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September 19, 2023


Overcoming pharmaceutical supply chain challenges: The role of cloud-based labeling

Laura Johnson

Senior Director of Sales, Life Sciences

The pharmaceutical industry has undergone significant challenges in recent years. The COVID-19 pandemic brought about an unprecedented surge in product demand, all while strict restrictions on movement and operations were in place. Although it may seem like operations have returned to "business as usual," pharmaceutical companies now face new obstacles.  

Economic headwinds and geopolitical tensions continue to disrupt supply chains, causing product shortages and mounting cost pressures. In just the last year, Resilinc found that some European drug manufacturers have seen prices increase tenfold due to rising electricity costs. 

In this context, business leaders are compelled to assess their current supply chains and explore innovative ways to reduce costs, enhance operations, and bolster resilience. 

Labels play a vital role in supply chains 

Labeling, though often overlooked, plays a central role in addressing the prevalent issues facing the pharmaceutical supply chain today. Serving as a product's passport, labels ensure the seamless and secure passage of goods throughout the supply chain. They provide greater visibility, enable regulatory compliance, and significantly decrease the likelihood of costly recalls. 

However, too many pharmaceutical companies continue to rely on outdated and legacy labeling solutions. This often results in large-scale product recalls, accompanied by exorbitant costs and damaging media coverage that can harm brand reputation. Gartner's research reveals that non-declared allergens, mislabeling, and inaccurate packaging graphics remain the primary cause of product delays and recalls. Moreover, compliance violations in the pharmaceutical industry have surpassed $50 billion since 2000, with the average cost of non-compliance increasing by 43% over the past nine years.  

To gain a competitive advantage and stay ahead of the curve, it’s clear that pharmaceutical companies must reevaluate their labeling practices. 

The future lies in the cloud 

Based on the myriad of industry challenges highlighted here and likely set to continue, it is imperative for pharmaceutical companies to consider the adoption of a centralized and cloud-based labeling solution. Such a platform is easy to deploy, facilitates compliance with regulatory requirements, improves visibility throughout the supply chain, and reduces the risk of errors and recalls. 

With the cloud, companies can easily manage and update labels, collaborate with stakeholders, and access real-time data from anywhere. By leveraging the power of cloud technology, pharmaceutical companies can also enhance their operational efficiency, mitigate risks, and ensure the smooth passage of their products through the supply chain. It is an essential consideration for any pharmaceutical manufacturer looking to optimize its labeling practices while improving the bottom line. 

Are you interested in learning more about the benefits of cloud-first labeling? Download a copy of our new whitepaper, Driving pharmaceutical supply chain resilience” today for free! 

  • Cloud
  • Regulatory
  • Supply Chain
  • Track and Trace