Supply chain challenges of personalised drugs, and ways to tackle them

A growing market, a challenging market, and an engrossing market. That could well be the description of the Indian pharmaceutical logistics market now and in the coming days, given the challenges of healthcare, new viruses and personalised medicines becoming the norm.

2024 was the year when the pharma industry actually saw the coming-of-age of direct-to-patient logistics. "With the increased focus on biologics, specialty pharmaceuticals and personalised medicine, advancements in cold chain technology will need to keep up to ensure patients across the world continue to receive the quality service and care they deserve," says Arnab Bhattacharya, Country Manager, UPS Healthcare, India. "We’ve seen with our 99.9 percent on-time delivery of vaccines, the levels of reliability we can deliver as an industry.

"The future of cold chain will be shaped by five key challenges – the increased need for deep-frozen and cryogenic storage; on-going and unexpected disruption to supply chains caused by factors such as labour disruptions, shifts in manufacturing or added strain on the global freight market; enhanced costs and complexities of scale; ensuring coordination and collaboration with new entrants into the complex healthcare value chain; and increased sustainability requirements.

"We will continue to work closely as an industry to plan resilience and multi-modality in our supply chains and built-in contingencies."

Specialised solutions
Etihad Cargo’s PharmaLife service has been extremely well-received by pharmaceutical shippers in India, according to Giridharan Srinivasan, Area General Manager – Indian Subcontinent, Etihad Cargo. "The launch of several PharmaLife roadshows in 2024 substantially boosted awareness and understanding of our dedicated life sciences and healthcare offering, leading to a doubling of PharmaLife volumes within a year.

"India’s pharmaceutical industry, which exports medicines to over 200 countries, is often cited as producing between 60-70 percent of the world’s generic drugs. India’s prominent role as a global pharma hub is driven by its large-scale generic drug manufacturing capabilities and extensive export reach, according to the Indian Brand Equity Foundation (IBEF) and various government reports With over 46,000 tonnes of cargo handled annually and 588 monthly rotations connecting India to over 100 destinations, we have strengthened partnerships within this vital market.

“India is now our #6 PharmaLife country within Etihad Cargo’s network. Our top stations - Hyderabad and Mumbai - are on an impressive upward trajectory with a 56 percent increase in shipped volumes compared to 2023. Given the potential of these two major pharma markets, we expect to grow our share further by 2025.”

UPS Premier is not just a service; it's a commitment to meeting India's evolving healthcare needs and ensuring the safe and timely delivery of life-saving medicines and healthcare products.
- Arnab Bhattacharya, UPS Healthcare

Maersk has reported strong interest in its integrated pharma cold chain management solution, which includes Hypercare as a critical component. "What resonates most with our customers is the enhanced temperature integrity we can ensure through our end-to-end asset ownership," says Ashish Agrawal, Head of Reefer, Cold Chain and Pharma for Maersk in India, Bangladesh & Sri Lanka. "This is particularly crucial for maintaining product quality, and, ultimately, patient safety in the case of pharmaceuticals.

"When considering pharmaceutical logistics, we must remember that at the end of every supply chain is a patient waiting for their medication. Rigorous temperature monitoring isn't just about logistics – it's about ensuring that life-saving medications reach patients in perfect condition. Every step to maintaining product integrity directly contributes to better patient care. Therefore, robust monitoring of pharmaceutical movement is essential. We deploy a combination of manual monitoring and technological solutions, such as Captain Peter, which makes the system flawless.”

UPS Premier, the specialised pharma solution, has been received very positively by customers in India, adds Bhattacharya. "They appreciate the real-time monitoring, network prioritisation, integrated service recovery capabilities and 24/7 visibility and control it offers over critical healthcare shipments.

"Indian customers are excited to see how this technology-focused solution enables UPS Healthcare to classify and identify critical shipments even before they leave their hands. This level of innovation offers them a new standard of reliability, visibility, and confidence across their supply chain. UPS Premier is not just a service; it's a commitment to meeting India's evolving healthcare needs and ensuring the safe and timely delivery of life-saving medicines and healthcare products.”

With over 46,000 tonnes of cargo handled annually and 588 monthly rotations connecting India to over 100 destinations, we have strengthened partnerships within this vital market.
-Giridharan Srinivasan, Etihad Cargo

Generic medicines and vaccines are the most transported products from India, reflecting the country's pivotal role in the global healthcare landscape, according to Anoop Chauhan, Vice President - Contract Logistics & Cold Chain, DP World Subcontinent. “The country's robust manufacturing base and export-oriented approach have led to high demand for specific trade routes.

"Routes connecting India to the Middle East, Africa, Europe, North America and ASEAN are critical. These regions are major importers of Indian pharmaceutical products, including vaccines, biopharmaceuticals and generics. Key export destinations include:

*USA (40 percent of generic drug demand)

*UK (25 percent of all medicines); and

*South Africa, Netherlands, France and other African nations like Algeria and Egypt.

"Within India, manufacturing hubs like Hyderabad, Ahmedabad, Bengaluru, Pune, Ambala and Siliguri are major centres of production. These hubs rely on seamless connectivity to port cities such as Mumbai, Mundra and Kochi for exports. DP World ensures this connectivity through a network of temperature-controlled warehouses in major cities and free trade warehousing zones in Nhava Sheva, Chennai and Kochi, which streamline operations and enhance market access."

Jeena Criticare, a subsidiary of Jeena & Company, a 125 year old logistics service provider, was launched to address the increasing demand for specialised logistics solutions, focusing on critical items such as medicines, vaccines and medical devices, says Rajib Guha, Director, Jeena Criticare Logistics.

"The Covid-19 pandemic further solidified the need for the service as Criticare played a significant role in managing the distribution of large vaccine consignments across India. It highlighted the critical role of robust, temperature-controlled supply chains in maintaining the efficacy of vaccines and other sensitive medical supplies. Jeena Criticare is the demonstration of our commitment to addressing these unique challenges, ensuring that vital healthcare products reach their destinations safely and on time, even under extraordinary circumstances.This led us to collaborate with leading diagnostics & companies and healthcare providers such as Agilus Diagnostics, Cordlife, Thyrocare, Dr. Lal PathLabs, Metropolis & Reliance Lifescience."

Rigorous temperature monitoring isn't just about logistics – it's about ensuring that life-saving medications reach patients in perfect condition.
-Ashish Agrawal, Maersk

Tech solutions for pharma challenges
Etihad Cargo has integrated IoT devices into its unit load devices (ULDs), providing real-time data on temperature, humidity and location to maintain shipment integrity. Srinivasan says: "We have run projects deploying AI-powered solutions to optimise capacity utilisation and automate load planning, ensuring operational efficiency. We are also launching a VR initiative. Moving forward, we plan to expand these technologies across our network, creating a connected ecosystem that raises the standard for pharmaceutical logistics globally."

Globally, 80 percent of Maersk’s fleet is compliant with reefer container monitoring (RCM), adds Agrawal. “For pharmaceuticals, RCM-compliant containers are prioritised. The temperature of our containers is meticulously monitored at every stage of the journey - on our vessels, at our terminals and at third-party terminal operators. While on the roads, it is managed by our control tower team to ensure that the efficacy and safety of the medicines are maintained throughout the entire transportation.

“RCM technology serves as the foundation for Hypercare's cargo monitoring capabilities, feeding essential data directly into the Captain Peter application. This digital visibility assistant enables customers to maintain comprehensive oversight of their cargo conditions throughout the transportation journey.”

We utilise IoT-enabled sensors, real-time tracking and warehouse management system (WMS), integrated with customer systems, to enhance visibility, predict disruptions and proactively manage risks.
-Anoop Chauhan, DP World

When you’re managing a complex healthcare supply chain, finding and fixing a problem is a lot easier when you know exactly what and where that problem is, according to Bhattacharya of UPS. "With UPS Premier, sensor technology can track critical shipments in real time to within two metres of their location anywhere in UPS’s global network. Customers can also provide specific, pre-configured handling instructions that allow UPS teams to effectively locate packages and take any necessary recovery measures quickly. This can make all the difference when it comes to mitigating risk and handling emergencies, even for the most sensitive shipments."

Technology is critical to DP World’s pharma operations, ensuring reliability, visibility, and efficiency across the supply chain. Chauhan says: "We utilise IoT-enabled sensors, real-time tracking and warehouse management system (WMS), integrated with customer systems, to enhance visibility, predict disruptions and proactively manage risks. To comply with the Central Drugs Standard Control Organisation (CDSCO) regulations for temperature-sensitive products like vaccines, we ensure storage and transport within specific temperature ranges (2°C to 8°C), maintaining proper humidity and contamination control. Our central control tower in Bangalore manages cargo inflow and outflow while monitoring vehicle temperatures for smooth operations."

Guha of Jeena Criticare says: "Technology is the backbone of our operations. From advanced temperature and humidity monitoring systems to real-time shipment tracking, technology ensures the integrity and safety of sensitive pharmaceutical products throughout the supply chain. Automated alerts and live dashboards provide transparency and control for clients, ensuring operational efficiency. By leveraging cutting-edge innovations, we address the unique challenges of critical healthcare logistics, making technology indispensable to our mission of excellence.”

Changing needs, changing operations
To better support pharmaceutical exporters in India and globally, Etihad Cargo has implemented several targeted improvements to PharmaLife, adds Srinivasan. "These include launching a dedicated pharma development programme to improve the capabilities of our teams, introducing IATA CEIV Pharma-certified infrastructure and deploying cool dollies to ensure temperature consistency. Additionally, we’ve expanded our Abu Dhabi hub’s cold chain capabilities to meet the exacting needs of India’s pharmaceutical shipments, ensuring both controlled room temperature (CRT) (+15°C to +25°C) and cold storage (COL) (+2°C to +8°C) requirements are met.

"If we observe a higher share of CRT compared to COL, particularly in India, it’s not necessarily indicative of a market shift. Rather, it reflects GMP and GDP requirements as well as healthcare mandates at the destination, which call for temperature-controlled environments for pharmaceutical products. It also stems from the nature of the drugs being produced and exported. The rise in CRT shipments from India highlights the broader success and expansion of Indian pharmaceutical exports, especially for generics and other stable formulations that dominate the country’s product mix."

Jeena Criticare is the demonstration of our commitment to addressing unique challenges, ensuring that vital healthcare products reach their destinations safely and on time, even under extraordinary circumstances.
-Rajib Guha, Jeena Criticare Logistics

Over the past two years, Maersk has built a robust team of approximately 250-300 GDP-trained professionals across various functions globally. This specialised team has been instrumental in the rapid growth of the pharmaceutical solutions and expanding customer base.

“The ground teams of Maersk implement critical interventions through a comprehensive monitoring system,” says Agarwal. “This includes regular RCM operational monitoring to detect and address any setpoint discrepancies, managing alarm notifications, and conducting proactive terminal and vessel notifications. The team performs systematic manual monitoring and follow-up for any temperature deviations, particularly focusing on unattended off-power alarms. For containers that may experience IoT device or network connectivity issues, our Cold Chain Hypercare team works directly with local teams to capture manual temperature readings.”

Pre-packed, temperature-controlled & time critical transportation services are receiving the maximum response from customers, adds Guha of Jeena Criticare. "The ability to maintain precise conditions for sensitive healthcare products has become a critical requirement, and our expertise in this area has positioned us as a trusted partner. Additionally, our end-to-end logistics solutions including storage, distribution and timely deliveries are highly valued by clients who rely on us for seamless supply chain management. The demand for specialised services, particularly during time sensitive situations, has further underscored the importance of these offerings in meeting our customers’ needs effectively."

Pharma logistics and sustainability
Bhattacharya of UPS says: "With data showing that the global pharma sector is more carbon intensive than the global automotive sector, many healthcare companies are prioritising sustainability when deciding which companies to partner with. Sustainability is, therefore, an important consideration in everything we do.

"Since 2021, UPS has reduced its carbon emissions by 14 percent. We’ve done this by making investments that optimise and put continuous improvement at the heart of planning across the business. This includes designing healthcare warehouses that meet the highest sustainable standards, increasing automation, and working with industry leading partners to reuse, reduce and safely dispose of waste.”

Sustainability in pharma logistics is a key priority for Etihad Cargo, and the initiatives align with Abu Dhabi’s broader sustainability vision. Srinivasan says: "Etihad Cargo is committed to reducing environmental impact through AI-driven optimisation and the deployment of fuel-efficient aircraft like the Boeing 787 Dreamliner, lowering the carbon footprint of our operations.

"Collaboration with partners has played a vital role in advancing sustainable practices. Together, we have launched reusable thermal blankets, biodegradable materials and recyclable packaging solutions. All materials are rigorously tested to ensure they meet the performance and safety requirements of pharmaceutical logistics while reducing waste and supporting environmental goals.”

Maersk has set a target to achieve Net Zero greenhouse gas emissions across its operations by 2040. Agrawal says: “The shipping industry contributes around three percent of global emissions, and the pharmaceutical industry accounts for 4.4 percent, making decarbonisation a crucial focus area. We're seeing encouraging progress in several areas, including reducing product waste, optimising packaging and decreasing transport emissions. One particularly effective strategy has been helping customers transition from air to sea transport where feasible, significantly reducing their carbon footprint while maintaining product integrity.”

Sustainability is a core principle that sees day-to-day integration into Jeena’s operations, says Guha. "We are conscious of reducing our environmental footprint by adopting eco-friendly practices across our logistics processes. We optimise transportation routes to minimise fuel consumption and leverage environmentally friendly vehicles, such as CNG and electric options, including motorbikes, to significantly lower our carbon footprint. Our commitment to sustainability extends to implementing energy-efficient systems in our offices and utilising recyclable materials for packaging.”

Sustainability is a key pillar of DP World's approach to pharma operations, adds Chauhan. "DP World is committed to meeting 100 percent of its energy needs through solar power, significantly reducing its carbon footprint. Energy-efficient warehouses and infrastructure further support sustainability goals. With seven rail-linked terminals and over 90 operating rakes, our rail services reduce emissions by 70 percent compared to road transport. Double-stack trains increase efficiency, while our carbon emissions calculator helps customers track and reduce their carbon impact across transport modes."