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Pharmaceutical Manufacturing and Packing Sourcer
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When dealing with cold chain shipments, companies should always use
packaging that has been properly tested or qualified for maintaining the
necessary temperature range during the unique requirements of their
transport lanes. After all, the main priority is to ensure product
safety during transport, while also minimising the cost and
environmental impact.
An organisation may choose between an
off-the-shelf (OTS) option or a bespoke system tailored to meet their
specific temperature range. The decision as to which to select largely
depends on the parameters of their shipping environment, the value of
the product, its thermal sensitivity, the implementation timescale and,
of course, the company's budget. Whatever the choice, there are pros and
cons to each route.
Fit for Purpose
Designed to
meet each customer’s individual transport requirements, bespoke systems
should fit in exactly with the organisation's operations. OTS products
are designed to cover a range of specifications and shipping conditions,
and vendors typically have a selection of sizes and service durations
on offer.
Bespoke packaging will be tested and qualified to a
specific application, whereas OTS options offer a broad level of
performance data, rather than one dedicated application. The customer
therefore needs to determine whether the package performance offered
will be fit for purpose.
Optimisation
The number
of packaging elements and their configuration are refined in a bespoke
system. OTS packaging, on the other hand, typically uses standard
modular components, often as part of a family product range. The payload
can be optimised with a personalised solution – for example, operating
and freight costs can be minimised – while the sizes of OTS products are
generally larger than the customer would need. Similarly, going bespoke
means that performance can be optimised, but for an OTS option, the
packaging can often be slightly overengineered for the specific
application.
High Cost
The total packaging cost
is adjusted to meet the customer’s individual purpose when designing a
unique system; however, the resourcing of the design and qualification
project is high. For OTS products, the cost of packaging development is
absorbed by the vendor.
One of the downsides to bespoke package
design is the time that is required to develop the solution, and project
lead times can be lengthy. With OTS ranges, performance data is
available immediately and is easily accessible, resulting in a shorter
lead time to implement the solution.
Key Factors
In
an ideal scenario, every packaging user would operate a bespoke system,
were it not for three important preventative factors:
- Cost of design
- Time for development
- Need for an accurate and clearly defined brief
Total Cost of Ownership
The
cost to execute a bespoke project is high, due to the initial outlay in
R&D resources, as well as the manpower needed to create and test
prototype systems. There is also the possibility that new tooling could
be needed to produce the system if existing tooling does not fit to the
required dimensions, and costs can quickly add up. However, in the long
term, the ongoing cost of a bespoke system should be lower than an OTS
alternative, as the design and performance are optimised to meet the
specific operation; therefore, there is a lower risk of temperature
excursions.
When making their packaging selection, customers
need not only to think of the cost per unit of the final packaging
system, but also to look at the total cost of ownership (TCO) model.
This is a financial calculation designed to illustrate the complete cost
of a shipping solution, considering all direct and indirect expenses
over its useful life. Rather than just focusing on the initial purchase
price, TCO looks at the overall picture – from purchase through to
disposal – in order to make an informed decision about the
cost-effectiveness of a solution. The various cost elements include
design, purchase, delivery, storage, assembly and forwarding expenses.
Time to Implementation
Historically,
the time taken to develop a bespoke solution is much longer than for
OTC products. The customer usually has a wish list of features to
include within the system to suit their operations, as well as requiring
it to accommodate their specific product. One particularly high demand
is for the packaging to be adaptable and capable when encountering
certain shipping conditions, such as during thermal and physical tests.
These
requirements will need to be considered during the design stage and
qualified using test chambers to ensure the quality is not compromised.
During this period, there can be numerous models and test runs performed
prior to proposing the final design to the customer. Subject to their
approval, the vendor will carry out an operational qualification cycle
test before submitting the result and reporting back to the customer.
Overall, bespoke package development lead time can take many months to
execute.
Effective Brief
The success of any packaging
system can be determined by the accuracy of the brief originally set
out by the customer. If the requirements have not been properly
specified, then the packaging is unlikely to fulfil the product’s real
needs.
To help avoid this error, customers must have a clear
understanding of their transport lane logistics, as well as the needs of
the packaging system during shipping. The vendor will usually provide
support, and will work with the customer to ensure the specification is
accurate and meets all the requirements of the operation process. This
can also serve to reveal further processes that may have been
overlooked, but will ultimately improve the final packaging system.
Finding the Balance
The
real challenge that lies ahead for packaging designers is how to
combine the two approaches to capitalise on the strength of each and
eliminate their weaknesses. In essence, it will come down to the
customer’s business needs, budget and how quickly the solution is
required. Although bespoke options can prove particularly effective for a
company, customers may be able to purchase an OTS solution based on an
acceptable match between their requirements and the common functionality
and procedures provided.
As new technologies advance and new
materials are adopted into packaging design, the decision should come
down to justification of the TCO for the packaging system selected.
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Kirsten de Bruijn joins Qatar Airways Cargo
An Air Cargo veteran with 13 years of experience in management in the
air cargo industry, she shares Qatar Airways belief that the pace of
change brought about by recent global events demands value centred
leadership around revenue and margin management.
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