Talking Point: Specialist logistics provision
pharmafile | March 18, 2010 | Feature | Manufacturing and Production | BioStorage Technologies, Talking Point, logistics, supply chain, talking logistics
“The world is getting smaller” is a quote that is frequently heard in conversations about the economy, business, health care, etc.
Logistics is another topic that has recently been inserted into such conversations, largely because operating globally is becoming a requirement for many businesses and industries.
Global operations can expose regional vulnerability especially when logistics is involved. Each industry has its own challenges and areas of concern.
Biological warfare and terrorism are areas of concentration for many government security programmes.
Given that life science is an industry that routinely handles biological substances, it is essential that the industry understands and embraces the importance of comprehensive logistics.
Even the term ‘logistics’ has evolved from representing transportation services to now including multiple segments of supply chain management.
Life science companies often embark upon research activities which require global conveyance of clinical supplies and biological materials.
These products require proper handling, packaging, transport and delivery while being kept at appropriate temperatures. Managing these details should be the responsibility of your outsourced comprehensive logistics provider.
As companies in this space continue to expand globally, so does the magnifying glass under which we must ensure that goods are transported in a cost effective method while focusing on global security and compliance.
Anti-terrorism impact on logistics
Since the 11 September terrorist attacks on the United States, the global community has effectively partnered with various government agencies to help prevent future attacks.
The intent of these initiatives is admirable, however, the practicality of implementation is daunting. Examples of agencies dedicated to maintaining and enhancing security include: International Air Transport Association (IATA), International Civil Aviation Organization (ICAO), Federal Aviation Association (FAA) and the Transportation Security Administration (TSA).
These agencies have traditionally focused on inspections of cargo after arrival at its port of entry. Recent realisation has motivated earlier detection of potential violations.
It is evident that the focus should be on developing more transparent and better designed (and controlled) global supply chain processes.
There have been many new agencies, task forces and regulations that have been created and charged with enhancing global security focused in this area.
One of the key provisions of the 9/11 Commission Act of 2007 is the requirement of 100% scanning of all US-bound sea freight containers before leaving foreign ports.
In addition, the measure requires 100% screening of passenger aircraft cargo within three years (2012).
In theory, the concept is sound but the feasibility of implementation is now being questioned.
If enhanced regulation is imminent, we should be prepared for such measures by choosing established logistics partners. Above all, the cost of compliance determines that one should work with partners who have logistics as a core competency.
Perhaps, the voluntary initiative of Customs Trade Partnership Against Terrorism (C-TPAT) is an example of a realistic action for companies.
This programme is a joint effort between the US government and importation of goods into the US.
This is part of an ever-evolving cargo security initiative that recognises that border security will be much more efficient if customs invite businesses in on the process of securing and inspecting cargo.
Based on the successes of programmes such as C-TPAT, Canada and the European Union have begun to develop similar programmes.
As you can see by the initiatives previously mentioned, it is imperative for companies to align themselves with partners who have logistics as a core competency.
• Who will be held accountable during delays and challenges?
• Who is responsible for learning and adhering to current and new regulations?
• Who will intervene on your behalf when your shipments are held by customs?
• Who has the relationships already established that will allow your shipments to be diverted to another carrier?
• Who will train and monitor logistics activities within your company?
• Who will construct the logistics plan for your complex supply chain requirements?
Regulations will continue to get tighter, become more difficult to understand and will probably result in further licensing requirements and inspections conducted than ever before.
This activity will cause businesses to take action and change the ways in which they support their supply chain.
For instance, BioStorage Technologies, Inc., whose core competency is comprehensive sample management (which includes global logistics) has responded with adding credentials to our dedicated logistics staff along with hiring experts to manage the expanding regulations.
In conclusion, I believe that it is sound business discipline to determine your core competency and allow other activities to be managed by companies who live and breathe the details of the ever-changing and complex world of logistics.
Life science companies are operating in an environment that will receive a heightened level of suspicion and examination of biological shipments. Relying on true experts will deflect logistics challenges and scrutiny to the experts who can appropriately handle such details.
The peace of mind in knowing that the security of your company’s biological substances rests on the shoulders of industry experts and highly versed in the regulatory requirements of today’s global market, is priceless.
Website: www.biostorage.com
Contact: amills@Biostorage.com
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