Pharmaceutical Outsourcing Q2 2024 - 8

SUPPLY CHAIN
Six of the Best Methods to Spark
Distribution Improvement and
Innovation for the Next Decade
C. Ray Goff, Jr., PMP
Principal Engineer
Amgen
Introduction
Today, we see challenges not seen in a peacetime environment.
COVID-19 slowed down the supply chain and extended overseas
supply lead times from days to weeks to months. However, among
the many lessons learned was how to make existing products last
longer and become more productive.
The best methods described in this article will reveal innovative ideas
about quality, cost savings, cost avoidance, productivity, right-sizing
shippers to fit the order packs, and/or increased distribution capacity
and agility. An added benefit is improved Environmental Sustainability
(ES), reducing solid waste, disposal costs, and greenhouse gases
(GHGs).
To start, it is important to understand what shipping means:
Shipping is a dynamic sequence of events with varied environments
that involve a number of different parties with many touchpoints.
The shipping solution, as it journeys from origin to destination, must
deliver, as a minimum, physical protection and temperature controls
for the product/payload.
The Operating Levels of Each Method
The methods presented in this article work on one level and may
build in size to cover several levels. The term " method " is used in
this article to identify the approach and concept for each group of
improvements that support shipping.
The first level is the shipping solution. It focuses on the characteristics
of the shipper container alone and its inherent capabilities and
opportunities. This level involves a single facility that performs:
* Warehousing and storage
* Conditioning of refrigerant and products
* Assembly
* Packing
* Shipping operations
The second level, which includes the first level, is the fleet of
shippers at one or two sites. This may be a family of different sized
shippers that carry a similar thermal design. Refurbishment services
are provided by the sponsor (product manufacturer), or by an
outsourced service provider.
The third level involves the first and second levels at a multi-site or
large network level (regional or global). This is a much larger scale
of activity for reusable (RU) shippers offering more services, such
as: warehousing, product and refrigerant temperature conditioning,
packing and shipping, recovery and refurbishment services.
Depending on the business model - it is almost an outsourced activity.
The Best Methods are listed below with a brief description, as well
as typical quality, cost savings and ES benefits. Each of these methods
has been successfully implemented in the pharmaceutical/
biotech industry.
Pharmaceutical Outsourcing | 8 | April/May/June 2024
Pharmaceutical Outsourcing Q2 2024

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