Logistics errors cost pharma sector $35bn a year – smarter data could help
Logistics problems cost the pharma industry about $35bn a year – technology is viewed as ...
The global pharma market is set to grow at between 5% and 6% up to 2024 – but as a result of an ageing global population and better access to healthcare in emerging economies, rather than new blockbuster medicines.
However, in individual countries, the growth could be enormous. India leads the field, with estimates of 232% growth to 2030, followed by China, at 230%.
There are clearly opportunities for companies involved in the transport of medicines and drugs; opportunities which are enhanced, for proficient businesses, by increasing regulations and more stringent requirements. CEIV, IATA’s “living programme”, which helps companies adapt to the changing environments, is at full swing, currently certifying more than 220 entities, with many more to follow.
Even with the focus on regulations, however, shippers continue to book pharma as general cargo in a bid to save costs. And while airlines have been able to invest in the sector, their handling partners have less incentive – and funds – to do so. The initial volumes are not sufficient, and the capacity required is inflexible. Consequently, partnerships are the way forward, handlers argue.
Meanwhile, e-commerce has its sights set on the business – but so far business-to-consumer is uncharted territory.
Pharmaceutical logistics requires significant investment and time and is not a business for the faint-hearted. But the rewards can be significant, finds this latest Loadstar LongRead.