A new white paper from DHL outlined steps companies need to take to keep up with stricter compliance requirements and the increasing demand for temperature-sensitive drugs.
The current generation of cold chains are outdated and need to be redeveloped to keep up with the stricter compliance requirements and the increasing supply and demand of temperature-sensitive specialty drugs, according to a new white paper from DHL.
In its report, “The Smarter Cold Chain: Four Essentials Every Company Should Adopt,” DHL noted global spending on healthcare is projected to reach around $1.3 trillion by 2018 according to an IMS health study.
U.S. spending on specialty drugs is expected to quadruple to $401.7 billion in five years, with similar growth rates projected for the rest of the world, according to PricewaterhouseCoopers.
DHL’s paper outlined four actions companies need to take to develop improved cold chains for the life sciences and healthcare industry.
- A highly specialized and compliant network needs to be developed. Cold chains need to be able to properly handle temperature-controlled pharmaceuticals and have an IT system that can monitor and manage product flow. The facilities should house life sciences products only, be GDP Certified and have a pharmacist on site or nearby to regulate quality.
- Processes need to be globally consistent and have a standard operating procedure.
- Risk-appropriate packing should be utilized which involves balancing the costs with the risks of packing. Manufactures need to consider the value of the product, the temperature the product requires, compliance regulations, customer and market risk and total cost.
- A total cost strategy should be utilized. Manufacturers and their logistics partners should utilize a total cost of ownership (TCO) model. The TCO involves considering the direct and indirect costs associated with a purchase.
Collapsed cold chains can potentially lead to a damaged reputation, a decrease in sales, potential share value and even a risk to patients, DHL Customer Solutions & Innovation’s President Life Sciences & Healthcare Angelos Orfanos said in a statement.
Manufacturers, pharmaceutical companies and logistics service providers must work together to make this happen effectively, DHL said in the report.