AI: A Strategic Imperative for Pharmaceutical Supply Chains, New Report Finds

A new report commissioned by LogiPharma, has revealed the growing impact of artificial intelligence (AI) and machine learning (ML) on pharmaceutical supply chains, highlighting AI’s shift from a “nice-to-have” to a strategic necessity for the industry.

The 2024 LogiPharma AI Report, based on a survey of 100 European life sciences supply chain leaders, demonstrates that AI is rapidly becoming a central component in driving efficiency, resilience and operational excellence across pharmaceutical supply chains. According to the report, over half of respondents expect a return on investment (ROI) from AI and ML initiatives within two to three years, underscoring the sector’s confidence in the technology’s potential.

“Our conference delegates and partners consistently tell us that AI is transforming how they approach supply chain challenges,” said Will Robinson, Conference Director of LogiPharma. “AI is no longer just a tool for efficiency – it’s becoming a core enabler for pharmaceutical companies striving to meet the demands of a complex, fast-evolving market.”

The report highlights several key areas where AI is making an impact. It is playing a pivotal role in optimising inventory management, with 40% of companies prioritising AI for demand forecasting and minimising waste, particularly for temperature-sensitive products like biologics and vaccines. Additionally, 69% of pharmaceutical companies have implemented AI-driven automated alerts to monitor cold chain logistics in real time, ensuring temperature-sensitive products are transported safely and effectively.

But, whilst AI offers solutions to challenges like inventory optimisation and supply chain visibility, the journey is not without obstacles. Data integration remains a significant hurdle, as many companies struggle with real-time visibility across fragmented systems and partner networks. Only 11 – 25% of supply chain partners are currently using AI-driven processes, indicating that while the benefits of an interconnected, AI-enabled ecosystem are evident, broader adoption is needed for full impact.

“Without data, there is no AI. This fact is particularly impactful for supply chains, which operate in a state of perpetual change and are always dependent on partners to co-execute shared business processes,” said Shabbir Dahod President and CEO, TraceLink.

“Given that a supply chain is only as strong as its weakest link, the overriding challenge for executives who hope to deploy an AI-driven supply chain strategy is clear: digital networks of end-to-end supply chain partners must be established to source the real time data required for supply chain process orchestration.”

The report also stresses the importance of AI in digital transformation, with 44% of respondents focusing on AI-powered Sales and Operations Planning (S&OP) to enhance agility in response to market fluctuations and regulatory changes.

Director of Operations EMEA/EE, Stefano Chiei at Advanced Bionics, Sonova Holding commented, “AI is not reinventing the wheel but offering new solutions for efficiency and helping the industry unlock new opportunities.”

Day two of the event in Lyon, running from April 8^th – 10^th, 2025, will feature a dedicated AI Focus Day. This special session will showcase keynote presentations and case studies from leading organisations, including Sanofi, GSK, J&J, BioMérieux, and MSD. Attendees can also participate in interactive sessions exploring the practical applications of AI and machine learning in areas such as planning, procurement, network transformation, transport management, and workflow optimisation. The day promises to deliver a thorough overview of cutting-edge advancements and real-world use cases of AI within the pharmaceutical supply chain.

LogiPharma’s AI report is available for free download at: https://tinyurl.com/bdd7rtp3