The Role of Digital Transformation in Pharma Supply Chains
As the pharmaceutical industry faces increasing reliance on Contract Manufacturing Organisations (CMOs), the complexities of supply chain management, regulatory compliance, and sustainability have taken centre stage. Marco Odoardi, Global Head of Integrated Operations Planning at Merck Group, shares his insights with Pharma IQ on how digital transformation underpins the revolutionisation of the sector.
From leveraging real-time data to fostering stronger partnerships, Marco explores the critical strategies that CMOs and their pharma partners must adopt to stay resilient and competitive in a rapidly evolving market. In this exclusive interview, he delves into key trends shaping the industry and offers practical advice on how CMOs can thrive in this era of change.
The Role of Digital Transformation in Pharma Supply Chains
Pharma IQ: As pharmaceutical companies increasingly rely on CMOs for critical operations, what do you see as the most pressing challenges they face in demand forecasting, regulatory compliance, and logistics management?
Marco Odoardi: More and more, our activities extend beyond our own walls, which necessitates establishing transparency with external partners. This shift is happening in a volatile, uncertain, complex, and ambiguous (VUCA) environment. Managing interconnected "clouds" of supply chains, rather than isolated ones, adds to the challenge.
Transparency through digital transformation - using tools like control towers, digital twins, and data lakes - has become essential. These technologies enable us to orchestrate complex networks, moving beyond outdated asynchronous communication methods that are no longer viable.
The Growing Role of CMOs in a Digitised Pharma Landscape
Pharma IQ: With over 50% of pharmaceutical executives planning to increase outsourcing to CMOs over the next five years, how do you foresee this trend shaping the broader supply chain landscape?
Marco Odoardi: We are shifting from managing isolated supply chains to orchestrating interconnected ones. Data exchange will become increasingly crucial. This shift requires companies to adopt robust digital ecosystems, enabling them to coordinate effectively across numerous CMOs. A mid-sized pharma company might work with dozens or even hundreds of CMOs globally, making connectivity and collaboration paramount.
Embracing Digital Supply Chain Networks
Pharma IQ: How are CMOs leveraging digital supply chain networks to address challenges like market disruptions, compliance requirements, and operational inefficiencies?
Marco Odoardi: Digital transformation is about building transparency and gaining time. The healthcare industry is highly regulated, which means we must predict and act ahead of potential issues, rather than reacting after they occur. Real-time data is the minimum standard today, but predictive analytics allows us to anticipate disruptions and take proactive measures.
Compliance is non-negotiable, but digital networks enable us to go further - improving sustainability, operational efficiency, and service levels through holistic transparency and foresight.
The Power of Real-Time and Predictive Data
Pharma IQ: How does improved data visibility impact the decision-making process and agility for CMOs?
Marco Odoardi: It’s essential to differentiate between data availability and decision-making. Real-time data provides transparency, but decisions don’t always need to be immediate. Hyper-reactivity can lead to inefficiencies. Instead, decisions should be well-timed and informed by the right data, involving the right people.
Fostering Sustainability Through Digital Networks
Pharma IQ: How can digital supply chain networks support sustainability goals, and what role do CMOs play in driving innovation in this area?
Marco Odoardi: Sustainability is a top priority, but measuring it is incredibly complex. Multiple KPIs, like CO₂ emissions, waste management, and water consumption & recycling, add layers of difficulty. Digital ecosystems simplify this by aggregating data across networks, enabling us to identify actionable insights and forecast sustainability impacts.
Without digital networks, collecting sustainability data would require time-consuming manual processes. With them, we can create a holistic picture of our impact and make data-driven decisions to improve sustainability.
Humanising Digital Transformation
Pharma IQ: What are the most valuable lessons you have learned from your experience with digital supply chain solutions, and how can CMOs benefit from similar approaches?
Marco Odoardi: The first lesson is to put people at the centre of digital transformation. Technology must serve a higher purpose—enhancing outcomes for patients, people, and humanity. Start with the business problem, not the technology. Once the problem is clear, define what are the required data and adopt the right digital tools to solve it.
The second lesson is that connectivity and digitalisation are irreversible trends. Companies must decide whether to be pioneers, smart followers, or late adopters, but they cannot ignore the journey.
Conclusion: The Path Forward for CMOs and Pharma
As the pharmaceutical landscape grows more interconnected, the role of CMOs in enabling resilient and efficient supply chains has never been more critical. Marco Odoardi’s insights underscore the importance of transparency, predictive analytics, and sustainability in building strong partnerships.
By embracing digital transformation and prioritising collaboration, CMOs and their pharma partners can navigate today’s challenges while positioning themselves for future success. As Marco emphasises, the journey towards a fully digitised, sustainable supply chain is not just an opportunity - it’s a necessity.
Further Information
To further explore the themes explored in this interview and to gain actionable insights on CMO partnerships and supply chain strategies, join us at the Pharma Contract Manufacturing Summit 2025.