BECOMING THE STAR HUB

Logistics Insight Asia, 1/11/2007

A reliable and effi cient logistics industry is a key support component for Singapore's rapidly expanding life sciences sector.

From transporting temperaturesensitive biological assets to specialized equipment, infectious substances or live animals, logistics providers in the biomedical sciences (BMS) industry play a critical role in connecting their clients with the restof the world.

No longer content with taking on a back-end role, logistics players have now adopted a holistic approach in ensuring the safe and timely delivery of their customers’ shipments. Logistics solutions typically include supply chain management, coldchainmanagement, packaging, labeling, documentation, real-time tracking, and handling the necessaryregulatory requirements.

As Singapore’s BMS sector continues to grow strongly – manufacturing output hit S$23 billion (US$15.3 billion), up 30 percent from 2005– it is supported by the nation’swell-established, reliable andefficient logistics industry. Logisticcompanies have built up significantexpertise and capabilities, helping tomove Singapore up the value chainof the global logistics industry.In particular, some of the leadinglogistics players have establishedspecialized capabilities, unique tothe BMS sector, helping to furtherpropel the industry ahead. Theircustomers include pharmaceuticalMNCs, medical device companies,biotech organizations, hospitals andhealthcare institutions.

COMPLEX & REGULATED
Handling logistics and supply chain management for the BMS industry can be a highly regulated and complex matter, due to thedemanding needs of the client.

Frequently, they will have to deal with complications, such as meeting the stringent yet, constantly changing regulatory requirements of different countries, handling temperature-sensitive biomaterials and understanding the hazardous or perishable nature of the shipments. At the same time, the rising threat of bioterrorism has led to tighter security regulations and more rigorous controls. Due to these issues, logistics players need to be reliable, trustworthy and have astrong track record.

DHL Exel Supply Chain is one example of a company that has set up its Healthcare and Life Sciences hub in Singapore. This dedicated facility specializes in handling and supporting clinical trials, cold-chain management, hospital logistics, temperature-controlled anddangerous goods storage.

“The DHL Life Sciences and Healthcare Hub has been set up with the objective to better serve our pharmaceutical, medical devices and healthcare customers in Singapore and the Asia Pacific region. Simply put, this Hub serves as a regional repackaging and distribution centre for products to meet countryspecific regulatory requirements,” says Paul Lew, Regional Director, Life Sciences and Healthcare, AsiaPacific, DHL Exel Supply Chain.

“We provide a whole range of valueadded services in accordance to cGMP (current Good Manufacturing Practice) standards and these include secondary repackaging and product redressing. DHL Exel Supply Chain also has the capability to handle specialized products, such as cytotoxics,” adds Lew.

Investments such as those made by DHL affirm Singapore’s position as both a BMS and global logistics hub. Other logistics player that specialize in providing value-added services for the BMS industry include TNT, which recently opened its Life Sciences Express Hub to act as a nerve centre of its regional distribution management solution for the sector; World Courier, which focuses on providing clinical trial management services and cold chain solutions; as well as local player YCH, which has identified the Chemicals and Healthcare sectors as one of its key target market segments.

MORE CHALLENGES
According to DHL’s Paul Lew, in addition to the basic challenges in meeting temperature and timecritical requirements, the different regulatory landscape in each country poses a real challenge for cross-border movement of pharmaceuticals, clinical trial products and, to some extent, medical devices. Thus, the onus is on logistics service provider ensure to ensure that cargo clearsthrough customs swiftly.

“As a supply chain specialist, we also need to be aware of the nature of the cargo and the procedures to deal with adverse events, such as spillage in case of an emergency or an accident. Some substances are infectious or cytotoxic in nature and can pose a danger to humans and the environment if not properly handled,” he notes.

Despite the challenges, the future for BMS logistics providers is looking rosy. As Singapore continues to push its BMS initiative ahead and establishes capabilities and expertise in areas such as manufacturing, clinical trials management and R&D, the need for reliable logistics providers will onlyincrease.

“The logistics industry needs to fully understand the requirements of the Biomedical sector and the nature of the product or cargo being handled. There will be an increasing need for subject matter experts in the industry, to impart the relevant skill sets and, therefore, shorten the learning curve,” says Paul Lew.

Based on information from the Singapore Economic Development Board (www.sedb.com).