2013 Cold Chain Masih-Key attributes manufacture

KeyattributesmanufacturerslookforwhenchoosingoutsourcedlogisticsservicesMay23-24,2013ShanghaiMasihSabetPresentationOutlinePresentationoutline:EnsuringoutsourcedpartnersmeettransportationserviceclassificationandstandarddemandsConsideringcosteffectivenesswhenchoosingoutsourcedservicesSelectingandpurchasingrefrigeration/temp-controlequipment2Onceuponatime….Lifewassimple,3Verysimple,butnoteasy,Notmanypeople,4Notmanyfactories,Notmanyknowndiseases,PeoplemadetheirownmedicineandcalledthemHomeRemedies5TherewasnoGMP,noGSP,andnoGDPAndnoregulationswhatsoeverPeopledidnothavesuchahighexpectationastheydotoday,But,Thingsgraduallychanged.Thesnakeoilsalesman6Commercialpreparationofpatenteddrugbegan7Fromthedawnofcivilization,humanshavebeendreamingofhappy,healthyandlong-life.Theaveragelifeexpectancyofthecavemanwasabout16years.In500BCtheaveragelifeexpectancywasabout20years.In400ADitwas35years.8Withtheadventofindustrialrevolution,therehasbeenanincreasedinthediscovery,development,andmanufactureofdrugsandmedicationsbypublicandprivateorganizations.Medicalsciencehastrulyadvanceddramaticallyduringthenineteenthcentury.In1900theaveragelifeexpectancywas47years.In1930itwas59years.By1975ithadadvancedtoabout71yearsIn1989ithadadvancedto74yearsformenand78yearsforwomen.9Ourlifeexpectancyistwicelongerthan100yearsago.Inthelastcentury,newtechnology,bettertechnologicalknow-how,andoveralleconomicgrowthhaveledtowide-spreadandrapidgrowthinthepharmaceuticalsector,resultedinpreventionandcureatallagelevels.AlthoughPharmaindustriestookresponsibilityofproducingtheneededdrugsandgaveusaqualityoflife,But,Themisuseofdrugsbroughtfurthercomplication.10Theexpansionofpharmaceuticalcompanieshasbroughtdramaticgrowthincold-chainproducts.Giventoday’smarketdemands,aninefficientsupplychainisnolongeranacceptablecostofdoingbusiness.Inordertoreduceinventories,enhanceregulatorycompliance,andrespondtomarketdemandsforgreatersafetyandlowercost,mostmanufacturersarenowturningtooutsourcing.Bothmanufacturersandhealthcareprovidersseekgreatertransparencyandcollaborationintheirsupplychain.112NAToolsColdChainisasystemofpeople,equipment,proceduresandcoldchainmanagement.ProceduresColdChainManagementPeople1213LogisticsLogisticsisthatpartofthesupplychainprocessthatplans,implements,andcontrolstheefficient,effectiveflowandstorageofgoods,services,andrelatedinformationfromthemanufacturertoconsumerinordertomeetcustomers'requirementsTheprocessofmanaginglogisticstoachievetheestablishedlogisticsgoalsofthecompanyisLogisticsmanagement.14•Oneofthekeypurposesforthelogisticsoutsourcingiscostreductionandservicebenefits.•Supplychainmanagementinvolvesthedesignandmanagementofseamless,value-addedprocessesacrossorganizationalboundariestomeettherealneedsoftheendcustomer.•Collaboratingwithathirdpartyserviceproviderallowsacompanytoconcentrateonitscorebusinessitdoesverywellandforwhichithasuniqueskills.Themostcommonlyusedserviceperformanceindicatorsaredeliveryreliability,deliveryflexibility,andorderlead-time.15ColdChaincomplianceColdchaincompliancecanbereachedonlywhenallthestakeholdersinvolved(Manufacturer,Distributors,TransportersandPharmacyhaveaddressedindividuallyandaspartnerstheirqualityissuesintermsofhandling,storage,distributionandtransportationoftemperature-sensitiveVaccines.Insteadofaninward-lookingfocusonownershipofhardassetsanddoityourselfapproach;youmaydecidetofocusontotalsupplychaineffectivenessandprocessoptimizationbyutilizingtheextendedvaluepropositionofthe3PLpartner.16Ithasbeenestimatedthatabout40percentofthegloballogisticsisoutsourcedtoLogisticsServiceProviders.Pharmaceuticalcompaniesareputtingagreateffortinthecarrierselection,areliablepartnerisrequired.Temperaturecontrol,trackingandtracing,antitheftsecuritiesareofutmostimportanceforthetransportationofpharmaceuticalproducts.Theserequirementsoftenmeandedicatedtransportationwhichismoreexpensivecomparedtoregulartransportation.17Storageandhandlingactivitiesareoftenoperatedbythepharmaceuticalcompaniesthemselves.FromafunctionalSupplyChainperspectivethestorageandhandlingwithinthepharmaceuticalindustryhasmuchparallelswiththeelectronicandfoodindustries.ThemaindifferentiatoristheobligationtoworkunderGDP/GSPandGMPregulations.ForthisreasonLogisticsServiceProvidersareinvestinginanefforttobecomeGMP/GDPcompliantforstorageandhandling.18Whenyoudecidetooutsourceyourlogisticsserviceslookfortheright3PLthatcouldfitallyourlogisticsrequirementsatthebestpossibleprice.Therearethreetypesof3PLCompanies:AssetBasedUsetheirowntrucks,warehousesandpersonnelManagementBasedProvidethetechnologicalandmanagerialfunctionsIntegratedProvidersCombinationoftheabove,capableofsupplementingtheirserviceswithwhateverservicesweneeded.19Thirdpartylogistics(3PL)companiescanofferservicesthatwouldallowyourbusinesstooutsourcepartofyoursupplychainmanagementfunction.Manyofthesecompaniescanofferyouawiderangeofservicessuchas:InboundfreightFreightconsolidationWarehousingDistributionOrderfulfillmentOutboundfreight3PLcompaniescanhelpyourbusinessestobecomeleaner,withreducedassetsandallow