We are all familiar with the controversies and administerial disputes that have a way of disrupting the practices in the pharma sectors but what we often do not realize is the importance it plays in the everyday life of a common man. From manufacturing the medicines to getting them at your doorstep, it’s a very complex process that requires multiple tears of operative management.
But what is it that keeps this thriving and much-needed sector running as smoothly as it does?
Logistics planning and execution.
The practically attuned and brilliantly executed strategies from inventory management to last-mile deliveries to end customer’s satisfaction, the sheer complexity of these individual processes is what keeps most industries, including pharma, performing.
But there are more than a few questions in minds when it comes to the role 3PLs play in the pharmaceutical industry. Though before we get to that, it is important to truly understand the importance of pharma.
Why is the Pharmaceutical sector so important for us and what challenges is it facing?
Sun Pharmaceutical, Dr Reddy’s Laboratories, Divi’s Laboratories, Cipla what do these four companies have in common?
They are all pharmaceutical giants and are responsible for saving lives in uncertain times, not unlike the present. The pharmaceutical industry across the globe not only provides medicines that save lives but is also a key asset to the global economy. These pharma companies not only drive medical success through research and development but also has a good impact on every country’s economy, especially India.
Importance of Pharma Sector –
The latest market reports suggest that India is the third-largest producer of pharmaceuticals in the world in terms of volume. However, the Pharma supply chain in India has been facing several challenges in the past several years in terms of product damage, continuity of supply, temperature control.
As a result, there is a problem in keeping products safe and monitoring their temperature. It also affects the storage and distribution process. Given that the Pharma sector is one of the most important sectors across the world as it provides pharmaceutical drugs for use as medications that are given to patients to cure or vaccinate them, logistics is a crucial part of the pharmaceutical industry.
Challenges in Pharmaceutical Supply Chain in India –
There are challenges in every business, big or small. In India, the pharmaceutical supply chain faces several hurdles. With several stakeholders such as dealers, stockists, distributors, CFA, among others, the outbound supply chain of the industry is very complicated with several layers.
Even the distributors are of several types. There are generic Pharma distributors, consignment agents, trade distributors, among others. This process is further complicated by inter-state transfer pricing challenges, and CST.
One of the major challenges that the Pharmaceutical sector in India faces is that approximately 300 new brands are launched every month with over 300,000 existing brands, making it the most complicated industry in India.
As per the latest statistics, the Pharma supply chain in India constitutes of more than 50,000 suppliers and is drastically divided. While several places are operating with larger stock-keeping units (SKUs), other places struggle to get essential medical supplies. Due to this, the entire supply chain management process gets delayed and complicated. Since it is a complex, cost-sensitive and fragmented market, new challenged keep arising for the pharmaceutical supply chain in India.
For proper handling of different operations such as transport, supply chain management of multiple and varied products, the vast majority of which require specific conditions in their logistic treatment, it is very important for pharma companies to have an efficient supply chain.
What are the ways of improving the Pharmaceuticals supply chain in India?
India’s pharmaceutical supply chain and logistics need a transformation for the best results and to overcome the current challenges. In the pharmaceutical sector, the supply chain is one of the most important aspects and if the efficiency of the supply chain is improved, the industry can grow like never before.
- Use of the latest technology can fix several issues in the supply chain movement and process. It will help in improving the efficiency in the healthcare sector.
- Fixing and reducing the complexity surrounding the supply chain can be very profitable and an added advantage to the increasing demand for the goods at both domestic as well as global level.
- A tailored view of supply chains is a must for those companies who venture into specialized products.
- Adoption of segmentation will bring significant changes in the industry that will be very useful for Pharma companies.
- Cost reduction and flexibility.
Which Indian Logistics company is shifting its focus on the Pharmaceutical sector to solve these challenges?
Several Indian third-party logistics providers have been partnering with Pharma companies to improve the Pharmaceutical supply chain management. One of them being AAJ Enterprises. AAJ is one of India’s leading 3PL and Warehousing Management Organization. They have been in the logistics industry for the past 15+ years and have
Last year, at the Annual Pharma Chain Summit 2019, AAJ Enterprises Director Anamika Jain said that the new perspective for the supply chain in the coming future is that with the digitalization of supply chain, the amount of data and information which is getting generated is best utilized with a unified distribution strategy. She emphasized on the fact that how logistics is seeing a paradigm shift from being cost-sensitive to more customer-oriented.
AAJ Enterprises is not only focusing on shifting its primary focus to the Pharma industry but also aim at improving the working and efficiency of the Pharmaceuticals supply chain in India.
AAJ Enterprises is one of the most trusted third-party logistics (3PL) and Warehousing Management provider in India. They offer several services such as Returns Management, Printing Services, Consulting & Advisory, Supply Chain Management, Space & Infrastructure, Operations Management, Technology Management, Warehouse Management System, Transport Management, Document Management System, Security Management System, among others.