Because they preserve and improve health and save lives, pharmaceutical products have great value. This industry faces one of the most difficult logistics: products have to arrive safely at their destination as quickly as possible.
Globalization has made this industry more vulnerable and has caused uncertainty for clients and suppliers.
The rise in generic drug manufacturing, rising research and development costs, and increased regulatory requirements are just some of the reasons why pharma companies have to focus on reducing costs. This is followed by reliability in supply, traceability and service outsourcing, and quality measures imposed in the regulatory framework.
Due to the urgency that some patients feel when they need medication, coordination is also important. Patients may choose to take less effective, cheaper, or counterfeit medications if pharma companies are not in sync. This could lead to a decline in their health.
Temperature control is a major concern for pharma products. They must be transported and warehoused at temperatures between -150 and 25 Celsius degrees to maintain their effectiveness. Also, transportation and MHRA approved warehousing UK must adhere to strict hygiene, pest control, humidity, and sanitation standards.
Controlled drugs and product recalls, on the other hand, require special handling. They must be kept in restricted areas and adhere to strict logistics policies. This is why logistics companies are being hired more often.
The pharmaceutical sector in the world
In the past 10 years, the volume of financial markets around the world has increased by double. This sector has also become more specialist due to the large number of mergers that have taken place. Patents expire and a large portion of the industry’s sales go to generic drug manufacturers, which has led to greater competition and increased pressure.
The pharmaceutical industry is moving its manufacturing and sales locations, just like other industries. The United States and Western Europe are considered mature markets for pharmaceutical logistics. However, due to the increasing demand for modern medical treatments, China and Southeast Asia are quickly becoming strong competitors.
The Latin American market faces many other challenges than logistics. These include cost optimization for generic drugs vs “commercial” medications, and maintaining high standards of quality in service.
Latin America’s economy is reliant on the pharmaceutical industry. The supply chain that runs from manufacturing to distribution of medication requires a complex and exact supply chain. Products and patients may be affected by any interruptions or changes.
The future logistics of the pharmaceutical industry
The industry’s most pressing issues in the medium-term are safety requirements, anti-counterfeit medication, logistics costs reduction pressure, and increased services for patients such as consultation, house calls, and prescription management.
Although the European market distributes between national warehouses at both central and regional levels, the construction of warehouses is increasing. It is often outsourced, as well as transportation, because it requires lower costs, eliminates risks, and increases visibility. All of these factors are possible with smart technology.