Paper Title: The Impact of Supply Chain Intelligence and the Internet of Things on Healthcare Logistics

Author:  Craig Montgomery (2015 for


Pharmaceutical logistics globally is a very large scale business with an estimated volume of 130M shipments annually. There is a loss of $35B each year due to supply chain related issues like temperature excursions, shock or extra tilt during shipping or storage and subsequent additional labor costs associated with these events.

Pharmaceutical Supply Chain is categorized into Cold-Chain and Non-Cold-Chain products but even the non-cold-change products have temperature sensitivities and at times face excursions. Too much waiting at an airport tarmac or a warehouse without temperature regulation can result in an excursion. Meanwhile the key regulatory pressures, related to quality, for drug manufacturers continues to grow.

To drive a corrective and preventive action plan, companies need to have detailed visibility of the complete supply chain cycle. Current logging tools and methods are not enough and do not provide a complete picture and by using current techniques it is hard to make any corrective strategy.

To drive a corrective plan a logistics professional needs contextual data during the whole delivery cycle including data regarding flying time, waiting time, temperature records, loading/unloading events, drop/shock events etc. Using IoT sensors and data collection during full life-cycle a manufacturer can find the problem-areas and drive a accurate corrective plan.


This topic is interesting and has a real scope of improvement by using sensors, big data collection and analytics. Author has collected a lot of figures related to volume and cost to support his idea. Author has structured the document well and has enough data that he could have concluded the paper in more clear terms. Moreover author could have pointed out some solutions which are being considered in this area.


(2015, Montgomery, Craig for cargosense)