Providing a Cold Chain service has, over time, become an increasingly important part of the service provided by the pharmaceutical distribution sector. This has become even more evident during the Covid 19 pandemic. However, in providing this vital service wholesalers are faced with several severe financial obstacles; one of which is suffering the high cost of stocking, storing, packing and shipping fridge lines. It goes without saying that these costs are significantly higher compared to those of storing and distributing non thermolabile lines.
Unfortunately, manufacturers contracting wholesalers to provide this service seldom, if ever, recognise these extra costs when negotiating a wholesaler reimbursement logistics fee. The result; many Cold Chain lines have become service only lines, that generate little or no profit for the wholesaler.
A further, yet unrelated concern, is that some longstanding inconsistent legislation relating to the Minimum Standards for the procurement, storage and distribution of thermolabile medical products has, and will carry on having (until amended) a negative effect on wholesalers and distributors, and their ability to stock and sell fridge lines.
PLASA has for some time now been working with the South African Pharmacy Council (SAPC), regarding the practical difficulties and cost of complying with some sections of SAPC Board Notice 50. On the 2nd of August 2018, a 5 person PLASA delegation together with 2 senior Strategnos executives (an independent company specialising in Cold Chain solutions, contracted by PLASA) met 6 members of the SAPC to discuss concerns in terms of the practical difficulties and cost of complying with sections of Board Notice 50.
The SAPC delegates present at this meeting were in agreement with PLASA’s concerns and suggested that PLASA rewrite the offending parts of Board Notice 50, and submit them to the SAPC for amendment and/or further debate.
It was proposed by PLASA, and agreed to by Council that Mr Kosmas (Strategnos CEO) should write a concise report clarifying and defining precisely what PLASA’s concerns were, and how they should be amended. This was done and sent in early September 2018 to Council, in a format suitable for inclusion in an amended Board Notice 50. *
It is important to note that although this problem remains unresolved, PLASA regularly makes contact with the SAPC seeking a resolution.
*Mr Kosmas’ proposed amendments to GPP Board Notice 50 are available on request.
Comments are welcomed.