Companies that serve the health and medical industry face many challenges that are unique, especially in the areas of logistics management. Due to the very sensitive nature of equipment and products, the strict quality control regulations that must be followed, and the urgency of customer needs, there are many factors that impact the success of health and medical logistics operations. Fortunately, many of these factors can be effectively managed by implementing the right processes, investing in the proper technology and systems, and partnering with the best logistics service providers.
In this article, we will describe some of the most significant factors affecting health and medical logistics, and how a third-party logistics management company can assist in overcoming these challenges.
Warehousing and Distribution
The array of products found in the health and medical industry is extremely diverse. It includes everything from pharmaceuticals and scientific laboratories, to advanced medical technology. As such, the warehousing and distribution needs of companies in this industry are equally varied. Some companies may require precise, climate-controlled environments for their products, while others may need specialized vehicles to carry and deliver extremely sensitive and high value equipment such as MRI & CT imaging devices, laboratory equipment, servers and more. Since the facility and fleet ownership costs are extremely high and complex, most companies look to third-party logistics providers to meet their needs.
The reality is that there are few logistics providers that are capable of meeting the specific needs of every company that exists in the health and medical space. This means that these companies need to carefully evaluate potential logistics providers in great detail in order to determine if the facilities and equipment of the logistics provider are really up to the task.
Some of the specifics that need to be examined are the ability to closely manage and track inventory, environmental conditions of facilities, suitability of the material handling equipment, and transparency regarding the processes used. In addition, health and medical companies would be wise to also look at industry experience and commitment to continuous improvement in their logistics providers. As potential logistics providers are evaluated against these criteria, the list of viable options will become short quite quickly.
There are few industries in the world as heavily regulated as the health and medical industry. This is further complicated by the fact that many regulations vary in scope and complexity depending on the country where the products will be manufactured versus the country where they are sold or used. Many of the regulations that must be followed relate specifically to logistics functions, such as transportation and storage conditions, packaging and labeling, material handling, documentation, and more. Often, these regulations can be met by utilizing what are known as GMP (good manufacturing practice) facilities.
GMP facilities adhere to a set of standardized principles put forth under governmental oversight that dictate how the facility is operated, how personnel are trained, what equipment is to be used, and other important factors. For health and medical companies, for example those involved in pharmaceuticals, benefit greatly from these standardized practices as they ensure that each and every product is handled in exactly the same way before it reaches the end consumer. For health and medical companies, partnering with a third-party logistics provider that includes GMP facilities as part of their available resources is a way to offset significant investment and risk while simultaneously assuring quality control.
Many of the concerns related to warehousing and material handling extend through the entire transportation process, and each stop or checkpoint along the way. It’s critical that transportation personnel, equipment, and environmental conditions are consistently managed at every step. Ensuring that everything that occurs during the journey from once facility to another follows all necessary standards and requirements can be an extremely difficult and complicated process. In order to meet these demands, third-party logistics providers utilize sophisticated tracking and monitoring technology, as well as extensive training for all personnel to ensure that everything is managed as it should be, with no exceptions.
In many cases, this also includes setup and installation of complex equipment once it arrives on-site. Full-service logistics providers will have the capability to deliver complete, turn-key solutions for high value transportation needs and even same-day transportation requirements. This could take the form of either business-to-business or business-to-consumer, depending on the needs and business model of each customer. Flexibility is an important factor to look for in third-party logistics providers, as this will allow them to meet changing needs or unusual situations with ease.
Another benefit to leveraging third-party logistics services is the potential cost savings that can be achieved through their higher levels of efficiency. In addition, since third-party logistics providers specialize in these functions, the risk of product damage or loss is greatly reduced, and the consistency of the end-user experience is improved, resulting in significant savings in time and resources.
Why it Matters for your Business
As you can clearly see, there are substantial benefits for companies in the health and medical industry who invest in the areas of logistics, transportation, warehousing, and distribution. Choosing the best third-party logistics partner will yield increases in efficiency, provide assurance of regulatory compliance, reduce costs and improve the overall ability for a company to meet the demands of the highly competitive health and medical industry.
If your company is struggling to meet these challenges, the experts at SCI can help. Our team of logistics professionals can assist your health and medical company adjust and evolve your approach to material handling, transportation, warehousing, regulatory compliance, and more.
Contact SCI today and let us help you achieve greater success through strategic logistics management.