< PreviousLOGISTICS20Pharma Business International www.pbiforum.netFrom pointto point Transport remains one of the most costlyand complicated parts of the supply chainfor many in the pharmaceuticalmanufacturing industry, and is often sceneas the go-to location for cutting costs,improving efficiency – or limitingenvironmental waste. Over the years however the industry hasbeen squeezed so much, not only bycompanies looking to cut costs – but alsoever-increasing costs of fuel and tax relatedto it. While more recent cuts in the cost ofoil have had a beneficial effect on theindustry, suppliers were quickly expected topass those savings on to their customers. One of the big questions faced by manymanufacturers in this situation – one ofneeding to transport fragile and strictly-regulated goods more often to meet quotas,is whether they should seek to increasetheir transport fleet – and all the costsassociated with it, or whether they shouldlook to invest in more facilities closer to thedestination, usually in the form ofwarehouse or storage space.While the latter certainly sounds like themost efficient long-term option, it is by farthe more costly one – which is a directresult of the supply and demand for highquality warehouse space at this time.Simply put, there is not enough Grade Awarehouse space to go around, and whencompanies are dealing with large quantitiesof pharmaceutical goods that need to bekept at a regulated temperature – therereally is a necessity for the warehousespace to be of the highest quality. As the available space decreases,chances are the cost of rental will increase.And this only gets worse when we considerthat consumer demand for goods is notlikely to slow in coming years. In fact, with itbeing predicted that by 2050 the populationof the world will top nine billion, with over65% of that living in urban areas… well, thelogistical nightmare is expected to getworse. The other option is to consider expandingtransport fleets to accommodate for theincreased demands, with more goods on22 ÁTransport is a go-to location for cutting costs, but how much furthercan the industry be stretched?20-23.qxp_Layout 1 04/12/2018 15:09 Page 1Pharma Business International 21www.pbiforum.netLOGISTICS20-23.qxp_Layout 1 04/12/2018 15:09 Page 2LOGISTICS22Pharma Business International www.pbiforum.netthe road at any given time to keepproduct in the retail stores andpharmacies fresh. While this will certainlyavoid the issue of limited warehousespace, the long-term costs of such anarrangement may become untenable formany manufacturers. Expanding a fleetnot only increases fuel and vehiclerelated costs – but also recruitment costsfor drivers, wages and associated HRand administration costs. There is alsothe issue of environmental impact andcarbon waste created by a fleet. Becausethe only issue that can matchconsumer’s demands for fresher food – isthat food and drink manufacturers shouldbe doing all they can to reduce theimpact on the environment, notcontribute more to it. Many companies are seeking tocombat the issue through a combinedapproach, both of improving theefficiency of their existing transport fleets– while also better utilising existingwarehouse space. Intermodal transport isa popular method utilised predominantlyin the US – but also in Europe as well.The guiding principle is to mix multipleforms of freight transport to achieve a netreduction in costs, be it energy or capital.The typical example would be to use railto shift huge quantities of goods to agiven warehouse closer to the finaldestination – before then having lorriesferry the goods the last distance intourban areas. While this can obviously save manythousands of road miles there is theissue of rail availability, especially in theUK. The reason why it is so prevalent inAmerica is thanks to their abundance offlat land that is suitable for rail. UK rail© Shutterstock /Dmitry Kalinovsky20-23.qxp_Layout 1 04/12/2018 15:09 Page 3Pharma Business International 23www.pbiforum.netLOGISTICSsystems are often not as well developed– and while that hasn’t stoppedcompanies utilising rail for intermodallogistics, it does mean companies aresomewhat limited in location. Beingforced to settle warehouses where therail links are strongest. Savings on warehouse space can befound in improving efficiency to increasethe amount of product that can be storedin any given amount of space. Advancedracking solutions, combined with morerobust supply chain systems enablecompanies to increase throughput whilealso cutting costs associated with losttime or product losses. As always, thetrick is in finding out exactly how much ispossible given space limitations – andadapting what can be used for acompany’s products, be they palletisedgoods – or more individually stackedproduce. Even beyond efficient storage howeveris the concept of efficient temperaturecontrol. With the vast majority of pharmaproducts needing to be kept at specifictemperatures there are obviously savingsthat can be made in doing so. After all itis more expensive to reduce thetemperature of a storage facility, than itis to maintain it. Any losses intemperature due to breaches, poorworker attention to detail – or just oldage, will result in costs that can soonspiral out of control. Little has changed in terms of thechallenges the industry faces, but as italways has – the technology continues toadapt. Failure to keep in touch with thesechanges and take advantage ofopportunities that present themselvesmay mean disaster for many. © Shutterstock /Montypeter20-23.qxp_Layout 1 04/12/2018 15:09 Page 4NOVEL MEDICINE24Pharma Business International www.pbiforum.netA novelapproachThe novel drugs industry is one that relies on innovation, buthas continued to expand year on year. © Shutterstock /paulista24-27.qxp_Layout 1 04/12/2018 15:10 Page 1Pharma Business International 25www.pbiforum.netNOVEL MEDICINEInnovation drives progress andnowhere is this truer than in the noveldrugs industry. Designed to meetoften unmet medical needs orsignificantly help to advance patientcare and health, novel drugs areoften aimed at problems that haveeither gone untreated or, in somecases, side-effects that have beenaccepted as necessary. In manycases, these drugs treat the negativeeffects of other drugs that might bewidely used, but which might haveside effects that are, while notdangerous, impactful to a patient’squality of life.In other cases, novel drugs treatproblems that are widespread but notimmediately dangerous – such asAemcolo, which was approved in2018 to treat travellers’ diarrhoea. However, sometimes novel drugsare simply new innovations and newdiscoveries. These are more26 Á© Shutterstock / Rattiya Thongdumhyu24-27.qxp_Layout 1 04/12/2018 15:10 Page 2NOVEL MEDICINE26Pharma Business International www.pbiforum.netimportant than ever in a world wherepathogens are becoming increasinglyresistant to medicine and will hopefullysave lives.Fifty-five different novel drugs wereapproved by the US Food and DrugAdministration (FDA) in 2018 for a widerange of conditions from treating patientswho have relapsed or refractory myeloidleukaemia (Xospata), through to treatingpatients who have cystic fibrosis who areage twelve years and older (Symdeko).The 55 approvals of 2018 is up from 46 in2017 and only 22 in 2016, showing asteady increase in novel drugs passingthrough clinical trials and into the FDA’shands. The availability of new drugs oftenmeans new treatments available forpatients and a wider option of care, but italso means a more competitive industry,which helps to keep healthcareaffordable.The industry itself is one for which R&Dis a major player – and this has not goneunnoticed by the giants of pharma andhealthcare. Acquisitions has always beena key business strategy pursued by the24-27.qxp_Layout 1 04/12/2018 15:10 Page 3Pharma Business International 27www.pbiforum.netNOVEL MEDICINEgiants, especially aggressive acquisitions,but the focus on R&D has also beenembraced, leading to an increasinglycompetitive market when it comes tohiring new talent. This has created a braindrain of sorts, though due to more jobsbeing available than a decrease ingraduates. Even so, the importance ofpushing for more interest in schools anduniversities is certainly going to benecessary. By highlighting the attractive,exciting and often lucrative nature of thepharmaceutical industry, the youngergeneration might be tempted to aim theircareers towards the industry. The novel drugs industry continues togrow year on year, and is unlikely todecrease anytime soon, but if companieswish to continue with the success they’vehad, then further investment is going tobe necessary – not just in new labs andpersonnel, but down the supply line,perhaps in educational facilities to helptrain the next generations of researchers. With more novel drugs being approvedyear on year, however, the future of theindustry looks to be positive. © Shutterstock /Gorodenkoff24-27.qxp_Layout 1 04/12/2018 15:10 Page 4MANUFACTURING28Pharma Business International www.pbiforum.net© Shutterstock / Dmitry Kalinovsky28-31.qxp_Layout 1 04/12/2018 15:11 Page 1Pharma Business International 29www.pbiforum.netMANUFACTURINGPharmaceutical manufacturing remains one of the mostautomated and refined of industries in the world, more bynecessity than anything else. With stringent hygienerequirements, the human element has been removed fromthe production line at key points, and this has led toefficiency that other industries have been slow to pick up.Even the food and drink industry, which runs similar hygieneand sanitation protocols, still boasts human involvement inmanufacturing, with the UK in particular falling behindEuropean and global rivals to embrace robots andautomated production lines.Costs in investment and keeping up with this productionhave made maintaining lines difficult, however. There isalways new technology, and with old machines becomingoutdates or inefficient by comparison, there is often a needto push further, lest the competition do so in your place.Contract manufacturing has become a popular alternativeas a result, essentially allowing pharma giants to outsourcetheir manufacturing needs. Outsourcing production used tobe a risky prospect, something that was only considered asa last-minute resource in a situation where an influx ofdemand, or a problem with your own production line hadtaken place. Nowadays, however, with the increasedtechnological development – and as a result the moreaffordable access to technology – outsourcing pharmaproduction is not as risky a prospect as it once was.Manufacturinga solutionKeeping up with changes in manufacturing can be difficult, which iswhy so many outsource such concerns to others31 Á28-31.qxp_Layout 1 04/12/2018 15:11 Page 2Next >