The rise of online pharmacies is reshaping the pharmaceutical and logistics industries, fundamentally transforming how medications are delivered to consumers. Recently, Tecsys’ VP of Industry and Global Alliances, Guy Courtin, was asked to share his insights about how e-commerce trends and technological advancements are creating new opportunities and challenges in pharmaceutical distribution on a recent episode of Locus Robotics’ podcast, Warehouse Automation Matters.
Here are my top five trends and recommended actions from the episode:
Trend #1: Online shopping has changed how we fill our prescriptions
Internet shopping has changed consumer behavior over the past 30 years, from the dot-com boom to the rapid growth of Amazon and other e-commerce platforms. Pharmacy is now following suit.
Online pharmacies mean consumers avoid the hassle of collecting medications in-store by having prescriptions delivered straight to their homes. The pandemic accelerated this shift as it brought convenience to the forefront: It reduced the need to venture out for essential items like prescriptions.
Recommended action: Logistics companies must manage pharmaceutical deliveries with extra care, particularly for temperature-sensitive products, narcotics and controlled substances. Each of these categories requires rigorous oversight and secure handling.
Trend #2: Pharmaceutical distribution is more complex than traditional e-commerce
Unlike shipping retail goods like a sweater or a pair of shoes, delivering pharmaceuticals carries quite a bit more complexity. Many medications require precise temperature control and specialized handling to ensure they remain effective. For instance, temperature-sensitive medications like insulin must be maintained within specific conditions throughout the delivery process.
Cold chain management — essential for preserving the integrity of these products — adds a layer of complexity. Every step, from warehouse storage to final delivery, must uphold temperature requirements to prevent spoilage and ensure patient safety.
Recommended action: Look to traditional e-commerce for guidance in managing your pharmacy supply chain and then innovate. Explore solutions like temperature-controlled vehicles and smart packaging. Be alert to unforeseen delivery delays or equipment malfunctions.
Trend #3: Technology and innovation are key to traceability
Traceability is essential, especially when dealing with pharmaceuticals. Companies must ensure the correct medication reaches the right patient while maintaining safety standards. Technology plays a critical role in addressing these logistical challenges.
Innovations in pharmaceutical warehouse management, like the Internet of Things (IoT) and smart tags, improve track-and-trace capabilities. These advancements support regulatory compliance and improve delivery transparency.
Recommended action: Ensure your pharmacy supply chain has end-to-end visibility, allowing you to track orders, inventory and shipments in real-time. Invest in a system that provides seamless integration from the loading dock to the healthcare provider’s hands. Additionally, consider collaborating with all your supply chain partners through a digital network platform to enhance communication and efficiency.
Trend #4: Regulatory impact on pharmacy logistics
Once again differentiated from retail goods, pharmaceutical returns and recalls pose some major challenges. Medications, especially controlled substances, cannot be simply dropped in a mailbox. Proper handling and disposal of unused or expired medications are crucial for safety and compliance.
Recalls can be even more complex. Online pharmacies must be able to quickly trace who received affected products and retrieve them efficiently.
The volume of information that logistics must verify and audit is rising with the impending enforcement of regulations like DSCSA. Supply chain leaders need increased visibility throughout the entire process.
Recommended action: Tools like smart tags and upgrading to 5G can enhance visibility. In addition, integrating your supply chain management (SCM) platform with track and trace software such as TraceLink ensures robust traceability systems. This allows for close coordination with regulators to enhance consumer safety.
Trend #5: Growing focus on sustainability
Sustainability is critical for logistics companies in healthcare distribution. Consumers and stakeholders are increasingly scrutinizing environmental impact. As more pharmaceuticals are delivered directly to homes, companies must consider their carbon footprint and overall effect on the environment.
Pharmaceutical distributors and online pharmacies could pioneer drone delivery, as pharmaceutical shipments are typically small and high in value. Drones could provide faster, more efficient service, particularly in densely populated urban areas or remote locations.
Recommended action: Take a deeper look at route optimization. Electric vehicles and even drone deliveries can improve efficiency while reducing your carbon footprint.
Listen to the full episode to uncover essential insights for enhancing your pharmacy’s operations and strengthening your supply chain. Gain strategies to enhance operational efficiency and better serve your patients.