Pharmaceutical products

In the tariff crosshairs? Companies are urging the Trump administration and European Union officials to keep pharmaceutical and medical goods, historically excluded from trade wars, out of tariff disputes to prevent price hikes on essential drugs. Many U.S.-bound drugs rely on European production, meaning tariffs could potentially disrupt transatlantic supply chains and harm patient care.

Where do they come from? In 2023, the top exporters of pharmaceutical products were Germany (US$115 billion), the U.S. ($100 billion), Ireland ($92 billion), Switzerland ($80.7 billion) and Belgium ($52.1 billion). China is also a key player, and its recent biotech success has led to more pharmaceutical companies licensing experimental drugs from the country.

Where are they used most? The U.S. is the world’s largest pharmaceuticals market, boasting the most advanced R&D capabilities and generating about $714 billion in sales in 2023. But that figure is, in large part, a product of high prescription costs, especially for branded drugs.

And that’s a fact: The Hospital ISM^® Report On Business^® Prices: Pharmaceuticals Index made history in October, landing in contraction (or “decreasing”) territory for the first time since data collection began in April 2018. It has been in expansion since then, though the February reading of 51 percent was an 8.5-percentage point decrease compared to the previous month.

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15%

Gap between supply management leaders and C-suite executives on recognition of supply chains as a growth driver for companies, according to a survey by LeanDNA, an Austin, Texas-based supply chain solutions provider, and Wakefield Research. Eighty-five percent of supply management leaders answered affirmatively, compared to 70 percent of executives.

The gap suggests misalignment in investment and risk prioritization. For example, executives are most concerned about increased production disruptions and market fluctuation response time; supply chain leaders are worried about higher inventory costs, reputational damage, lost revenue and regulatory compliance risk.

“Even as many companies rely on smooth supply-chain operations to keep (business) going, and as most executives acknowledge supply chains as growth drivers, there’s still a disconnect in linking those concepts,” LeanDNA CEO Andy Ellenthal said in a press release.

Life in a Pre-Cellular World: (M)obile telephones in a metropolitan area are served by large, high-powered transmitters. There are a limited number of channels available on a frequency spectrum, leading to many frustrating attempts to complete calls. For instance, only 12 mobile conversations can be conducted at any one time in New York City. … Currently, 150,000 phones are in use around the country. 

— Purchasing Management, April 1983

Highlights from recent episodes of Institute for Supply Management®’s (ISM®) podcast, which features real, raw and transparent talk on the supply management profession from those who live and breathe it. Episodes are available at ismworld.org/podcast or at popular podcast platforms.

From “Risk Management Learnings From a Sports Facilities Manager”

“With all of these large events, what could terribly go wrong with so many people in a confined space? There’s a laundry list of security challenges, based on physical security and cybersecurity. You could talk about errant drones and (food contamination). There’s a host of challenges that keep event organizers up at night.” — James A. DeMeo, CEO at Unified Sports & Entertainment Security Consulting

From “Challenges in Trucking 2025”

“There are challenges coming, and there are a few reasons. In 2027, we’re going to go through a regulatory change that is probably the largest this industry has been through. We’re still coming out of (COVID-19) and the bottom from a profitability and equipment standpoint. We’re introducing alternative power and (electric vehicles).” — Brian Antonellis, senior vice president of fleet operations at Fleet Advantage