The dilemma of pharmaceutical logistics needs to be resolved.

　　Recently, in response to the issues in the pharmaceutical logistics sector, the industry standard "Logistics Service Capability Assessment Indicators for Pharmaceutical Wholesale Enterprises" (hereinafter referred to as "Indicators") issued by the Ministry of Commerce has officially come into effect. This standard regulates the elements and assessment indicators that constitute the logistics service capability of pharmaceutical wholesale enterprises.

　　As a core component of the pharmaceutical distribution environment, pharmaceutical logistics services are no longer limited to the basic functions of transportation and warehousing, nor are they confined to the optimization of various links in the logistics process of pharmaceutical circulation, but are rapidly extending services upstream and downstream.

　　Liu Weizhan, Secretary-General of the China Pharmaceutical Cold Chain Alliance, stated in an interview that pharmaceutical logistics services, as a key link in the pharmaceutical distribution industry chain, have developed into an important component of the core competitiveness of pharmaceutical wholesale enterprises and are also a key object of regulation.

　　Clarifying Important Concepts

　　The "Indicators" clarify important concepts in the pharmaceutical logistics industry. For example, the definition of the concept of pharmaceutical logistics services is clearly defined in Article 1 of Chapter 3 of the standard, which outlines three aspects: first, the legal constraints of pharmaceutical logistics services, which should comply with the legal requirements of China's GSP (Good Supply Practice) for pharmaceutical operations; second, procedural requirements, where standardized pharmaceutical logistics services should obtain qualified procedural certification; third, the professional requirements of the pharmaceutical industry, which should ensure the stability of the quality of pharmaceuticals during circulation.

　　At the same time, the "Indicators" clearly define modern pharmaceutical logistics, clarifying the chaotic understanding in the industry in recent years. Article 10 of Chapter 3 defines modern pharmaceutical logistics as "facilities and equipment - management philosophy - operational practices": relying on certain modern logistics equipment, technology, and logistics information systems, effectively integrating upstream and downstream resources of marketing channels, optimizing the acceptance, storage, sorting, and distribution processes in the pharmaceutical supply and distribution link, effectively improving order processing capacity, reducing sorting errors, shortening inventory and distribution time, reducing logistics costs, improving service levels and capital utilization efficiency, and achieving automation, informatization, and efficiency in logistics management and operations.

　　Standardizing Third-Party Logistics

　　Currently, social logistics to third-party logistics is permeated with the spirit of cost reduction and efficiency improvement. A large number of pharmaceutical wholesalers have to consider the costs of enterprises, leading to the emergence of pharmaceutical logistics. Liu Weizhan pointed out that social logistics cannot ensure the safety and quality management of pharmaceuticals, and it is very likely a channel for counterfeit drugs to enter. The proportion of social logistics participating in pharmaceutical logistics is quite large, especially in the transportation link.

　　From pharmaceutical wholesale enterprises to secondary wholesalers, or when pharmaceutical wholesale enterprises handle urban distribution, only a small number of large wholesalers do it themselves, while most are still handled by social logistics. Even from a national perspective, the process from pharmaceuticals to pharmacies is basically supported by social logistics.

　　According to a survey conducted by the preparatory group of the China Logistics Industry Chamber of Commerce, the China Pharmaceutical Cold Chain Alliance, and other organizations, which involved hundreds of pharmaceutical production enterprises, wholesale enterprises, biopharmaceutical parks, and some typical social logistics enterprises across 13 provinces and municipalities in China, it shows that in the pharmaceutical industry, the proportion of warehousing entrusted to social logistics is about 20%; for transportation entrusted to social forces, it exceeds 80%. According to incomplete statistics, as of July 2011, the number of pharmaceutical transportation enterprises in China reached 13,000 to 16,000. "Social logistics is widely involved in pharmaceutical logistics, but its professional capabilities are insufficient, posing many hidden dangers to the safety of pharmaceuticals in China and creating many potential risks for the entrusting parties," Liu Weizhan emphasized, noting that the increasing proportion of temperature-sensitive pharmaceuticals challenges the safety of the pharmaceutical logistics link.

　　Third-party logistics urgently needs standardized management, and it is very necessary to issue the "Indicators" now. After social logistics, which is cost and efficiency-oriented, is introduced into pharmaceutical logistics, what kind of development should this industry have? Are there standards? How can quality and safety be achieved at their best? Liu Weizhan believes that these questions are worth deep consideration.

　　In addition, the "Indicators" classify the logistics service capabilities of pharmaceutical wholesale enterprises and implement graded management. Grade A indicates a classification from high to low: AAA, AA, and A, evaluated according to the "Grading Standards."

　　Liu Weizhan analyzed that such grading standards are not difficult for large wholesalers to achieve. During the formulation process, large wholesalers also provided feedback. There will be a certain impact on small and medium-sized enterprises, and the assessment of several capabilities can be made measurable, with specific indicators that can be soft.

　　Cai Kun, Secretary of the Board of Directors of Jiuzhoutong Pharmaceutical Group, pointed out in an interview with this reporter that we welcome the introduction of such grading standards. For enterprises like Jiuzhoutong, the formulation of these standards is conducive to better participation in market competition.

　　At the same time, at the 7th China Growth-Oriented Pharmaceutical Enterprises Development Forum and 2012 Pharmacy Expo, it was learned that many participating enterprises recognized the introduction of the "Indicators," but during the interview, it was also learned that for small pharmaceutical wholesale enterprises, they basically entrust third-party logistics to handle it, and it will take time to meet the standards.

　　It is reported that the Ministry of Commerce has implemented graded management for domestic retail enterprises, and the pharmaceutical distribution sector is a special industry that requires special evaluation indicators. The next step for the Ministry of Commerce will be to carry out two ratings of industry standards and actively use the standards to strengthen industry management. Specific grading management methods will be formulated and have been included in the plan. (Cao Jianhua)