Cost Regulation in Healthcare Logistics: Trends

If every business has its own logistics, the one that focuses on healthcare is likely the most delicate and vital.

It necessitates the highest quality standards for pharmaceutical warehousing as well as a few specific requirements that differ depending on whether we’re talking about pharmaceutical and biotechnology products, medical and diagnostic devices, medical and personal care products, health and beauty products, or secondary packing or co-packaging services.

It also necessitates the establishment of adequate sanitary warehousing facilities, complete with everything required to meet quality requirements and sanitary regulations. and with a variety of climate control options ranging from clean rooms to refrigerated and even frozen spaces.

All of these factors can drive up logistical costs; the question is, how can we keep them under control?

Systems and Processes Automation

Increased expenses are a result of inefficient delivery procedures and systems across the sector. Other industries, on the other hand, are already integrating product scanning, electronic orders, order precision controls, and other critical processes to increase supply chain efficiency. Meanwhile, the health business continues to rely on manual procurement methods, which can result in errors, product shortages, inaccurate goods, or out-of-date merchandise. Issues that could be resolved by automating inventory, as is done successfully in the auto parts, food & beverage, and retail industries.

Supply Chains are always being improved

Freight businesses must utilize methods such as avoiding making direct and urgent shipments too frequently or squandering space on their return trips to make logistics more efficient. They may also employ strategies such as producing packaging that reduces costs and maximizes space utilization, as well as maintaining control over damage rates, on-time deliveries, and delivery terms.

We can uncover significant savings, strengthen the return network, and save on gasoline as more shipments are combined into full loads.

We can rebuild networks, uncover chances for incoming routes, optimize deliveries, and locate opportunities to give suppliers backhauling using transportation management software.

Data Enhancement

Another issue is property data, which is inconsistent for medical equipment and location information. The continual translation of data and the execution of manual operations can result in a slew of errors. The most common impediment to attaining supply chain excellence is a lack of data uniformity.

GS1, an international organization that develops and maintains supply chain standards, created the Global Location Numbers (GLN) and Global Trade Item Numbers (GTIN) for the industry to address this issue. GLNs and GTINs are used to clearly identify products and transmit product information throughout the supply chain and in the environment.

The supply chain will be more efficient if a worldwide and common data standard is implemented more quickly.

Costs of Warehousing

Costs of warehousing can be broken down into five categories:

1. Reception: We recommend using automated shipping alerts because they can save you up to 50% on reception expenditures. We also advise only working with reputable logistics firms such as Solistica.

2. Warehouse Management: To reduce traffic congestion and waste, we recommend storing items as soon as they arrive.

3. Warehouse Management Systems are in handy in various roles when we need to coordinate arriving and outgoing cargoes, reducing the most labor-intensive picking and warehousing procedures.

4. Warehouse Space Optimization: Using the profile generation tool, you can store products with the largest volume in places that are easier to find.

5. The optimization of the warehousing network entails correctly coordinating distribution centers and warehouses to meet all requests, particularly those received via the internet.

Making the Switch to Multimodal Transportation

Switching from air to sea might save you up to 80% of your money and give you more control over your temperature. Containers are seen from door to door when goods are transported by sea. Although delivery times appear to be longer, this is offset by the fact that air freight involves specific procedures and liberations.

The health-care business still has a long way to go in terms of improving its complicated logistics and supply-chain procedures. Fortunately, this industry is starting to search for new ways to cut expenses and improve operations, with the goal of providing lower-cost medical services.

Solistica recognizes the importance of the medical and pharmaceutical industries, thus it provides LTL and FTL transportation services, as well as the benefits of its warehouse management system, in order to protect what matters most: people’s health.