Industry collaboration needed to tackle ‘blind spots’ in pharma supply chain
The annual losses of approximately $35 billion in pharmaceuticals across all modes of transport, including air cargo, highlight several “blind spots” in the supply chain that need urgent attention, states the Vice President of Kales Group, Adam Gunnarsson, who is calling for collaborative effort to address them.
In an email interview with Air Cargo Update, Gunnarsson said there are key areas of concern specific to air cargo and they include – Temperature deviations and cold chain breaks; Lack of data transparency and visibility; Human error and training gaps; Customs delays and regulatory bottlenecks; Infrastructure limitations at airports and Security risks and theft.
He is of the view that unless collaborative efforts across the entire air cargo supply chain, from airports and airlines to regulators and logistics providers, the ‘blind spots’ will continue to impact operations. “I’m improving cold chain management, enhancing data visibility, providing training, and upgrading infrastructure will help reduce losses and improve the efficiency of pharmaceutical transport by air.”
CEIV certifications
Airlines, he mentions, continue to invest in specialized handling facilities, with many adopting (IATA) CEIV certifications to ensure quality control and compliance with pharmaceutical standards.
The air cargo industry is actively preparing for growth by implementing several strategic initiatives across infrastructure, technology, and operational enhancements. These preparations reflect both the recovery from pandemic-driven disruptions and the anticipated rise in pharmaceutical, e-commerce, and perishables transport.
The key strategies to improve pharma supply chain, he notes are Cold chain infrastructure enhancements; Digitalization and automation; Fleet modernization and sustainability initiatives and Training and certification initiatives.
The pharmaceutical air cargo sector faces several challenges that impact the efficiency and reliability of exports, points out Gunnarsson. These issues range from capacity constraints to regulatory complexities, and they directly affect the timely delivery of sensitive medicines and vaccines.
The main challenges impacting the sector are strict temperature control requirements; Regulatory compliance and certification challenges; lnfrastructure Limitations in emerging markets; and Supply chain volatility and geopolitical Issues.
Infrastructure challenges in emerging markets
Agreeing that challenges in pharma air cargo are region or country-specific, particularly related to infrastructure limitations, regulatory frameworks, geopolitical factors, and market-specific dynamics.
There are some examples and efforts being taken to overcome issues such as Infrastructure challenges in emerging markets (Africa, Latin America, Southeast Asia); Regulatory differences in Europe and the US; Geopolitical instability in Eastern Europe and the Middle East; and Environmental and sustainability regulations in Europe.
“Pharma air cargo challenges are highly region-specific, influenced by infrastructure, regulations, geopolitical tensions, and sustainability mandates. To address these issues, the industry is focusing on building pharma corridors, obtaining multiple certifications, expanding cargo networks, and collaborating with governments and private partners. These efforts aim to ensure that the growing demand for pharmaceutical exports is met efficiently despite regional hurdles.”
Agreeing that there is growing recognition that existing standard operating procedures (SOPs) in transshipment of pharmaceuticals are inadequate in some areas, he said, “While frameworks like IATA’s CEIV Pharma program have raised industry standards, inconsistencies in SOP implementation across regions and logistics players continue to pose challenges.
He also pointed out some concerns such as inconsistent implementation of SOPs across Regions; Inadequate tracking and visibility during transshipment; Limited coordination between stakeholders and Gaps in SOPs for contingency planning.
On-tarmac transportation the weakest link
‘Airport on-tarmac transportation is the weakest link’ in the pharma supply chain, Gunnarsson pointed out the risks involved in moving pharmaceutical shipments between warehouses, aircraft, and storage areas.
The primary challenges arise from exposure to external environmental factors, improper handling, and the lack of specialized equipment.
Giving a breakdown of the issues and solutions to mitigate the risks, Gunnarsson suggests dealing with delays in loading and unloading; introducing specialized handling equipment; training; and IATA CEIV pharma certification.
“The on-tarmac segment remains a critical vulnerability in the air pharma supply chain because of temperature sensitivity, handling risks, and operational delays. However, many airports and logistics providers are investing in specialized equipment, training, and certification programs to mitigate these challenges. As the demand for pharmaceutical air transport grows, addressing these weak points will be essential to ensuring product integrity and reducing losses,” he said.
The gaps, he mentions, are due to inconsistent infrastructure across airports: Limited real-time visibility and monitoring; Inefficient ground handling processes; Regulatory delays; and Limited temperature-controlled transport equipment, but opportunities are galore.
Digitalization improving
“The adoption rate of digital technologies in the air pharma supply chain is steadily increasing, but it varies across regions and stakeholders (airlines, ground handlers, airports, and logistics companies). The COVID-19 pandemic accelerated the push for digitalization as the need for real-time tracking, transparency, and efficiency in handling temperature-sensitive pharmaceuticals became more apparent. However, full adoption remains uneven due to factors such as costs, regulatory complexity, and the varying readiness of different actors in the supply chain,” Gunnarsson noted.
Three key tech trends that can significantly enhance the air pharma supply chain are Internet of Things (IoT) and Real-Time Monitoring; Blockchain for transparency and security; and artificial intelligence (AI) and predictive analytics, he states and commends the IATA CEIV Pharma program represents a significant step forward in establishing a consistent global standard for pharmaceutical logistics in the air cargo industry.
“While it has been widely adopted among major air cargo hubs and key logistics providers, it has not achieved universal uptake. To promote broader adoption, industry stakeholders can focus on education about CEIV Pharma’s benefits, regional partnerships to ease certification costs, and supporting infrastructure improvements in emerging markets. This would help build a more resilient and globally standardized air pharma supply chain,” said Gunnarsson.
“While CEIV Pharma is widely recognized, the air pharma supply chain has not fully adopted it across all regions and facilities, due to high certification costs; Complex Certification process; Regional disparities’ Alternatives and Overlapping Certifications; and lack of awareness or immediate demand,” he added.
Underlying the importance of training and certification programs are fundamental to operate a reliable and competitive air pharma facility. “They equip staff with the skills needed to meet regulatory demands, protect cold chain integrity, and adopt new innovations in the air pharma supply chain. Ultimately, they ensure that pharmaceutical products are handled with the utmost care and efficiency, building a trustworthy reputation and fostering client confidence,” said Gunnarsson.
Praising the efforts of Pharma.Aero, Gunnarsson suggests to strengthen it by expanding the CEIV Pharma certification to emerging markets; Drive digital transformation with a unified data-sharing platform; Increase emphasis on sustainability Initiatives; and Implement predictive analytics and AI-driven Insights.
