Use of IOT –
Pharmaceutical Logistics
Vaibhav Agrawal
China Smart Logistics Conference ,
Shanghai, China
Agenda
Introduction to Speaker
Vaibhav Agrawal
01
Sector Introduction
Pharma – Global and India
02
Current Issues in Pharma Industry
And success stories
03
Future trends and opportunities
Way Ahead
04
Vaibhav Agrawal
MBA ( Operations ), B.Tech ( Mechanical), CPIM - APICS, Six Sigma (GB)
13+ Yrs of Work experience in Plan, Make, Logistics, and Analytics in sectors
like Pharma, Food & CPG, Hi-Tech
Welcome!!
Insert the title of your subtitle Here
This PowerPoint Template has clean and
neutral design that can be adapted to any
content and meets various market segments.
Pharma Industry :
A glimpse
Pharma Industry – A glimpse
Estimated to reach USD 1.2 Tr by
end of 2022.
Market Size (2017) - US$ 900 Bn
Most of the growth drivers would
be APAC and African Markets.
Global CAGR : 5.8%
India has most no of US FDA
approved contract manufacturing
plants than any other country,
except US itself.
India is Manufacturing Hub
With a spend of USD 93.7 Bn in
2017, Oncology is where most of
money goes.
Oncology is no 1 Therapeutic area.
Cold chain logistics is around
US$ 15 Bn, and balance is
ambient. This is growing at CAGR
of 5.02%
Global Pharma Logistics size in
2017 is US$ 79.9 Bn
Challenges faced - Pharma
.
Security and
Quality
- Counterfeits
- Damages
- Claims
- High Inventory
- Investigation time.
- Low risk appetite
- Data Visibility
Agile SCM .
Regulatory
Changes
- Regional
regulations
- Quick Changes
- Cold Chain
- Low Volume ,
High mix.
Cost
Success Story 1 : Anti
Counterfeiting - Serialization
Safety and Security
Market size of Counterfeit Drugs
Estimated
Counterfeit Market
€ 75 Bn
This market size makes
this business far more
lucrative than dealing in
cocaine and heroine.
% of total Drugs
sold
30%*
This epidemic is most
prevalent in South
America / Asia and
Africa.
% of total drugs
sold via Internet
50%*
Its easy to imitate the
real websites and sell
counterfeit drugs
through it.
Counterfeit Drug
The counterfeit drugs
usually :-
1. Has no active
ingredient
2. Wrong active
ingredient
3. Wrong dosage
4. Incorrect expire
dates
5. Other incorrect /
toxic ingredients
* WHO Estimates
Serialization – Top 300 Drugs of India
A unique code is
generated for each pack
The code is then printed
on the pack
The Code is activated the
time of dispatch
A simple Scan/SMS can
retrieve code and let
consumer know if its real
or fake.
The code is stored in the
cloud storage
Problem Statement : How to ensure that Counterfeits are not only eating your pie of
business, but also risking patients life.
Other Benefits of Serialization
If by an simple app, consumer can
also be assured of Fake vs
Original, this will lead to huge
customer satisfaction.
If scanning of the drugs is
happening in the area where it
should not be present, then there
may be case of Gray market.
You can get a trend on the
consumption, to get an EW that
can be used in demand planning
Success Story 2 : Smart Shelf
Agility – SC Visibility
Why is SC Visibility important?
With advent of E-Com, Transparent SC
can used as a differentiator
Demanding Customer
01
With Live data, you can optimize your
SC in far more efficient manner than it
was possible earlier
Rising Supply Chain costs
02
Low cost IOT, and analytical solutions
Technological advancements
03
Efficient SCM
Smart Shelf : Top Confectionary company
Design a Smart shelf
with tracking sensors
Design the planogram
depending on sales, and
place stocks accordingly
Consumer picks the
product which reduces
stocks at shelf
This can use used to
track shelf inventory and
sales pattern.
Sensor tracks the same
Realtime and sends
signal to backend
Problem Statement : In a low volume and high mix environment, how to avoid shelf
level stockouts.
Real time sales data
transmitted to Brands for
better analytics
Real time Engagement
Do not have to waste time
to find the right product on
the shelf.
Ease for Customers
Automatically sends signal
to backend for better
instore fulfillment
In-store Fulfillment
Can devote more time in
solving customer query
Employee Effectiveness
Other
advantage of
Smart Shelf
Case Study 3 : E-Leaflet
Compliance
Leaflets in Medicine
Boxes
• A consumer medicine information (CMI) leaflet
gives you important information about your med
ication like dosage and possible side effects.
• CMIs are available for any medication prescribe
d by your doctor or for medication available onl
y at a pharmacy.
• Check inside the medication box for a CMI leafl
et, download one or ask your pharmacist to prin
t one for you.
E-Leaflet : Top Pharma company in India
Design a database of e-
copy leaflets of all
intended drugs.
Print a QR code on the
primary packaging of
each pack
Consumer / HCP scans
the code to reach to the
correct leaflet on cloud.
He can read / listen /
watch & search the
content
Leaflet can be sent to
him on his mobile phone
Problem Statement : How to ensure latest changes in information goes to HCP/ Patie
nts in the fastest manner.
E-Leaflet – other benefits
Other than fastest way to get the latest information to HCP/Patients
E-Leaflet can be provided in local
languages, bigger fonts, which makes it far
more legible than paper leaflet.
Better Legibility
The text can not only be read, but can also
be listened to in local language, also small
videos can be added for better
understanding.
Can be listened to / watched
-E-Leaflets can be shared on social media,
-Also particular information can be
searched on a click, instead of going
through entire document.
Search and Share option
E-Leaflets can also be used to link to the online websites for purchase of the product.
Case Study 4 : Smart Box
Cost and Compliance
Cold Chain
Shipping Losses
The losses associated with temperature
excursions in healthcare come to $35 Billion.
That is broken down as follows:
• $15.2B in Lost product cost
• $8.6B in root cause analysis
• $5.65B in clinical trial loss
• $3.65B in replacement costs
• $1B in wasted logistics costs
Smart Box : Top Pharma company in India
The Box are fitted with
Re-useable GPS location
tracker
The vehicle is also fitted
with Temp sensor, box
opening sensor.
The box gives a live feed
on its location and temp
all the time.
Box also sends a alert vis SMS
when its tempered with or just
before temp excursion happens
This can be tracked
through any mobile or
computer all the time.
Problem Statement : Ensuring the lead times are maintained with proper temperature
compliance. Reducing product wastage.
Smart Box : Other benefits
Location Tracking
 Direct 2 Customer, save multiple handling.
 Warehouse on Road, for long lead times.
 Exact lead-time tracking to learn best
route
 Box – Open Sensor
 Color sensor, fool-proofing
Temper Proof
SMS alert gives early
warning system to take
actions before damage has
happened.
SMS Alert
Live feed gives an unique
opportunity to record lead
times at different routs, and
avoid temp roadblocks
Live Feed
 SMS Alert before temp excursion
Welcome!!
Insert the title of your subtitle Here
This PowerPoint Template has clean and
neutral design that can be adapted to any
content and meets various market segments.
Future trend in
Pharma Logistics
Pharma Industry : Way Ahead
& Its impact on Logistics
Biological drugs has shorter shelf
life and require much better
adherence towards cold chain.
Shift towards of biological drugs
With dramatically lowering the cost of
technologies like IOT and analytics, its now
about how can one better adapt to them to
create competitive advantage.
Increase use of Technologies like IOT
and Cognitive Analytics
With more and more people getting covered under
insurance, the power is shifting from pharma
companies to insurance companies on how patients
are to be treated and cost of treatment.
Insurance to play a major role
More and more research is happening towards
a disease free world. This will give logistics
better prediction and hence reducing cost.
Prevention is better than Cure
Blockchains :
Key to future of
Supply Chain
What is Blockchain?
Blockchain, simply put, is a datab
ase like system that keeps a per
manent shared record. A record
that has:-
- Consensus, among all players
- Provenance, where the object
came from
- Immutability, no one can
temper the info
- Finality, distributed but same
information
Advantages of Blockchain
Visibility
Blockchain allows
originations to share
information as well as
restrict access to it, all
in one neat package.
Trust
Instead of building trust,
blockchains actually
eliminate the need of
trust in supply chain by
providing real time,
temper free information
to all stakeholders.
Optimization
Visibility and trust in
Supply chain will
eliminate a lot od
buffers we keep in
Supply chain to
overcome them.
Thank you
My mail ID is : vaibhav.scm@gmail.com
For any suggestion or Question

Smart logistics - Pharma Perspective

  • 1.
    Use of IOT– Pharmaceutical Logistics Vaibhav Agrawal China Smart Logistics Conference , Shanghai, China
  • 2.
    Agenda Introduction to Speaker VaibhavAgrawal 01 Sector Introduction Pharma – Global and India 02 Current Issues in Pharma Industry And success stories 03 Future trends and opportunities Way Ahead 04
  • 3.
    Vaibhav Agrawal MBA (Operations ), B.Tech ( Mechanical), CPIM - APICS, Six Sigma (GB) 13+ Yrs of Work experience in Plan, Make, Logistics, and Analytics in sectors like Pharma, Food & CPG, Hi-Tech
  • 4.
    Welcome!! Insert the titleof your subtitle Here This PowerPoint Template has clean and neutral design that can be adapted to any content and meets various market segments. Pharma Industry : A glimpse
  • 5.
    Pharma Industry –A glimpse Estimated to reach USD 1.2 Tr by end of 2022. Market Size (2017) - US$ 900 Bn Most of the growth drivers would be APAC and African Markets. Global CAGR : 5.8% India has most no of US FDA approved contract manufacturing plants than any other country, except US itself. India is Manufacturing Hub With a spend of USD 93.7 Bn in 2017, Oncology is where most of money goes. Oncology is no 1 Therapeutic area. Cold chain logistics is around US$ 15 Bn, and balance is ambient. This is growing at CAGR of 5.02% Global Pharma Logistics size in 2017 is US$ 79.9 Bn
  • 6.
    Challenges faced -Pharma . Security and Quality - Counterfeits - Damages - Claims - High Inventory - Investigation time. - Low risk appetite - Data Visibility Agile SCM . Regulatory Changes - Regional regulations - Quick Changes - Cold Chain - Low Volume , High mix. Cost
  • 7.
    Success Story 1: Anti Counterfeiting - Serialization Safety and Security
  • 8.
    Market size ofCounterfeit Drugs Estimated Counterfeit Market € 75 Bn This market size makes this business far more lucrative than dealing in cocaine and heroine. % of total Drugs sold 30%* This epidemic is most prevalent in South America / Asia and Africa. % of total drugs sold via Internet 50%* Its easy to imitate the real websites and sell counterfeit drugs through it. Counterfeit Drug The counterfeit drugs usually :- 1. Has no active ingredient 2. Wrong active ingredient 3. Wrong dosage 4. Incorrect expire dates 5. Other incorrect / toxic ingredients * WHO Estimates
  • 9.
    Serialization – Top300 Drugs of India A unique code is generated for each pack The code is then printed on the pack The Code is activated the time of dispatch A simple Scan/SMS can retrieve code and let consumer know if its real or fake. The code is stored in the cloud storage Problem Statement : How to ensure that Counterfeits are not only eating your pie of business, but also risking patients life.
  • 10.
    Other Benefits ofSerialization If by an simple app, consumer can also be assured of Fake vs Original, this will lead to huge customer satisfaction. If scanning of the drugs is happening in the area where it should not be present, then there may be case of Gray market. You can get a trend on the consumption, to get an EW that can be used in demand planning
  • 11.
    Success Story 2: Smart Shelf Agility – SC Visibility
  • 12.
    Why is SCVisibility important? With advent of E-Com, Transparent SC can used as a differentiator Demanding Customer 01 With Live data, you can optimize your SC in far more efficient manner than it was possible earlier Rising Supply Chain costs 02 Low cost IOT, and analytical solutions Technological advancements 03 Efficient SCM
  • 13.
    Smart Shelf :Top Confectionary company Design a Smart shelf with tracking sensors Design the planogram depending on sales, and place stocks accordingly Consumer picks the product which reduces stocks at shelf This can use used to track shelf inventory and sales pattern. Sensor tracks the same Realtime and sends signal to backend Problem Statement : In a low volume and high mix environment, how to avoid shelf level stockouts.
  • 14.
    Real time salesdata transmitted to Brands for better analytics Real time Engagement Do not have to waste time to find the right product on the shelf. Ease for Customers Automatically sends signal to backend for better instore fulfillment In-store Fulfillment Can devote more time in solving customer query Employee Effectiveness Other advantage of Smart Shelf
  • 15.
    Case Study 3: E-Leaflet Compliance
  • 16.
    Leaflets in Medicine Boxes •A consumer medicine information (CMI) leaflet gives you important information about your med ication like dosage and possible side effects. • CMIs are available for any medication prescribe d by your doctor or for medication available onl y at a pharmacy. • Check inside the medication box for a CMI leafl et, download one or ask your pharmacist to prin t one for you.
  • 17.
    E-Leaflet : TopPharma company in India Design a database of e- copy leaflets of all intended drugs. Print a QR code on the primary packaging of each pack Consumer / HCP scans the code to reach to the correct leaflet on cloud. He can read / listen / watch & search the content Leaflet can be sent to him on his mobile phone Problem Statement : How to ensure latest changes in information goes to HCP/ Patie nts in the fastest manner.
  • 18.
    E-Leaflet – otherbenefits Other than fastest way to get the latest information to HCP/Patients E-Leaflet can be provided in local languages, bigger fonts, which makes it far more legible than paper leaflet. Better Legibility The text can not only be read, but can also be listened to in local language, also small videos can be added for better understanding. Can be listened to / watched -E-Leaflets can be shared on social media, -Also particular information can be searched on a click, instead of going through entire document. Search and Share option E-Leaflets can also be used to link to the online websites for purchase of the product.
  • 19.
    Case Study 4: Smart Box Cost and Compliance
  • 20.
    Cold Chain Shipping Losses Thelosses associated with temperature excursions in healthcare come to $35 Billion. That is broken down as follows: • $15.2B in Lost product cost • $8.6B in root cause analysis • $5.65B in clinical trial loss • $3.65B in replacement costs • $1B in wasted logistics costs
  • 21.
    Smart Box :Top Pharma company in India The Box are fitted with Re-useable GPS location tracker The vehicle is also fitted with Temp sensor, box opening sensor. The box gives a live feed on its location and temp all the time. Box also sends a alert vis SMS when its tempered with or just before temp excursion happens This can be tracked through any mobile or computer all the time. Problem Statement : Ensuring the lead times are maintained with proper temperature compliance. Reducing product wastage.
  • 22.
    Smart Box :Other benefits Location Tracking  Direct 2 Customer, save multiple handling.  Warehouse on Road, for long lead times.  Exact lead-time tracking to learn best route  Box – Open Sensor  Color sensor, fool-proofing Temper Proof SMS alert gives early warning system to take actions before damage has happened. SMS Alert Live feed gives an unique opportunity to record lead times at different routs, and avoid temp roadblocks Live Feed  SMS Alert before temp excursion
  • 23.
    Welcome!! Insert the titleof your subtitle Here This PowerPoint Template has clean and neutral design that can be adapted to any content and meets various market segments. Future trend in Pharma Logistics
  • 24.
    Pharma Industry :Way Ahead & Its impact on Logistics Biological drugs has shorter shelf life and require much better adherence towards cold chain. Shift towards of biological drugs With dramatically lowering the cost of technologies like IOT and analytics, its now about how can one better adapt to them to create competitive advantage. Increase use of Technologies like IOT and Cognitive Analytics With more and more people getting covered under insurance, the power is shifting from pharma companies to insurance companies on how patients are to be treated and cost of treatment. Insurance to play a major role More and more research is happening towards a disease free world. This will give logistics better prediction and hence reducing cost. Prevention is better than Cure
  • 25.
    Blockchains : Key tofuture of Supply Chain What is Blockchain? Blockchain, simply put, is a datab ase like system that keeps a per manent shared record. A record that has:- - Consensus, among all players - Provenance, where the object came from - Immutability, no one can temper the info - Finality, distributed but same information
  • 26.
    Advantages of Blockchain Visibility Blockchainallows originations to share information as well as restrict access to it, all in one neat package. Trust Instead of building trust, blockchains actually eliminate the need of trust in supply chain by providing real time, temper free information to all stakeholders. Optimization Visibility and trust in Supply chain will eliminate a lot od buffers we keep in Supply chain to overcome them.
  • 28.
    Thank you My mailID is : vaibhav.scm@gmail.com For any suggestion or Question

Editor's Notes

  • #2 Hello Everyone, My name is Vaibhav Agrawal, and as you can see I am going to talk about