*This interview has been condensed to focus on Hany’s key insights and perspectives.
We recently had the opportunity to speak with Hany Salama, Senior Vice President and General Manager at McKesson, and an expert in pharmaceutical supply chains.
Hany has extensive experience in managing global supply chain operations, with a focus on cold chain logistics, sustainability, and operational efficiency.
His career spans leadership roles in product development, manufacturing, and distribution, making him a key figure in advancing the pharmaceutical industry's logistics capabilities.
At McKesson, Hany oversees initiatives that tackle critical challenges in the supply chain, from ensuring product integrity to reducing environmental impact.
He has worked on innovative approaches to optimize last-mile delivery, improve data utilization, and explore sustainable solutions for temperature-controlled transport.
Hany’s insights provide a unique perspective on how the cold chain is evolving to meet the demands of modern healthcare, while balancing cost, efficiency, and sustainability.
My background is in engineering, and I began my career building facilities in the fine chemical and pharmaceutical industries.
Over time, my work expanded from product development to commercialization, particularly as the pharmaceutical landscape evolved from small molecule drugs to biologics and advanced therapies like mRNA vaccines.
The turning point for me came in the early 2010s when primary care blockbuster drugs began declining, and biologics and specialty care emerged as the new frontier.
These advancements required a robust cold chain to ensure product integrity and improve patient outcomes.
This realization shaped my approach to supply chain innovation and brought me to my roles at McKesson, where I’ve led both third-party logistics and private label businesses.
During the COVID-19 pandemic, my team played a pivotal role in the cold chain distribution of vaccines, handling a wide range of temperature-sensitive products, from controlled ambient to ultra-cold conditions.
These experiences underscored the critical role that the cold chain plays in supporting modern healthcare.
The cold chain is no longer a niche aspect of pharmaceutical logistics; it’s the backbone of the industry.
Approximately 70 percent of pharmaceuticals are now temperature-sensitive, with 20 percent experiencing deviations during transport.
As advanced therapies like biologics and gene therapies become more prevalent, the cold chain will only grow in importance.
Beyond logistics, the cold chain touches every part of the value chain—from clinical trials to last-mile delivery.
It’s essential for ensuring product efficacy and patient safety.
The challenge is elevating its role across the industry, so it’s seen not as a cost center but as a strategic enabler of better healthcare outcomes.
The last mile is the most complex and challenging segment of the cold chain.
While upstream processes—like transporting large volumes from manufacturing sites to distribution centers—are highly optimized, the last mile often relies on passive solutions like styrofoam packaging or dry ice.
These approaches are cost-effective but not eco-friendly, creating sustainability challenges.
Additionally, ensuring product integrity in the last mile is paramount.
Temperature deviations or delays can result in spoilage, which becomes particularly concerning for high-value specialty drugs.
Despite technological advances, the last mile remains a fragmented and under-optimized segment of the supply chain, both in terms of efficiency and sustainability.
Data is a game-changer.
Historically, cold chain monitoring relied on limited, binary data—essentially “temperature maintained” or “temperature breached.”
Today, advancements in sensors provide detailed insights on factors like location, vibration, and light exposure.
This wealth of data allows for predictive modeling, enabling companies to anticipate risks and improve both cost and operational efficiency.
However, we’re still in what I’d call the “Data 1.0” phase—collecting data without fully understanding how to act on it.
The next step, or “Data 2.0,” will involve turning these insights into actionable strategies, like optimizing lane routes or redesigning supply chain nodes.
This shift will help us move from reactive to predictive risk management, reducing spoilage and improving sustainability.
Sustainability is becoming a major focus, but progress has been slow.
Passive solutions like styrofoam and single-use plastics dominate the last mile, contributing to significant waste.
Reusability offers a promising alternative but requires better systems for reverse logistics and stronger economic incentives across the supply chain.
Another challenge is the carbon footprint of traditional cooling methods.
For instance, gel packs used for conditioning require weeks of energy-intensive freezing, and handling dry ice presents both safety and environmental concerns.
Companies need to adopt solutions that reduce waste and energy use while maintaining product integrity.
The key to driving sustainability is showing businesses that these changes are not only environmentally beneficial but also economically viable over the long term.
It’s about telling the story of "why" these innovations matter and making the transition as seamless as possible.
Reusability in the last mile faces several hurdles, primarily around reverse logistics.
When a product reaches its destination—whether that’s with a provider, pharmacy, or patient—there’s little incentive to return the packaging.
In upstream operations, where B2B models dominate, reusable solutions are more common because the logistics are easier to manage.
To make reusability viable in the last mile, we need systems that ensure packaging returns are seamless and cost-effective.
For example, integrating incentives for end users or adopting leasing models for reusable solutions could drive adoption.
The industry hasn’t cracked the code yet, but this is a critical area for innovation.
Innovation will come from combining sustainability with operational excellence.
This includes adopting predictive analytics to optimize supply chains, scaling reusable packaging solutions, and decentralizing distribution models to better serve diverse regions.
Additionally, the industry needs to shift its mindset from viewing the cold chain as a fragmented system to a holistic network.
Collaboration across regulators, manufacturers, and distributors will be key to driving systemic change.
As patient care evolves, particularly with the rise of direct-to-patient models, the cold chain must adapt to meet new demands.
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