One of the key challenges for the entire world is efficient vaccine supply chain, COVID-19 pandemic has brought pharmaceutical logistics into the limelight. The Global Pharmaceutical Logistics Market is expected to grow at a CAGR of XX%.
The market growth is attributed to the increasing demand for the household healthcare products and raising importance of fast-track assistance.
Additionally, there is a growing need for maintaining the cold chain integrity for pharmaceutical products and decreasing the distribution cost by creating a single source distribution channel is further boosting the demand of pharmaceutical logistics.
Research suggests that logistics costs comprise of about 45-55% of the costs in the Indian Pharmaceutical supply chain from factory to shelf. Logistics has long been considered as a basic supporting function within the life sciences sector.
During the period of 2000-2016, the global pharmaceutical air trade has more than doubled. The demand for pharmaceutical logistics is growing in U.S. on account of the increasing sales of generic drugs, as well as reforms in the healthcare sector favouring generics. The market in the North America region is significantly fragmented owing to the presence of a large number of regional and international companies.
The need for healthcare cold chain logistics is primarily felt in three major segments: biopharmaceuticals, vaccines and clinical trials. Biopharmaceuticals are generally complex protein molecules and their efficacy requires temperature specific logistics.
Any abrupt temperature change may lead to loss of chemical activity and make biopharmaceuticals harmful for human body. Moreover, increasing number of clinical trials employing temperature sensitive materials like blood sample, tissue sample and certain drugs, has stimulated the market growth.
Also, demand for vaccines has increased, owing to the mass immunization programmes conducted by various government and non-government organizations. Like biopharmaceuticals, vaccines are also temperature sensitive and their potency may reduce on exposure to temperature variations.
Driven by the increasing outsourcing trends in the pharmaceutical and biopharmaceutical industry, the cold chain logistics demand for drugs, vaccines and clinical trial materials is expected to increase significantly.
On the basis of product, vaccines drive the demand for healthcare cold chain logistics market, followed by clinical trials and biopharmaceuticals.
On the basis of segment, transportation accounts for more than half of the global cold chain logistic services. Other major segments are packaging and instrumentation. On the basis of region, North America is the largest market, followed by Asia-Pacific, Europe and others.
Asia-Pacific is the fastest growing region, owing to the developing economies of China, India, South Korea, which are emerging as major destinations for outsourcing clinical trials, drug manufacturing and pathology testing.
Much of the supply chain of pharmaceuticals are routed through China for the APIs (Active Pharmaceutical Ingredients), the US government has requested the FDA (Food and Drug Authority) to determine the key APIs that are needed for the manufacturing of advanced drugs that are routed through China.
US government plans to design alternate strategy for these APIs, one of the important strategies of the US government is to start manufacturing these APIs in the US soil or under the CUSMA agreement let Canada or Mexico manufacture these ingredients, Global pharma transport through air shipments would critically be affected, with Canada and Mexico in the picture the US road transport players get a great opportunity for growth.
Till the end of 2022 or mid-2023, the biggest revenue generator for the pharmaceuticals logistics market, with vaccine in short supply this might even end till the end of 2024, India, China and the US being the largest vaccine makers most of the global air cargo industry involved would be routed through these nations, domestically the coronavirus vaccine would be the biggest contributor to the market, but the growth rates vary dramatically between nations due to the infrastructure capabilities.
Africa would have the slowest cold chain growth and Europe being the fastest growth market for the cold chain players.
Non cold chain products exhibit higher sales over cold chain products in general all over the world. The non-cold chain spending is expected to grow at a CAGR of 2%. A nominal increase in the cold-chain products is also expected due to the ongoing transition to bio-based products, rigorous preconditions of life science shipments coupled with the growing globalization of the pharmaceutical trade.
Cold-chain products require colder temperatures throughout the storage, handling, and transportation processes to maintain product integrity. Biopharma products are manufactured or extracted from various biological sources such as vaccines, blood and its components, as well as gene therapies.
The market is highly competitive with many companies striving to offer cloud-based supply chain solutions and a secured supply chain function. These kinds of technological implementation help manufacturers in verifying the authenticity of the drugs, thus avoiding the production of counterfeit drugs and medical devices.
SkyCell has unveiled its next-generation 1500X container for the delivery of high-value pharmaceuticals. The 1500X is designed for pharmaceutical product shipments that must be stored between the temperatures of +2°C and +8°C or +15°C and +25°C, and has a tested independent runtime of 270 hours at 20°C.
The 1500X is fully equipped with the company’s proprietary SECURE SaaS platform for in-transit monitoring, according to the producer of temperature-controlled hybrid containers. The 1500X is 120kg lighter than its predecessor and has a payload capacity of up to 1,000kg, thanks to a die-cast frame that uses the same method used to make aeroplane parts.
Companies can transport more in each individual container thanks to the new internal height of 1.3 m, which adds 7.8% more internal volume and lowers costs and CO2 emissions.Even in the event of unforeseen situations such as aircraft delays, re-routing, or delays at customs, the 270-hour runtime assures that the shipment of temperature-sensitive cargo is unaffected.
The 1500X keeps SkyCell’s innovative double-door technology, which prevents humidity changes and adds security while in transit. The company provides real-time shipment visibility, bridging supply chain visibility gaps and enabling remedial actions to be taken based on key data collected during transportation.
Four 1500X containers can be put onto a single conventional PMC pallet, and the 1500X can be loaded into a normal truck with up to 18 containers using only a pallet jack.
The feet of the 1500X have been modified to further protect against shock and vibration. The die-cast aluminium feet absorb impact and decrease vibrations from aircraft and vehicles, which are a primary cause of in-transit product spoiling, coupled with excursions outside the acceptable temperature range.
The 1500X development goals were based on client feedback and assist them in lowering their CO2 footprint. Using graphene as part of proprietary heat distribution improves the 1500X’s recharge capability when in a chilly room at customs clearing or in a reefer truck, extending the shelf life of pharmaceutical products and showcasing our ability to genuinely push the boundaries of smart design.
The 1500X provides enhanced performance, protection, and efficiency. It will contribute to achieving the goal of zero losses in the global pharmaceutical supply chain.
Cold Chain Management: With the delivery of vaccines and biologics that are temperature-sensitive, there is a greater emphasis on preserving the integrity of the cold chain. To guarantee correct temperature control throughout the supply chain, cutting-edge temperature monitoring systems, real-time tracking, and data analytics are being used.
Blockchain technology is becoming more popular in pharmaceutical logistics to improve transparency and traceability. It makes it possible to maintain safe, immutable records, assuring the legitimacy of pharmaceutical products and making supply chain transaction verification easier.
Data analytics and predictive analytics: Predictive analytics and data analytics tools are being used increasingly frequently in pharmaceutical logistics. By enhancing inventory control, demand forecasting, and route planning, these technologies contribute to cost savings, increased productivity, and better decision-making.
Drones and autonomous vehicles are being investigated for last-mile delivery in the pharmaceutical logistics industry.They provide the potential for speedier and more effective pharmaceutical administration, particularly in hard-to-reach or isolated locations.Additionally, these technologies are used to make emergency deliveries in disaster zones or places with poor infrastructure.
Robotics and automation: The procedures involved in order fulfillment and warehousing make use of robotics and automation.Picking, packing, and sorting pharmaceutical products with the help of robots can increase productivity, accuracy, and efficiency.Automated methods also assist in lowering the possibility of mistakes and contamination when handling pharmaceuticals.
IoT with real-time tracking: Pharmaceutical shipments are tracked and watched in real-time using the Internet of Things. The constant monitoring of temperature, humidity, location, and other crucial characteristics is made possible by IoT devices like sensors and RFID tags.
This guarantees prompt action in the event of deviations and aids in maintaining product conformity and quality. Green logistics: Pharmaceutical logistics are becoming more and more concerned with sustainability. Employing electric vehicles, streamlining transportation routes to save emissions, and putting in place recycling and waste management programs are just a few of the environmentally friendly business practices that are becoming more and more popular. Green efforts improve brand reputation in addition to helping to preserve the environment.
Collaboration Between Stakeholders: In the logistics industry for pharmaceuticals, collaboration between stakeholders is on the rise. This comprises collaborations between logistics service providers, healthcare organizations, and producers of pharmaceuticals in order to increase the efficiency of the supply chain overall. Collaboration can result in cost savings, improved visibility, and better coordination of patient needs management.
Artificial intelligence (AI) and machine learning (ML): Various elements of pharmaceutical logistics, including as demand forecasting, supply chain optimization, and risk management, are being addressed by AI and ML technologies. These tools can analyze enormous volumes of data, spot trends, and offer useful information for enhancing workflows and boosting productivity.
Internet of Things (IoT): IoT technologies are being utilized in the supply chain to link diverse equipment and sensors. IoT devices can track temperature, humidity, location, and other environmental parameters in real-time for pharmaceutical logistics. This makes it possible for early intervention, guarantees adherence to storage regulations, and aids in preserving product quality all along the supply chain.
Robotics and automation: Warehouse operations, picking, packing, and sorting are all being changed by robotics and automation. Automated systems increase production by increasing speed, accuracy, and efficiency while lowering the likelihood of errors. The use of autonomous mobile robots for material handling and delivery is also made possible by robotics, which makes processes quicker and more effective.
Blockchain Technology: Blockchain technology offers a transparent, secure way for tracking and validating supply chain transactions.It improves pharmaceutical product traceability, authenticity, and transparency while lowering the risk of counterfeiting and increasing supply chain visibility.Blockchain can also make administrative procedures more efficient and make regulatory compliance simpler.
Improved decision-making in logistics is made possible by the use of data analytics tools and prediction models. Logistics providers can optimize supply chain operations, inventory levels, and routes by analyzing historical data and current information. In order to run operations more effectively, predictive analytics can forecast demand, foresee supply chain problems, and pinpoint areas for improvement.
Augmented reality (AR) and virtual reality (VR) technologies are being used in logistics operations for remote maintenance, training, and assistance. To increase worker productivity, cut down on mistakes, and boost overall operational effectiveness, they can offer virtual simulations, interactive tutorials, and real-time information overlays.
Drones and Autonomous Vehicles: The use of drones and autonomous vehicles, such as self-driving trucks and delivery vans, has the potential to speed up and improve logistical transportation. They can improve safety, cut down on fuel use, and optimize routes. In order to enable quicker and more flexible distribution of medicinal supplies, drones are also being investigated for last-mile deliveries in isolated or crowded places.
While still in its infancy, 3D printing has the potential to upend some parts of the logistics of the pharmaceutical industry. It makes it possible to produce customized medical equipment, prosthetic limbs, and even drugs on demand. Localized manufacture might be made possible, especially for uncommon or specialty medicinal items, which would lessen the need for elaborate supply chains.
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