How Teams Should Quantify and Prepare for Potential Cost Ripple Effects

In the second part of his conversation with Pharmaceutical Executive, Jeff Golfman, founder and president of Send 123 begins by spotlighting shelf life as a critical vulnerability in pharmaceuticals. While some products enjoy multi-year stability, many have short expiry windows and strict handling requirements. In an environment of shipping delays and congestion, these time-sensitive products can expire, degrade, or overheat, effectively removing usable inventory from the system and intensifying shortages.

Golfman frames the current situation as a sequel to Covid-era disruptions. During the pandemic, shortages of hand sanitizer, toilet paper, and everyday essentials revealed how fragile just-in-time models can be when global logistics seize up. Goffman argues that procurement leaders must internalize those lessons: reliance on ultra-lean inventory and single sourcing is a structural risk, not an efficiency advantage, when shocks become more frequent.

To prepare for cost ripple effects, whether from raw material scarcity, higher API costs, or surging freight and energy prices, he recommends two core strategies: diversification and inventory buffers. Diversification means cultivating multiple suppliers and regions, so that conflict, strikes, or natural disasters in one area do not paralyze supply. Buffer inventory means carrying weeks or months of key stock, especially for critical or short-shelf-life products, to smooth out volatility.