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New report: Three reasons why the pharma logistics sector offers major opportunities for 3PLs

Structural changes in the pharmaceutical manufacturing industry are set to create significant opportunities for logistics service providers in the next few years.

This is one of the key conclusions of Ti's latest report, Global Pharmaceutical Logistics 2012. In a highly competitive market, pharmaceutical drug manufacturers are faced with several industry issues including the expiry of blockbuster drug patents, increasing government legislation and a lack of new drugs in the development pipeline. This has resulted in several mergers/acquisitions in the industry which in turn has meant that supply chains are becoming ever more complex. In addition manufacturing is becoming more globalised, with supply chains extending to remote production locations.

Ti's latest report, Global Pharmaceutical Logistics 2012, concludes that global logistics companies are set to benefit from these demand-side trends in three key ways:

  1. Manufacturers are moving into emerging markets, such as Asia and South America, not only to sell drugs, but also for outsourcing purposes. Rising costs in Europe and the United States are resulting in shifts in manufacturing, research and development and clinical trials to countries such as China and India. They will need providers able to support their logistics needs in these emerging markets.

  2. Increased demand in personalised drugs and biopharmaceuticals is also resulting in the need for more value added services. For example, temperature-controlled transportation is a requirement for biopharmaceuticals in particular. Also, these drugs tend to have a shorter lifespan and must be monitored in a controlled environment.

  3. Manufacturers are becoming more open to the outsourcing concept, preferring to focus resources on R&D and manufacturing than on non-core logistics activities. An increasingly sophisticated logistics supply-side is at the same time winning trust and penetrating deeper into manufacturers' operations.

 

Cathy Roberson, Ti's Senior Analyst commented, "Past reluctance to utilise logistics providers has now changed as many manufacturers are partnering with logistics providers who have proven not only their understanding of the industry, but also have been instrumental in the introduction of specific solutions. These have included such services as temperature-controlled containers, IT solutions to track and monitor temperature sensitive products as well as becoming trade and compliance consultants."

 

For more information about Ti's latest report, Global Pharmaceutical Logistics 2012, follow the link provided or email Mike Nordmann on mnordmann@transportintelligence.com.

 

Right now the Global Pharmaceutical Logistics 2012 report is part of Ti's Winter offer. Purchase this report, price £995, and get a 2nd report half price! To take advantage of Ti's Winter off, contact either Mike Nordmann (contact details above) or Sarah Smith by email at ssmith@transportintelligence.com or call +44 (0) 1666 519900.

 

 

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