Growing Demand for Storage System Solutions in Pharmaceutical Distribution Centers

Amid the ongoing rapid development of new and often bigger manufacturing and distribution centers, the evolving pharmaceutical industry is requiring expanded material handling facilities which are designed, built out and operated to meet stringent requirements to safeguard products and to ensure supply chain resilience. These new distribution centers require pharmaceutical storage systems, which Steel King can deliver.

In the pharmaceutical sector, the increased demand for distribution facilities is being driven by re-shoring of drug manufacturing, a desire for greater supply chain resilience, and the growing market for personalized medicines and other biologics and vaccines, says Mac Aughey, National Accounts Manager for Steel King Industries.

This evolution of the pharmaceutical sector is happening in parallel with the evolution of the intralogistics/material handling sector, promoting the growth of the one sector with the support of the other, Aughey says. In most scenarios, the storage and handling facilities must meet climate, sanitation, product tracking and tracing, and delivery time restrictions. Automation and robotics are common solutions to meet those demands.

Similarities Between Pharmaceutical Storage Systems & Cold Storage Requirements

To a great degree, pallet storage systems in the pharma sector have similar requirements to the cold storage industry, a market in which Steel King has extensive experience. Aughey notes that such facilities have “food-safe” environments with racking components designed to prevent debris build-up, with durable paint finishes that remain adhered and thus prevent rust, and that can be designed for first-in first-out (FIFO) product handling that respects product delivery-time restrictions. For environments designed for long-term freezing or where material handling equipment is washed down, galvanized surfaces can be applied to racking components rather than paint. In some cases, plastic pallets with non-porous surfaces are used as another means of sanitation.

So when it comes to the racking in a pharmaceutical distribution center, like with cold storage, high quality racking materials, finishes and designs support compliance with Good Manufacturing Practices guidelines and strict labeling requirements.

Along with efficient use of cubic footage, storage system layouts in pharmaceutical distribution facilities need to use a Warehouse Management System that tracks product lot numbers, serial numbers and expiration dates. Pallet flow racking – which supports FIFO, is commonly specified.

Recent Developments in the Pharmaceutical Industry

The pharmaceutical industry has announced numerous developments in recent months.

In Steel King’s home state of Wisconsin, Eli Lilly announced a $3 billion expansion of its manufacturing facility in Pleasant Prairie, to meet demand for injectable medications for diabetes and weight control. The project includes new warehousing, and advanced automation and robotics.

Elsewhere in the U.S., key industry players Merck, GSK, Roche, Cardinal Health, McKesson and Amgen all announced investments in new or expanded facilities. Companies are investing in regional hubs to bolster supply chain resilience, to accommodate pharmaceuticals that require strict temperature control, to take advantage of automation and related efficiency and traceability, and they are investing in final-mile delivery solutions.

Storage and distribution centers that are part of the expansion are often built and managed by 3rd Party Logistics (3PL) and cold chain companies.

Steel King Can Help with Pharmaceutical Storage Systems

As in most industries, pharmaceutical distribution centers have unique layouts and material handling procedures. Facilities can include very large DCs that only handle pallet loads that are distributed to hub-and-spoke centers; the hub-and-spoke sites that distribute caseloads and which store cleared pallets; and for-each picking facilities.

A pharmaceutical company’s storage of manufactured product would likely be distributed to DCs that serve retailers. With its cold chain sector experience, Steel King has designed and manufactured racking and storage systems for each of those areas, and related areas, Aughey notes.

Contact Steel King Industries with any questions, or if you’d like to get started you can find a partner to work with from our nationwide network of distributors.