Specialty Logistics Outlook...5 | 2015 Specialty Logistics Outlook Logistics Partnerships Reduce Costs If the logistics industry held a “state of the union” address, successful

2015 Specialty Logistics OutlookSix facts to focus on in the coming year.

AS COMPANIES EMBRACE CSR,

CHANGINGHOW THEY ADDRESS

AND THE

SUSTAINABILITYii

INDIVIDUALS WHO OVERSEE

THEY ARE

TALENT MANAGEMENT

SHIPPER-3PL PARTNERSHIPSSHOWED AN AVERAGE

REDUCTION OF9%LOGISTICS COST

IN 2014ii

THE RISKS ASSOCIATEDWITH

SUPPLY CHAINSARE EVOLVING FROM ABACK-OFFICE CONCERN TO A

PROMINENTPOSITION ON THE BOARDROOM

AGENDAii

What does it all mean for 2015?

$8 BILLIONON COLD CHAIN LOGISTICS IN 2014vi

THE GLOBAL PHARMACEUTICAL INDUSTRY

WILL SPENDMORE THAN

— BRAZIL, RUSSIA, INDIA AND CHINA —

THE BRIC NATIONS

ARE POSITIONED TO ACCOUNT FOR MORE THAN

$248 BILLIONIN PHARMACEUTICAL SALES BY 2016i

SKILLED LOGISTICS MANAGERS ARE

IN DEMANDBECAUSE OF THEIR ABILITY TO SPOT COMPLICATIONS AND

CREATE EFFECTIVE SOLUTIONS— ALL IN SUPPORT OF A COMPANY'S OBJECTIVESiii

1

4

2

5

3

6

— BRAZIL, RUSSIA, INDIA AND CHINA —— BRAZIL, RUSSIA, INDIA AND CHINA —

THE BRIC NATIONSTHE BRIC NATIONS

ARE POSITIONED TO ACCOUNT FOR MORE THANARE POSITIONED TO ACCOUNT FOR MORE THAN

$248 BILLION$248 BILLIONIN PHARMACEUTICAL SALES BY 2016IN PHARMACEUTICAL SALES BY 2016ii

11

THE RISKS ASSOCIATEDTHE RISKS ASSOCIATEDWITHWITH

SUPPLY CHAINSSUPPLY CHAINSARE EVOLVING FROM AARE EVOLVING FROM ABACK-OFFICE CONCERN TO ABACK-OFFICE CONCERN TO A

PROMINENTPROMINENTPOSITION ON THE BOARDROOMPOSITION ON THE BOARDROOM

AGENDAAGENDAiiiiAGENDAAGENDAiiAGENDAAGENDA

22

SHIPPER-3PL PARTNERSHIPSSHIPPER-3PL PARTNERSHIPSSHOWED AN AVERAGESHOWED AN AVERAGE

REDUCTION OFREDUCTION OF99%%LOGISTICS COSTLOGISTICS COST

IN 2IN 2001144iiii

33

$8 BILLION$8 BILLIONON COLD CHAIN LOGISTICS IN 2014ON COLD CHAIN LOGISTICS IN 2014vivi

THE GLOBAL PHARMACEUTICAL INDUSTRYTHE GLOBAL PHARMACEUTICAL INDUSTRY

WILL SPENDWILL SPENDMORE THANMORE THAN

66

AS COMPANIES EMBRACE CSR,AS COMPANIES EMBRACE CSR,

CHANGINGCHANGINGHOW THEY ADDRESS HOW THEY ADDRESS

AND THE AND THE

SUSTAINABILITSUSTAINABILITYYSUSTAINABILITSUSTAINABILITYSUSTAINABILITSUSTAINABILIT iiii

INDIVIDUALS WHO OVERSEEINDIVIDUALS WHO OVERSEE

THEY ARETHEY ARE

TALENT MANAGEMENTTALENT MANAGEMENT

55

SKILLED LOGISTICS MANAGERS ARESKILLED LOGISTICS MANAGERS ARE

IN DEMANDIN DEMANDBECAUSE OF THEIR ABILITY TO SPOT COMPLICATIONS ANDBECAUSE OF THEIR ABILITY TO SPOT COMPLICATIONS AND

CREATE EFFECTIVE SOLUTIONSCREATE EFFECTIVE SOLUTIONS— ALL IN SUPPORT OF A COMPANY'S OBJECTIVES— ALL IN SUPPORT OF A COMPANY'S OBJECTIVESiiiiii

44

3 | 2015 Specialty Logistics Outlook

Emerging Markets Remain an Opportunity and a Challenge

To date, there are more than

178,000 registered clinical trials

taking place across the globeiv, and

global pharma’s volume has more

than doubled over the last decade.

With emerging markets showing

explosive predictive growth through

2016, shippers and trial sponsors

can expect continued regulatory

and overall logistics complexities

that foster demand for local, in-

market resources across the globe.

Take China, for example. While

the country is making strides in

streamlining processes for shippers

of all types of products with

initiatives like batch clearing of

waybills, pricing pressures from

domestic transport providers meant

that, in 2014, growth for non-

Chinese logistics providers was

somewhat slowedv.

It’s perhaps for these reasons

that manufacturers worldwide

are investing more in their supply

chains. Pharmaceutical Commerce

predicts a $15 billion increase in

the global biopharma logistics

spend between 2012 and 2018vi. $248

AND CHINA

THE BRIC NATIONS

BILLION BY 2016i

BRAZIL,

BY 2016 BY 2016

ARE POSITIONED TOACCOUNT FOR MORE THAN

IN PHARMACEUTICAL SALES

RUSSIA, INDIA


Risk Management Efforts Create New Stakeholders

Quality departments within

pharmaceutical manufacturers’

operations are gaining more and

more infl uence in the selection of

vendors from packagers to logistics

partners. Why? Because supply

chains hold inherent risk factors

that are compounded when more

money is invested in creating more

effi cient supply chains. And the

spend that’s going into logistics —

an estimated $64 billion in 2014vi

— is no doubt capturing attention

from new stakeholders. It’s this

risk-based approach that means

manufacturers and their supply

chain partners must focus on

creating processes and leveraging

tools that allow for increased

visibility and effective management

across the supply chain.

ARE EVOLVING

AGENDAii

THE RISKSASSOCIATED WITH

SUPPLYCHAINS

OFFICE

PROMINENT

POSITION

FROM ABACK-

CONCERNTO A

ON THE BOARDROOM


Logistics Partnerships Reduce Costs

If the logistics industry held a

“state of the union” address,

successful partnerships would be

the takeaway. Shippers continue to

report cost reductions from logistics

partnerships and outsourcing and

controlled logistics expenditures as

they relate to total revenue.

What’s being outsourced?

Domestic transport, international

transport and warehousing rank

at the top of the list of outsourced

logistics services. Among shippers

who utilize 3PL services, 80 percent

say they outsource domestic and

70 percent outsource international

transportii. In the same survey,

67 percent of shippers reported

they would increase their use of

outsourcing, while 53 percent will

reduce or consolidate the number

of 3PL providers they use.

In response, logistics providers are

ramping up efforts to increase their

foothold as supply chain partners

with everything from improved

technology to high-touch

transport offerings and a focus

on strategic alignment with

manufacturers’ goals. 9%IN 2014ii

SHIPPER-3PL

PARTNERSHIPSSHOWED AN AVERAGE

OF

LOGISTICS

REDUCTIONCOST


Workforce Management is an Emerging Priority

The logistics industry is facing a

couple of key challenges when it

comes to talent: diffi culty attracting

talent and the evolution of the

ideal logistics skill set. Industry

estimates show a predicted

shortage of 20 million professionals

by 2015ii.

Coupling these challenges with

the complexity of specialty logistics

means manufacturers will not only

be competing for talent with 3PLs,

other industries and consulting

fi rms, they’ll also be tasked with

fi nding outside partners who have

the right blend of industry expertise

and execution experience.

SKILLEDARE IN

LOGISTICS MANAGERS

DEMANDBECAUSE OF THEIR ABILITY TO

SPOT COMPLICATIONSAND CREATE

EFFECTIVESOLUTIONS

— ALL IN SUPPORT OF A

COMPANY'SOBJECTIVESiii


Sustainability Enters Supply Chain Conversations

Corporate Social Responsibility

(CSR) covers everything from

conserving natural resources

and business impact on the

environment to animal testing,

human rights and labor practices.

And while the issue of sustainability

has been hot in the corporate

world for some time now, CSR is

proliferating such that it’s now a

supply chain consideration that

touches packaging, transport and

global relations. Sustainability-savvy

manufacturers — particularly those

in agribusiness and other R&D

fi elds — will be looking for ways

to transform their supply chains in

more responsible ways.

CHANGING

AND THE

SUSTAINABILITYii

THEY ARE

AS COMPANIESEMBRACE

CSR,HOW THEY

ADDRESS TALENT

MANAGEMENT

INDIVIDUALSWHO

OVERSEE


Temperature Control Evolves

Products that require temperature-

controlled transport are, more and

more, moving into all temperature

ranges. From body temp to

ambient, innovation in R&D means

new temperatures to accommodate

and monitor during transport.

Manufacturers of these products

will benefi t from an industry-wide

increase in packaging and storage

innovation that enables reduced

supply chain dependencies.

$8MORE THAN

THE GLOBAL

PHARMACEUTICAL

INDUSTRY WILL

SPEND

BILLIONON COLD CHAIN

LOGISTICSIN 2014vi

World Courier

World Courier is a global specialty

logistics company that designs

world-class logistics and supply

chain programs in complete

alignment with our customers’

business goals. Pharmaceutical

companies rely on us because they

value the peace of mind that comes

with our unsurpassed knowledge,

global reach and flawless supply

chain execution. Each trusted

partnership we form with a

customer is deeply rooted in our

shared vision of improving global

health. With 2,000+ associates in

more than 140 offices across the

globe, we offer solutions that

instill confidence in the on-time,

on-temperature delivery of

critical products.

When trust is absolutely

essential, there’s only one

choice: World Courier.

worldcourier.com

References

i IMS Health. The Global Use of Medicines: Outlook

Through 2016. July 2012. Available online at http://

www.imshealth.com/deployedfiles/ims/Global/

Content/Insights/IMS%20Institute%20for%20

Healthcare%20Informatics/Global%20Use%20of%20

Meds%202011/Medicines_Outlook_Through_2016_

Report.pdf. Accessed 7 November 2014.

ii 2015 Third-Party Logistics Study. Available online at

http://www.3plstudy.com/downloads/download-3rd-

party-logistics-study/. Accessed 14 November 2014.

iii Vella, D. Supply Chain Management: A Needed and

Growing Opportunity. Inbound Logistics. Available

online at http://www.inboundlogistics.com/cms/article/

supply-chain-management-a-needed-and-growing-

opportunity/. Accessed 18 November 2014.

iv Number of Registered Studies Over Time.

ClinicalTrials.gov. Available online at https://www.

clinicaltrials.gov/ct2/resources/trends. Accessed 17

November 2014.

v Zakkour, M. Supply Chain Key to Success in China –

Outlook 2014. Forbes Asia. Available online at http://

www.forbes.com/sites/michaelzakkour/2014/02/06/

supply-chain-key-to-success-in-china-outlook-2014/.

Accessed 17 November 2014.

vi Lipowicz, M and Basta, N. 2014 Biopharma

cold chain forecast. Pharmaceutical Commerce.

29 April 2014. Available online at http://www.

pharmaceuticalcommerce.com/index.php?pg=supply_

chain_logistics&articleid=27206&keyword=biopha

rma-cold%20chain-logistics-forecast. Accessed 30

October 2014.


Documents

Specialty Logistics Outlook...5 | 2015 Specialty Logistics Outlook Logistics Partnerships Reduce Costs If the logistics industry held a “state of the union” address, successful