Building a pharma-ready logistics network: The need for compliance, speed, and scalability

In the article, Nitesh Agarwal, President of CJ Darcl Logistics, outlines the critical infrastructure, regulatory, and technological interventions needed to build a future-ready pharma logistics network

By Nitesh Agarwal, President, CJ Darcl Logistics On Apr 25, 2025

India’s pharmaceutical sector is at a cusp of transformation. Known as the “Pharmacy of the World”, India supplies almost 20 per cent of global generic medicines. The country now ranks 3rd worldwide by volume of production and 14th by value, thereby accounting for around 10 per cent of world’s production by volume and 1.5 per cent by value. But as the demand for high-value drugs, biologics, and vaccines is growing, the Indian pharmaceutical industry must go beyond just manufacturing excellence and address the challenge of logistics by ensuring medicines are transported safely, quickly and efficiently to all parts of the world. A single lapse in storage, a delay in transit, or a gap in regulatory compliance can compromise the efficacy of life-saving drugs. As India aims to grow its pharma exports 10-15 times by 2047, the need for a resilient, future-ready logistics network has never been greater.

Strengthening the foundations of pharma logistics

The future of India’s pharmaceutical supply chain rests upon three essential pillars. Compliance as the unwavering foundation, speed for ensuring timely access, and scalability to cater to the expanding global demand each play a defining role.

Compliance: The non-negotiable factor

To establish India as a reliable exporter of pharmaceutical products, adhering to global regulatory standards is as crucial as enhancing the manufacturing capabilities of the industry. Paying attention to details at every step, from labeling, packaging, and storage to transportation, ensures a supply chain where quality and standards are maintained. Along with the safety of goods, it safeguards the professionals handling them, as pharmaceutical products involve hazardous chemicals and biologically active substances that present risks of spillage, evaporation, and combustion.

Speed: Ensuring timely deliveries

Drugs that need quick delivery require speedy transportation services. The utilisation of express logistics services, cargo charters, and multimodal transportation helps minimise delays. Any obstruction in the supply chain, such as geopolitical tension, leads to increased transit times, which might hamper the efficacy of temperature-sensitive drugs. This is where advanced technology contributes to ensure safer and faster transportation of goods. From AI-led route optimisation and real-time monitoring of the status of shipment to digitalised inventory management, technology helps logistic service providers in facilitating fast and reliable transportation of goods.

Scalability: Preparing for the future

Logistics networks need to expand their capacity because pharmaceutical export volumes are only expected to rise in the future. India needs to develop advanced storage facilities while also improving its cold chain infrastructure to cater to this increased demand. According to the Economic Survey 2024-25, India’s pharmaceutical landscape needs to prioritise innovation and new drug development to chart the growth map of the Indian Pharmaceutical industry.

The role of technology in pharma logistics

Digital transformation is enhancing the pharmaceutical supply chain in India. Industry standards have evolved to incorporate temperature-controlled packaging leveraging advanced technology. These packages help to enhance the longevity of pharmaceutical products such as medicines, biologics, vaccines, etc. To maintain the required temperature within the containers, there are specialised vehicles that are equipped with cold storage functionalities and IoT sensors that track real-time data about the temperature, humidity levels, and other factors to get valuable information on the deficiencies experienced at each point during the shipping route. This end-to-end visibility has become a vital component of modern pharmaceutical logistics. From the planning stage to final delivery, full visibility ensures that all stakeholders can monitor the shipment’s progress in real time. Crucial for quality assurance, it helps logistic providers to respond to any potential disruptions during transit. Another trend that is gaining momentum is the integration of robotics and automation in pharmaceutical logistics. Automation in warehousing improves the efficiency of operations by automating tasks like picking, packing, and sorting. Together, these technologies result in a smoother and more dependable supply chain, lowering human error and boosting overall efficiency.

Navigating the future

The future of pharmaceutical logistics is an exciting frontier that emerging technologies are racing to conquer. It is a world of innovative processes, regulatory compliance, and sustainable demands. As the industry evolves, logistics providers need innovative solutions to adapt to the requirements of the pharma sector. Continuing to grasp the opportunities offered by new technologies and tackling persistent problems, the pharmaceutical logistics industry will be able to ensure safe, swift, and environmentally friendly delivery of vital products to those who need them most.

Reference:
https://www.maersk.com/insights/growth/2024/02/27/pharmaceutical-supply-chain-in-india

https://pharma-dept.gov.in/pharma-industry-promotion

https://www.bain.com/insights/healing-the-world-a-roadmap-for-making-india-a-global-pharma-exports-hub/#:~:text=Riding per cent20these per cent20trends per cent2C per cent20India’s per cent20pharmaceutical,the per cent20world’s per cent20top per cent20pharmaceutical per cent20exporters.

https://www.bain.com/insights/healing-the-world-a-roadmap-for-making-india-a-global-pharma-exports-hub/

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