Ann Arbor Times

Despite complex regulations for infant formula, contamination in production and supply chain issues at Abbott Nutrition created a dangerous shortage in 2022. The nationwide shortage affected families across the country, particularly low-income households. In response, Congress directed the Food and Drug Administration to enter an agreement with the National Academies of Sciences, Engineering, and Medicine to study the challenges in supply, market competition, and regulation of infant formula in the United States.

It assembled an international team of interdisciplinary experts to study critical vulnerabilities in the supply and regulation of infant formula. That team recently published their findings and recommendations, identifying risks exposed by the shortage and recommending improvements to the sector.

Ravi Anupindi, vice chair of the study and professor at the University of Michigan’s Ross School of Business, discusses their efforts and the overall landscape.

The study was a coalition of researchers in several fields. How did an interdisciplinary approach help uncover the challenges of infant formula shortages?

"The research entailed understanding the infant formula sector from multiple angles: product and its intended uses; nutritional needs of infants; customer segments and their characteristics; understanding of the Special Supplemental Nutrition Program for Women, Infants, and Children program; end-to-end supply chain including raw materials and components, production, distribution and retail; roles of government agencies like the FDA, U.S. Department of Agriculture and the Department of Health and Human Services; regulatory and contracting processes; and crisis management."

"Having a diverse team of experts in these areas allowed the committee and myself to develop a holistic understanding of the sector and its vulnerabilities."

How did your previous research on essential medical supply chains and operations influence this project? Were there any previous studies in which you discovered similar systemic challenges?

"I have studied supply chain risk and resiliency issues for over 15 years across different industry sectors. I have previously written case studies on Cisco and Boeing on this topic. I have also been a member of the Supply Risk Leadership Council."

"In recent years, I worked on risk resiliency and crisis-management issues. These include for COVID-19 testing scale-up in Michigan, policies to secure health commodities at national level, written testimony to U.S. Senate Committee on Homeland Security & Government Affairs," he said.

"The core insights from these experiences were relevant to infant formula as well," he added.

The report notes persisting gaps in infant formula system. Which are most critical?

"In our report we use a vulnerability framework to identify gaps," he said.

What actions can business leaders take to reduce future disruptions?

"Our report has made several specific recommendations for business leaders," Anupindi noted.

We have recently seen other shortages/disruptions in medical industries. How similar/different are these challenges?

"At a conceptual level issues are similar," he explained.

Has participating influenced your future research? Do you have any upcoming projects?

"We did not have enough time to research some issues deeply." He continued: "I learned about new industry... walking away with several research ideas."