Technology has created incredible opportunities in the world of life science supply chain management. But with that opportunity comes a new set of responsibilities and client expectations. Over $260 billion in biopharma sales are dependent on cold chain logistics, according to the most recent report on the subject by the US Chamber of Commerce. Spending on cold chain logistics is already over $10 billion and is expected to grow to $13 billion by 2019. Improved supply chain management allows for lower transportation costs, better visibility throughout the transportation process, reduced waste and theft, and better quality management. And in the world of life sciences, quality is everything.
Of all the steps in an outbound logistics management process, only one step really matters. That's the last step, when the end customer gets the delivery into their hands. The customer doesn't care about any other details of the journey. They're not interested in your efficiency metrics or your sophisticated tracking techniques. They only care about getting their delivery on time and in perfect condition. Nobody wants their entire fulfilment process to fall at the last hurdle. That's why final mile delivery has become an increasingly important focus for logistics companies.
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Late September of 2017 brought on the Capacity Crisis for truckload providers, and by proximity, a crisis for any business reliant on this logistics planning link in their supply chain. According to Transport Topics, “By mid-October, DAT reported the van load-to-truck ratio hit 7.0 loads per truck—the ‘highest ever recorded’ in DAT Trendlines—a study that began in 2010.”
From demand to last-mile delivery, shipping logistics is a complex, hairy beast and has only gotten bigger and badder as modernization (e-commerce, cloud-based records and communications) has largely dictated where the industry is going. Although rapidly evolving with certain obstacles that seem too difficult to overcome, the truth is there are highly valuable opportunities within these new challenges.
In 1903, the Wright Brothers initial aircraft – Flyer 1 – was comprised of, give or take, a dozen parts. It had the basics, wings, rudders, propellers, a fuselage (that term is to be applied loosely if we’re judging by today’s standards), an engine, etc. You get the point…Though I cannot speak definitively on where each of those parts were sourced, I’ll make the safe assumption that they were products of US manufacturing (since the primary material was Spruce wood). For the Wright Brothers, the primary concern was actually flying.
Long have supply-chain professionals debated the advantages of the non-asset-based model over the asset-based model of logistics suppliers. Those in favor of the asset model argue that asset-based carriers can take over their clients’ supply chains by acting as a one-stop-shop for all their transportation and warehousing needs while lowering costs. However, proponents of the asset-light approach would say that customization and flexibility are lost in a rigid network where trucks must be filled regardless of service requirements. At Pegasus, our ideal clients need a flexible network that can scale capacity and meet stringent service requirements at a moment’s notice. To thrive in such an environment of chaos and constantly exceed expectations, Pegasus and our clients rely on a large, flexible, and trustworthy network of partners.