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Facing Global Climate Crisis, 5 Logistics Questions to Ask

Companies shipping products, whether temperature-controlled or not, must start evaluating alternative energy sources sooner rather than later. Could this offer a competitive advantage?

Willingness to diversify fuel use can become a competitive advantage for a business.
Willingness to diversify fuel use can become a competitive advantage for a business.

As the news from climate scientists becomes more dire, cites, states and countries worldwide will continue to accelerate energy policy changes. The public has grown more active with every passing month and activists are making their voices heard in ever more disruptive ways.

If you’re shipping products—temperature-controlled or not—then you can’t afford to ignore what the coming political, energy and infrastructure changes mean to your supply chain.

Eugenio Filippi is the Head of Manufacturing at Takeda Pharmaceuticals Company Limited in Vienna. He addressed attendees at the 2019 Cold Chain Global Forum in Boston about the looming crisis and the opportunity, with a strong disclaimer that the views he expressed are his own and not representative of his employer. 

Filippi said that pharmaceutical companies and their supply chain partners will need to start exploring alternative transportation, and push third party logistics providers (3PLs) and other shippers to start addressing the fact that moving trillions of tons of goods around the planet without reducing emissions might soon become unsustainable.

Eugenio Filippi addressed attendees at the 2019 Cold Chain Global Forum in Boston.Eugenio Filippi addressed attendees at the 2019 Cold Chain Global Forum in Boston.

He added that regulators around the world have begun to clamp down on traditional “dirty” sources of energy.

In the slow-to-change pharmaceutical world, it’s critical to start evaluating now. “What if Amsterdam says they’re only letting electric vehicles in? Or they’ll let you deliver your product, but you have to pay an enormous fine because of your carbon footprint?” asked Filippi.

If a given government decides an arbitrary date—mere months in advance—by which you must make a certain change, it would be incredibly difficult to ensure continued supply to patients without a plan. He added, “How long does it take pharma to make a change from when we start thinking about it?”

Will we stay ahead of the curve when sweeping changes are made?

Filippi has worked for a number of years managing the cold chain of human plasma products, and has faced “repeated issues with the local residents, simply due to the fact that our neighbors do not like smelly and noisy trucks.”

Now that he’s in a manufacturing role, he said, “As a customer, my question is whether our logistics will be able to stay ahead of the curve and find better ways to move frozen goods, over the weekend or in the middle of a residential area at night, for instance, since we work 24/7.”

He explained that there are numerous reasons to change beyond personal interest in reducing fossil fuel consumption.

For some, it’s a reputation goal: a drive to be seen as an innovative company or wish to have status as a community leader with great working relationships with the local authorities. This may result in saving time and money at the end of the day.

INTRODUCING! The Latest Trends for Life Sciences at PACK EXPO Southeast
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INTRODUCING! The Latest Trends for Life Sciences at PACK EXPO Southeast