The Hindu Business Line : Express industry's focus on clinical logistics

IN what may be seen as an unusual development, the express transport industry is setting its sights on clinical research organisations, which are seen as potential high-value customers. And, interestingly, this is at a time when the express transport sector is increasingly focussing on niche segments to garner business.

Along with textiles, automobile components, and fashion accessories, the pharma industry, which is witnessing rapid growth, especially in research and development, is seen as having considerable potential for logistics support, particularly in the clinical research and development area.

According to the Global Director, Life Sciences, TNT Express, Mr Jos Raaymakers, the market for express industry services supporting clinical research, was worth euro 100 million currently.

During a recent visit to India, he told Business Line that India, China and Russia were among the focus markets for clinical research logistics and TNT Express hopes to not only retain but build on the relationships it has developed with contract research organisations in these markets.

TNT Express, he said, was targeting leadership in the business by 2007. "For this, we will have to increase our business between two to three times from the current position." He added that this would require the company to both retain and, in a sense, begin to own its strong markets. Investments in people, infrastructure and relationships would be in line with the company's ambitions, he said.

In its effort to exploit the potential of this segment of the express market, DHL Express has developed a range of cool-chain services to meet the needs of the life sciences industry.

According to an official statement, the company has developed a patented packaging system that has been combined with Express Distribution, dry ice supplies, information systems, expert Customs clearance, validation services and project management to create a market-leading temperature-controlled logistics solution.

These temperature-controlled parcels, it says, ensure safe and compliant transport in cooled, deep-frozen or protected ambient states.

The Product Development Manager, Mr Krishna Kant, said TNT Express would scout not only metros but also the towns and smaller cities such as Vellore and Lucknow, which were becoming important centres for clinical research.

According to Mr Raaymakers, Russia was one of the largest markets for clinical research for TNT Express, and India had the potential to follow suit. However, an essential difference between logistical operations supporting clinical research in the two countries was that while analysis of samples was done outside Russia, in India, part of the analysis would also be carried out domestically.

Clinical research in a market was driven by three important requirements — sizable patient population, the presence of quality investigators and contract research organisations.

Globally, TNT Express has alliances with the top pharma companies as well as the leading contract research organisations, Mr Raaymakers said.

More Stories on : Supply Chain Management | Pharmaceuticals

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