On June 15th, Transport Logistic China and Shanghai Pharmaceutical Industry Association co-hosted a forum on the development of modern logistics for the pharmaceutical industry. Jackie Zhang, Director of Customer Led Solutions and Business Development at Prologis China, gave a speech at the forum themed on the role of high-standard modern logistics facilities in enabling the high-quality development of pharmaceutical logistics.
The key to logistics of pharma industry: improving efficiency and lowering cost
Driving by the advancements in biotech and pharmaceutical technology and its rapid expansion of market scale, pharmaceutical logistics is undergoing significant growth. During the 14th Five-Year Plan period, governments at all levels have introduced several development plans and guidelines to optimize pharmaceutical distribution systems related to the logistics network, standards, and cold chain infrastructures.
According to Jackie Zhang, the growing pharmaceutical logistics requires a robust industrial ecosystem based on multi-party collaboration. This ecosystem plays a crucial role in enhancing the efficiency and quality of pharmaceutical logistics operations through synergies across the entire supply chain. Additionally, the establishment of a logistics network in multi locations proves to be beneficial as it can shorten the distribution routes for manufacturers and save delivery time. This, in turn, help pharmaceutical companies in lower logistics costs and meet market demand efficiently.
High-standard logistics facilities are vital for smoothing the flow of pharmaceutical products from manufacturers to consumers.
Jackie Zhang highlighted how pharmaceutical logistics operates under strict supervision, with the “two-invoice system” driving a streamlined distribution chain for medical products and increasing industrial concentration. As a consequence, this places stronger requirements on the supply chain management capabilities of pharmaceutical companies. Now they are actively working to reduce the intermediate links in distribution, enhance delivery timeliness, and lower logistics costs. As a crucial component of logistics, logistics facilities play a vital role in optimizing distribution routes.
High-standard logistics facilities support modern pharmaceutical circulation system
The safety of pharmaceutical products is primary for all stakeholders involved. According to Jackie Zhang, the quality of logistics infrastructure is significant for the storage and distribution of pharmaceutical products. However, he notes that some domestic cold storage facilities are outdated and lack of flexibility to meet the requirements of modern pharmaceutical companies.
Prologis, the leading global provider and operator of modern logistics infrastructure, recognizes pharmaceutical as one of the key industries it serves . “We have collaborated with numerous renowned pharmaceutical companies worldwide, with an in-depth understanding of their standardized and unique requirements for warehouse space,” said Zhang Yu. “We are capable of offering innovative solutions to customers’ specific needs. Furthermore, our provision of clean energy and smart management systems ensures safe and reliable operations for our customers and helps them to achieve sustainable development.”
Prologis Shanghai Jiuting Logistics Center is an excellent example of how Prologis’ logistics infrastructure serves the demands of pharmaceutical companies. Prologis goes beyond just the customer’s current needs, having proactively anticipated the future needs of the customer in the design phase of the logistics center and provided best-in-class facilities to support the customer on improving efficiency and lowering costs.
Driven by new policies and emerging markets, pharmaceutical logistics are currently faced with both challenges and opportunities. As the leading service provider in this sector, Prologis is committed to leveraging its expertise in facilities development, operation and services to serve customers with innovative solutions. By doing so, Prologis is dedicated to contributing to the building of a modern, efficient and safe pharmaceutical logistics network.