Using UPS to outsource drug delivery

An article in the Wall Street Journal (June 28,2012) describes pharmacists at UPS’s hub in Louisville filling prescriptions for insulin or other drugs for quick delivery to customers. The same supply chain allowed Walgreen to ship vaccines to Laos, with associated custom clearance and temperature tracking. Is the pressure to cut logistics costs and increase service the result of low prices for generic drugs ? Will UPS’s growing drug delivery service make owning warehouses an obsolete division for drug companies ? If competing logistics companies drive prices down, will the market fragment to create a prisoner’s dilemma outcome that hurts all supply chains ?

About aviyer2010

Professor
This entry was posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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