Challenges faced by healthcare logistics in India

Viliam Jhon
3 min readFeb 4, 2021

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Healthcare logistics refers to the logistics that involve pharmaceuticals, medical and surgical supplies, medical devices and equipment, and other products. The use of these products at the right time is responsible for saving the lives of many patients. Hence, healthcare logistics needs to be effective and timely, as so much is at stake. Within the healthcare industry, logistics management in pharmaceutical industry is critical as they need to maintain a high standard of care for patients and provide adequate medication supplies to pharmacies. Therefore, it is essential that this is managed effectively to ensure that both service and cost objectives are met.

While it is common knowledge that healthcare costs are rising at an alarming rate, the one area where costs can be reduced is in the healthcare supply chain. Logistics accounts for a sizeable portion of the healthcare operations budget. Some of the biggest challenges in healthcare logistics include waste management, storage and inventory management, device maintenance and sanitation, and shipping.

Challenges faced by healthcare logistics in India

· Overnight shipping

· Lack of automation

· Hidden costs

· Inventory shortages or excess stocks

· Data shortage

· Lack of integration

· Physician preferences

Few other concerns faced by the healthcare industry are ever-increasing rules and regulations, supply chain inefficiency, product security and demand for optimal quality of service. By optimizing healthcare logistics in India, the rising costs associated with healthcare can be reduced. In fact, Indian healthcare providers are implementing AI and ML-powered techniques for processing their patients’ data, which helps to create a smoother supply chain operation.

Safexpress, a leading logistics service provider with its multimodal network across India provide express distribution services to deliver time and weather sensitive medicines and healthcare equipment. They also provide logistics to deliver samples to medical representatives across India as per the medical representative’s time and convenience.

Logistics management in pharmaceutical industry

Pharma logistics is one of the most important stages of the operations for the pharmaceutical industry as the activities are highly time-sensitive. A majority of medical and healthcare products are derived from biological sources, making them highly sensitive to fluctuations in the weather. In India, due to varying weather conditions, it is important that healthcare products with a short shelf-life are transported and delivered in a safe and reliable manner. Pharmaceutical products need temperature-controlled storage and distribution.

Important considerations for pharma logistics:

• Protection from contamination

• Managing perishable products

• Maintaining temperature control

• Exceptionally long cycle times

• Maintaining inventory

• Specialized packaging

• Data loggers for temperature control

• Maintaining delivery schedules and meeting deadlines

• Relative humidity indicators (RH)

Logistics challenges in the pharmaceutical industry

Pharmaceuticals are lifesaving products, and hence, pharma logistics services are tremendously important. These products need to be delivered at their destination quickly and safely. But pharma logistics face many challenges like:

• Lack of coordination

• Temperature control

• Paper work and administration

• Warehouse management

• Lack of robust cold chain network

In conclusion

Time-bound delivery and temperature control are factors that are especially important for logistics management in pharmaceutical industry. With India being the world’s third largest producer of pharmaceuticals in terms of volume, massive investments are going into the development of cold chain and logistics currently. Pharmaceutical companies are increasingly putting in efforts to ensure temperature controlled supply chain and logistics, to provide patient-centric and cost-effective services.

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