CCA AGM 2013 Brussels, May In Health Science Logistics, is the Airport the Weakest Link?
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1 CCA AGM 2013 Brussels, May In Health Science Logistics, is the Airport the Weakest Link? PHARMA
2 Pharmaceutical developments Of the 9 billion people in 2050 the share of older people will increase Dependency ratio in many societies will increase This will put burden on global healthcare systems This will also influence the pharmaceutical industry Pharmaceutical trends in logistics Demographics influence volumes much more than seasonality and economic shifts Generic competition has already dented Big Pharmaᾼs revenues ᾶ a trend that will continue, as the patents on products with sales of more than US$267 billion expire over the next six years Increase of generic drugs and therefore potential modal shift from air to sea since cost of inventory will be lower
3 Yield premium for airlines Up to twice the general rate Does extra potential revenues justify additional investments? Pharmaceutical traffic is 3.3 % of the global air cargo market by volume, but has on average 3.5 times the value of general cargo
4 Future supply chain The pharmaceutical supply chain needs a radical overhaul, and it is expected that it will undergo three key changes over the next decade: It will fragment, with different models for different product types and patient segments It will become a means of market differentiation and source of economic value; and It will become a two-way street, with information flowing upstream to drive the downstream flow of products and services
5 Numerous forces are dictating the need for a different kind of supply chain
6 New product types will be developed Industry analysts predict that, by 2016, bioengineered vaccines and biologics will account for 23% of the global market (measured by value), up from 17% in 2009 The product base will become even more diverse However, many of these new therapies and the devices used to deliver them will require more complex manufacturing and distribution processes than conventional chemical entities Product lifetimes will get shorter and competition will get stronger Hence more need to diversify based on logistics & supply chain
7 Information is critical
8 Information visibility is not optimal
9 Need for closer relationship with patient
10 It will become a more demand driven supply chain in the future Financially stretched governments and health insurers are simultaneously becoming much more demanding; they now want clear evidence that the medicines they buy are really effective This has huge implications for the pharma industry: The ability to provide demonstrable value for money will become a critical differentiating factor, and the supply chain will play a key part in providing that value Pharma will need to distribute its products to many more locations, including patients homes. It will therefore have to harness the most efficient final mile distribution networks in order to deliver medicines to the door as economically as possible The digitalisation of healthcare delivery, with greater use of electronic health records, eprescribing and remote monitoring, will reinforce the drive to push healthcare into the community Access to this data will enable pharma companies to build demand-driven supply chains in which healthcare packages for different patients are assembled at super hubs before being delivered to their homes By 2020, information about patients and the medicines they need will thus be as important as the products themselves
11 Growth in emerging markets puts more pressure on performance of local airports
12 China is leading growth
13 Is the airport really the weak link? Modal shift: Is it happening? Is it purely price driven? Would there be a need for an objective quality benchmarking?
14 Next event in Lisbon on September 25 In association with Eva international & the air cargo handling conference
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