BrazilFinding the right European biopharma distribution partner
As the biopharmaceutical sector becomes increasingly complex and additional cost pressures set in, working with the right distribution partner is more imperative than ever before. This choice must balance cost and quality, and should aim for practicality, recognizing that some distribution and logistical challenges are unavoidable.
High standards of quality and tight cost pressures mean that choosing the right third-party logistics (3PL) partner is incredibly important in the pharma industry. That is according to a whitepaper from AIM, a boutique supply chain consultancy specialized in the life sciences industry.
What makes a good partner
The ideal partner will have competent personnel and clean, well-secured and temperature-controlled facilities. Documentation should be meticulous, they should safeguard product integrity against counterfeits, and handle issues like complaints and recalls effectively.
Other critical selling points for choosing the right 3PL partner include clear contracts, specialist staff, self-inspections, secure transport, a transparent way of working, and robust compliance with standards such as the Good Distribution Practices (GDP). The GDP is a European set of guidelines that helps ensure that the quality and integrity of medicinal products are maintained throughout the supply chain from manufacturers to patients.
Managing the logistics partnership long-term requires a different set of skills than the initial selection. Companies should look for partners that demonstrate clear governance through contracts and that have regular reviews at operational, tactical, and strategic levels, with a structured transition from project to operational mode.
Effective communication relies on clear channels, often using what AIM calls an ‘hourglass model’ where account managers handle tactical issues, while operational and leadership teams communicate directly on their respective levels.
“In addition to the regular operational communications handled by the operations team, there will still be a major role for the account and logistics managers to streamline the more generic and longer-term overall communications, to keep the communication flows clear, and prevent gaps and inconsistencies,” state AIM’s experts in their research report.
A crucial aspect of ensuring effective and efficient operations is related to good planning in terms of properly forecasting supply and demand and anticipating future needs and changes. Integrating electronic systems like EDI and ERP, and utilizing shipping technologies for efficiency and tracking are important technological considerations.
A lasting partnership approach
Companies should further keep in mind that long-term logistics partnerships in the evolving biopharma landscape may not last forever. That is because the industry is constantly evolving, with international players entering the market, or ongoing consolidation through mergers and acquisitions.
“It is important to realize that a partnership with a 3PL will not be an indefinite one. Ultimately, there might come a time to part ways. Having the right structure in place will help in such a case, as it can be very important to say goodbye properly.”
