The pharma-logistics sector is facing a “shaky future” and needs to quickly embrace supply chain reform according to supply chain champion, Alan Kennedy speaking at the FlyPharma 2015 Conference in London on last month.
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. According to Kennedy, 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’.
Amongst 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.
He went on to say that, compared to other leading industries, pharma-logistics is way behind the curve when it comes to developing and operating win-win supply chains.
“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 pharmalogistics can the pharma industry extract the benefits that are being routinely achieved by more progressive sectors”.
Delegates heard that industries like retail, food, energy, electronics, construction and automotive were all operating successful integration models and that the time is overdue for pharmalogistics 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,” he said. “The creation of fully integrated networks needs the comprehensive commitment and involvement of the pharma majors.
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.”
With more than 30 years of handson experience in the creation and development of integrated supply networks and promoting collaborative working methods, Alan Kennedy is one of the UK’s most experienced ‘collaborationists’. With supply chain experience and expertise extending across the life-sciences, logistics and built-environment industries, he has served on many industry committees and working parties, spoken on numerous platforms and published several papers on this topic.