Cross-divisional integrated solutions

The supply chain has become a competitive edge, a sales argument and at the same time, a key area for cost cutting activities. Time to market plays a significant role for the future.

Cross-divisional solutions will play a major factor for the success in the future global supply chain of pharmaceuticals. End to end integrated solutions is the true competitive edge. The forwarding industry needs to focus more on integrated solutions, meeting up with expectations from the pharmaceutical companies that seek to have cross-divisional solutions.

The pharmaceutical supply chain is under great development where the industry is going from decentralised decision making and functional focus to a model of a true integrated and value added supply chain model where cross functional focus and centre lead strategies are focus areas.

Warehouse strategies play a significant role for the supply chain and the potential markets served. The pharmaceutical industry is seeking true long time partners that have the ability in offering all areas of logistical activities, distribution and warehousing.

The pharmaceutical industry has become aware of the significant advantage of operating their supply chain from warehousing to effective road, airfreight or ocean freight, this linked with most up to date communication platforms. The traditional business behaviour between a logistics supplier and pharmaceutical companies are changing. Historically there has been a clean cut in between different solutions, warehousing, airfreight, ocean freight, road freight.

The future partnerships will span over the different areas, becoming one integrated solution. A true global logistics provider must be able to offer these cross-divisional solutions, best tailored in any region of the globe where the customer chooses. It is simply not good enough only to offer top quality air freight solutions if you can not offer a warehouse operation tailored to customer needs.

The market demands global solutions and customers are requesting the ability to order correct quantities and lower inventory levels. This brings a change to the order profile; orders are becoming smaller. Production changes accordingly. This is a challenge for the distribution of pharmaceuticals. Consolidation possibilities that can meet with the lead-time demands of end customers are highly valuable.

A change of routines in the supply chain can have dramatic effects if not properly implemented at all levels. With clear communication the cost of change reduces dramatically.
Global harmonisation enhances the possibility of maximising effects in a supply chain.
It is the harmonisation and interaction between the pharmaceutical company, freight forwarder and carrier that gives the supply chain success.

There are regional variances in infrastructure that determine how the supply chain is operated. A true cross divisional activity achieves several synergies for both parties. The financial benefits are far greater than if a customer would operate with three or four different partners for the warehouse, airfreight, ocean freight and road freight services.

The logistics provider will become more integrated into the pharmaceutical company and its full supply chain. Better understanding the pharmaceutical companies’ demands and needs will secure a robust service level and at the same time keep cost down.

Facts are that communication between parties becomes more effective. The need for a suitable communication platform is a must. This part could take some time to adjust to both parties, but ones up and running acts as the glue between the parties.

Cross divisional partnering tends to be for a period of three to five years, this falls in line with changes that are ongoing in current business climate, long term partnering and fewer partners.

Geodis Group global strategy is to meet up with the future trends for cross-divisional demand in the pharmaceutical industry. Geodis has several partnerships up and running where a full control, cross-divisional set up is operated. We see the benefits of this type of approach and seek to partner with more pharmaceutical producers or wholesalers.

Geodis Group stand in the forefront of end to end, cross-divisional solutions for pharmaceuticals.

Martin Svantesson is Vertical Market Director of Geodis Wilson Pharmaceuticals. He has 15 years experience in Global distribution and holds a Master’s degree in Supply Chain Management. Svantesson’s role is to develop Geodis Wilson’s pharmaceutical distribution solution/ proposal for existing and potential pharmaceutical customers, as well as to harmonize a global approach within Geodis Wilson in regards to pharmaceutical handling according to GDP standards.