Keeping It Chilled: Safeguarding Healthcare Supply Chains

In the healthcare industry, supply chains form the backbone of clinical delivery, from securing essential medicines to safeguarding temperature-sensitive vaccines. That’s where an effective cold chain is vital. When failures occur, the consequences go beyond financial performance – patient safety, treatment efficacy and public health all hang in the balance.

Across the globe, logistical pressures challenge health systems of all sizes. 

In the UK, the National Audit Office reports that NHS Supply Chain manages around US$4.5bn in procurement spend each year, yet 26.9% of orders arrive late, by 22 days on average. Meanwhile, in Ethiopia, a cold chain study shows 72.1% average availability, with stock-outs at 26% and expiration wastage at 9.2%. Across the pond, the American Society of Health-System Pharmacists is currently tracking 253 active drug shortages.

These figures are just a snapshot of how under pressure healthcare supply chains truly are. For health providers and logistics experts alike, the work of transforming these chains is urgent and complex. 

Redesigning resilience

At Intermountain Healthcare, supply chain transformation is at the heart of its operating model. 

Richard Beach, AVP of Logistics and Materials Management, leads logistics strategy across the organisation. In a recent statement, he explained: “Developing a long-term strategic plan first requires an understanding of what improvement opportunities exist.

“There were several key areas we want to address... from improved service and cost/value, to the creation of a safety net that would protect the Intermountain Healthcare family from realistic threats related to shortages, public health emergencies and other disasters.”

One development that proved central to this supply chain shift was the Kem C. Gardner Supply Chain Center, a facility built to streamline logistics.

“The Kem C. Gardner Supply Chain Center is improving the delivery of quality healthcare to each and every one of our patients,” Richard said. “Clinical staff now spend more time with patients and less on purchasing-related administrative tasks.”

The 306,000-square-foot facility aggregates Intermountain’s medical supplies and products in one location, significantly streamlining distribution processes to its 23 hospitals and 165 clinics throughout Utah and Idaho.

The cold chain challenge

CEVA Logistics is among the logistics firms reimagining how temperature-sensitive medicines move through the supply chain. 

Eric ten Kate, CEVA’s Global Head of Healthcare, outlines some of the common challenges with this type of specialist transportation: “Our pharmaceutical customers often encounter difficulties with water-based coolant solutions due to their limited longevity. 

“Rental temperature-controlled packaging now features embedded, advanced phase change technology... achieving approximately five days of strong cold box performance.”

The shift to tighter standardisation is vital for ensuring sensitive biologic drugs arrive safely. 

“Enhanced delivery times, tighter standardisation protocols and stronger inventory control ensure that the right supplies... are reliably available when needed,” Richard agrees.

Sustainability goals now steer much of CEVA’s strategy and vision. 

“Reusable, temperature-controlled packaging manufacturers no longer work in silos,” Eric says “but now in tandem with drug manufacturers and other industry stakeholders.

“Across the entire logistics chain, there is a positive trend of sharing responsibility and working together to achieve sustainability goals.”

Intermountain’s own savings, which once reached US$586m over a decade, as reported by Gartner, come from process improvements, waste reduction and evidence-based procurement. These reforms build not only efficiency but cold chain capability.

Meanwhile, CEVA’s rental model delivers additional advantages, both operationally and financially. 

“There are numerous advantages to using a temperature-controlled packaging rental model,” says Eric. “Renting allows companies to pay only for the duration of use... ideal for short-term logistics projects, seasonal demand or regional needs.”

He also points to modal shifts as key to achieve environmental targets: “Reducing CO2 emissions in pharmaceutical logistics can also be achieved by shifting modes of transportation from air to sea. Airfreight generates 47 times more greenhouse gases than ocean shipping for every tonne-mile.”

Monitoring these shifts has never been easier, as Eric stresses that full visibility across the delivery journey is now vital.  

“Temperature-controlled packaging is equipped with the technology to capture real-time data,” he explains. “When analysed over time, this data provides a better understanding of the challenges faced at each stage of the shipping journey.”

“Rental temperature-controlled packaging now features embedded, advanced phase change technology... achieving approximately five days of strong cold box performance.”

The shift to tighter standardisation is vital for ensuring sensitive biologic drugs arrive safely. 

“Enhanced delivery times, tighter standardisation protocols and stronger inventory control ensure that the right supplies... are reliably available when needed,” Richard agrees.

Sustainability goals now steer much of CEVA’s strategy and vision. 

“Reusable, temperature-controlled packaging manufacturers no longer work in silos,” Eric says “but now in tandem with drug manufacturers and other industry stakeholders.

“Across the entire logistics chain, there is a positive trend of sharing responsibility and working together to achieve sustainability goals.”

Intermountain’s own savings, which once reached US$586m over a decade, as reported by Gartner, come from process improvements, waste reduction and evidence-based procurement. These reforms build not only efficiency but cold chain capability.

Meanwhile, CEVA’s rental model delivers additional advantages, both operationally and financially. 

“There are numerous advantages to using a temperature-controlled packaging rental model,” says Eric. “Renting allows companies to pay only for the duration of use... ideal for short-term logistics projects, seasonal demand or regional needs.”

He also points to modal shifts as key to achieve environmental targets: “Reducing CO2 emissions in pharmaceutical logistics can also be achieved by shifting modes of transportation from air to sea. Airfreight generates 47 times more greenhouse gases than ocean shipping for every tonne-mile.”

Monitoring these shifts has never been easier, as Eric stresses that full visibility across the delivery journey is now vital.  

“Temperature-controlled packaging is equipped with the technology to capture real-time data,” he explains. “When analysed over time, this data provides a better understanding of the challenges faced at each stage of the shipping journey.”

Preparing for an uncertain geopolitical future

Think that’s a lot to get right? Add to the mix that all of these pressures are currently heightened as geopolitical stresses compound.

Nick Bonny, Principal of Pharma Life Sciences Supply Chain at PwC US, sees the current model as outdated: “Tariffs, drug pricing proposals and geopolitical headwinds are rewriting the rules of global trade. 

“Traditional network models weren’t built for this pace of change.”

That said, there is hope. Digital tools can help leaders model scenarios and test the impact of potential disruptions. 

“With today’s digital tools,” says Nick “like AI-driven simulations and digital twins, you can explore how different scenarios affect cost, profitability and regulatory compliance. Simulate tariff hikes; factor in pricing policy changes; and layer in competitive moves.”

He encourages supply chain leaders to understand where their vulnerabilities lie. 

“Map dependencies in high-risk regions like China and India,” he advises. “Flag where single-source suppliers expose you to potential tariff shocks or regulatory disruptions.”

Eric agrees, adding: “The main challenges for transporting pharmaceuticals consist of aligning all the different stakeholders throughout the process. Precise end-to-end orchestration is required.”

Nick also advocates activating governance models that produce results. 

“Fast-track the adoption of compliant digital manufacturing; reduce complexity in cost structures,” he says. “Shift high-risk product manufacturing – like vaccines and biologics – closer to where they are needed.”

Eric adds: “Last-mile delivery accounts for around 60% of all logistics cost in the pharmaceutical industry. In humanitarian disaster zones, getting the last-mile delivery to a patient in need is even more complex and costly.”

It’s clear healthcare supply chains are more vital than ever, but what these leaders agree on is that the capabilities innovators build today – across the likes of cold chain handling, digital systems and predictive modelling – also determine how effectively healthcare systems can deliver care tomorrow. 

“Traditional network models weren’t built for this pace of change.”

That said, there is hope. Digital tools can help leaders model scenarios and test the impact of potential disruptions. 

“With today’s digital tools,” says Nick “like AI-driven simulations and digital twins, you can explore how different scenarios affect cost, profitability and regulatory compliance. Simulate tariff hikes; factor in pricing policy changes; and layer in competitive moves.”

He encourages supply chain leaders to understand where their vulnerabilities lie. 

“Map dependencies in high-risk regions like China and India,” he advises. “Flag where single-source suppliers expose you to potential tariff shocks or regulatory disruptions.”

Eric agrees, adding: “The main challenges for transporting pharmaceuticals consist of aligning all the different stakeholders throughout the process. Precise end-to-end orchestration is required.”

Nick also advocates activating governance models that produce results. 

“Fast-track the adoption of compliant digital manufacturing; reduce complexity in cost structures,” he says. “Shift high-risk product manufacturing – like vaccines and biologics – closer to where they are needed.”

Eric adds: “Last-mile delivery accounts for around 60% of all logistics cost in the pharmaceutical industry. In humanitarian disaster zones, getting the last-mile delivery to a patient in need is even more complex and costly.”

It’s clear healthcare supply chains are more vital than ever, but what these leaders agree on is that the capabilities innovators build today – across the likes of cold chain handling, digital systems and predictive modelling – also determine how effectively healthcare systems can deliver care tomorrow.