From health systems to research operations, the Chemical and Pharmaceutical industry holds great significance in supplying drugs, chemicals, raw materials, and medicines. This pharmaceutical and chemical supply chain is exposed to several risks which have given rise to the need for relevant insurance in India. Before finding the solution, a clear understanding and assessment of the potential risks are important. Since this sector is growing vigorously, the companies are expanding their supply chains being manufacturers and providers. The complexities in this expansion also open doors to more risks.
Here are the most potential supply chain risks faced by the Chemical and Pharmaceutical industry.
1. THEFT AND HUMAN ERRORS
This is the most common and highly-probable risk faced in any supply chain. Considering that the products being moved through a pharma and chemical supply chain can be of different natures and requirements. Even the person responsible for these products can mishandle them leading to a human hazard.
2. CYBER ATTACKS AND TRADE DISPUTES
With exposure to the digital world, companies are well associated with technology and modern innovations for making the process of functioning easier yet with a very potential risk of ransomware and cyber attacks. The rising Pharma and chemical companies might suffer trade disputes having several competitors. The digital assets might be at a loose end without any cyber security considering the information and data can be sensitive. There is constant pressure of relocating the supply chains to solve the threats and trade disputes.
3. FORGERY AND RELOCATIONS
Counterfeit attacks are very common when it comes to the pharma and chemical industries. A proper system of keeping your system patent is important. Regarding the relocations, the industry’s supply chain can be affected from time to time due to many factors including government regulations and approaches towards the industry.
4. NATURAL CALAMITIES
Though natural calamities are inevitable still there must be a backup plan to cover the untimely damages in the supply chain. All of it can lead to a disrupted system of trade including delayed deliveries leading to unbalanced demands and supply.
First Policy has a team of experts who can provide your pharmaceutical and chemical business with a well-structured risk management plan for your supply chains.
