly changed, with no downtime in the process as the user waits for a new product.
Control the whole process smoothly
Blue Yonder’s Warehouse Management Solutions manages the flow of raw materials, work processes, and finished goods inventory across internal distribution networks. The system makes the operation of the warehouse and distribution center more efficient. Each worker is automatically assigned the next most productive task based on order priority, proximity to inventory and equipment used, and of course, business suitability. Efficiency is shown to be higher in the use of RF or RFID devices, which automate speech during work.
Distribution strategy support
Warehouse management also supports new strategies for distribution such as stocking models directly to pharmacies or hospitals, cross-traffic, cross-import, and fast order processing. These strategies reduce handling and storage requirements resulting in reduced inventory levels and reduced distribution costs.
Handling emergencies
Blue Yonder’s warehouse management capabilities drive the replenishment of selected stock quickly in sufficient quantities to meet customer orders. If it used to be a manual process, now it is a modern and fast process.
Conclusion
The application warehouse management solution is bringing a marked change to pharmaceutical businesses. Already replaced manual processes and workarounds by choosing modern, efficient systems. Added system-driven processes to support growth and improve customer service. It is this change that helps the supply chain operate more efficiently and economically.
In Vietnam, TSL’s on-site training and support will drive user engagement to ensure that operations are successful when they come into operation. Therefore, Vietnamese enterprises need to quickly access this solution to exploit opportunities as well as overcome difficulties from the market.
Source: BMI Report, Blue Yonder Inc.
