It’s All in the Package

And indeed, the package is one of the most important components in cold chain shipping. According to the 2014 Pharmaceutical Commerce Biopharma Cold Chain Sourcebook, cold chain logistics spending was estimated at $8.4 billion globally. Of this amount, about a third, approximately $2.8 billion, is spent on packaging and instrumentation such as insulated boxes, blankets, active temperature-control shipping containers and various temperature sensors and recorders.

The pharmacuetical supply chain is expanding further and further into such emerging markets as Asia, Latin America and Africa and as these supply chains expand, concerns of product protection increase. As noted in UPS’ annual Pain in the Supply Chain Survey, 46% of survey respondents noted concern for product security as a top concern while 40% noted product damage or spoilage. This is important to note particularly as about seven out of ten of the leading pharmaceutical products require some sort of temperature-controlled transportation. In addition, regulations are driving the need for more transparent temperature handling processes. Auditors want to see evidence of end-to-end handling and those processes documented and in practice.

As a result, package enhancements are ongoing. In February, UPS announced the expansion of its UPS Temperature True Packaging services. According to its press release, the service now extends to consultation, package procurement and off-the-shelf specially designed packaging lines available exclusively to UPS customers.

UPS is certainly not alone with its specialized package services. FedEx also offers its line of cold chain packaging as do a host of other logistics providers such as DHL and TNT.

And, this is all to alleviate pharmaceutical manufacturers’ concerns of transportation of these valuable products. According to one publication, when temperatures slip, companies can lose on average $150,000 on a small package shipment. For large freight shipments, damages can run even higher.

So, to keep temperatures slipping, the use of active packaging may be an option. This type of packaging helps to control the temperature of a drug using a variety of methods including via electricity and/or battery.

Active packaging often takes the form of leased containers such as those from C-Safe and Envirotainer. Both of these companies offer a range of containers that are able to manage temperature ranges. Both companies also have established a global network which one can utilize to drop off and pick up.

However, active packaging can be viewed as an expensive service for some and as such, passive packaging maybe an option. In particular, if strict temperature performance is not a requirement. Cryopak and ThermoSafe are among several companies designing innovative passive packaging such as re-usable gel packs and vacuum insulated panels.

There are lots of packaging options for pharmaceutical companies. How to decide which is best? UPS’ latest offering, consultation services, will certainly be welcomed in the industry. Indeed, like packaging offerings, consultation services are available from many logistics providers. By partnering with logistics providers that are well-versed in compliance requirements as well as the overall pharmaceutical industry, companies will benefit in deciding the best packaging combined with the best transportation mode. This is important particularly as many pharmaceutical companies are turning to ocean transport for a number of reasons such as cost savings and sustainability. In addition rail is being utilized for similar reasons.

For example, DB Schenker’s DB SCHENKERsmartbox solution is one that is utilized by its pharmaceutical customers as well as other industries. According to its website, a device clamps to an ocean freight container allowing the customer to track its movement at all times.

In 2014, DHL introduced its temperature-controlled China-Europe rail service. DHL notes on its website that its containers are lightweight, made from aluminum and high-strength steel and provide their own energy using a diesel-electric engine. All are fitted with an advanced track and trace system that allows customers to not only know their shipment’s precise location but also check and modify internal temperatures during the route if necessary.

So, it is indeed all in the package – active or passive and how it fits with air, ocean or rail transportation – logistics providers are able to provide these types of value-added services to pharmaceutical companies, while pharmaceutical companies in turn focus on their core competency as they expand throughout the world.