India’s pharma logistics sector is surmounted by challenges like equipment availability, paucity of trailers, lack of port infrastructure and cost conscious customers when handling temperature controlled infrastructure. The sector sees that the implementation of the good and services tax (GST) could well boost development of integrated logistics model in India.
Logistics for pharma is amongst the fastest growing. With rapid modernization and innovation, logistics is expected to undergo a paradigm shift. Importance of third party logistics and its further evolution into fourth party logistics is also gaining ground. While value chain decisions are based on cost and service tradeoffs, customers have to find out their actual positioning in the value-service curve. In the case of India, introduction of GST will give a major fillip to the integrated temperature controlled logistics model in India, Vivek Arya managing director, Rhenus Logistics told Pharmabiz in an email interaction.
India is moving from an operational logistics model to a strategic logistics mode. This would create an integrated logistics platform wherein there is a system-wide management of entire logistics as a single entity. However, this model is still evolving in India. Globally this model has been well accepted with USA leading in the same, he added.
Quoting a recent study, Arya stated that the big advantage with this arrangement is that customers have achieved cost reduction of up to 15 per cent.
Rhenus logistics is globally well known to provide customized logistics solutions for key verticals like chemicals and pharmaceuticals apart from automotive, engineering and fast moving consumer goods (FMCG) sector. Specific to pharma and chemicals, its customers list covers Bayer, Lupin, Merck, Watson and Wanbury among others which have opted for its service in customs clearance, warehousing and transportation.
The company’s integrated logistics solutions includes international freight, customs clearance, warehousing & distribution besides customised services. In this regard, it has invested in the infrastructure to bag long term contracts. It has a pan-India presence with 43 locations. Further, it has all the quality certifications including ISO 9001:2008, OHSAS 18001:2007 & ISO 14001:2004 along with regulatory compliances to handle customs clearance, warehousing, distribution for both hazardous and non hazardous product categories.
Its trucks include all types open body vehicles equipped with safety tools and global positioning systems (GPS), besides tied-up with fleet owners to have access to sophisticated vehicles.
There are many emerging local as well as international companies offering logistics solutions in the country. But Rhenus offers entire range of foreign trade management portfolio including advisory services like managing the licensing and special valuation branch ( SVB) related requirements. It has an offering referred to as Connect Europe and Connect India for outbound and inbound services respectively. In addition it provides a complete end-to-end supply chain management covering packaging, labelling and post shipment documentation.
The company is mulling hat if it moves up the value chain by working as a strategic partner with pharma and chemical companies then could be a one-stop shop for complete end-to-end logistics, said Arya.