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Biopharmaceutical logistics is the logistics of pharmaceuticals, medical and surgical supplies, vaccine, medical devices and equipment, and other products needed to support doctors, nurses, and other health and dental care providers. Because its final customers are responsible for the lives and health of their patients, Biopharmaceutical logistics is unique in that it seeks to optimize effectiveness rather than efficiency. Biopharmaceutical logistics functions comprise an important part of the health care system: after staff costs, medical supplies are the single most expensive component of health care. To drive costs out of the health-care sector, medical logistics providers are adopting supply chain management theories.With rapid technological advancements in logistics is also boosting the growth of the market. Technologies such as data mining, mobile cloud solutions, and real time monitoring are the factors that have contributed into the growth of the market positively. Furthermore, these monitoring solutions assist the logistic companies by providing alerts in order to procure information to execute contingency plans.
The recent Coronavirus (COVID-19) outbreak is having an impact on the logistics industry and is set to cause more disruptions to the calendar. The COVID-19 outbreak that started engulfing various nations across the globe is forcing governments, national and international authorities to take unprecedented measures such as lockdown of cities and restricting the movement of people to check and control the exponential spread of the pandemic. This has consequently affected global trade and supply chain, which has come to almost a standstill. Most countries have restricted or stopped international flights and air travel, which has led to a deferred slowdown as far as the movement of goods are concerned. This has in turn shrunk the air freight capacity limited to the available and operational cargo aircraft and ferry passenger flights carrying only cargo. The shipping sector has also been hit as vessels are placed under quarantine for weeks before being allowed into the ports thereby slowing down processes. Shipping containers are stuck at the ports and on transit at state borders. This is creating an inconvenience in the biopharmaceutical logistic market.
A cold chain is a temperature-controlled supply chain which is required to preserve and maintain perishable products like food items, chemicals and now, pharmaceutical products. It involves constant refrigeration of the product from the time of its production, through its transportation, handling and storage, right up to delivery. Pharmaceutical cold chain management is an important aspect of the supply chain in the healthcare industry. The cold chain logistics services help the pharmaceutical and healthcare industries maintain a continual stock of drugs from suppliers and distributors across varied locations. Historically the pharmaceutical industry was not a big consumer of cold chain logistics. This was because a majority of its drugs do not need to be stored or transported in a temperature controlled environment. It is only in the recent past that there has been an eruption of cold chain activities due to the growing acceptance of a new class of drugs called biologics. Even though biologics have recently been introduced in the world of medicine, they have already taken the market by storm. Biologics excel not only in terms of their treatment capability, but also in terms of the demands they are placing on the pharmaceutical supply chain as most biologics require both temperature and time-controlled distribution and this need is driving the biopharma logistics market.
The pharmaceutical industry includes companies involved in the manufacturing and development of prescription drugs and over-the-counter products that are used to prevent illnesses in humans or animals. The global pharmaceutical market is expected to overcome $1.5 trillion by 2023, from the $1.2 trillion of 2018. Competition in biosimilars is also expected to increase by three times, while specialty share of total medicine spending will reach 50% by 2023 in most developed markets.Growing upsurge in the production of biologics, vaccine, hormone treatments and complex proteins that require cold chain shipment has further propelled the growth of the market. Hence, transportation and delivery of pharmaceutical products that require a specific temperature witnessed a considerable growth of biopharmaceutical logistics market. Furthermore, the growing demand for outsourcing transportation services has significantly grown over the past one decade. This is because various bio pharm companies are undergoing an agreement or outsourcing logistics to service providers in order to reduce the overall operating cost that has in turn lower down the pharmaceutical products. Strong biopharmaceutical sales, temperature sensitivity, biosimilars launches and increasing outsourcing trends are expected to be the catalysts in driving the global biopharmaceutical logistics market in the coming years.
The American and European healthcare industry is observing continuous innovation and investment. As the region emerges from the constraints of the economic downturn, it remains imperative to ensure that investment and resources are correctly harnessed, as the average number of drugs being approved for human use has decreased significantly in recent times. With this decline in getting drugs to market post research and development (R&D), logistics companies should consider how they can ensure investment is used as effectively as possible. For the European healthcare and pharm industries, trends and innovations are of high importance in achieving this. Whether to help ensure better quality and longer life expectancy or return on investment potential, healthcare companies need to keep one step ahead of consumer requirements. This will ensure drugs and pharmaceutical products continue to fulfil society’s demand and that supporting services mirror this requirement accordingly.
The drug makers in the US and other industrialised nations are producing more in emerging markets, as well as selling into more overseas markets. While globalisation has encouraged the development of dual-sourcing of biopharmaceuticals and helped make biosimilars a possibility in some markets, it has also increased security risk to shipments.
The high cost of logistics is also a restrain to the market.
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