As the healthcare industry continues to evolve, logistics companies such as UPS Healthcare are becoming more integral to the supply chain.
In an interview with Becker's, Scott Szwast, vice president of international strategy at UPS Healthcare, discussed the company's long-term strategy, the future of healthcare logistics and how UPS plans to stay at the forefront of a rapidly changing market.
Optimizing logistics
UPS Healthcare has been investing heavily in its capabilities to address the increasing demand for complex healthcare logistics, particularly within biopharma, medical devices and lab diagnostics.
"We've been investing for a long time to not only meet the needs of our customers but also prepare for the future," Mr. Szwast said. "As our business develops, we're leaning into the complex part of the healthcare logistics market, our customers' fastest-growing segment."
The logistics of clinical trials and pharmaceutical products, especially biologics, require precise handling to maintain product stability.
"Complex healthcare logistics, particularly for clinical and pharma, require effective product
stability. This is crucial for time-and-temperature-sensitive shipments," he said. "Services requiring large-scale precision logistics are where we can really add value through our expansive global operations."
Leveraging data and automation
Data aggregation and automation are at the core of UPS Healthcare's logistics operations, allowing for enhanced visibility and improved efficiency. According to Mr. Szwast, by collecting data across all stages of the supply chain from warehouse inventory to temperature monitoring, UPS has been able to create more resilient logistics networks.
Automation, AI and machine learning are also transforming how UPS Healthcare handles certain tasks. These innovations have helped the company stay ahead of increasing volume and complexity of shipments, he said.
"In operations, robotics and automation technologies are streamlining processes such as picking, packing and shipping, removing repetitive functions from the employee experience," he said. "Automated systems equipped with AI and machine learning algorithms enhance accuracy and scalability while mitigating human errors."
Home healthcare and facility innovations
The home healthcare sector has represented a significant opportunity for growth, and UPS Healthcare has been making strides to meet the rising demand for home deliveries of fragile prescriptions, specimen collections and therapies.
"Home healthcare is a great example of growth opportunities," Mr. Szwast said. "It's exciting watching healthcare start to come to where the patient is — with home delivery of fragile prescriptions, specimen collection for diagnoses, therapies, clinical trials. There's even opportunity for better reaction times to problems caught by remote monitoring of patients with chronic issues."
One example he pointed to was the company's new Labport facility as a key part of this strategy. The 100,000 square-foot laboratory — located near UPS Airlines' largest air hub — is designed to speed up diagnostic processes. With specimens arriving overnight and results ready by 8 a.m., Mr. Szwast said the facility is an example of how UPS Healthcare is innovating to help healthcare providers deliver more precise treatments faster.
Preparing for the future
As UPS Healthcare prepares for the next stage of growth, Mr. Szwast highlighted the company's commitment to providing comprehensive solutions that not only address the logistical challenges of today's healthcare landscape but anticipate future demands.
"When you marry control and visibility, it allows you to orchestrate an entire supply chain from end to end, from clinical trial right to the patient," he said. "With the right network, it also means you can effectively utilize and divert resources from one mode to another in response to disasters or disruptions."