Security a top priority for supply chain executives

Product security is among the top concerns of healthcare supply chain executives in 2010, according to a survey commissioned by logistics and transportation services firm UPS.

The "Pain in the (Supply) Chain" survey by Harris Interactive found that 40 per cent of a group of 150 decisionmakers from pharmaceutical, biotechnology and medical/surgical device companies were "highly concerned" about product security.

In last year's survey product security (specifically product tampering and counterfeiting) was cited by 34 per cent of respondents.

In the 2010 survey product security was the third highest-ranking supply chain concern after cost management and regulatory compliance, and was tied with problems gaining access to global or emerging markets.

Among the product security concerns, counterfeiting was the highest ranked challenge, cited by 69 per cent of respondents, while 60 per cent said that theft was the main challenge. Diversion of product also scored high at 53 per cent, closely followed by theft in transit at 50 per cent.

"There is much current industry attention on product security," says the UPS report, which can be downloaded here.

The main drivers for the concerns were a rise in incidents of theft, concerns with counterfeiting, pending drug serialisation legislation and the US TSA’s shift towards 100 per cent screening of cargo shipments, which will be fully implemented by August 2010.

Product security was also cited as a major barrier to global expansion, ranking second on this measure after country regulations. Argentina, China, India and Brazil were the top emerging markets companies will be expanding to in the next 18 months.