• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » New Healthcare Regulations Drive Quest for Supply Chain Efficiency

New Healthcare Regulations Drive Quest for Supply Chain Efficiency

April 4, 2017
SupplyChainBrain

DSCSA compliance is driving change in processes and equipment to include additional verification points and scans to enable unit-level tracking and serialization. And the impacts go beyond physical flow to include systems and labor implications. As companies reconfigure systems to accommodate the change, they should be looking at what kind of data manufacturers can provide to help with identification of inbound shipments to support requirements.

Larger players in the medical surgical and pharmaceutical market are hitting the throughput capacity limits of conventional automation (conveyance, shuttle, sortation, etc.) technology. They are looking at emerging technologies like robotics, warehouse execution software (WES) and autonomous vehicles to help scale operations to handle higher volumes driven by population growth, market density and consolidation.

The industry will continue to see growth, but not all of it will be organic. In recent years, there has been significant M&A activity, which is likely to continue for the near term. Companies should be thinking about how to build in flexibility and be prepared to rationalize networks as acquisitions and mergers take shape.

Over the next three years, specialty pharma will be the largest growth driver for this industry. By 2018, 26 of the 50 best-selling pharma products in the world will require refrigerated storage and handling.  Multiple temperature zones (ultra-frozen, frozen, refrigerated, ambient, and humidity controlled) are the new reality of inventory management, which will increase cold chain storage, handling and transportation requirements.

And with the rising cost of pharmaceuticals, there comes greater emphasis on security and inventory accuracy throughout the entire supply chain. This industry is already significantly ahead of others in terms of managing inventory. Efficiencies and cost savings in this area could be found in automating cycle counts through the use of drones or autonomous robots scanning aisles and through greater use of RFID technologies.

Even with investments in automation, labor continues to be top-of-mind as the shortage of available workers continues to put pressure on staffing models. Recruiting and retaining workers with the skills and background required to work in a highly regulated environment is proving harder and pushing labor costs higher as impacts from healthcare and minimum wage laws take effect.

The good news is that the key players in this industry have already done the work to ensure they are achieving time-definite deliveries, which has helped to prepare them for what is coming on the horizon. As pharmacies look to reduce on-hand inventory levels to hours instead of days or weeks, deliveries may need to be packaged in ready-to-dispense units and pre-labeled for a specific patient. Thinking through the labeling and verification impacts of these things now could be key to competitive advantage down the road.

The Outlook

Beyond 2020, companies need to think about the changing economic realities of the U.S. healthcare industry. As a larger percentage of drugs fall under the specialty category, medical-surgical distributors will need to become more integrated with pharmaceutical distribution and direct-to-consumer shipments and specialized handling requirements will increase. Companies will have to re-think how they design and scale distribution operations to a level not seen across the distribution landscape in North America.

    RELATED CONTENT

    RELATED VIDEOS

    Global Supply Chain Management Regulation & Compliance Healthcare High-Tech/Electronics Pharmaceutical/Biotech
    KEYWORDS Global Supply Chain Management healthcare High-Tech/Electronics Pharmaceutical/Biotech Regulation & Compliance Supply Chain Analysis & Consulting
    SupplyChainBrain

    NJ Senators Award $400,000 to Manufacturing Extension Program

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Popular Stories

    • A MEDLEY OF IMAGES OF GRAPHS AND CHARTS SUPER-IMPOSED OVER A HUNDRED DOLLAR BILL

      How Companies Can Avoid Competing Solely on Price

      Logistics
    • A RED AND WHITE FRITOS DELIVERY TRUCK IS PARKED IN THE LOADING ZONE OF A PARKING LOT NEXT TO AN ORANGE TRAFFIC CONE.

      Climate Change Threatens a World Without Doritos

      Global Supply Chain Management
    • Is-There-a-Right-to-Work-Remotely.jpg

      Watch: Is There a ‘Right’ to Work Remotely?

      HR & Labor Management
    • Managing-Supply-Chains-in-the-Face-of-Climate-Disaster.jpg

      Watch: Managing Supply Chains in the Face of Climate Disaster

      Regulation & Compliance
    • SYMBOLS OF TRADE AND RISK HOVER OVER TWO HANDS TYPING ON A KEYBOARD

      Navigating Supplier Risk Challenges to Shore Up Cyber Defenses

      Supply Chain Visibility

    Digital Edition

    Scb may 2023 lg

    2023 Supply Chain ESG Guide

    VIEW THE LATEST ISSUE

    Case Studies

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

    • Convenience Store Client Maximizes Profit and Improves Customer Service

    • A Digitally Native Footwear Brand Finds Rapid Fulfillment

    Visit Our Sponsors

    Antuit Zebra Anvyl Brother
    Cleo Data Capture E2open
    Eva Air Enveyo GAINSystems
    Generix Geodis GEP
    GreyOrange Here Holman Logistics
    Infor Inmar Kinaxis
    Locus Robotics Logility LogistiVIEW
    Lucas Systems MCA Connect MPO
    Old Dominion OneRail Overhaul
    PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
    Saddle Creek Logistics SAP Shyft
    Sourcemap Tecsys TGW Systems
    Verusen Workshop
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Your Subscription
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing