Consultant Insight: Logistics providers take aim at more agile pharma operations

The pharmaceutical logistics market is an expensive one that requires special handling, packaging, transportation, and strict adherence to government regulations. In addition, Covid-19 has increased pharmaceutical companies’ focus on risk management. They are reassessing their supply chain strategies and footprints, using techniques such as dual sourcing and geographical diversification to make their supply chains more agile and resilient to disruption. [caption id="attachment_69752" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] Logistics companies are well-aware of the demanding standards for pharmaceutical transport and are working to improve their own offerings in the area through both organic expansion and targeted acquisitions. Geodis’ acquisition of French temperature-controlled pharmaceutical transport specialist Gandon Transports, announced on July 12, follows this long-term trend. Gandon Transports provides temperature-controlled warehousing and transportation of health products and raw materials across France within 24 to 48 hours. According to its website, it offers 11 cross-docking and consolidation platforms that are equipped with cold rooms in 2 C to 8 C and 15 C to 25 C. COVID-19 impact A Johns Hopkin study revealed the fragility of the pharmaceutical supply chain during the height of the COVID-19 pandemic. Among the weaknesses was the overdependence on specific countries such as India and China for manufacturing of specific medications and active pharmaceutical ingredients (APIs). Various countries also prevented the export of certain pharmaceutical products in order to increase the supplies available to treat their own citizens, and of course, the global transportation network was severely constrained when at least 50% of potential air cargo capacity available from passenger airlines was grounded. As such, pharmaceutical companies are looking to partner with logistics and transportation providers that are able to demonstrate their knowledge of the pharmaceutical industry and offer the necessary solutions to address concerns as outlined in the Johns Hopkin study. Logistics providers are subsequently pursuing relevant acquisitions to bolster those capabilities. "This acquisition will consolidate Geodis’ status as a key player in the healthcare market,” Geodis CEO Marie-Christine Lombard said in the company’s announcement. “From inventory planning to temperature-controlled storage and transport to the final recipient, we want to offer our customers a complete and reliable solution throughout the supply chain." Indeed, Geodis is among a handful of major players in the European healthcare market. DHL, FedEx, UPS and Kuehne+Nagel are also considered major players – all of which offer a pan-European network connected to a global one. However, DHL, FedEx and UPS are perhaps the leaders of the pack due to their asset-based global transportation networks, with real-time connectivity to warehouses and local transportation capabilities around the world. Technology Technology is the glue that holds together the pharmaceutical supply chain. Constant temperature monitoring of pharmaceuticals is critical through storage and delivery. A slight change in temperature could result in spoilage. Geodis, like a number of other logistics providers, utilizes control towers to monitor and manage inventory visibility across all transportation modes and throughout the entire supply chain. Gandon Transport brings its own technology capabilities to Geodis. According to its website, it offers a “double traceability system” of geolocation of trucks in real-time and temperature monitoring by GPS with readings every 15 minutes. It also has an extranet that provides progress of orders, signed proofs of delivery, and more. Moving forward, expect more acquisitions of pharmaceutical logistics specialists around the world particularly as logistics and transportation providers look to expand their reach into such regions as Asia, Latin America and Africa.

Consultant Insight: Logistics providers take aim at more agile pharma operations

Air Canada passenger freighters boost international trade

June sees 100 freighter aircraft transactions

June sees 100 freighter aircraft transactions

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password