Drugmaker to Test Machine Learning to Prevent Drug Shortages

First Seen

The Algorithm

MIT Technology Review

Why It’s Interesting

A few facts from the article:

1. Merck’s supply-and-demand forecasts are about 85% accurate today.

2. They plan to test a cloud-based platform later this year made by TraceLink, Inc.

3. TraceLink’s machine learning algorithms analyze in real time data points within Merck’s supply chain including pharmacies, hospitals and wholesale distributors.

4. Gartner estimates that on average pharmaceutical companies carry 156 days of inventory, compared to consumer products companies of 78 days and IT equipment of 57 days.

5. Savings estimates is in the hundreds of millions of dollars.

Full Article

Drugmaker to Test Machine Learning to Prevent Drug Shortages

WSJ CIO Journal
Sara Castellanos

Alessandro de Luca, chief information officer for Merck KGaA’s health-care division