The pharma logistics sector is thriving, having achieved a turnover of $69 billion in 2019. According to consulting firm Grand View Research, this market is projected to grow by 3.5% annually until 2025.
In this article, we will explore the key factors influencing the pharma logistics industry, including:
National regulations
Warehouse design and equipment for medical supplies
Unique challenges related to drug transportation
What Is Pharma Logistics?
Pharma logistics encompasses the storage and distribution of medications, active ingredients, and other biological products from suppliers to the final point of sale. It's crucial to note that pharmaceutical goods require specific storage conditions, leading to stringent controls that guarantee safe consumption.
Here are the main characteristics of pharma logistics:
- Maximum Traceability and Inventory Control: These preventive measures aim to quickly identify batches of medicinal products in case of anomalies or irregularities.
- Strict Quality Control: Proper drug storage necessitates specific procedures and designated areas within warehouses, such as quarantine and sterilization zones, to ensure products are free from microorganisms.
- Special Storage and Transportation Conditions: Maintaining the cold chain for vaccines and thermolabile drugs is vital, alongside preventing contamination and theft of medical materials.
- Adjusted Delivery Times: Given the high value of these goods, achieving precise transportation is essential.
Legislation Affecting Pharma Distribution: The Drug Supply Chain Security Act (DSCSA)
Efficient Management of Pharmaceutical Installations
Safety is paramount in the design of pharmaceutical warehouses. Key strategies adopted by companies in the sector include:
- Safe Zoning and Versatile Storage Systems
- Optimized Picking of Small Item
- Monitoring of Medicinal Product Stock
Good Practices in the Transportation of Medicine
Effective risk management in transporting medication is essential for reducing costs in pharma logistics. The IATA estimates that losses from storage issues in air transportation of thermolabile drugs reach $35 billion annually, with nearly half related to drug degradation during supply chain transitions.
To protect the cold chain, it's vital to minimize friction points at each stage. For instance, Security Airlock Systems (SAS) help maintain temperature stability when goods exit cold storage. Transportation must also be equipped to sustain varying temperature ranges and monitor humidity levels, atmospheric pressure, and handling impacts.
Developments in smart packaging, which integrate IoT technology for condition monitoring, are also emerging in this sector, growing at an annual rate of 5.16%
The Future of Logistics in the Pharmaceutical Industry
The pharma logistics industry is undergoing substantial transformations due to its growth and increasing regulations surrounding the storage and transportation of medical materials. Automation and data management through specialized supply chain software are among the most noteworthy trends.