Over the coming months, we’ll cover some great topics such as a full review of ‘Passive vs Active solutions – which and when?’ and ‘Playing by the Regs’ where we discuss industry legislation, as we, Protek Pharma Worldwide, look to arm you with critical information your business needs to make great decisions for your pharmaceutical supply chain.
Today we’re kicking off by reviewing important considerations which can be overlooked when key decision makers are choosing temperature protective solutions.
We’re well aware of the age-old debate between quality assurance teams looking to exceed regulations and raise standards, and procurement departments keeping a keen eye on budget management. We truly believe clear communication is crucial at this decision making stage and we want to emphasise the importance of reviewing ‘Total Landed Cost’ in this conversation. Receiving sound and complete advice at this stage will resolve the concerns of both procurement and quality assurance to aid a clear decision.
What is it and why is it important?
Total Landed Cost (TLC) calculates the entire cost of a shipment rather than the material (physical) cost alone, which can often be just a small fraction of the total picture.
Best practice shows that calculating overall costs to include labour skill levels, downtime, maintenance time, as well as the physical costs, can give you a clearer picture of how much owning and operating each product actually adds value to your business. With this kind of insight each business is able to make informed decisions. A product which may look ‘cheap & cheerful’ on the outset or hits the lowest price of your ‘3 quotes’, may actually in turn cost your business much more due to being labour intensive or have a high failure rate. As the old fable Goldilocks goes (sort of!), we don’t want to over-protect or under-protect your cargo, we want the solution to be just right. With the help of specialist manufacturers such as Protek Pharma Worldwide, we can find the right solution for both your QA teams and procurement departments. Talk directly to us, it really can be that simple.
What’s next?
Part Two of this series will assist you further with calculations to reach your considered decision. Then Part Three will provide a case study, comparing material-cost-only decision making and alternatively a holistic decision considering the Total Landed Cost. If you wish to speak to us prior to this, then please feel free to contact us by filling out the short form HERE and we’ll be in contact.