Ensuring a robust temperature controlled supply chain is among the most pressing issues facing pharmaceutical and biotech manufacturers today and working with the right logistics providers is one of the keys to successful cost-effective distribution.
Outsourcing is now a fundamental part of drug development and distribution and the Pharmaceutical Distribution survey report conducted in 2011 found that 71% of professionals in pharmaceutical distribution planned to increase investment over the next 10 years.
Creating trust
The report on the Pharmaceutical Distribution survey examined the relationship between manufacturers and of third party organisations in the temperature assured supply chain.
Setting the evaluation criteria for new logistics provider can be a complex task when defining a global strategy for temperature assured pharmaceutical distribution and it is important to strike the right balance between global and local resource.
Selecting the right supply chain vendor
As part of the 11th Annual Cool Chain Logistics Europe survey, participants were asked to identify the most important capabilities they look for when selecting supply chain vendors to work with in your temperature assurance supply chain.
Over half of the respondents, 55% said quality standards. Followed by 26% price advantage, 23% service excellence, 19% innovation and 13% specific expertise to support their business.
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As the healthcare industry focuses on core competencies, and the supply chain dynamics change, nearly 60% of participants said they were likely to for innovation and influence over their packaging solutions from logistics service providers who can provide full turnkey solutions. Whilst 16% of respondents said they were more likely to look for influence and innovation from their peers and colleagues within the cold chain sector.
Risk management
Pharmaceutical and biotech companies are taking various steps to improve their service levels in their cold chain supply, from investing in new technology and infrastructure to increasing the number of partnerships with service providers.
As part of the Cool Chain Logistics survey, respondents were asked what they found was the biggest challenge or risk in establishing a logistics partnership. For 39% of respondents not having enough control or visibility was the biggest risk. This was followed by defining responsibilities 23% and 3PLs subcontracting to other companies 19%, devising quality agreements 7% respectively. Merging company cultures was only big risk for 4% of respondents. For 96% of respondents, cold chain or temperature control was a core competency of their logistic service provider.
A global reach and local market expertise is essential for ensuring seamless distribution of temperature sensitive pharmaceuticals on a global level. Manufacturers and distributors alike must address global and local challenges together to ensure a temperature assured supply chain. Investment in new technologies and infrastructure alongside robust partnerships can reduce cost, maintain quality and increase efficiency.
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