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OUTSOURCING INSIGHTS REPORT LIFESCIENCELEADER.COM NOVEMBER 2014 16 It's important to ensure that the logistics company engaged for the job is not the weakest link in the cold chain. K A T E H A M M E K E Director of Marketing Intelligence Nice Insight By K. Hammeke LOGISTICS PROVIDERS STRIVE TO FULFILL BIOPHARMA NEEDS – SPECIALTY COMPANIES OFFER ADVANTAGES, BUT GET A BAD RAP ON PRICE Logistics Providers Strive To Fulfill Biopharma Needs – Specialty Companies Offer Advantages, But Get A Bad Rap On Price According to clinicaltrials.gov, there are over 92,000 drug or biologic registered studies under way right now. Nearly one-fifth (17 percent) of the drugs currently in development are biologic-based therapeutics. ecause biological assets are temperature sensitive, the challenges in transport and distribution are quite differ- ent from logistical obstacles faced by traditional, small molecule-based drugs. Both global logistics giants (such as FedEx and UPS) and a host of specialty logistics companies (such as Marken, World Courier) focused on the life sci- ences industry have fine-tuned their offerings in order to meet the cold chain needs for biomaterials, such as clini- cal trial samples, active pharmaceutical ingredients, cell banks, tissue samples, and more. With high stakes ranging from legal to financial risk, it's important to ensure that the logistics company engaged for the job is not the weakest link in the cold chain. Nice Insight asked 100 respon- dents in charge of the handling and dis- tribution of biological specimens or clin- ical trials materials their opinions and preferences on shipping partners. When it comes to overall preference, global logistics companies such as FedEx, UPS, and DHL are favored over specialty com- panies by a relatively slim margin (39 vs. 31 percent). Thirty percent of respon- dents stated they prefer to use a mix of both specialty and global logistic com- panies. Among the group of respondents who use both types of providers, special- ized providers received a little more of their business (55 vs. 45 percent). Respondents attribute on-time deliv- ery and flexibility in pickup and drop- off times to both types of providers. However, logistics giants are best known for their convenience and affordability, while specialty providers are associated with temperature-control options and white-glove handling. Because partici- pants indicated they are more likely to select a logistics company based on best fit for a project rather than price, the added-value services available through specialty providers are likely to win the companies' new business. And — based on 97 percent of respondents who said their logistics expenditure increased or stayed the same last year — there is more business to be had. Only 3 percent thought it would decrease. Real-time traceability for shipments (63 percent) along with logistical loca- tions (56 percent) and regulatory exper- tise (54 percent) are the leading reasons for engaging a third party logistics pro- vider for handling biomaterials. Twenty- four/seven customer service topped the list of the most sought after technologies and/or services from logistics providers. If you want to learn more about the report, please go to niceinsight.com B