Cold Chain Distribution Issues at Indo-Euro Pharma
(7 pages of text)
The supply chain director of Indo-Euro Pharma summoned an urgent meeting in response to significant losses incurred by the company in the last fiscal year. This was primarily due to the return of yet another international consignment of temperature-sensitive drugs (TSDs) — this time worth millions of dollars. The meeting focused on the inability of Indo-Euro Pharma to appropriately distribute and monitor TSDs cost effectively across the various stages and locations of the supply chain — especially at the pharmacist level. Deviations from drugs’ required temperature ranges could happen during packaging, storage, transport, loading and unloading in aircraft, sea containers, trucks, etc. It was extremely difficult to monitor whether pharmacists were following proper procedures for storing TSDs. Most medical stores in India had domestic refrigerators that required frequent calibration. The problems indicated the need for Indo-Euro Pharma to adopt an alternative distribution system that was specifically tailored for TSDs.
The purpose of this case is to introduce cold supply chains to postgraduate management students and examine various issues in the pharmaceutical cold supply chain. Cold chain management is one of the most important business components of the pharmaceutical industry, yet many pharmaceutical companies struggle to manage it effectively. This is especially true in India, owing to poor infrastructure and out-of-date technology. There, the majority of pharmaceutical manufacturers and their logistics providers use simple transport and temperature-measuring devices without considering TSDs’ specific requirements.
Health Care Services
India, Large, 2012
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