AirPharma - Cargo Service Center India (7)

8/12/2019 AirPharma - Cargo Service Center India (7)

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Pharmaceuticals and the Air logisticscool chain seminar

Managing emerging marketsby

Radharamanan Panicker


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Managing Emerging Markets- India

Some statistics ofpharmaceutical and healthcaretradeGeographical spread of India and airport linkages to

production sitesMain Challenges in the supply chainin Indian Markets

Overcoming the challenges of imperfect supply-chaininfrastructure challenges

Improvements that could be made?Summary


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Industry Overview

The Indian Pharmaceutical Market has witnessed healthy growth..Pharmaceutical product exports (USD mn)

8.4836.676

5.079 5.1914.159

3.184

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12Source: Department of Commerce Export import Data BankParma exports are expected to continue their momentum ofgrowth driven by patent cliff, and increasing focus ingenerics both in developed and developing world.

Pharmaceutical product imports (USD mn)1685

1098 1205925

646 701

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12Imports are growing, but choice of air cargo service provideris determined by supplier vendor or regional offices ofimporting MNCs

Mode of Cargo- % breakup (2009)

SeaAir

Value of Exports Logistics SpendThough value of exports by air is less, but the logistics spendon air cargo is about two third of total logistics spend.

Exporting countries - % break upCIS, 7

Latam, 8USA, 21

MiddleEast, 9Africa, 14 Europe, 22

Asia, 18USA and Europe form 40-45% of the total pharmaexport market.


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Market 14.512.5

Size10.6

9.36.9

5.1

2011 2012 2013 2014 2015 2016Share ingenerics 2.1% 2.5% 3.0% 3.2% 3.3% 3.4%market

55% of the current Indian exports areto regulated markets, US is thelargest market with 26% of exports

Industry Overview

The Indian exports

market is expected togrow at a CAGR of 14-16% and expected toreach USD 14bn by 2016

Market share to increase

to 3.4% by 2017; it isone of the largestexporter by volume:

By 2009, India hadbecome the largest

formulation exporterby volume


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39/20C41/21C

42/28C 41/25C40/27C

34/31C38/29C

39/29C34/29C

India the Country

Tropical country

Temperature in mostpart remains around35 to 45 C for most ofthe year

Delhi and Ahmedabadexperiences lower

temperature to 2C inwinters

Road infrastructure welldeveloped connectingfour metros- Delhi (North)

Mumbai (west), Chennai(South) and Kolkota(east)

Rest from good to bad


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Pharma production area and gateway airport

Five distinct regions circledin the map

Gateway airportsshown below

Production area Gateway airportHyderabad HyderabadMumbai MumbaiNashik /Pune Mumbai250 km

Hyderabad- 750 kmGoa Mumbai500 kmAhmedabad Mumbai-500 km

Delhi- 800 km

Indore/Bhopal Mumbai- 660kmDelhi- 560km

Chandigarh/Baddi Delhi- 200 kmMumbai- 1400 km


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Challenges in Supply Chain

50% of Top selling drugs by 2016 (USD100bn) expected torequire cold supply chain15% of pharma product are only shipped through cold chain

(globally 25%)Traceability

Most of the time, cargo traceability is impossible from the moment ofhandover to freight forwarderAirports, especially are zero-information zones

Integrity/ Quality/ProcessesPilferageDamage due to handling, reducing product efficacyUnsatisfactory quality of reefer vehicles, airport terminals etcProcesses are not aligned with requirements of the Pharma cos esp.

w-r-t customs formalities [inspection]


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Challenges in Supply Chain

Transportation

High deviation from required temperature inside transport vehicleVehicle switched off several times during transportRough handling when loaded into vehicle

Handling

Rough handling when coming into contact with any party, whichcauses product damageStorage

Frequent excursions as shipment moves from one area to anotherNot always stored as mentioned on the AWB


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The Air Logistics Chain

Shipper Trucker Forwarder CHAs

RegulatoryAgencies

GroundCargo handlers

handlers

Cargo handlers Groundhandlers

AIRPORT AREARegulatoryAgencies

Forwarders Truckers Consignees


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Air Cargo Supply ChainCargo Terminala Black Box

RoadTransportation Freight

Shippers ForwardersWarehouse

RoadTransportation

AIRPORT TERMINAL Customs Documentation & Examination Cargo Acceptance check (Weight/Volume)

Security Checks (X-rayScreening/ Physical Check)

Palletization

Transportationto Aircraft

Air FinalDestinationTransportat Consignee

ion DistributionCentre


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Overcoming Supply Chain constraints

Almost all key airports dealing with Pharma havetemperature controlled Perishable Cargo terminal1500 to 2500 sq.met facility for multi product handling

Common temperature from acceptance to built up area-18 to22C

Varying temperature for ULD storage from (-)10 to 12 CCustom facility available currently 12 hours to be

extended to 24 x 7

However no Reefer dolly for inside airport movement of ULDfrom terminal to aircraft


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CSC Project- CPC Mumbai


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Temperature control No control

X-RAY M/c

Layout of Perishable Cargo Terminal, Mumbai


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Securing the Pharma supply chain


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Securing the Pharma supply chain


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CSC Project- Cargo Terminal - Delhi


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Perishable Cargo facility- Delhi

Export Cargo custom examination area


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Perishable Cargo facility- Delhi

Export Cargo Facility capacityTemperature ULD/Pallet Annual EXIM Cargo

Zone Capacity Capacity 12 to 18 deg Celsius 250 Euro pallets* PTSP Export Pharma /

F&V

2 to 4 deg Celsius 9 ULDs 35,000 MT PTSP Export Pharma /F&V

2 to 12 deg Celsius 9 ULDs PTSP ExportNon-Pharma

Import Cargo Facility capacityTemperature Zone Pallet Capacity Annual Capacity

12 18 deg. Celsius 15,000 MT100 Euro pallets

-20 to -2 deg Celsius 3,000 MT


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What more to be done

Clear understanding about the need to move the product intemperature controlled supply chainTemperature controlled facility at airport

Origin Destination

Ability of airlines to ensure required temperature controlEnsure that Shipper use the Time & Temp label with clear

instructions

Check Dry ice quantity is declared on AWB & requirement toreplenish it at transit point or departure airport

Need to input required handling temperature on AWB.


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Clear storage instructions are crucial..


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How it is practically on ground


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IATA Time & Temperature Sensitive Label

Store between+15 C to + 20 C


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What more to be done

TrainingHuman resource training is the

critical missing link

Training commensurate withresponsibilities of the personnel

Product training

Hazardous goods training

IATA DGR

IATA Perishable cargo regulation

Pharma handling


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Summarizing

Kerala boat race

Maintaining Pharma Cool supply Chain is a collaborativeteam effort by Shippers, forwarders, transporters, airlines and

cargo ground handlers


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Thank you very much for yourattention!

Documents

AirPharma - Cargo Service Center India (7)