In todays market, security is more important than ever. Not only must company leaders worry about the traditional challenges of theft and damage, they must also ensure compliance with state, national, and international regulations on product integrity. Implementing industry standard security protocols traditionally requires purchasing expensive equipment, hiring safety personnel, and training existing staff. Alternatively, many companies have discovered that they can rely on third party logistics providers (3PL) to handle these critical tasks without affecting payroll or profits.

Critical Elements of Security

A recent survey of supply chain services executives identified four consistent areas where third-party vendors add value to their clients security:

• Real-time shipment scanning
• Live online product tracking
• Enhanced physical security at buildings and on vehicles
• Collaboration with customers on security protocols

Of those four critical security elements, industry experts note that customer collaboration allows experienced third party logistics companies to provide the most added value to client companies. Because logistics providers can apply best practices across all of their clients operations, customers with little experience in high security shipping and receiving can benefit from a 3PL companys existing training and equipment.

Pharmaceutical Industry Requirements Trickle Down to Supply Chain Services
In many cases, the demands of a more sophisticated client challenge third party logistics companies to institute changes that impact performance for all of their customers. Industry analysts expect that upcoming revisions to international and interstate drug handling regulations can spur the adoption of more sophisticated shipping and tracking technology.

For example, the state of California has already initiated legislation that requires drug manufacturers to track individual pills from their plant of origin to their distribution points. Companies that sell health care supplies have been forced to adopt advanced techniques to assure the integrity of their products. Partnership with third party logistics providers has resulted in the development of RFID scanning systems can can pinpoint specific medicine containers, even when part of larger shipments.

New Logistics Management Tools Enhance Security, Improve Quality
As supply chain services companies develop new solutions to legal mandates, they also work hard to minimize the financial burdens on their clients. In fact, the goal of any successful logistics management provider is to improve processes and to increase margins, justifying the cost of their services. Large scale RFID implementations, consolidated port operations, and shared warehousing services are just three of the ways that third party vendors can implement major security changes without severely impacting a clients bottom line.

Although drug makers have no choice but to use the latest supply chain services tools, consumers in a variety of fields can expect to enjoy the benefits of enhanced shipping, tracking, and quality assurance practices. Tighter integration of standards among logistics companies can result in lower prices by reducing waste and deterring theft. As a result, the same technology that can assure a customer of a tamper-free prescription can also guarantee fresh produce and genuine electronic components.

Sources

Logistics Management

Industrial Market Trends