Handling raw biological material scarcity in an ongoing crisis
A talk by Maria Seriakov and Peter Häusl about the crisis and its implications for the global supply chain of biological material.
The crisis – Where and how to see it?
- COVID – epidemic and beyond. From crisis to a condition
- Emotional crisis – the loneliness epidemic
- Economic crisis – businesses shut down, disoccupation, slowdown
The worldwide transport crisis
- Lack of means of transport, drivers don‘t want to work due to infection risk and heavy working conditions
- Prices tripled since 2019 and going further up
- No short-term remedy
Brexit and post Brexit pains
- Chaos at ports and customs
- Veterinary health regulations unclear
- Constantly changing requirements for booking and boarding
- Import handling agents overworked, many errors
Politics, bureaucracy and other issues
- Political changes
- Rise and crisis of bureaucracy
- Crisis of trust
- Growth crisis
- Raw material crisis
Raw material shortages in biotech
- Production of diagnostics and medicinal products
- Primary packaging/laboratory plastics
- Lack of adequate services
Biologic raw materials sourcing and handling - challenges
- Raw materials scarcity
- Human blood donations - less than usual
- Challenging Smart working
- Reduced and overworked staff
- Production shutdowns or slowdowns due to COVID infections
Raw material crisis and long term planning
- Just-in-Time inventory concept - no longer valid
- Lack of adequate transport solutions on sea, land and air
- Unpredictable price increase in all areas
- Cash is a problem
Import and export procedures slowdown
- Procedures take up to three times longer and cost more
- Reduced airport ground or port staff, reduced shifts
- Slow communication, COVID infections among staff
- Smart working doesn‘t work
The human factor and beyond
- Increased influence of the Human Factor – more mistakes due to bad communication, distraction at work, higher fraud risk
- Key manufacturers disappearing from the market, lack of new suppliers
Beating the crisis
- Build economic resilience
- Revise all essential processes
- Audit and revise your company’s pandemic (and disaster) response plans
Best practice in times of crisis
- Increased cash and contingencies‘ savings
- Safety stock
- More supply options
- Precise long-term planning
How to optimize inventory levels
-
Enough inventory to cover one complete production turnover cycle
– OR – - Enough inventory to cover the time between purchase order and product arrival (if purchased overseas)
Successful internal communication and interaction
- Greater flexibility – involve your colleagues
- Share and help
- Unlock creativity / DIY
- Review and build stable processes – avoid chaos
Successful external communication and interaction
- Seek help from industry peers / partners / professional groups
- Closer cooperation with the providers of goods or services
- Careful partner selection
- Observe the accuracy of your documents
New supplier validation as emergency measure
- Provide for deviations from your standard processes
- Argument the need and document properly the exceptional measures
Fail to Plan – Plan to Fail
- Always have a Plan B and C
- Plan for the future and learn to navigate and hit moving targets
