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Information Is Power

Mario García - GNK Logística
Vice President of Operations

STORY INLINE POST

Thu, 09/07/2017 - 14:15

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Q: Why should companies contract GNK Logística for their logistics operations?

A: As a Mexican third-party logistics company (3PL), our core business is the design, development and implementation of integrated logistics solutions built to suit each client’s specific requirements for warehousing, control, distribution of goods and database management for the health and pharma industry. We are not dedicated to buying and selling goods, we leave that to our clients. We are dedicated to generating valuable information, to the traceability of goods and nationwide consolidated transportation.

We have more than 1,000m3 of cold rooms, all of which have temperature ranges of 2-80°C as recommended by COFEPRIS. Our parameters are from 4-70°C, meaning that when the temperature reaches those limits, automatically a visual and audio alarm activates to ensure the cold chain is not broken. We also have units with thermostats for transporting cold products.

Q: What logistical strategies are used to service locations that are difficult to access?

A: Before we start any operation or project, we always perform an initial census for which we focus on distant, rural or difficult to access communities, so we can make a note of its address, GPS localization, type of road encountered and all the information we need to design and establish the best cost-benefit route. We check that the address exists because we have encountered situations in which it does not, or is not where thought. Once corroborated, we analyze all the data from the census and other variables to establish delivery frequencies. There have been times when we have had to hire small planes or boats to get to the correct place at the correct time because there was no road.

Q: What steps do you take to maintain security in the chain of custody?

A: We have security protocols and procedures as determined by our quality management system. Since we began working with the government, the goods we distribute are low cost or have no price value because they are free and destined to meet the population’s needs. We also are well known in the communities to which we deliver. At the beginning, we did face a certain amount of risk in some areas like Durango, where we had to establish certain routes and schedules that were secure. Our vehicles bear our logo, which is recognized, and they are all tracked via GPS, have interior cabin cameras and are constantly monitored. Our warehouse, fleet of trucks and the goods of our clients are all insured. We have also used and hired custodians in the past as requested by our client protocols.

Q: What are the biggest challenges and risks a logistics company faces?

A: The greatest risk is the loss or damage of the client’s assets. NOM-059, ratified in August 2016, is also important for us. It stipulates that to transport pharma goods within Mexico, a company must use vehicles specifically for this purpose and cannot transport anything but pharma goods. As we are already dedicated to this and have a cold chain in place, this norm has benefited us. Beginning a project is often the most difficult phase because companies do not have the full scope of the project.

Q: How does NOM–059 compare to international standards?

A: It is excellent because it eliminates foreign companies from providing transportation between states and also benefits the security and safety of goods because they could be contaminated by other goods and supplies in the cargo. I am sure that within two years, labs will be working only with logistics operators dedicated 100 percent to pharma. Because we are solely dedicated to pharma, we are not looking to expand to other sectors or industries. We are totally convinced that we can be of great value to our clients because of all the specialization and investments we have made in this area.

Q: How important is tracking and how does it improve GNK Logística’s services?

A: Whoever has information has power and tracking has become an important tool for us and the service we provide. As an example of how tracking benefits us, we also offer reverse logistics to our clients, who often use it for returns, rejections or short expiry dates of goods. We once collected a lot that was subject to inspection by COFEPRIS and had to trace it to its final user. It helped that our tracking system gave us that information, otherwise we would have been in trouble.

Q: To what extent do you have a database of consumed goods?

A: We have developed in-house systems and also registered them at the National Institute of Author Rights (INDAUTOR), which can give us full traceability of each lot number and the expiry date of every good we have distributed. We collect inventory information at the place of delivery or through our systems and we generate the data to know what and when is consumed. We give this information and other reports about inventory levels and displacement of goods to our clients and they decide when to buy, at what price, from whom and in what quantities. All the information and reports needed by our clients are available 24/7 to help them improve and speed up decision-making.

Q: How are health practitioners embracing technology such as iPads and what are the challenges to adoption?

A: In rural communities, digital advances take longer to permeate. For example, it takes around 40 minutes for doctors to deal with the paperwork from a five-minute medical consultation. Implementing a system that relies on a certain device is not ideal because these quickly become obsolete. We have developed our systems to be compatible with tablets and while they can be used, it is necessary for hospitals and rural communities to have the right hardware and network in place, which is the main challenge we have encountered. Another challenge is to change the mindset of doctors from doing things manually to electronically. Tablets are extremely useful because they put the complete supply chain information in one’s hand.

Q: What does GNK do differently from other pharma logistics companies?

A: We differ greatly from our competitors, mainly because we treat our clients as business partners or allies. When we notice they are doing something wrong, we tell them about it. We also give them reliable, punctual and auditable information. We are flexible in our operations and we do not have hidden costs. Our solutions are tailor-made and we strive to offer the best cost-benefit solutions. Finally, our personnel is highly qualified and field-trained to offer outstanding customer service and a quality response.

Q: What are the main differences when working with the public and private sectors?

A: The private sector is more demanding due to their corporate governance and compliance structures and procedures. The tolerable margin of error is extremely narrow. Governments often do not have standardized procedures or high standards when dealing with pharma goods and their warehouses in most cases do not comply with any NOM rules or regulations, nor do their vehicles. We are the ones to suggest they improve to the standards required by private industry. If companies do not have reliable information, they do not have sales or consumption projections. Health services were created to preserve health, not to worry about logistics. This is the area that is usually contracted out but there are still states and private labs that do not contract their logistics operations.

Q: What is GNK Logística’s strategy to remain competitive over the next five years?

A: We look to strengthen the systems we have in a well-structured enterprise resource planning. We think any other Mexican or foreign company with plenty of economic resources can store and distribute pharma goods correctly and in accordance with legislation but we doubt they can better our learning curve and experience of almost 11 years. We are always researching new technology and systems that can help us be a cutting-edge company. Generally, we would like to have our systems working across the supply chain, from doctors that generate the demand of goods by typing the prescription into our system to the supply planning, control, warehousing and distribution of those goods. Prescriptions and requirement orders are still written by hand, so we are looking forward to digitalizing that information to shorten times. That will help our clients and us to have better control and timings throughout the supply chain.

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