2015 Specialty Logistics OutlookSix facts to focus on in the coming year.
AS COMPANIES EMBRACE CSR,
CHANGINGHOW THEY ADDRESS
AND THE
SUSTAINABILITYii
INDIVIDUALS WHO OVERSEE
THEY ARE
TALENT MANAGEMENT
SHIPPER-3PL PARTNERSHIPSSHOWED AN AVERAGE
REDUCTION OF9%LOGISTICS COST
IN 2014ii
THE RISKS ASSOCIATEDWITH
SUPPLY CHAINSARE EVOLVING FROM ABACK-OFFICE CONCERN TO A
PROMINENTPOSITION ON THE BOARDROOM
AGENDAii
What does it all mean for 2015?
$8 BILLIONON COLD CHAIN LOGISTICS IN 2014vi
THE GLOBAL PHARMACEUTICAL INDUSTRY
WILL SPENDMORE THAN
— BRAZIL, RUSSIA, INDIA AND CHINA —
THE BRIC NATIONS
ARE POSITIONED TO ACCOUNT FOR MORE THAN
$248 BILLIONIN PHARMACEUTICAL SALES BY 2016i
SKILLED LOGISTICS MANAGERS ARE
IN DEMANDBECAUSE OF THEIR ABILITY TO SPOT COMPLICATIONS AND
CREATE EFFECTIVE SOLUTIONS— ALL IN SUPPORT OF A COMPANY'S OBJECTIVESiii
1
4
2
5
3
6
— BRAZIL, RUSSIA, INDIA AND CHINA —— BRAZIL, RUSSIA, INDIA AND CHINA —
THE BRIC NATIONSTHE BRIC NATIONS
ARE POSITIONED TO ACCOUNT FOR MORE THANARE POSITIONED TO ACCOUNT FOR MORE THAN
$248 BILLION$248 BILLIONIN PHARMACEUTICAL SALES BY 2016IN PHARMACEUTICAL SALES BY 2016ii
11
THE RISKS ASSOCIATEDTHE RISKS ASSOCIATEDWITHWITH
SUPPLY CHAINSSUPPLY CHAINSARE EVOLVING FROM AARE EVOLVING FROM ABACK-OFFICE CONCERN TO ABACK-OFFICE CONCERN TO A
PROMINENTPROMINENTPOSITION ON THE BOARDROOMPOSITION ON THE BOARDROOM
AGENDAAGENDAiiiiAGENDAAGENDAiiAGENDAAGENDA
22
SHIPPER-3PL PARTNERSHIPSSHIPPER-3PL PARTNERSHIPSSHOWED AN AVERAGESHOWED AN AVERAGE
REDUCTION OFREDUCTION OF99%%LOGISTICS COSTLOGISTICS COST
IN 2IN 2001144iiii
33
$8 BILLION$8 BILLIONON COLD CHAIN LOGISTICS IN 2014ON COLD CHAIN LOGISTICS IN 2014vivi
THE GLOBAL PHARMACEUTICAL INDUSTRYTHE GLOBAL PHARMACEUTICAL INDUSTRY
WILL SPENDWILL SPENDMORE THANMORE THAN
66
AS COMPANIES EMBRACE CSR,AS COMPANIES EMBRACE CSR,
CHANGINGCHANGINGHOW THEY ADDRESS HOW THEY ADDRESS
AND THE AND THE
SUSTAINABILITSUSTAINABILITYYSUSTAINABILITSUSTAINABILITYSUSTAINABILITSUSTAINABILIT iiii
INDIVIDUALS WHO OVERSEEINDIVIDUALS WHO OVERSEE
THEY ARETHEY ARE
TALENT MANAGEMENTTALENT MANAGEMENT
55
SKILLED LOGISTICS MANAGERS ARESKILLED LOGISTICS MANAGERS ARE
IN DEMANDIN DEMANDBECAUSE OF THEIR ABILITY TO SPOT COMPLICATIONS ANDBECAUSE OF THEIR ABILITY TO SPOT COMPLICATIONS AND
CREATE EFFECTIVE SOLUTIONSCREATE EFFECTIVE SOLUTIONS— ALL IN SUPPORT OF A COMPANY'S OBJECTIVES— ALL IN SUPPORT OF A COMPANY'S OBJECTIVESiiiiii
44
3 | 2015 Specialty Logistics Outlook
Emerging Markets Remain an Opportunity and a Challenge
To date, there are more than
178,000 registered clinical trials
taking place across the globeiv, and
global pharma’s volume has more
than doubled over the last decade.
With emerging markets showing
explosive predictive growth through
2016, shippers and trial sponsors
can expect continued regulatory
and overall logistics complexities
that foster demand for local, in-
market resources across the globe.
Take China, for example. While
the country is making strides in
streamlining processes for shippers
of all types of products with
initiatives like batch clearing of
waybills, pricing pressures from
domestic transport providers meant
that, in 2014, growth for non-
Chinese logistics providers was
somewhat slowedv.
It’s perhaps for these reasons
that manufacturers worldwide
are investing more in their supply
chains. Pharmaceutical Commerce
predicts a $15 billion increase in
the global biopharma logistics
spend between 2012 and 2018vi. $248
AND CHINA
THE BRIC NATIONS
BILLION BY 2016i
BRAZIL,
BY 2016 BY 2016
ARE POSITIONED TOACCOUNT FOR MORE THAN
IN PHARMACEUTICAL SALES
RUSSIA, INDIA
4 | 2015 Specialty Logistics Outlook
Risk Management Efforts Create New Stakeholders
Quality departments within
pharmaceutical manufacturers’
operations are gaining more and
more infl uence in the selection of
vendors from packagers to logistics
partners. Why? Because supply
chains hold inherent risk factors
that are compounded when more
money is invested in creating more
effi cient supply chains. And the
spend that’s going into logistics —
an estimated $64 billion in 2014vi
— is no doubt capturing attention
from new stakeholders. It’s this
risk-based approach that means
manufacturers and their supply
chain partners must focus on
creating processes and leveraging
tools that allow for increased
visibility and effective management
across the supply chain.
ARE EVOLVING
AGENDAii
THE RISKSASSOCIATED WITH
SUPPLYCHAINS
OFFICE
PROMINENT
POSITION
FROM ABACK-
CONCERNTO A
ON THE BOARDROOM
5 | 2015 Specialty Logistics Outlook
Logistics Partnerships Reduce Costs
If the logistics industry held a
“state of the union” address,
successful partnerships would be
the takeaway. Shippers continue to
report cost reductions from logistics
partnerships and outsourcing and
controlled logistics expenditures as
they relate to total revenue.
What’s being outsourced?
Domestic transport, international
transport and warehousing rank
at the top of the list of outsourced
logistics services. Among shippers
who utilize 3PL services, 80 percent
say they outsource domestic and
70 percent outsource international
transportii. In the same survey,
67 percent of shippers reported
they would increase their use of
outsourcing, while 53 percent will
reduce or consolidate the number
of 3PL providers they use.
In response, logistics providers are
ramping up efforts to increase their
foothold as supply chain partners
with everything from improved
technology to high-touch
transport offerings and a focus
on strategic alignment with
manufacturers’ goals. 9%IN 2014ii
SHIPPER-3PL
PARTNERSHIPSSHOWED AN AVERAGE
OF
LOGISTICS
REDUCTIONCOST
6 | 2015 Specialty Logistics Outlook
Workforce Management is an Emerging Priority
The logistics industry is facing a
couple of key challenges when it
comes to talent: diffi culty attracting
talent and the evolution of the
ideal logistics skill set. Industry
estimates show a predicted
shortage of 20 million professionals
by 2015ii.
Coupling these challenges with
the complexity of specialty logistics
means manufacturers will not only
be competing for talent with 3PLs,
other industries and consulting
fi rms, they’ll also be tasked with
fi nding outside partners who have
the right blend of industry expertise
and execution experience.
SKILLEDARE IN
LOGISTICS MANAGERS
DEMANDBECAUSE OF THEIR ABILITY TO
SPOT COMPLICATIONSAND CREATE
EFFECTIVESOLUTIONS
— ALL IN SUPPORT OF A
COMPANY'SOBJECTIVESiii
7 | 2015 Specialty Logistics Outlook
Sustainability Enters Supply Chain Conversations
Corporate Social Responsibility
(CSR) covers everything from
conserving natural resources
and business impact on the
environment to animal testing,
human rights and labor practices.
And while the issue of sustainability
has been hot in the corporate
world for some time now, CSR is
proliferating such that it’s now a
supply chain consideration that
touches packaging, transport and
global relations. Sustainability-savvy
manufacturers — particularly those
in agribusiness and other R&D
fi elds — will be looking for ways
to transform their supply chains in
more responsible ways.
CHANGING
AND THE
SUSTAINABILITYii
THEY ARE
AS COMPANIESEMBRACE
CSR,HOW THEY
ADDRESS TALENT
MANAGEMENT
INDIVIDUALSWHO
OVERSEE
8 | 2015 Specialty Logistics Outlook
Temperature Control Evolves
Products that require temperature-
controlled transport are, more and
more, moving into all temperature
ranges. From body temp to
ambient, innovation in R&D means
new temperatures to accommodate
and monitor during transport.
Manufacturers of these products
will benefi t from an industry-wide
increase in packaging and storage
innovation that enables reduced
supply chain dependencies.
$8MORE THAN
THE GLOBAL
PHARMACEUTICAL
INDUSTRY WILL
SPEND
BILLIONON COLD CHAIN
LOGISTICSIN 2014vi
World Courier
World Courier is a global specialty
logistics company that designs
world-class logistics and supply
chain programs in complete
alignment with our customers’
business goals. Pharmaceutical
companies rely on us because they
value the peace of mind that comes
with our unsurpassed knowledge,
global reach and flawless supply
chain execution. Each trusted
partnership we form with a
customer is deeply rooted in our
shared vision of improving global
health. With 2,000+ associates in
more than 140 offices across the
globe, we offer solutions that
instill confidence in the on-time,
on-temperature delivery of
critical products.
When trust is absolutely
essential, there’s only one
choice: World Courier.
worldcourier.com
References
i IMS Health. The Global Use of Medicines: Outlook
Through 2016. July 2012. Available online at http://
www.imshealth.com/deployedfiles/ims/Global/
Content/Insights/IMS%20Institute%20for%20
Healthcare%20Informatics/Global%20Use%20of%20
Meds%202011/Medicines_Outlook_Through_2016_
Report.pdf. Accessed 7 November 2014.
ii 2015 Third-Party Logistics Study. Available online at
http://www.3plstudy.com/downloads/download-3rd-
party-logistics-study/. Accessed 14 November 2014.
iii Vella, D. Supply Chain Management: A Needed and
Growing Opportunity. Inbound Logistics. Available
online at http://www.inboundlogistics.com/cms/article/
supply-chain-management-a-needed-and-growing-
opportunity/. Accessed 18 November 2014.
iv Number of Registered Studies Over Time.
ClinicalTrials.gov. Available online at https://www.
clinicaltrials.gov/ct2/resources/trends. Accessed 17
November 2014.
v Zakkour, M. Supply Chain Key to Success in China –
Outlook 2014. Forbes Asia. Available online at http://
www.forbes.com/sites/michaelzakkour/2014/02/06/
supply-chain-key-to-success-in-china-outlook-2014/.
Accessed 17 November 2014.
vi Lipowicz, M and Basta, N. 2014 Biopharma
cold chain forecast. Pharmaceutical Commerce.
29 April 2014. Available online at http://www.
pharmaceuticalcommerce.com/index.php?pg=supply_
chain_logistics&articleid=27206&keyword=biopha
rma-cold%20chain-logistics-forecast. Accessed 30
October 2014.
9 | 2015 Specialty Logistics Outlook
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