This is a number that will be discussed extensively in the media between now and the election in 2020: more than three trillion dollars. The amount of money that is spent on healthcare in the United States is equal to this total.
The costs associated with staffing the system are by far the most expensive aspect of the health care system. The second most expensive aspect is the cost of medical and pharmaceutical supplies. Although some of the cost comes from the research and development that goes into these supplies, the rest comes from the logistics involved in the medical and pharmaceutical industries.
The market for medical transportation services was “valued at USD 21.82 billion in 2017 and is expected to reach USD 31.51 billion globally by 2026,” as stated by Zion Market Research.
The transportation of healthcare logistics companies and pharmaceutical supplies is influenced by a variety of factors, just like many other aspects of logistics as a whole; however, there is additional stress involved. The precision and swiftness with which medical and pharmaceutical logistics are performed can make or break a patient’s chance of survival.
This means that businesses have to make use of the most recent technologies, be aware of the relevant regulations, and be familiar with the specific requirements of each shipment. The following are four challenges that are faced by medical and pharmaceutical logistics, as well as some solutions that are being developed by the logistics industry.
Protection of the Supply Chain
At this point in time, technologies such as blockchain are able to guarantee the safety of shipments anywhere in the world. This is a particularly important piece of technology to adopt for the logistics of the medical and pharmaceutical industries. A one-of-a-kind code is printed on a shipment using blockchain technology, which enables the shipment to be tracked and traced at every stage of the shipping process.
Because “regulators and companies can determine the authenticity, identity, and whereabouts of a particular drug product,” this type of security and tracking is important.
In order to comply with regulations, pharmaceutical companies require management of their supply chains to be seamless. Through our client platform, AFP Global Logistics provides our customers with the essential level of security they require, along with access to real-time data and metrics.
Recent Advances in the Field of Medicine
In today’s world, more and more therapies, medicines, and treatments are being tailored specifically to the individual patient. In the past, doctors would prescribe medicines to patients based on the patient’s condition, in addition to possibly other factors such as age, gender, and previous medical history.
On the other hand, the past few decades have witnessed an increase in the development of treatments that are individualized for patients and sometimes based specifically on the patient’s genome or the genetic cause of their condition.
Although this is very encouraging news for the medical field and for patients, it does present a challenge for the industry of logistics. Drugs may now need to be delivered directly to patients, whereas in the past, pharmaceutical companies manufactured treatments on a larger scale before sending them to pharmacies and hospitals for distribution.
Because of this change in medical practice, logistics companies are now required to maintain close relationships with their customers, provide adaptable logistics solutions, and come up with various options for delivery in the final mile.
Climate Control
Additionally distinctive is the requirement that almost all medical and pharmaceutical products be stored in a temperature- and humidity-regulated environment. Both solid and liquid medicines, as well as products used in medical technology, can have their effectiveness compromised when exposed to temperatures that are too high.
Historically, shippers would only take the temperature of the goods being transported at the points of loading and unloading.
This offered a few insights, but it did not provide a comprehensive picture. Clients did not have access to temperature data during the transportation phase. This may present a particularly difficult challenge at the final unloading point. Patients run the risk of not receiving the necessary medication if the temperatures were not appropriate but this fact is not discovered until delivery time.
Shippers are now able to maintain a continuous monitoring of temperature data thanks to technological advancements such as smart packaging, wireless and Bluetooth technologies, and real-time temperature tracking devices. The cold chain logistics division of AFP Global Logistics provides a comprehensive suite of services.
A climate-controlled environment is provided for all of our ground, air, and rail transportation, and a climate-controlled environment is also an option for our warehousing and storage facilities.
In regards to both Customs and Documentation
Recent unpredictability in international trade contributes to an increase in the difficulty of cross-border logistics. This also applies to the logistics of the medical and pharmaceutical industries.
Recently, the Department of Health and Social Care in the United Kingdom made the announcement that in the event of a no-deal Brexit, they would spend up to 3 million GBP to ensure the safe transportation of medications, blood, and transplant tissue. They are aware of the critical significance of having quick and uncomplicated access to the pharmaceuticals and medicines that are required by the nation.
Recently, in the United States of America, President Donald Trump proposed that in order to bring down the overall cost of medical care, the nation should investigate the possibility of importing prescription drugs from Canada.
According to Kaiser Health News, “The proposal would permit pilot programs developed by states, pharmacies, or drug distributors that sought to safely import prescription medications from Canada.” This would allow for the importation of prescription medications from Canada in a more secure manner.
This has the potential to open up new channels for the shipping of pharmaceuticals, which would need to comply with the regulations and industry standards currently in place. More than 25 years have been spent by AFP Global Logistics working in the field of logistics, which includes international transportation and logistics. We provide brokerage services at the customs house, as well as import-export services, full documentation preparation, and AES compliance.