E Insight | Prospects and challenges of medical and pharmaceutical logistics

Medical and pharmaceutical logistics refers to the process of transporting medical supplies, pharmaceutical products and related equipment from manufacturers or suppliers to medical institutions, pharmacies and end users. In the medical and pharmaceutical field, the efficient operation of logistics related to the quality, safety and timeliness of medical supplies and drugs is crucial. The characteristics of medical and pharmaceutical logistics include strict regulations and rules, high safety requirements, special temperature control requirements (such as cold chain logistics), traceability and tracking needs, and flexible supply chain management, so medical and pharmaceutical logistics must have a high degree of specialization and reliability.

Industry background and opportunities

China's pharmaceutical logistics industry is in the early stage of rapid development. In the upstream of the industrial chain, enterprises like Yunnan Baiyao, Hapharm Group, Beijing TRT Group represent the field of drug supply. In the middle reaches, China National Pharmaceutical Group, Shanghai Pharma, Jointown Pharmaceutical Group and other enterprises play an important role in drug logistics. The drug consumption terminals downstream are mainly undertaken by Nepstar, LBX PHARMACY and Peking Union Medical College Hospital. However, the distribution scope of most enterprises is relatively small, with only 2.7% of enterprises having nationwide distribution capabilities, compared to 81.5% of enterprises limited to provincial distribution and below.

According to the data, there are 452 pharmaceutical logistics direct reporting enterprises in the country, their distribution value reached 1,445.9 billion yuan, with 1,170 logistics centers and about 12.22 million square meters of warehouse area. Among them, room temperature storage accounted for 40.3%, cool storage accounted for 57.8%, cold storage accounted for 1.9%. These enterprises have 16,148 professional transport vehicles, of which refrigerated vehicles account for 16.8% and special medicine vehicles account for 1.6%.

In addition, China has become the world's second largest health market. It is predicted that the size of China's large health market will reach 8 trillion CNY this year, with an increase of 8.1%. It is expected that by 2023, the scale of China's large health industry will exceed 14 trillion CNY. The total sales of seven categories of pharmaceutical commodities has reached 2.4 trillion CNY, and it is expected that by 2025, the scale of China's pharmaceutical market will exceed 5.3 trillion CNY. At the same time, the total cost of pharmaceutical logistics has increased year by year, with a growth rate of more than 10%. In 2020 alone, the total cost of pharmaceutical logistics in China reached 79.5 billion CNY. *(Data source is Shenzhen Zero Power Intelligence Co., Ltd.)

Therefore, judging from the current situation of the industry, the medical and pharmaceutical logistics market shows a steady growth trend. Especially in the context of an aging population and an increase in patients with chronic diseases, the global demand for medical supplies and drugs is increasing. At the same time, the healthcare reform and the demand for improved medical services in emerging markets also provide a larger market space for medical and pharmaceutical logistics.

Industry challenges and difficulties

Medical and pharmaceutical logistics requires a high degree of security. Medical supplies and drugs are often sensitive and high-value items that require tight security measures to prevent theft, damage or other potential risks. Safety is an indispensable element in the process of medical and pharmaceutical logistics.

Medical and pharmaceutical logistics also faces special temperature control requirements. Medical supplies and drugs have very strict temperature requirements, we must maintain specific temperature range throughout the transportation and storage process to ensure their quality and effectiveness. Cold chain logistics involves the requirements of temperature monitoring, refrigeration and freezing equipment, reasonable packaging of goods and so on.

Medical and pharmaceutical logistics needs to have good traceability and tracking ability. In the supply chain of medical supplies and drugs, traceability and tracking capabilities are critical, allowing products to be traced to their origin, transport process and destination of delivery to ensure traceability and safety.

The supply chain management of medical and pharmaceutical logistics is also an important consideration. There is a complex relationship between the demand and supply of medical supplies and drugs, and the management of the supply chain requires coordination between suppliers, manufacturers, distributors and healthcare institutions to ensure timely delivery and inventory management.

Advantages of Enotek Group

Rich industry experience: Enotek Group has rich industry experience and professional knowledge in the pharmaceutical logistics industry, in-depth understanding of the special requirements of pharmaceutical logistics, such as drug quality and safety requirements, GSP compliance, and can provide tailored solutions according to the needs of the industry.

Full chain intelligent logistics solutions: Enotek Group provides full chain intelligent logistics solutions, covering warehouse management, picking and transportation. Enotek's solutions integrate automation equipment, IoT technology and warehouse management systems to enable precise order picking and safe conveying, while ensuring order traceability.

Advanced technology and equipment: The logistics solutions of Enotek Group use advanced technology and equipment, such as 40 meters high stacker crane, AMR autonomous mobile robot and electronic tags. These devices increase storage density and picking efficiency in warehouses to meet growing order volumes and seasonal fluctuations.

Efficient warehouse management system: The WMS warehouse management system and WCS warehouse control system provided by Enotek Group can realize the accurate positioning and management of goods in the warehouse, while processing a large number of SKU data information. It helps to reduce the error rate of order processing and improve the operational efficiency and accuracy of the warehouse.

Professional team and quality service: Enotek Group has a professional team with rich experience and professional knowledge in the field of pharmaceutical logistics, which can provide customized solutions according to customer needs, and provide high-quality pre-sales consultation and after-sales service to ensure customer satisfaction.