About one-third of the revenues generated by drug companies is spent on transportation

Snowman Logistics, an integrated temperature-controlled logistics services provided has been increasing its pan-India presence with strategically located temperature controlled warehouses, including key markets of Mumbai, Chennai, Bengaluru and Kolkata. Manoj Pant, Regional Business Manager – West, Snowman Logistics, speaks on the technological transformations in pharma logistics and how his company is poised to serve the pharma sector, in an exclusive interaction with Lakshmipriya Nair

What are the significant changes and improvements that technology has ushered into the logistics industry to meet the demands of an evolving pharma industry?
The biopharma segment is heavily dependent on the cold chain industry, with exports expected to grow by 18 – 20 per cent in terms of value, between 2017 and 2022 (Source- CRISIL report). The cold storage capacity while having grown 1.2 times between 2012 to 2017, has faced several challenges in this time too. Although the cold chain in terms of pharma is maturing fast, there remain several challenges on the development of a very strict cold chain protocol. Broad challenges are evident in the supply and distribution chains of pharma products. While most cold chain players operate in multiple segments to ensure better margins and diversification, a few target only the pharma and biopharma segments where margins are higher as quality has to be maintained. The industry is still undergoing constant technological advancements to ensure smooth operations where the quality of pharma products is unhindered.

Some of the technological advancements include:
Drone scan with RFID technology for inventory and barcode scanning: Usually, logistical items are tracked and traced through the reading of essential codes. Commercially, different type of readers are available for reading such codes such as barcode reader, QR Code reader, RFID reader, etc. With the introduction of DroneScan technology, large warehouses can now opt for a robotic solution to take stock (inventory), providing live feedback and integration with Warehouse Management systems. DroneScan uses a drone to scan the barcode on each pallet and records the location of each item in the warehouse management system, proving to be up to 50 times faster than manual capturing. At present, this technology is being used by large e-commerce companies and we may soon find many pharma organisations using this technology in warehouse inventory management.

Cloud technology for data storage: Cloud-integrated logistics not only provides data in real-time but also makes it accessible to the entire team, regardless of location or time. Universal accessibility makes processes that require round- the-clock monitoring far easier to handle. This provides real-time visibility into logistic processes and data, which helps to keep operations under control.

Cloud-based master data for tracking: With the use of master data, cold chain companies can get real-time insights into the availability of materials and products to reduce supply chain risks and optimise costs.

Temperature tracking using IOT cloud: To avoid breakdowns, cold storages can deploy IoT-enabled monitoring solutions like embedded sensors. When installed throughout a cold chain facility, these sensors collect data on environmental conditions and promptly send alerts. They transmit the gathered data to warehouse management systems fostering a coherent tracking network. When IoT-based solutions come into play, there is no need to check environmental conditions of cold storage manually. Apart from real-time asset tracking, the data obtained through the IoT-powered sensors provide a better understanding of risks involved, helps improve operational output and distribution schedules. This inevitably translates into high customer retention, as cold chain logistics become more streamlined and visible.

How is the cold chain pharma logistics landscape in India changing? What are the driving factors?
The latest in the pharma landscape is the aggressive growth of biologics and biosimilars, both of which need temperature-controlled storage. Fortunately for India, we hold the title of having the largest cold storage capacity in the world. Although previously labelled by experts as insufficient and the leading cause for high annual wastage levels, India’s cold storage facilities have now been improved. India’s cold chain management in general, however, needs some organising with lacking infrastructure and disjointed supply chains hindering the market’s growth. Stakeholders need to obtain and increase their accountability to improve the quality and streamlining of operations in pharma.

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