LONDON, Aug. 30, 2016 /PRNewswire/ -- Temperature control, regulatory compliance, security, safety and chain of custody arethe key obstacles for pharmaceutical manufacturers. In every organization, logistics is the key integral part of the supply chain management, which deals with procurement, planning and implementation of all logistics activities. Effective logistics management
The global pharmaceutical market has more than doubled in the past ten years and is expected to reach 942 billion by the end of 2016. Patent rights for several leading drugs are set to expire, meaning that large portion of sales will shift from original brand manufacturer to generic manufacturers. Similar to other sectors, the pharmaceutical industry is also undergoing a geographic shift in its production facilities and sales. Markets like Asia, Latin America, Middle East, China, etc. are becoming imore attractive to these pharmaceutical companies, however, these markets are considered as the most challenging in terms of supply chain.
At present, the distribution structure in the European and American markets is heavily inclined towards national warehouses both regionally and centrally. Developing warehouse structures and outsourcing to logistics service providers is the a key focus in some pharmaceutical manufacturers. Low cost and greater visibility in the supply chain are the main advantages of outsourcing logistics services and is becoming an integral part of strategy.
The primary driving factor for the growth of this market include strict regulations in the form of Good Manufacturing Practices (GMP) and Good Distribution Practices (GDP), which summarize the criteria relating to the purchase, storage and export of medicines. In addition, factors like increasing demand for temperature sensitive pharmaceutical products and delivery methods could contribute to the growth of this market.
Resricting factors include issues related to confidentiality of the proprietary information, loss of control and deteriorating services.
Geographically, Asia-Pacific dominates the market, which is evident from the presence of key players, and lower logistics costs.
Panalpina, DHL, FedEx and UPS are amongst the leading logistic service providers in the industry. The global market for bio-pharmaceutical logistics was valued at USD 61.1 billion in 2014 and is expected to reach USD 91.0 billion by 2020f, growing at a CAGR of 6.9% during the forecast period of 2015e to 2020f.
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