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Official ICSE & CPHI supporting publication

Logical logistics

Compromise isn’t always a bad thing when it comes to logistics. Biocair explains how hybrid courier services offer a happy middle ground between the care and compliance demands of scientists and the frugal mindset of purchasing teams.

There is no mistaking that the pharmaceutical industry has faced turbulent times over the past few years and this shows no signs of stopping. Companies are making cutbacks everywhere . taking a good look at their expenditures and trying to shave costs wherever possible. Some easy targets are contracts for services that they use regularly, scrutinising the invoice for the little extras that have been happily paid each month: will anyone really notice the difference between a luxury and not-so-luxury bathroom soap?

For the pharmaceutical industry, logistics is a big part of daily life. But unfortunately, due to the nature of its shipments, it can't just be 'thrown in the post'. The majority of pharmaceutical shipments require licences and specialist attention and therefore need to be couriered by a specialist.

This raises the question, "Why ship with a specialist courier, rather than an integrator service?" The obvious answer would be to benefit from the specialist's knowledge and expertise . it 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 paying for it.

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 purchasing teams. The scientist is looking for high levels of quality, compliance and capability, but the purchasing department is seeking 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 towards the purchasers and the scientists aren't getting the peace of mind they need in terms of care and compliance.

How to get the balance right
The strengths and weaknesses of both service offerings need to be identified to ensure that the most appropriate solution is chosen for the specific logistical and compliance requirements. This is particularly important when dealing with a clinical trial.

The scientists are looking for reassurance 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 product classification, sophisticated packing technology and experienced staff holding 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 and pack skills of the specialist courier with an integrator network and its worldwide footprint, allowing the customer to choose the level of care that is relevant for them: specialist pick up, combined with the cost-effective city-to-city service of an integrator. The key element of this service is demonstrating honesty, integrity and transparency. Providing this service means sharing the cost saving with the customer to the benefit of:

  • patients
  • scientists and investigators
  • purchasing teams
  • chosen logistics partners. Wisdom of the middle way

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 while 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.

  • Scenario one: a Big Pharma company has a large budget, so has a decent budget to spend on logistics, but is still struggling to justify the expense of a specialist courier with purchasing. It does not want to sacrifice services such as dry-ice replenishment, shipping paperwork, licences and compliance.
  • Scenario two: a small biotech firm has a limited budget and can't afford to send all of its precious shipments by specialist, but feels cautious about using an integrator. It can send most of the shipments with an integrator, but the occasional shipment would benefit from the 'icing on the cake' services that only a specialist can offer.

The answer to both is a hybrid courier service, using the skills and expertise of a specialist to pick and pack their items to industry standards.

Company profile

Biocair

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