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Third-party Logistics Helps the Development of the Pharmaceutical Cold Chain Industry

In the post-epidemic era, under increasingly strict supervision, the development trend of the pharmaceutical cold chain has become clearer. It is a rare development opportunity for the 3rd party logistics transportation that the pharmaceutical cold chain relies on.

Ⅰ. The pharmaceutical cold chain market has grown steadily

Medical cold chain logistics refers to the refrigerated drug transportation system project for people to treat diseases. In the entire logistics process of the pharmaceutical cold chain, it is necessary to ensure the cold storage effect of drugs in each chain link.

Ⅱ. The intervention of 3rd party logistics is an effective supplement to the existing medical circulation field

The pharmaceutical cold chain logistics market is a typical B2B market. In the past, it was dominated by pharmaceutical commercial circulation companies, and each commercial enterprise decided its cold chain distribution model based on its own sales.

At this stage, there are two types of market participants in China’s pharmaceutical cold chain industry:

  1. A professional pharmaceutical cold chain enterprise

Such companies have entered the medical cold chain field earlier, and are widely favored by downstream medical institutions and pharmaceutical companies due to their professionalism in pharmaceutical products.

However, such enterprises also have the following disadvantages:

high cost:

The cost of purchasing cold chain infrastructure is huge, the distribution of transportation points is scattered, and the demand for pharmaceutical products fluctuates greatly, which all cause the cost of cold chain transportation to remain high. Only pharmaceutical companies, scientific research institutions and large hospitals with relatively strong economic strength can cooperate with them. Small pharmaceutical companies and small private hospitals are discouraged in the face of high expenditures;

Limited transportation network coverage:

The construction of a cold chain logistics network requires extremely high costs, so the coverage capacity is limited. After nearly ten years of development, Shanghai Biologics Flow, which has developed well in the field of medical cold chain, has only covered most of the provincial capitals and provincial economic centers in the country, and it is difficult to reach other more remote areas. Based on this, the second category of pharmaceutical cold chain companies is needed as a supplement to make up for the shortcomings of professional pharmaceutical cold chain companies.

  1. 3rd party logistics companies

3rd party logistics companies have been deeply involved in the logistics field for many years. They usually have a complete transportation network and rich transportation experience. They are far better than traditional pharmaceutical cold chain companies in terms of cost control and network coverage, and can effectively make up for the deficiencies of pharmaceutical cold chain companies. It is necessary to encourage 3rd party logistics companies to enter the field of medical cold chain.

3rd party logistics companies also have certain limitations, such as:

Although relevant practitioners are proficient in cold chain logistics knowledge, they lack understanding of pharmaceutical products, and lack of consideration of the characteristics of drugs during transportation, which leads to increased safety risks;

Combined transportation of medical products and other products can effectively reduce costs, but it also increases the risk of drug infections.

The intervention of 3rd party logistics is essentially to improve the convenience of reaching patients, but it still needs to complement the shortcomings of professional knowledge and talents in the fields of drug legality and safety of use. Therefore, for 3rd party logistics, through the establishment of strategic alliances with pharmaceutical distribution companies that have terminal networks and distribution systems such as pharmaceuticals, retail pharmacies, etc., it can better exert its logistics service advantages.

Find high quality 3rd party logistics suppliers, manufacturers and suppliers at pharmasources.com – the largest b2b platform in pharmaceutical industry.

Dangerous goods transportation by sea

Category:Logistics > Dangerous Goods Logistics

Product Name:Dangerous goods transportation by sea

Price(USD):Negotiable

Company:Shanghai Sungreen International Logistics Co.,Ltd

3rd party logistics supplier’s page:

https://www.pharmasources.com/suppliers/catid/logistics-776-page-1

Here are some events in pharmaceutical industry:

CPhI Discover

Time:May 17-28, 2021

Country/Region:Netherlands

Organizer:Informa Markets

CPhI Korea 2021

Time:October 11-13, 2021

Country/Region: Republic of Korea

Venue:SEOUL

Organizer:Informa Markets

More events, you can find here: https://www.pharmasources.com/events

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