Facing challenges in the pharmaceutical supply chain

By Martin Svantesson

The distribution demands of pharmaceutical products with a need for an intact, unbroken cold chain or ambient end-to-end solution pose a challenge to distribution service providers who wish to be involved in the distribution of pharmaceuticals.

Developments in distribution of temperature controlled air containers with the ability to secure the correct temperature at all times constitute an ongoing process between pharmaceutical companies, distribution providers and manufacturers of materials when operating a successful supply chain.

Pharmaceuticals, being high value goods, demand a safe process at all hubs in the chain. Security measurements must be harmonized and rigorously checked across the operating lanes with its sub warehouses and on/ off loading places. The importance of utilizing as few on / off loading places and changes of transport mode is one of the challenges for a time effective and secure solution; this at a minimized cost level.

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, and production changes accordingly. This is a challenge for the distribution of pharmaceuticals, and consolidation possibilities that can meet with the lead time demand to end customer are highly valuable.

A change of routine 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.

The issue of ‘ownership’ of the supply chain is becoming increasingly important as pharmaceutical markets are growing towards emerging markets. It is the harmonisation and interaction between the pharmaceutical company, the freight forwarder and the carrier that gives the supply chain success. There has to be an understanding that the freight forwarder is in need of robust, openly agreed operational solutions for products distributed into specific markets.

Risk assessments for any new flows managed should be rigorously checked, ideally with on site visits to follow the supply chain in person. I am quite sure that several product/cargo damages could have been prevented had decision-making parties visited and audited the sites and full supply chain before launching new products.

For example, some end destination countries in emerging markets have an issue with distributing some of the larger scale air freight containers on their temperature-controlled vehicles. Imagine landing pharmaceutical products at end destination airport in +40ºC and not being able to fit your container into the distribution truck going to the final destination.

You would then have to unload the container at a temperature-controlled warehouse facility, pay for the extra charge of breaking the container, then unloading and reloading on to accepted format pallets, perhaps not even in a container anymore. There would be an additional risk of not having correct container types available at the end destination.

Not to mention the warehouse facilities in use for handling the pharmaceutical products. The characteristics of the goods somewhat steer the handling process and what equipment has to be used throughout the supply chain.

I would argue that distributing ambient pharmaceuticals or tablets, for example, puts the supply chain in a very challenging situation. A cool chain distribution chain demands a rigorous packing of the product that would /could link to the lead-time demand. You make sure that you pack the products properly to secure an intact temperature for 48-72 hours, or even place the products in temperature controlled containers, air or ocean.

Distributing ambient products that cannot exceed +25ºC degrees Celcius would demand a rigorous process when distributing into warm and moist countries, especially when the equipment alone cannot secure the temperature.

Geodis Wilson fully understands and supports the interaction between carriers, suppliers and local environment that will secure an intact good distribution practice throughout the supply chain. Yet there must be an ongoing development process in order to always be and act one step ahead of any potential problems.

Biography

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 harmonise a global approach within Geodis Wilson in regards to pharmaceutical handling according to good distribution practice standards.