To digitize its supply chain, biopharma may first need to close a workforce skills gap

Digital workforces are important for the potential success of biopharma supply chains

Digitalization is reshaping the biopharma industry in profound ways, calling for a digitally fluent workforce. Our analysis of Deloitte Labor Market Intelligence data, updated as of April 2024, provides compelling evidence of this shift. We found that, since 2019, the demand for digital roles in life sciences has surged, with job postings for data engineers and data scientists increasing by 69% and 16% respectively. This transformation is happening in functions across the entire organization, from discovery to commercialization.

Within the supply chain, digital tools and automation can streamline processes, and enhance efficiency, compliance, and product integrity. But capitalizing on these advancements requires having a workforce that’s proficient in technology. Our survey data echoes this sentiment: Eighty-three percent of surveyed biopharma supply chain leaders acknowledged the need to upskill or reskill a significant portion of their supply chain workforce to support digital transformation. They say the top three roles most needed are data scientists and engineers (69%), functional experts (53%), and AI specialists (52%).

Unlike other functions within pharma that yield visible outcomes like scientific discoveries, product approvals, or successful business deals, the contributions of the supply chain workforce might not always be top of mind. It’s often during disruptions that the important nature of supply chain work becomes evident.³ These professionals manufacture, package, and transport temperature-sensitive products; source scarce materials; and manage intricate logistics while adhering to stringent regulatory standards. Technicians play vital roles in operational tasks, while engineers and planners create, optimize, and scale sophisticated processes.⁴

Biopharma leaders face several challenges as the industry cultivates digital talent, such as competing with other companies, integrating temporary workers, navigating regulations, and preparing for the impending retirement of skilled workers who have a wealth of domain and institutional knowledge.

Most of the industry leaders we interviewed described significant difficulties in attracting and retaining digital talent. They said it’s hard to compete with the tech industry for talent for a variety of reasons like salary expectations. And, internally, candidates with digital skills may gravitate toward high-profile research and development or commercial roles, making it even tougher to secure and retain talent for supply chain functions.

The growing use of a contingent workforce⁵ in biopharma supply chains can add another layer of complexity. While temporary workers and consultants tend to offer flexibility and access to specialized skills for specific projects, it can be challenging to integrate them and conduct effective knowledge transfer upon project completion.

Regulations tend to present further hurdles when attempting to transform global systems, which is often the case for biopharma supply chains. For example, work councils in parts of Europe require consultations on changes that affect employee roles, such as outsourcing or adopting new technologies and can slow the digitalization process.⁶ And in other countries, labor laws and trade unions play a significant role in shaping how organizations manage workforce changes.⁷

Finally, traditional skill sets could be in short supply as the skilled trades workforce approaches retirement.⁸ As organizations develop ways of documenting and preserving the expertise and institutional knowledge of their seasoned technicians, the end goal is to blend those traditional technical skills with the digital capabilities of the incoming workforce.

Building a digital-ready workforce

Of the three elements of supply chain digital transformation—people, process, and technology—the people factor often receives the least attention.⁹ Digital transformation should extend beyond implementing technology to redesigning the work and changing the nature of jobs. Companies should have a robust strategy to manage this change proactively and efficiently, cultivate digital skills, and address skills gaps.

A human-centered approach integrates employee experience into the digital strategy from the onset. By viewing changes from employees’ perspectives—including those on the frontline like manufacturing supervisors, product development engineers, and planners—organizations can help ensure not just smoother adoption but also better processes. The leaders we interviewed have only begun to assess the digitally relevant skills and capabilities their workers already have.

As noted by a vice president of human resources at a global biopharma manufacturing firm, assessing skills beyond degrees can be challenging: “We have not cracked that nut yet … Some of it comes from a more robust review of what is that person’s experience and through the interview process, getting underneath what that is.” This approach places humans at the center of digital changes, shaping processes and technology to fit their needs, while equipping them with versatile skills they will need in the future.

This approach involves a clear vision—one that defines and communicates the needs of the future workforce and provides a way to transition from the present. Striking the balance between addressing immediate needs and maintaining long-term focus could be challenging for supply chain leaders. Our research indicates that current initiatives primarily target the immediate and medium-term objectives we’ve listed below. While the interviewees spoke of these strategies within the context of supply chain, they can be relevant to other parts of a biopharma organization.

• Build the company’s brand with digitally savvy job seekers: Multiple biopharma companies, including Johnson & Johnson and GlaxoSmithKline, use advanced digital technologies in their professional development programs to attract digitally savvy job seekers. Johnson & Johnson’s leadership development program for the global supply chain combines work rotations with classroom and online training.¹⁰ Similarly, GlaxoSmithKline’s Future Leaders graduate program provides rotations that expose participants to digital technologies, allowing them to directly experience how these tools can drive efficiencies within the pharma supply chain.¹¹ In addition to these initiatives, it’s essential to adjust compensation and benefits to meet the talent pool’s expectations. The opportunity to contribute to saving lives further increases the attractiveness of these roles, appealing to individuals who are looking for meaningful and impactful careers.
• Forge partnerships with educational institutions: One approach is to engage with universities and vocational schools to source talent. Some examples include the Merck Biotechnology Learning Center, established in collaboration with North Carolina Agricultural and Technical State University, which offers students hands-on experiences with real-world biotech careers.¹² Similarly, Eli Lilly collaborates with Purdue University to develop specialized programs in supply chain management, preparing students for careers in this field.¹³
• Provide training to enhance and update skills: Some organizations are offering training programs to existing employees to address skill shortages and foster a culture of ongoing learning. Sixty-five percent of the survey respondents are making efforts to upskill or reskill their existing workforce.
• Carve out diverse career paths: To help ensure growth opportunities for all employees, companies could design career paths that cater to a range of skill sets. Forty-two percent of the survey respondents are adjusting or planning to adjust roles and career paths for their talent.

Biopharma’s long-term strategy to embed digital expertise in the supply chain

The goal for many organizations is for digital to become a native capability within the supply chain function. This involves integrating domain knowledge with digital skills, enhanced by human-centered approaches that prioritize people in the design of processes and technology. Without a deliberate strategy, achieving this is cumbersome and costly.

We propose a four-component framework that organizations can use to help align their supply chain talent strategies with their overall enterprise goals, define the necessary capabilities, and manage the transformation effectively (figure 3).

1. Strategy: Developing a blueprint for change
   • Align the supply chain function’s goals with broader enterprise-wide objectives. A question to address here is: How can supply chain’s role activate and complement the enterprise strategy, whether through increasing speed, promoting sustainability, or fostering innovation?
   • This strategic alignment includes a technology road map, detailing technology integration and support for supply chain objectives. Supply chain leaders, HR leaders, and technology experts should be part of the strategy development. Establishing a clear set of metrics and key performance indicators can help measure the efficacy of this strategy.
2. Capabilities: Having an appropriate operating model
   • This component assesses if the organization has the necessary capabilities and an effective organizational structure to execute the strategy. A question to consider here is: How can organizations determine if their organizational capabilities and operating structure support agility and enable transformation through technology or process simplification?
   • Addressing this often involves a comprehensive audit of capabilities to identify gaps in the current operating model and forecast future needs based on the technology road map and existing technology stack. Here, technology experts can help translate enterprise-level technology strategies into functional supply chain requirements, maintaining technological alignment across the enterprise. This involves assessing the readiness of the organization to adopt new technologies and identifying areas where technological upgrades could eliminate inefficiencies.
3. Talent: Harnessing a capable workforce
   • With the organizational capabilities defined, this component focuses on the human element—namely that organizations have the appropriate individuals, suitably placed in appropriate roles and teams, to execute the strategy. Reducing unnecessary oversight via a lean organizational structure combined with breaking down silos to unleash the power of a boundaryless organization distinguishes mature organizations. Key questions include: How will roles need to change to support the new operational model? Who needs to be upskilled or recruited to fill these roles? How should groups of roles best come together at a point in time or in perpetuity?
   • Some companies will need to redefine roles, conduct competency-based interviews, and perform skills audits to pinpoint gaps. Targeted training programs can upskill existing staff, while revamped talent acquisition and retention strategies can attract and retain top talent. Incorporating technology experts in designing the training curriculum can help anticipate technological shifts. This foresight positions learning and development strategies to address both current needs and future needs focused on reskilling, preparing employees for career transitions, and maintaining their relevance in both business and technological contexts.
4. Transformation and change: Navigating the transition
   • The final component is about activating the new capabilities, organizational structure, and talent to support a culture of change and resilience during the transition. A key consideration at this stage is: What should we do to decrease business disruption and maintain stability during transition activities?
   • An HR business leader at a leading biopharma organization shared in an interview that “change management is crucial for successful transitions.” He explained that, in his experience, talent often exits because they feel neglected during the implementation process, which is typically spearheaded by a steering committee that doesn’t fully grasp ground-level realities. This can result in losing skilled workers to organizations that may be digitally less advanced but are more in tune with their employees’ needs. The interviewee spoke of a proactive approach: “Understand stakeholder needs and meet them where they are.” He also underscored the importance of involving change influencers who can extend the message beyond the core team. And finally, he recommended that companies develop a robust change management plan that includes clear communication, training, and support.

Biopharma supply chain functions are still in the early days of their digital journeys. One fact remains certain: People are the key asset. In this scenario, a well-defined human capital strategy is important. Creating a detailed plan today can help your future workforce meet your company’s needs. With this approach, the supply chain function can be equipped to fulfill its role in the pharmaceutical business: to produce and deliver lifesaving, innovative medicines with quality, consistency, and accuracy.