The healthcare sector has always relied on logistics partners to ensure goods arrive in safe conditions. When it comes to healthcare, these goods may include products such as medicines, vaccines, and precision equipment, all of which are extremely sensitive to the environment in which they operate.
Technology has improved the capabilities of healthcare products, but along with these developments have come heightened sensitivities to temperature changes. A 2020 report from consulting firm IMARC found that the healthcare cold chain logistics industry is expected to grow by an annual rate of 7% until 2026. The bulk of this growth will be driven by smart healthcare devices with particular storage and transportation needs.
Today, nearly all of the sector’s leading manufacturers, distributors and supply chain firms use temperature monitors designed for healthcare logistics to track the conditions of products in transit. However, these monitors do much more than record temperature data. Here’s how they’re revolutionizing the healthcare logistics sector.
Demand Forecasting
Healthcare products have well-defined expiry dates. Unlike some products that can be used beyond expiry, using expired healthcare products can be life-threatening. It’s a situation of which every stakeholder in the healthcare supply chain is aware.
The hard expiry date on products makes it tough for manufacturers to plan production schedules. Every manufacturer has to conduct demand analysis to forecast production schedules. This analysis takes multiple variables into account, including consumer buying trends and product shelf life.
Temperature monitoring systems monitor storage conditions everywhere from the warehouse, to the transport vehicle, to a health clinic’s stock room. By correlating temperature data to the recorded shelf life of a product, manufacturers can forecast how long a batch of medicines will last on shelves.
Shelf life is an important variable when planning delivery routes with logistics partners. It allows logistics firms to build a delivery priority list based on the risk of expiry. At the heart of this analysis lies the humble temperature monitor.
Analyzing the storage condition data at certain locations can also unearth trends that speak to damage potential. For instance, a pharmacy that orders unusually high volumes of a product might be facing increased consumer demand. However, they might also be ordering more because their products expire faster due to incorrect storage.
Temperature data can reveal weak links in the supply chain, and manufacturers can reasonably predict their demand schedules. Once this information is in place, other manufacturing processes such as procurement and transportation follow.
Vendor Collaboration Opportunities
Smart manufacturing processes are standard these days thanks to massive improvements in technology. At many firms, every device in the healthcare manufacturing line is enabled with IoT functionality. As a result, manufacturers have a wealth of data at their disposal, and they use analytics platforms to create more efficient systems.
Vendors are a critical part of these processes since, without timely supply, production schedules will run off schedule. The downstream effects of delays and damaged goods are considerable in the healthcare sector. Typically, these products are complex and have a significant lead time.
Establishing data integrations between logistics vendors’ and manufacturers’ systems allows the latter to create a seamless link from procurement to production. Based on data gathered by temperature monitoring sensors, manufacturers gain insight into their best-performing shipping partners and the conditions in which they excel.
For instance, Vendor A might have a great track record when it comes to on-time delivery, but data tracking the conditions in which they store goods might reveal that defects might occur beyond a certain volume. Manufacturers can choose their next best option in this case and source the same raw material from a mix of vendors, based on the parameters that make the most sense to specific situations.
This practice is especially relevant in the medical device manufacturing industry. Machines used in healthcare are highly sensitive and require precise handling at all times. Temperature and other condition-related data help manufacturers understand their vendors better and build an integrated platform that always ensures optimal delivery.
Trend Analytics
Data analytics powers healthcare just as it does with every other industry. Temperature data is the most important dataset that exists in healthcare logistics since unsuitable temperatures are almost always a factor in product failure. Along with condition monitoring data, temperature tracking can reveal potential flaws along a planned delivery route.
For instance, when planning a delivery route, the choice offering the shortest distance might seem like a good idea at first. However, if a trend of temperature warnings tends to occur along that route, it’s a good indication that either storage conditions or infrastructure are deficient. In such cases, firms can plan alternate routes that are longer but safer.
Route planning is one of the most sophisticated tasks logistics firms undertake, and data analytics inform every decision in this sphere. While geopolitical and regulations-related data play a role, temperature-related data offers evidence of a successful or unsuccessful route.
Simple Data, Many Uses
Temperature sensors seem like a straightforward piece of equipment but the data they collect is invaluable to the healthcare logistics industry. From demand planning to vendor analysis, they play a critical role in ensuring that the products we consume are safe.
