Supply Chain—A Complex Matter

If you are looking for organizational challenges, Boehringer Ingelheim supply chain team is the place to be. Apart from the complex day-to-day tasks, there are also unforeseen problems that the team nevertheless manages admirably to solve.

The supply chain at Boehringer covers two main areas: the entire process up to the finished product, and the commercial supply chain, the delivery of products to customers. Vadims Belovs heads the second area in the RCV and is responsible for ensuring that products are available in suitable quantity and quality and that they are delivered reliably to our customers.

The supply chain tasks pose any number of challenges. “We operate in a strictly regulated field. It starts with Good Distribution Practice rules, EU and other country specific regulation as we all overall Boehringer Ingelheim internal policies.” says Belovs. This means that the same product has to be handled differently, depending on the country it is being delivered to. There are diverse requirements, for example, regarding the transport and storage temperature. Most products can be transported at 15 to 25 degrees Celsius, but some have to remain at 2 to 8 degrees, and there are even products that need to be stored in liquid nitrogen.

Deliveries are made to the various countries weekly, at longer intervals, or as required. They have to be well planned so that the stocks in the different countries are not depleted or overfilled.

As if the basic supply chain requirements were not complex enough, unforeseen events, such as a sudden surge in demand, test the organizational flexibility. “In order to anticipate these peaks, we are in permanent contact with business-relevant departments within and outside the company. We always have an eye on the future. As soon as the market gives the slightest hint that demand is rising, we have to make sure Production sites are aware about this well in advance and are able to adjust their capacities to satisfy increased demands” says Belovs.

Geopolitical challenges

The current situation in Russia demands special solutions. For example, because of the sanctions, certain products cannot be shipped via Russia to make deliveries to Kazakhstan and other CIS countries, so we have to resort to air freight instead.

The war in Ukraine has a greater effect on the supply chain than might appear obvious at first. Before February 24, 2022, many truck drivers in Europe were Ukrainian. They can no longer work, which means that the shortage of drivers that already existed as a result of the COVID-19 pandemic has become even more critical. As the specific data loggers—the appliances that monitor the product quality during transport—are now on the sanctions list, new ones are required as well.

Israel and Palestine conflict does not ease the supply of Boehringer Ingelheim products to the region. Despite most of traditional transportation routes to Israel are still available and secured, we have to closely monitor the situation and, if necessary, react in order to protect the security of goods and ensure the uninterrupted supply to patients in need.

Despite all these challenges, Belovs reckons that 99 percent of deliveries can still be made properly and on time. To improve the management of complex problems even further, the thirty or so members of his team are stepping up their digital networking with the various partners. The most efficient Supply Chain network is one where data is constantly and transparently shared and exchanged with partners, therefore further integration with our service provider is the key to effectively respond to future challenges our world can pose on Boehringer Ingelheim.