COST CONTROL IN THE PHARMACEUTICAL SECTOR

Photo: Board Reports

by Justin Brown

Concerns about increased regulation, supply chain inefficiencies and product safety plague healthcare companies already crippled by rising costs. Treating diseases with high-tech tools and optimized logistics provides relief.

Health care costs in the United States are rising at an alarming rate. Projections show that health spending will reach 4.8 trillion dollars in 2021, according to the Centers for Medicare and Medicaid Services, a situation that will affect the pharmaceutical sector in other economies in the world, particularly those in emerging countries. For healthcare companies, improving logistics management plays an increasing role in cost control.

“Seven or eight years ago, supply chain cost control in healthcare was not critical,” says Clive Lester, business development specialist for healthcare in Europe, for third-party logistics provider (3PL) Yusen. Logistics, based in Tokyo. “But in recent years – during which research and development costs, for example, have quadrupled – healthcare companies have started looking for areas where they can save money,” he continues. "One of them is the supply chain."

Sanitation companies have traditionally had healthy margins, but the changing landscape of the industry puts those margins at risk. “As a result, healthcare companies have to better manage their operations,” says Kyra Sweda, director of business development for Miami-based Ryder System Inc. “The industry traditionally operates in silos, but it is imperative that healthcare companies improve visibility to make smart decisions that integrate the entire supply chain.”

Concerns about increased regulation – which will gradually impact the world – supply chain inefficiency and product safety are also affecting the industry. Here's a look at how healthcare companies and their supply chain partners are working together to solve the problem.

Complete note: http://www.il-latam.com/images/pdfs/articulos/ill104_farmaceutico_2014.pdf