TIACA Executive Summit 2016

TIACA Executive Summit 2016 Temperature Controlled Supply Chain Thursday, May 26, 2016 11:15 am – 12:30 pm

Increased global consumption of pharmaceutical products, creates the need for highly specialized solutions that address temperature control, regulatory compliance, quality and security. Current trends and challenges affecting the pharmaceutical supply chain, latest technologies, requirements and services to make the pharmaceutical supply chain more robust will be discussed during this interactive session. Subject Matter Experts:

 Moderator: Leandro Moreira, Director, Life Sciences, Brinks  Chris Fore, Compliance Manager, Envirotainer  Steven Polmans, Head of Cargo, Sales & Marketing, Brussels Airport  Mark Kelly, Senior Director of Security Operations, McKesson Corporation  Dimitrios Nares-Section Chief Aviation Marketing, Miami-Dade Aviation Department

SUBECT MATTER COMMENTS AND GROUP DISCUSSION

“If a flower isn’t delivered on time, a heart is broken, if a pharma item isn’t delivered on time, a heart stops.”

Pharma touches all of us and it’s a growing market segment. There has been a major shift in consumption with more access to healthcare, an emerging middle class, and people are living longer – longevity and lifestyle choices are driving consumption.

“Phamerging” markets include Asia and Latin America.

We need new transportation solutions and harmonization in regulation. We need to collaborate, but we should also be proud as an industry of our achievements and learn to shout out about them.

Brussels airport “the pharma hub “ Steven - We really wanted to take the lead and make a difference. We worked from the beginning with the shippers and we kept working with them to complete the IATA Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) program. To achieve transparency we are working with cloud applications and we are data sharing.

Brussels and Miami are working together Jimmy - We see Brussels as our big brother when it comes to pharma, we have a lot to learn, they entered the market before us and they are doing the right things we are learning from them. We see pharma growing and it is the natural fourth perishables market for us. We are getting the local cargo community together to get them prepared.

We want to work together with other airports – sharing best practices, working to grow the transport industry.

Pharma developments Chris - Track and trace solves a lot of problems, it provides visibility and security and it also gives the shipper the data they need to take action on a real time basis to protect the efficacy of these products.

The industry is really evolving and there are new products all of the time.

The regulators are driving innovations in packaging solutions and new forms of insulation because of new temperature control ranges.

Vacuum insulation panels have changed the way also these packaging solutions maintain temperature. In the past, dry ice solutions were water-based, so we were talking zero degrees. Now there is alcohol and salt used as well and so the temperature ranges can bes are different.

New evaporative cooling is much more effective than using ice. There is lot of innovation around packaging, not only active load devices but also passive solutions.

Other innovation includes the sharing of data – RFID, track and tracing using mobile networks. You can put up security fences around the airport and if it leaves you know it has left and you can also check temperature.

Who pays for innovation and quality? Mark – it is about quality, data sharing and cost. We are not willing to pay more overall.

My margin is two percent, so if it is going to cost me a lot of money to fund that is going to be very hard for me to swallow.

One of the main problems we are facing is criminals diverting pharma. It is starting to escalate more than ever. Hijackings happen on the ground -– in one instance they have dug a hole in the ground where they can submerge a 50-foot container and get a full data blackout.

We are also starting to see advanced social engineering. It used to be the case that a truck was hijacked at a truck stop, but now the bad guys are posing as existing customers. They are social engineering people, using photos and information from LinkedIn for example, and when get enough information, they contact us and they are essentially indistinguishable from our genuine customer.

They can just order from us and get it shipped.

There is a market for something everywhere and I am not just talking about the obvious things. Diabetes test strips for example are big business.

Every time we put a new technology up, they come up with something new, it’s like "Whack a mole".

Collaboration Stephen - Our industry needs to change. The only solution that will work is a global one. Sharing data but also ideas and information and working together to implement ideas. We need to start discussing these things at an early stage.

We need to be spending the money, but only once, nobody has the margin to do more than that.

Cloud is a good example. We used cloud to come up with a solution for slot and gate. There was a cost and at first everyone said no. We went to the forwarders and said we are going to prove that within two months there will be no more peaks and the cost savings were ten times the amount of spend.

We have to focus not on the cost but on the cost reduction.

We are always afraid that anything we do is going to add cost, but we have to think ahead.

Education is key Jimmy - I think it is key for us to get the entire logistics community behind the IATA program and prepare our logistics companies to properly handle pharma.

Education is key across the whole supply chain and we must all be part of it because if there are one or two parts that are not equipped or not able to handle pharma properly the manufacturers will not have the confidence to use us.

We have seven companies engaged in the IATA program in the Miami area.

Industry is working together Stephen –We should learn from experiences and if we know what is wrong we can fix it. The dynamics for change are there.

Mark – we want our product to be right, we do not want our products compromised, the struggle is how do you find the unified platform. I think it is going to require some government regulation. We are not necessarily against investing. We have two years to comply with the first set of rules. It is not that we are not willing to collaborate but as an organisation we are beholden to our stakeholders so if something is going to impact that two percent we need to think about that.

Chris –We need a little bit of a push. The big challenge for the industry is to harmonise on a global basis

Good Distribution Practice (GDP) or CEIV Steve- GDP is having the driver licence but if you really want to be top notch you need CEIV, a Formula One licence.

Chris – The manufacturers are driving this they are the regulated ones.

I support any initiative in the industry that helps ensure quality compliance. It is not a one size fits all situation however.

GDP compliance is not expensive, you just need to show the customer what you are doing and that there is a rational to what you are doing. CEIV saves you money by reducing the number of audits.

Stephen – the weakness of the GDP is that you can be compliant but you have the huge amount of audits. The benefit of CEIV is that you have a much stricter set of rules. I do agree that not everybody should be CEIV.