Service Insight: Logical logistics
pharmafile | July 21, 2011 | Feature | Manufacturing and Production |Â Â Service Insight, manufacturing and productionÂ
SERVICE INSIGHT
There is no mistaking that we have been faced with turbulent times over the last year or so and it shows no signs of stopping just yet. Companies are making cut backs left, right and centre – taking a good look at their expenditures and trying to shave off cost wherever possible.
Some easy targets are contracts for services they use regularly, scrutinising the invoice for little extras that have been happily rolling over each month – will anyone really notice the difference with the not-so-luxury bathroom soap?
For the pharmaceutical industry logistics is a big part of their daily life (as it is for many companies), but unfortunately due to the nature of their shipments, they can’t just ‘bung it in the post’. A large majority of their shipments require licences and specialist attention and therefore need to be couriered with a specialist.
So this begs the question: why do we need to ship with a specialist courier, rather than an integrator service?
The obvious answer would be to benefit from the specialist’s knowledge and expertise – they can do things an integrator cannot.
But this can come at a price – and the value of this service is often difficult to demonstrate to the people holding the cheque book.
It has always been a challenge for pharmaceutical companies to get the balance right between service and cost in terms of logistics. This is demonstrated by the internal struggle between the scientific community and the purchasing teams.
The scientist is looking for high levels of quality, compliance and capability, whilst the purchasing department is looking for a cost-effective service provision.
If we tip the balance too far towards the scientists’ requirements, the specialist courier service they are looking for can be seen as too expensive. Too far the other way and the scientists aren’t getting the piece of mind they need in terms of care and compliance.
How do we get the balance right?
We need to identify the strengths and weaknesses of both service offerings and ensure we have chosen the most appropriate solution for the particular logistical and compliance requirements. This is particularly notable when dealing with a clinical trial.
From the scientist’s point of view, they are looking for peace of mind that their hard work is being looked after throughout its journey.
A specialist courier can provide processes that avoid risk and offer high levels of customer care.
Their industry expertise allows them to offer services such as the classification of products, sophisticated packing technology and experienced staff that hold relevant – industry recognised degrees.
BUT … we need that integrator cost saving to get past the purchasing teams! We want the best of both worlds, so the obvious answer is to combine the two … a hybrid.
The hybrid service combines the pick, pack and delivery skills of the specialist courier with integrator networks and their worldwide footprint – allowing the customer to chose the level of care that is relevant for them.
Specialist pick up and delivery – combined with the cost-effective city-to-city service of an integrator – finishing with delivery by the specialist.
The key element to this service, is demonstrating honesty, integrity and transparency.
Providing this service means sharing the cost saving with the customer, to the benefit of:
• the patient
• the scientist and investigators
• the purchasing teams
• the chosen logistics partner.
This type of service initiative, would give an ideal compromise rather than an ‘either/or’ scenario, to the benefit of the pharmaceutical industry.
In a logical world, big pharmaceutical companies could reduce costs whilst maintaining a high level of regulatory compliance – and smaller research organisations could afford to employ the skills of a specialist, without spending their entire research budget on logistics.
A simple way to describe this would be through a case study:
Scenario one – big pharma
Big pharma have a large budget, so have plenty to spend on logistics – but are still struggling to justify the expense of a specialist courier with purchasing. They don’t want to sacrifice services such as: dry ice replenishment, shipping paperwork, licences and compliance.
Scenario two – small biotech
Small biotech has a limited budget and can’t afford to send all of their precious shipments by specialist, but feels cautious about using an integrator.
They can send most of their shipments with an integrator, but the occasional shipment would benefit from the ‘icing on the cake’ services a specialist can offer. The answer to this is a hybrid service between specialist and integrator.
Using the skills and expertise of a specialist to pick, pack and deliver the item – but utilising an integrator to ship the item, capitalising on their global footprint. A hybrid courier service: what could be more logical?
Harriet King is a marketing executive at Biocair. For more information visit: www.biocair.com
For more information on Service Insight features contact InPharm’s sales team on +44 (0)1243 772 010 or email pharmafilesales@wiley.com
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