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Pharma-logistics 'needs to embrace supply chain reform'

LONDON, September 15, 2015

The pharma-logistics sector needs to get its head out the sand and embrace supply chain reform, according to an expert.
 
Speaking at the FlyPharma 2015 Confernece in London recently, collaboration consultant Alan Kennedy stressed that service providers need to embrace more integrated working practices if they are going to meet the escalating cost and performance demands coming from pharma shippers.
 
The pharma-logistics sector is facing a very shaky future as an unprecedented array of challenges and pressures come together to create the 'perfect storm,' he said.
 
Among these are the impact of track and trace regulations, increasing GDP compliance costs, escalating cost pressures and growing logistics complexity as markets fragment, technology advances and products evolve.
 
Compared to other leading industries, pharma-logistics is way behind the curve when it comes to developing and operating win-win supply chains, said Kennedy.
 
"It is time for pharma-logistics to step outside its comfort zone and take a hard look at developments in other service sectors," he explained. 
 
"Only by adopting a more collaborative approach to pharma-logistics can the pharma industry extract the benefits that are being routinely achieved by more progressive sectors," he said.
 
The delegates at the event heard that industries like retail, food, energy, electronics, construction and automotive were all operating successful integration models and that the time is overdue for pharma-logistics to learn from these and apply proven best-practice.
 
However, Kennedy emphasised that the responsibility for driving improved supply chain integration ultimately rests with the pharma shippers. 
 
"'Big Pharma' has the most to gain. The creation of fully integrated networks needs the comprehensive commitment and involvement of the pharma majors," said Kennedy.
 
"Pharma manufacturers are the only supply chain stakeholder with the necessary clout to impose the cultural, commercial and technical reforms needed to bring all the logistics parties together," he said.
 
Meanwhile, Kennedy circulated copies of his five-part Discussion Document: 'Strategic Pharma-Logistics Partnerships: medicine or snake-oil?' to all FlyPharma delegates. - TradeArabia News Service



Tags: logistics | Supply | pharma | chain | reform |

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