Logistics costs in the end-to-end vaccine supply chain logistics add up to less than 1 percent of the total vaccination costs, quicker transportation not only saves more lives but also helps in economic recovery – by shortening or doing away with the need for lockdowns
Thomas Ellmann, Vice President, Life Sciences & Healthcare and Head of Clinical Trials Logistics at DHL Customer Solutions & Innovation
In a year marked with tremendous uncertainty, what has emerged with crystal clarity is that a combination of mass inoculation and robust healthcare facilities can effectively contain the pandemic. These lessons now need to be applied to develop contingency plans against possible future mutations of the coronavirus, or even other pandemics.
Based on the research and knowledge available today, experts suggest planning for a Covid-19 vaccination model that is similar to the annual influenza shot. To safeguard public health, booster shots will be needed to be produced and administered on a regular basis.
Therefore, the logistics sector will continue to be instrumental in the delivery and storage of vaccines and other vital supplies. Vaccine logistics have to be managed efficiently, keeping in mind the unique demographic, infrastructure, epidemiologic and financing challenges of each country. Research from the DHL white paper, Revisiting Pandemic Resilience (May 2021) states that while logistics costs in the end-to-end vaccine supply chain logistics add up to less than 1 percent of the total vaccination costs, quicker transportation not only saves more lives but also helps in economic recovery — by shortening or doing away with the need for lockdowns.
Last year, the logistics sector was focused on shipping medicines and medical supplies, test kits, ancillary supplies and personal protective equipment (PPE). Subsequently, this was superseded by the transport of vaccines. Necessary preparations by the logistics industry, including sizable investments in transportation and storage infrastructure, early capacity planning and the setup of freezing and packaging solutions, ensured successful outcomes.
Certain vaccines had stringent temperature requirements (up to -80°C) to ensure the effectiveness of the vaccines during transportation and warehousing. This posed logistics challenges to the existing medical supply chain that conventionally distributes vaccines at 2~8°C.
However, the challenge remains monumental. Initial models suggest that anywhere between 5 and 6 billion people will need to be vaccinated to ensure the sustainable management of the coronavirus with minimal mortality rates. Booster doses required to maintain immunity mean vaccine manufacturing and import/exports have to also be ramped up.
Going forward, we need to remember that mass immunizations hold the key to economic recovery. Neither can be achieved in isolation — vaccine policy is economic policy, as some would say. Building resilience at this critical stage is an economic imperative. Streamlining vaccine distribution will further lift our efforts towards normalcy.
Containment strategies will be most successful if countries already have much of what they need when the moment arises. Acting reactively and creating ad-hoc infrastructure when crisis strikes results in cost overruns and ineffective distribution, as we saw during the first wave of the coronavirus pandemic. Recent history shows us that the cost of maintaining a safety stockpile is much lesser than the cost of setting up a last-minute emergency system. Another lesson of the pandemic is that efficiently designed stock cycling will minimize vaccine wastage. The procured supplies can be put to use in the healthcare system before they expire.
Clearly, all stakeholders in the supply chain need to envision future challenges and apply the lessons learnt during the past months of the pandemic; whether they pertain to vaccine development, production, supply chain management, and public policy. As of now, the Covid-19 pandemic continues be a dynamic situation, with devastating repercussions across the globe. It is not only imperative to vaccinate the world as quickly as possible, but to ensure immunization is sustained in the years to come. As a result, the Covid -19 supply chain and logistics setup in 2021 will remain important going forward. DHL research estimates that in 2022 to 2023, around 7 billion to 9 billion vaccine doses and corresponding ancillary supplies are expected to be distributed annually.
While the last 12 months have been profoundly unsettling for communities around the world, they also held lessons in human ingenuity and collaboration. The partnerships and capabilities built across geographies have ensured we now have a wealth of tools and insights to deal with a pandemic situation. With the right systems in place, we are better prepared now to meet the next challenge in a way that minimizes impact on human lives and economies.
Thomas Ellmann, Vice President, Life Sciences & Healthcare and Head of Clinical Trials Logistics at DHL Customer Solutions & Innovation.
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Quicker transport saves lives during a pandemic
Logistics costs in the end-to-end vaccine supply chain logistics add up to less than 1 percent of the total vaccination costs, quicker transportation not only saves more lives but also helps in economic recovery – by shortening or doing away with the need for lockdowns
Thomas Ellmann, Vice President, Life Sciences & Healthcare and Head of Clinical Trials Logistics at DHL Customer Solutions & Innovation
In a year marked with tremendous uncertainty, what has emerged with crystal clarity is that a combination of mass inoculation and robust healthcare facilities can effectively contain the pandemic. These lessons now need to be applied to develop contingency plans against possible future mutations of the coronavirus, or even other pandemics.
Based on the research and knowledge available today, experts suggest planning for a Covid-19 vaccination model that is similar to the annual influenza shot. To safeguard public health, booster shots will be needed to be produced and administered on a regular basis.
Therefore, the logistics sector will continue to be instrumental in the delivery and storage of vaccines and other vital supplies. Vaccine logistics have to be managed efficiently, keeping in mind the unique demographic, infrastructure, epidemiologic and financing challenges of each country. Research from the DHL white paper, Revisiting Pandemic Resilience (May 2021) states that while logistics costs in the end-to-end vaccine supply chain logistics add up to less than 1 percent of the total vaccination costs, quicker transportation not only saves more lives but also helps in economic recovery — by shortening or doing away with the need for lockdowns.
Last year, the logistics sector was focused on shipping medicines and medical supplies, test kits, ancillary supplies and personal protective equipment (PPE). Subsequently, this was superseded by the transport of vaccines. Necessary preparations by the logistics industry, including sizable investments in transportation and storage infrastructure, early capacity planning and the setup of freezing and packaging solutions, ensured successful outcomes.
Certain vaccines had stringent temperature requirements (up to -80°C) to ensure the effectiveness of the vaccines during transportation and warehousing. This posed logistics challenges to the existing medical supply chain that conventionally distributes vaccines at 2~8°C.
However, the challenge remains monumental. Initial models suggest that anywhere between 5 and 6 billion people will need to be vaccinated to ensure the sustainable management of the coronavirus with minimal mortality rates. Booster doses required to maintain immunity mean vaccine manufacturing and import/exports have to also be ramped up.
Going forward, we need to remember that mass immunizations hold the key to economic recovery. Neither can be achieved in isolation — vaccine policy is economic policy, as some would say. Building resilience at this critical stage is an economic imperative. Streamlining vaccine distribution will further lift our efforts towards normalcy.
Containment strategies will be most successful if countries already have much of what they need when the moment arises. Acting reactively and creating ad-hoc infrastructure when crisis strikes results in cost overruns and ineffective distribution, as we saw during the first wave of the coronavirus pandemic. Recent history shows us that the cost of maintaining a safety stockpile is much lesser than the cost of setting up a last-minute emergency system. Another lesson of the pandemic is that efficiently designed stock cycling will minimize vaccine wastage. The procured supplies can be put to use in the healthcare system before they expire.
Clearly, all stakeholders in the supply chain need to envision future challenges and apply the lessons learnt during the past months of the pandemic; whether they pertain to vaccine development, production, supply chain management, and public policy. As of now, the Covid-19 pandemic continues be a dynamic situation, with devastating repercussions across the globe. It is not only imperative to vaccinate the world as quickly as possible, but to ensure immunization is sustained in the years to come. As a result, the Covid -19 supply chain and logistics setup in 2021 will remain important going forward. DHL research estimates that in 2022 to 2023, around 7 billion to 9 billion vaccine doses and corresponding ancillary supplies are expected to be distributed annually.
While the last 12 months have been profoundly unsettling for communities around the world, they also held lessons in human ingenuity and collaboration. The partnerships and capabilities built across geographies have ensured we now have a wealth of tools and insights to deal with a pandemic situation. With the right systems in place, we are better prepared now to meet the next challenge in a way that minimizes impact on human lives and economies.
Thomas Ellmann, Vice President, Life Sciences & Healthcare and Head of Clinical Trials Logistics at DHL Customer Solutions & Innovation.
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