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Symptoms of Disruption in the Pharmaceutical Supply Chain

Art of Supply

Release Date: 05/30/2024

BONUS: Indictment in the 2022 Tractor Trailer Human Smuggling Case show art BONUS: Indictment in the 2022 Tractor Trailer Human Smuggling Case

Art of Supply

When we cover a news story on Art of Supply, we stick with it, even when it seems to have gone cold. In late August, we got an update on the case of the 53 migrants who lost their lives as a result of illegal attempted smuggling over the Mexico border back in 2022. On June 27th, 2022, an abandoned tractor trailer was found near Lackland Air Force Base in San Antonio, Texas. The truck had mechanical problems and it had been abandoned by its driver. A local worker heard cries of distress and opened the trailer door. What he found would go on to be declared the deadliest example of migrant...

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Liverwurst, Listeria, and Liability: Food Safety at Boar’s Head show art Liverwurst, Listeria, and Liability: Food Safety at Boar’s Head

Art of Supply

When something goes wrong in the supply chain, it is never good news. It always leads to disruption, often costs a lot of money, and sometimes people get hurt - or worse. In July of 2024, the USDA suspended production at a Boar’s Head processing plant in Jarratt, Virginia. A listeria outbreak, the worst such outbreak in over a decade, had started in the plant. The facility has been closed indefinitely, leading to over 500 layoffs of union employees, but that wasn’t the worst of the fallout. Before the outbreak was over, over 7 million pounds of meat were recalled, 59 people were...

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The Power of Visualization in Freight Optimization and Resilience with Ruud van Dijk show art The Power of Visualization in Freight Optimization and Resilience with Ruud van Dijk

Art of Supply

“Humans are so much more effective in processing something visually than, let's say, a table or two pieces of text next to each other. If you see it on a map, you can say, okay, this line goes like this, the other goes like this. I can make the connection in my head very easily that, okay, this is what changes. And it also makes it very easy to sort of have an opinion on it, because it clicks in your head quite easily.” - Ruud van Dijk, Commercial Director, Routescanner We routinely talk about the complexity of global supply chains - here on Art of Supply and in the wider business...

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Consolidating the USPS Final Mile show art Consolidating the USPS Final Mile

Art of Supply

The United States Postal Service occupies a unique spot in the supply chain.  On the one hand, it is a federal agency, tasked with delivering mail to every home, business, and P.O. box 6 (and sometimes 7) days per week. On the other hand, it does not “generally” receive taxpayer funding; it must meet its mission by selling postage and services. Thanks to this middle space between the worlds of public service and private industry, transformation is a massive challenge - even when successfully driving financial and operational change is a matter of long term survival. In this episode of...

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Creating a B2C to B to C Improvement Cycle at Walmart Business w/ Ashley Hubka show art Creating a B2C to B to C Improvement Cycle at Walmart Business w/ Ashley Hubka

Art of Supply

“Most fundamentally, strategy is about asking good questions, creating alternatives, and then making decisions about how to allocate scarce resources. [...] It's a place where you have a 360-degree view of a business.” - Ashley Hubka, Senior Vice President & General Manager, Walmart Business Corporate and consumer buying started and developed on separate tracks, and while there are some things that procurement has learned from and embedded in the B2B experience, others will always be beyond reach.  What would happen if you took a consumer shopping experience and expanded it to...

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Part 4: Head-to-Head Comparison of Candidate Policies show art Part 4: Head-to-Head Comparison of Candidate Policies

Art of Supply

In the final part of this four-part special series, we compare and contrast the actual policy positions of Democratic Candidate Vice President Kamala Harris and Republican Candidate Former President Donald J. Trump.  With less than two weeks until election day, procurement and supply chain professionals must have plans in place for the eventuality of either candidate being voted into office, focusing on the areas where they agree as much as where they differ. Listen in as Kelly Barner describes where the two major party candidates actually differ (and where they have a lot in common)...

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Part 3: Republican Candidate Former President Donald J. Trump show art Part 3: Republican Candidate Former President Donald J. Trump

Art of Supply

In part three of this four-part special series, we will cover the policies and plans of Republican Candidate former President Donald Trump.  Former President Donald Trump is 78 Years old, and a former businessman/real estate developer as well as the former host of The Apprentice. He became the nominee on July 18, 2024 when he accepted the nomination at the Republican National Convention Listen in as Kelly Barner explores his policy positions and platform: Detailed positions on global trade and China The lack of detail regarding his position on emissions and the environment Strong...

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Part 2: Democratic Candidate Vice President Kamala Harris show art Part 2: Democratic Candidate Vice President Kamala Harris

Art of Supply

In part two of this four-part special series, we will cover the policies and plans of Democratic Candidate Vice President Kamala Harris.  Vice President Kamala is 60 Years old and a former Senator and Attorney General from the State of California. She became the presumptive Democratic nominee on July 21, 2024 when President Biden suspended his campaign for re-election, and the official nominee on August 22 when she accepted the nomination at the Democratic National Convention. Listen in as Kelly Barner explores her policy positions and platform: Detailed plans for renewable energy and...

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Part 1: Playing Politics with Supply Chains show art Part 1: Playing Politics with Supply Chains

Art of Supply

There are two weeks to go until the 2024 U.S. Presidential Election. Interest, speculation, and tension have been building all year. Most news coverage of the election is intended to sway voters, hyperbolic to a fault, and not tailored to the specific information needs of procurement and supply chain professionals. What we really need to know is what each major party candidate has said and what likely outcomes that would lead to. In this four-part special series, we will cover the policies and plans of Democratic Candidate Vice President Kamala Harris and Republican Candidate Former President...

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Tips for Surviving in a Brave New World show art Tips for Surviving in a Brave New World

Art of Supply

‘Brave New World’ was published by Aldous Huxley in 1932, right between two World Wars and during a time of accelerated scientific discovery. It comes as no surprise, then, that this fictional dystopian society 600 years in the future had adopted Henry Ford as their spiritual leader. 92 years later, we find ourselves in another time of rapid technological advancement, innovation that often seems to be on a collision course with the most fundamental structures of society. What can re-reading ‘Brave New World’ today teach us about change, innovation, chaos, and opportunity? More than you...

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More Episodes

Pharmaceutical supply chains are never far from news headlines. Regular drug shortages affect our families, friends, and neighbors when they can’t access their chemotherapy treatments, ADHD medication, and pain medication - just to name a few.

In 2023, Americans spent over $600 Billion on prescription drugs. That’s more than ever before — and more than any other country in the world. 90 percent of the prescriptions are for generic drugs, although they represent only 20 percent of spending.

Pharmaceutical supply chains are complex, highly regulated, global, and associated with HUGE profit margins - but not for all medicines, and the R&D costs are just as astronomical as the profits.

In this week’s episode of Art of Supply, Kelly Barner attempts to distill one of the most complex supply chains in the world down to some very familiar dynamics:

  • Profitability, supply chain resilience, and negotiating leverage
  • The differences between brand name and generic drug profit margins 
  • Production issues that exist thanks to global producers, consolidated negotiators like GPOs and wholesalers, and the exacerbating role of insurance companies
  • And what a few groups - including well known Shark Tank investor Mark Cuban - are trying to do about it

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