AuthorNeha Avadhani, RUSCA Blog Committee 8,000 jets, upwards of 2 billion syringes, and time. That’s what it would take to vaccinate the globe against the COVID-19 pandemic, none of which can be leveraged right now. Experts say that at least 5.6 billion people worldwide would need to be inoculated to achieve herd immunity. Merck CEO Kenneth Frazier underscored this saying: None of us are safe until all of us are safe, so it’s got to be given broadly to humanity” (Murray and Griffin). The COVID-19 vaccine will prove to be one of the most demanding supply chain disruptions to ever exist, and certainly the largest coordinated global effort of our time. SHORTAGE CONCERNS In creating a vaccine, there are major concerns about production capability. In an average year, manufacturers produce 5 billion vaccine doses globally, 1.5 billion of which are flu vaccines (Kaplan). The demand for these vaccines does not end with the unexpected presence of the coronavirus pandemic. Without a significant increase in manufacturing capabilities, COVID-19 vaccine production will cut into existing vaccine production. The struggle is, it costs between $50 million to $700 million to build a new vaccine manufacturing plant, making the venture extremely expensive and difficult to take on (Kaplan). A further concern is the availability of crucial materials in the vaccine supply chain. There is currently a shortage of glass vials and the sand needed to make them. The global industry simply does not have the capacity to make the billions of syringes needed in just a few months. The chemical ingredients are in a shortage too. Saponin comes from the bark of a tree in South America and it can only be harvested between November and January. With the large number of vaccines needed globally, sourcing shortages in all commodities are worrying. INFRASTRUCTURE ISSUES Regularly produced vaccines require a storage temperature of between 2°C and 8°C. However, two of the top contenders, Pfizer and Moderna, both use a new mRNA technology that requires sub-zero temperatures of about -80°C during transportation (Hopkins). This raises the worry of accidentally freezing vaccines, which would effectively ruin a shipment, highlighting the importance of using quality refrigeration containers during transport. The International Air Transport Association (IATA) has estimated that 8,000 jets will be needed to service the world’s vaccine demand. There is already a limited number of airports globally that are certified to handle pharmaceuticals, and officials like Emir Pineda, the manager of aviation trade and logistics at Miami International Airport, have said that they remain concerned that they are not ready for an influx of flights and do not know what to expect (Murray and Griffin). There is also the added issue of security, as the vaccine is sure to be a highly valuable commodity and tampering and theft must be minimized during transport. Transportation of the vaccine also proves to be highly expensive, with companies searching for cost savings whenever possible. Some of these include flying cargo into Canada and then using trucks to move it across the United States. While cheaper, these alternatives are not sustainable given the complexity of storage and the massive scale needed for transporting the COVID-19 vaccine. This raises accessibility concerns, especially to the impoverished and remote regions of the world where drones are currently used for pharmaceutical distribution. STEPS TOWARD A VACCINE Overall there is growing hope, with new developments in production almost daily. A partner of the US government, Apiject Systems America is building new domestic facilities for the manufacturing of its prefilled syringe technology, which would eliminate the need for glass vials. Pfizer has a vaccine ready and is waiting on FDA approval, but has already begun preparing for distribution. The company has designed a new reusable refrigeration container that can hold up to 5,000 doses and plans to bypass distribution wholesalers to save time and minimize touch points (Paris and Hopkins). There are certainly many hurdles left to overcome in the distribution of a vaccine, but the resounding goal would be global access by 2021. Sources: www.wsj.com/articles/covid-19-vaccine-race-turns-deep-freezers-into-a-hot-commodity-11599217201 www.supplychaindive.com/news/coronavirus-vaccine-supply-chain/579835/ www.bloomberg.com/news/articles/2020-07-25/the-supply-chain-to-save-the-world-is-unprepared-for-a-vaccine www.wsj.com/articles/pfizer-sets-up-its-biggest-ever-vaccination-distribution-campaign-11603272614 AuthorEmily Hsiao, RUSCA Blog Committee COVID-19 has rocked the supply chain world. When the pandemic unexpectedly took the front stage, supply chains demonstrated their flexibility and resilience by rapidly adapting. They implemented new technologies, software, and work-from-home protocols. While these solutions have kept firms running, they've also introduced a host of unknown risks (Pressley). In July, both the National Security Agency (NSA) and the Cybersecurity and Infrastructure Security Agency (CISA) expressed concerns that "cyberattacks against critical operations technologies and infrastructures have been on the rise during the COVID-19 pandemic". These are not hypothetical concerns. Already, the nation's second-largest logistic firm Total Quality Logistics, shipping line CMA CGM, and the International Maritime Organization have been hit (Forde, Santos). The list of risky tech includes electronic logging devices (ELDs) and devices interconnected via the Internet of Things (IoT). An electronic logging device is a congressionally mandated piece of hardware installed in commercial vehicles. They do effectively streamline trucking, but an internal FBI study has found they do "little to nothing" to prevent attacks that could expose proprietary information and are especially vulnerable to ransomware (Gallagher). Like ELD's, smart devices on the IoT add significant value but use commodity software that isn't designed with security in mind. For example, after restrictions threatened warehousing and fulfillment operations, firms relied more heavily on robotics to perform functions like controlling warehouse temperatures or moving inventory. However, robots exist on the IoT- and IoT devices can be compromised. The manufacturers of these devices source their components from all over the world. As JSOF Cybersecurity explains, "A single vulnerable component, though it may be relatively small in and of itself, can ripple outward to impact a wide range of industries, applications, companies, and people" (McNutt, Forbes Technology Council). Even more widespread than robotics are the millions of IoT devices that joined the network when employees began working from home. In addition to the risk of using unsecured machines, there is also the possibility of human error. A 2019 Verizon Data Breach Investigation found that 94% of malware attacks originate from emails. With potentially risky software and communication platforms in play, it is more important than ever that employees know how to recognize phishing attempts (Forde). This isn't to say the future of supply chain cybersecurity is all doom and gloom. Many firms can and have taken measures to address the heightened cybersecurity vulnerabilities. Per the new risks, organizations can invest in insurance protections beyond the standard cyber policy (Forde). Another method is working collaboratively with partners to share data on blockchain platforms. Blockchain technology has the capability to form an indisputable ledger of each transaction in the supply chain. Using it would not only increase transparency and efficiency, but also prevent hackers from using a weak link in the chain to move laterally or to customers downstream. For companies operating at reduced capacity, it may not be feasible to shell out for expensive upgrades. Still, they can be proactive. For instance, they might be meticulous about understanding their technology's security requirements or focus on detecting breaches early to counteract hackers that would otherwise go undetected (Helper Net Security). Finally, it's a worthwhile investment to teach employees better digital security practices. This is especially important in industries controlled by a few large interconnected firms. In these industries, hackers can leverage the weaker protections at smaller firms' to gain access to big competitors (Forde). Ultimately, the benefits of these new modes of technology outweigh the risks. Logistics firms that began digitizing and onboarding new technology before the pandemic have had an easier time adapting to the new state-of-affairs. The next time we face such a shock to the system, logistics professionals will be better equipped to deal with the cybersecurity ramifications. Sources: www.supplychaindive.com/news/coronavirus-pandemic-cybersecurity-supply-chain-iot/586335/. www.freightwaves.com/news/reports-fbi-warns-trucking-of-potential-eld-hackers. www.forbes.com/sites/forbestechcouncil/2020/07/31/supply-chain-vulnerabilities-show-weakness-in-current-iot-security-paradigm/. www.securitymagazine.com/articles/93113-supply-chain-chaos-is-ramping-up-cyber-risk. www.intelligentcio.com/eu/2020/10/09/securing-every-link-in-the-chain/. www.darkreading.com/iot/what-organizations-need-to-know-about-iot-supply-chain-risk/a/d-id/1338348. Hello everyone!
I hope you are all healthy and safe from wherever you are reading this! My name is Anthony Leung, and I am the VP of Content Development for the Rutgers University Supply Chain Association (RUSCA). Whether you are back in the office/classroom facing the “New Normal” or continuing to do video calls with unexpected background interruptions, this has definitely been a new experience for everyone. RUSCA has previously published a monthly supply chain newsletter, but we have decided it would be best to pursue this new opportunity. We are proud to introduce the RUSCA Blog, where we will post every Friday from October 23 to December 11 during this semester, with the schedule for spring TBD. We hope to provide weekly insights on the supply chain industry while also showcasing our talented writers' abilities. This will be your home for the RUSCA Blog from now on. We will be redirecting our LinkedIn connections and our mailing list readers here. We are excited to transition to the blog and hope you are too! - Anthony Leung, VP of Content Development |
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