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In an effort to improve the logistics for the pharma and medical devices sector in the country in tandem with its growth prospects, the Department of Pharmaceuticals (DoP) is planning to conduct a study and develop a logistics plan for the sector, for both international and domestic streams.
The Department has invited Expression of Interest (EoI) applications from eligible agencies to conduct such a study, recognising that as one of the largest providers of generic drugs globally, India's ability to efficiently manage pharmaceutical logistics —directly affects its capability to deliver affordable and timely healthcare solutions worldwide.
"As the Indian pharmaceutical industry continues to expand its role as a major global supplier of generic drugs and vaccines, improving cold chain and logistical infrastructure is crucial. This will not only bolster India's position in the global market but also enhance the accessibility and affordability of life-saving medications for its population," said the Department inviting the applications.
Efficient pharma and medical devices logistics can enhance operational efficiencies, reduce wastage, and minimize costs, thereby increasing the accessibility of vital medications and devices.
"Recognizing the dynamic and complex nature of pharmaceutical and medical devices logistics—a framework encompassing the total materials flow (raw-material, in-process inventories and finished goods)—the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers, Government of India, is soliciting Expressions of Interest (EoI) from reputed consulting agencies to conduct a study," it added.
The study aims to develop a comprehensive logistics plan for the pharmaceutical and medical devices sector in India. This plan will involve mapping and analyzing the logistics value chain, including EXIM and the domestic industry. It will assess existing infrastructure facilities, logistics practices, policies, and regulatory frameworks.
The study will additionally recommend interventions by the DoP and other line ministry(s) to support the future growth of the pharmaceuticals & Med-Tech industry in India, aiming to become a global leader. This will involve adopting the best global practices in logistics and making efficient use of available resources and capacities to reduce the cost of logistics.
The EoI is to solicit a range of ideas regarding methodology, expertise, understanding of the subject, and expected outcomes from the shortlisted agencies. The purpose is to assess their competency, capacity, and technical expertise in conducting the study, said DoP.
Interested agencies can submit the EoI document, downloaded from the Department's website for free, by 5.30 pm on or before May 2, 2025.
Applicants who meet the qualification criteria may be invited to present before the Consultancy Evaluation Committee (CEC). Subsequently, a request for proposal (RfP) will be issued, extending an offer to participate to selected agencies only, added the Department.
It added that the primary objective of the study is to propose strategic interventions that can optimize the efficiency and effectiveness of pharmaceutical and medical device logistics in the country.
These interventions include policy and regulatory provisions, infrastructure advancements (such as warehousing, handling, cold chain management, supply chain, and transportation), and logistics service improvements at critical production and consumption hubs, including at ports.
The agencies need to identify the entire pharmaceutical and medical devices logistics ecosystem, from raw material procurement to last-mile delivery, document current logistics costs, breakdown highest cost components, timelines, and operational bottlenecks, and incorporate global benchmarks for comparison.
They also need to conduct stakeholder consultations and surveys with manufacturers, logistics providers, distributors, regulators and healthcare providers.
They also need to evaluate the existing capabilities across transport and infrastructure including modal mix, efficiency, challenges in multimodal logistics, quality and coverage of roads, railways and others, identify the cost dynamics of freight for sea and air transport routes, map existing cold storage and warehousing facilities including vaccine distribution centres, identify gaps and bringing in recommendations for setting up new facilities through various models including public private partnerships and foreign direct investments, among others.
It also needs to review existing regulatory framework, processes, approvals, policies and regulations and regulations impacting logistics in the sector. It should also evaluate trade facilitation measures, customs processes, and cross border logistics, identify pain points in achieving a seamless supply chain and recommend measures for improvement.
The agency also need to "study existing mechanism and incentive if any, for logistics providers and explore additional mechanisms needed to promote efficient practices & promote export-oriented growth," it added.
With the exception of any mutually agreed-upon arrangements, the appointed agency is required to complete the Study within six months from the date the DoP issues the Letter of Authority (LoA).
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