The Role of Robust Logistics in Pharmaceutical Supply Chains
18th October 2024
As older adults become the fastest-growing demographic in Europe, the increasing demand for healthcare is reshaping the pharmaceutical landscape, emphasizing the need for robust and agile logistics to keep pace. This rising demand is causing the European pharmaceutical market’s expansion, projected to grow at an annual growth rate (CAGR) of 5% till 2030, driven by innovative treatments, including biologics and personalized medicine, which require even more stringent transport conditions . But as timing becomes crucial, can road transport meet the growing demand for timely availability in today’s volatile and constantly being disrupted logistics sector? And what about decarbonizing those supply chains?
The importance of compliance
With rising pharmaceutical demand in Europe, efficient medicine transport is critical. Road freight handles 61% of total goods moved within the EU , making it vital to enhance road logistics for the pharmaceutical sector specifically. As pharmaceuticals increasingly include highly sensitive products such as vaccines, biologics and gene therapies, strict temperature control is essential. Implemented in 2003, updated in 2017 Good Distribution Practices (GDP) defines the standards of transporting the pharmaceutical products, which is crucial and required to comply with by logistics companies.
Ensuring Integrity Under Extreme Pressure
Pharmaceutical companies face significant challenges when transporting their sensitive products, particularly given the stringent requirements for temperature control, regulatory compliance, and visibility across the entire supply chain. Also worth mentioning are the efforts to decarbonize Europe. As pharmaceutical companies are focusing heavily on decarbonizing their operations, they are looking for transport solutions that are net-zero. Intermodal solutions, Battery-Electric Vehicles (BEV), and alternative fuels such as HVO are the first solutions and transport modes that are already operating within pharma supply chains. A combination of those three solutions and future innovations can bring tangible results in reducing emissions. For example, combining HVO fuel and/or BEV with intermodal solutions gives the opportunity to significantly reduce emissions E2E. And with digital tools the results can be easily reported and provided to the company, to present them as scope 3 emissions reduction.
The need and opportunity of digital support
Yet sustainable solutions are not the only need of pharmaceutical supply chains. Modern digital tools and new logistics equipment combined with 24 hours dedicated monitoring make it easier to track shipments in real time, control temperature, and prevent delays. Using advanced tracking and monitoring systems gives pharmaceutical companies the visibility and control they require to comply and manage their supply chains effectively, with detailed information on:
• Temperature stability: Ensuring that medicaments, including highly sensitive biologics, are kept within their required temperature ranges at all times to maintain efficacy and safety.
• Real-time visibility: Tracking shipments throughout the journey, ensuring that no delays or disruptions jeopardize the products. Immediate alerts can help address potential issues such as temperature deviations or route delays.
• Route optimization: Automatically rerouting trucks to avoid delays caused by unpredicted events like blockages, regional law implementations, or sudden weather changes.
For example, when a critical shipment of vaccines faces potential delays due to border restrictions between France and Germany, the carriers are automatically alerted, and digital tools – often utilizing robotics process automation or artificial intelligence – quickly define a new route, updating the estimated time of arrival and providing relevant and necessary information to all stakeholders.
“In an industry where timing, compliance, and product integrity can save lives, choosing the right logistics partner is no longer just about operational efficiency – it’s about trust, reliability, and safeguarding global health. The experiences we gained throughout years reminded us that every link and element in the supply chain matters, and pharmaceutical companies are looking for logistics partners who understand the high stakes. The future of healthcare depends on it,” summarized Mark Mulder, Chief Commercial Office at Girteka.
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