Logistics and Supply Chain Management

Good Distribution Practices

Logistics Management

• Involves planning, coordinating, and controlling the movement of goods from one place to another
• Ensures timely and cost-effective delivery of products to customers
• Key activities:
  • Transportation management
  • Freight forwarding
  • Route optimization
  • Fleet management

Supply Chain Optimization

• Aimed at maximizing efficiency and minimizing costs throughout the supply chain
• Involves analyzing and improving:
  • Lead times
  • Inventory levels
  • Transportation costs
  • Warehouse capacity
• Uses tools such as:
  • Network analysis
  • Simulation modeling
  • Optimization algorithms

Warehousing

• Involves the storage and management of inventory in a warehouse
• Key activities:
  • Receiving and storing inventory
  • Picking and packing orders
  • Inventory management and control
  • Shipping and delivery
• Types of warehousing:
  • Private warehousing
  • Public warehousing
  • Contract warehousing
  • Bonded warehousing

Inventory Management

• Involves managing and controlling inventory levels to meet customer demand
• Key objectives:
  • Maintain optimal inventory levels
  • Minimize stockouts and overstocking
  • Reduce inventory costs
• Techniques used:
  • Just-in-time (JIT) inventory system
  • Economic order quantity (EOQ) model
  • ABC analysis
  • Vendor-managed inventory (VMI) system

Order Fulfillment

• Involves the process of receiving, processing, and delivering customer orders
• Key activities:
  • Order receiving and processing
  • Inventory allocation and picking
  • Packing and shipping
  • Order tracking and delivery
• Strategies used:
  • Drop shipping
  • Cross-docking
  • Pick-and-pack
  • Same-day delivery

Good Distribution Practices

Logistics Management

• Logistics management ensures timely and cost-effective delivery of products to customers by planning, coordinating, and controlling the movement of goods.
• It involves key activities such as transportation management, freight forwarding, route optimization, and fleet management.

Supply Chain Optimization

• Supply chain optimization aims to maximize efficiency and minimize costs throughout the supply chain.
• It involves analyzing and improving lead times, inventory levels, transportation costs, and warehouse capacity.
• Tools such as network analysis, simulation modeling, and optimization algorithms are used in supply chain optimization.

Warehousing

• Warehousing involves the storage and management of inventory in a warehouse.
• Key activities in warehousing include receiving and storing inventory, picking and packing orders, inventory management and control, and shipping and delivery.
• There are different types of warehousing, including private, public, contract, and bonded warehousing.

Inventory Management

• Inventory management involves managing and controlling inventory levels to meet customer demand.
• The key objectives of inventory management are to maintain optimal inventory levels, minimize stockouts and overstocking, and reduce inventory costs.
• Techniques used in inventory management include just-in-time (JIT) inventory system, economic order quantity (EOQ) model, ABC analysis, and vendor-managed inventory (VMI) system.

Order Fulfillment

• Order fulfillment involves the process of receiving, processing, and delivering customer orders.
• Key activities in order fulfillment include order receiving and processing, inventory allocation and picking, packing and shipping, and order tracking and delivery.
• Strategies used in order fulfillment include drop shipping, cross-docking, pick-and-pack, and same-day delivery.

Logistics Management in Good Distribution Practices

Transportation

• Vehicles for pharmaceutical product transportation must be suitable and dedicated or cleaned/sanitized between uses
• Temperature control and monitoring during transportation is crucial, with vehicles equipped with temperature monitoring devices and alarms
• Drivers must be trained on Good Distribution Practices (GDP) and temperature control procedures

Storage and Handling

• Storage facilities must be secure, clean, and maintained at the appropriate temperature
• Storage areas should be designated for specific products (e.g., refrigerated, ambient, frozen)
• Products must be stored in their original packaging or equivalent
• Stock rotation and inventory management should ensure First-In-First-Out (FIFO) principle
• Handling procedures must minimize product damage and contamination

Packaging and Labeling

• Packaging must be suitable for protecting pharmaceutical products during transportation and storage
• Packaging must be intact and free of damage during transportation
• Labeling must be accurate, complete, and comply with regulatory requirements
• Labels must include product name, batch number, expiration date, and other relevant information

Documentation and Record Keeping

• Accurate and complete records of transportation, storage, and handling activities must be maintained
• Records must include product information, batch numbers, and temperature data
• Documentation must be legible, accurate, and readily available for inspection
• Records must be retained for the required period of time as specified by regulatory agencies