James Shaw & Jon Chapman, AstraZeneca on 'Assessing the Benefits and Risks of using Seafreight'

Assessing the Benefits and Risks of using Seafreight
“Temperature Controlled Pharmaceutical Distribution”
November 2009

James Shaw Global Logistics
Jon Chapman Global Logistics

Content
AstraZeneca an overview
Reasons for using Seafreight
Reefer Overview
Benefits and Risks of using reefers
Pitfalls when changing to sea
freight.
How do we secure a successful
operation
Conclusions

2 AstraZeneca Freight & Logistics 25th Nov, 2009

Top 10 pharmaceutical companies
Sales, $m

Pfizer 42 232

GlaxoSmithKline 35 361

Novartis 34 393

Sanofi-Aventis 33 965

AstraZeneca 31 601

Roche 29 541

Johnson & Johnson 28 894

Merck & Co 25 636

Abbott 19 004

Lilly 18 741

Source: IMS Health, MIDAS Quantum, 51 countries MAT/Qtr4 2008.

Five important AstraZeneca medicines
Seroquel Depot and Symbicort combines
Seroquel has helped maintenance therapy and
more than 25 million fast immediate treatment in
patients with schizoph- a single inhaler, approved
renia and bipolar disease. against asthma and chronic
obstructive pulmonary
disease (COPD).
14.5 million patients
with elevated cholesterol
has been treated with Nexium – reflux patients in
Crestor. over 100 countries have
gained a better quality of
life thanks to the most
Further treatment with
effective gastric acid
Arimidex prevents one
inhibiton on the market.
in four recurrences
compared with
tamoxifen.


19 manufacturing units in 16 countries

The largest plants are in:
Sweden Snäckviken and Gärtuna
UK Avlon and Macclesfield
US Newark and Westborough
Australia North Ryde
France Dunkirk and Reims
Germany Wedel
Japan Maihara
Puerto Rico Canovanas
China Wuxi


Reasons for using Seafreight


Pharma Patent Expirations

So what?
We will be asked to do more with less &
to challenge the current status quo.


Our strategy
For sustainable, industry-leading growth
“Making the
most meaningful difference to patient health
through great medicines”

Responsible
Valued Customer centric Lean and agile leaders who make
medicines mindset organisation every interaction
counts

Reshape the Change our
Strengthen the Grow the
business behaviour and
pipeline business
our culture

Products Patient Needs Performance People

OUR VALUES


Logistics developments within different
Industries


9

Evolution of AZ Logistics Business Model

Strategy

Astra
Tactic

Astra Zeneca
Planning Zeneca
3PL/contract logistics
Coordi-
nation
Freight
Execution
Forwarding Warehousing Freight
Forwarding Warehousing Value Add

Past Future


AZ drivers for change of transport mode
Global Lean Agenda – reducing waste.
“Would the customer be prepared to pay for airfreight?”

Increasing cost of air distribution eg security and fuel surcharges,
capacity constraints in downturn

Environmental impact of air distribution – CO2 emissions

Product security/ Temperature sustainability

Product lifecycle – From growth to maturity for some products.
“Higher volume – Lower value”

SHOULD NOT TO BE SEEN AS THE ONLY SOLUTION


Why Seafreight?

Cost Savings of up to 75%, compared against airfreight. This cost
saving will outweigh the opportunity cost of inventory on the water.

Estimated reduction in CO2 emissions of 98% Full temperature control.

Reduction in handling and as a result risk of transport damage.

Increased product security, as distributed in sealed tamper evident
container.

Reduction in pallet usage and materials to protect airfreight pallets

The testing time and QA release could be absorbed within the transit
period (Sterility Testing Leadtime - 15 days).


What is a Reefer?
– Reefer is the generic name for a temperature controlled
container.
– The containers, which are insulated, are specially designed to
circulate temperature controlled air.
– Reefers can maintain cargo temperature in differing ambient
temperatures.
– Reefer is not only a refrigerator. Reefer can both remove and
provide heat.


Facts on the Reefer Market
Approx. 0.5% of the global container supply are Reefers.

Multiple shipping lines need to be contracted in order to secure a
reliable supply of equipment.

Less shipping lines operate a reefer service – Supply to remote
destinations could be problematic !

Less loading volume than standard containers.

High value restrictions imposed by many carriers – all AZ products
move under cost of manufacture.

Harbour maintenance taxes in the USA need to be considered in any
sea movement.


Benefits of using Seafreight / Reefers

Complete unit shipped from supplier
to customer (sealed).
No transhipments
No handling
Reduction in transit damage
Unit dedicated to AZ Pharma cargo.
Reefer temperature set to match
cargo specification.
Opportunity to allocate stock in transit.
Reefer unit logs temperature during
the voyage and thus offers a tool for
follow up and quality control – used in
line with AZ Temperature tools.


Considerations when using Sea-freight
Increased transit time
Less frequent
departures
Loss of contact with
product for ‘long periods’
Increased inventory

Better planning and
Ersätt med bild på is
planning in advance
Advanced notice of container i flygmotor
needed
imminent arrival allows Pre planning and
link into European LTL booking as long as 20
road network (Antwerp days before
Hub)

Challenges when changing to sea freight
QUALITY
Lack of Gensets
Unclear Responsibility
SOPs
Equipment pre-trip inspection

FINANCIAL
Understanding of total supply chain
Robust Total Cost Ownership Analysis

Internal acceptance and agreement

Cargo value and volume shipped as one
‘unit’

Common understanding amongst all parties


How do we secure a successful
operation?


Important stuff…
3 PARTIES! Working Together
Carriers Astra
3PL Ports
Zeneca
Haulier

Communication

D2D Supply chain Commitment & trust Clear demands
Pharma compliance 3rd-party relations Resources
Performance Mgmt Clear ownership 3-Party relations
Process driven Win-win focus Clear Ownership

19
19

Operation in Practice
Operating routines and SOPs adjusted to meet
specific demands of sea-freight
Freight Monitoring – web based track and
trace information – shared with all parties
involved.
Joint and agreed KPI's used for evaluation and
continuous improvements
Regular reviews at all levels to follow up,
evaluate and develop ways of working.
Gainshare rewards to Incentivise providers.


Logistics Chain overview

SOP’s / GDP
SOP’s / GDP

GEODIS WILSON
SOP’s / GDP
Supply Chain Traceability

DELIVERS AN END
SOP’s / GDP

TO END SOLUION
21 AstraZeneca Freight & Logistics 25th Nov, 2009 21

Conclusions
Benefits of Sea-freight
Cost Savings
C02 reduction,
Increased security and quality.
Understand the impact of increased lead time.
Understand your supply chain – “Buy your lead time”
eg ship ahead of clearance.
Secure understanding and commitment from internal
business stakeholders.
Proper preparation at all levels is key.
Things do go wrong – risk mitigation plan.


QUESTIONS?

AstraZeneca Freight & Logistics 25th Nov, 2009

THANK YOU!

James.shaw@astrazeneca.com
Jon.chapman@astrazeneca.com


James Shaw & Jon Chapman, AstraZeneca on 'Assessing the Benefits and Risks of using Seafreight'

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a James Shaw & Jon Chapman, AstraZeneca on 'Assessing the Benefits and Risks of using Seafreight'

Semelhante a James Shaw & Jon Chapman, AstraZeneca on 'Assessing the Benefits and Risks of using Seafreight' (20)

Mais de eyefortransport

Mais de eyefortransport (20)

Último

Último (20)

James Shaw & Jon Chapman, AstraZeneca on 'Assessing the Benefits and Risks of using Seafreight'