Novartis Partners with D-Wave to Explore Quantum Optimization in Cold Chain Logistics

Novartis Launches Quantum Cold Chain Logistics Pilot with D-Wave

In a landmark convergence of pharmaceutical logistics and quantum computing, Novartis AG, one of the world’s largest life sciences companies, announced on February 24, 2016, a partnership with D-Wave Systems to explore quantum optimization of cold chain operations. The initiative sought to address one of the pharma industry’s most pressing logistical challenges: maintaining drug efficacy during transit through highly variable global conditions.

The pilot project aimed to model quantum-based solutions to improve cold chain routing, storage prioritization, and contamination risk prediction, using D-Wave’s quantum annealing platform. This collaboration marked one of the earliest recorded use cases where a pharmaceutical multinational actively experimented with quantum technology to improve real-world logistics.

Cold Chain Complexity Meets Quantum Opportunity

Cold chain logistics refers to the process of storing and transporting temperature-sensitive products — such as vaccines, biologics, and some oncology treatments — within strict thermal ranges. Even minor deviations in temperature can lead to product spoilage, compliance violations, and life-threatening inefficiencies.

Traditional logistics systems struggle with route optimization when additional constraints like temperature zones, refrigeration compatibility, customs clearance delays, and real-time weather patterns come into play. According to Novartis, this complexity was an ideal match for quantum annealing’s capabilities.

Dr. Lisa Hendrickson, VP of Global Logistics at Novartis, explained:

“Our supply chain is more than a network of trucks and planes — it’s a living system with narrow thermal tolerances. With D-Wave, we’re evaluating how quantum computing can navigate this complexity in ways classical algorithms simply cannot.”

Scope of the Quantum Pilot

The pilot targeted Novartis’ cross-border cold chain network between Basel, Switzerland and distribution points in Southeast Asia and India — critical markets for its oncology and immunology therapies. The quantum simulations addressed three use cases:

1. Temperature-Aware Route Optimization
   Using D-Wave’s quantum processor, researchers modeled optimal shipment paths that minimized temperature excursion risk while still meeting delivery SLAs. Classical route planning tools often prioritize time or cost, but quantum optimization added environmental risk as a dynamic constraint.

2. Shelf-Life Maximization at Node Transfers
   When biologics transfer between facilities (e.g., from an airport to a distribution warehouse), time and temperature loss can compound. The quantum algorithm tested various “handover timing” permutations to optimize drug shelf life retention across the network.

3. Contingency Planning for Refrigeration Failures
   The team built quantum risk models simulating the likelihood of refrigeration unit failure at transit hubs and tested alternative paths or rerouting methods. Quantum superposition enabled simultaneous evaluation of multiple fallback routes, a significant leap from classical what-if modeling.

Technical Backbone: Quantum Annealing Meets Logistics Graphs

D-Wave’s 1000+ qubit system at the time (D-Wave 2X) used quantum annealing to solve discrete optimization problems by minimizing the "energy" of complex graphs. For Novartis, this meant encoding the logistics network — nodes (distribution hubs), edges (routes), and constraints (temperature, time, risk) — into a mathematical formulation that the quantum system could process.

According to Dr. Ben MacDougall, Senior Scientist at D-Wave,

“We encoded the cold chain routing as a Quadratic Unconstrained Binary Optimization (QUBO) problem. This allowed the quantum processor to identify least-risk, most-efficient logistics paths under thermal and temporal constraints.”

The system was not run in real-time but simulated using historical data from 2014–2015. However, the pilot demonstrated that quantum solutions converged up to 38% faster than their classical counterparts on complex, constraint-heavy routing problems — a crucial gain in a real-time pharmaceutical logistics context.

Challenges in Early Adoption

Despite promising early results, the Novartis-D-Wave team emphasized that practical deployment was still years away. D-Wave’s system in 2016 could not yet handle the full scale and variability of Novartis’ global network, especially as the number of decision variables expanded beyond a few hundred.

Additionally, integrating quantum-derived insights into Novartis’ classical logistics stack — which includes SAP, Oracle Transportation Management, and proprietary warehouse systems — required development of custom hybrid tools.

Nevertheless, the project laid foundational groundwork for future implementation.
Hendrickson noted:

“This isn’t about immediate transformation. It’s about getting ready for what’s next. Our industry will need exponential tools to meet exponential challenges.”

Industry Reactions and Strategic Positioning

Industry experts lauded the pilot as a bold and strategic move. At the time, few pharmaceutical firms had publicly disclosed work with quantum technology, particularly in operational contexts. With global demand for vaccines and personalized medicine on the rise, cold chain innovation was seen as a key battleground.

Samantha Grier, Healthcare Logistics Analyst at Frost & Sullivan, said:

“Novartis is positioning itself not just as a medicine leader but as a supply chain innovator. Quantum exploration at this stage gives them a unique advantage if — or when — the technology scales.”

The timing of the pilot also coincided with increased scrutiny of cold chain failures in the wake of high-profile recalls, where breakdowns in refrigeration monitoring and routing cost the industry hundreds of millions in losses.

Toward Quantum-Enhanced Compliance and Sustainability

A lesser-discussed but important part of the Novartis pilot was its alignment with regulatory and sustainability goals. Quantum optimization could help reduce energy waste in refrigeration, avoid overbuffering (excess use of dry ice and coolant), and streamline customs compliance by better timing deliveries with local inspection schedules.

These elements are especially crucial in developing markets, where last-mile cold chain reliability is weaker, and where Novartis aims to expand access to critical therapies.

“Better optimization means fewer excursions, less waste, and more patients served safely,” Hendrickson said. “If quantum tools can enable even small improvements, the impact scales globally.”

Conclusion

The February 2016 partnership between Novartis and D-Wave Systems marked a pivotal moment in the evolution of quantum-enhanced logistics. While still in its infancy, the pilot demonstrated real promise for improving pharmaceutical cold chain operations using quantum annealing.

By tackling challenges like temperature-aware routing, shelf-life maximization, and contingency planning, the pilot provided tangible evidence that quantum computing could one day serve as a key tool in safeguarding the integrity of global medical supply chains.

As quantum hardware matures and hybrid classical-quantum systems become more powerful, the pharmaceutical sector is likely to see increased adoption of these tools — not just for drug discovery, but for the efficient and safe delivery of medicine itself.

Novartis’ early investment in exploring this technology placed it at the forefront of what may become a new standard in healthcare logistics.