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The Department of Pharmaceuticals (DoP) has cancelled the Request for Proposal (RFP) for the study of Sectoral Plan for Efficient Logistics (SPEL), which was announced to develop a comprehensive logistics plan for pharmaceutical, active pharmaceutical ingredients (APIs), and medical devices sectors for both international and domestic markets.
The Department said that the move is in accordance with the terms and conditions of the RFP, which reserves the powers with the DoP to cancel the selection process. Any Earnest Money Deposit (EMD), or bid security submitted by the bidders will be refunded in accordance with the provisions of the RFP and applicable rules of the Government of India.
It may be noted that the Department has floated the RFP in April, this year, seeking application from eligible candidates to study and develop a comprehensive logistics plan, aimed at identifying the existing challenges in the supply chain, such as infrastructure deficiencies, regulatory bottlenecks, and inefficiencies in current logistics practices and proposing actionable solutions and best practices that can enhance the reliability and efficiency of pharmaceuticals and medical devices logistics.
The primary objective of the study was to propose strategic interventions that can optimize the efficiency and effectiveness of pharmaceuticals and medical devices 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, added the DoP while announcing the RFP.
The plan was envisaged to involve mapping and analysing the logistics value chain, including EXIM and the domestic industry. It is expected to assess existing infrastructure facilities, logistics practices, policies, and regulatory frameworks.
It would have additionally recommended 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, said the Department in its RFP.
The study was expected to include exhaustive value-chain mapping, primary and secondary research - surveys and interviews, workshops, and cluster analysis, capacity and capability assessment - transport and multimodal infrastructure, cold-chain and warehousing, logistics services, skilled workforce and technology. It will also conduct a global benchmarking exercise.
On the regulatory and enabling environment, the study was proposed to delve into regulatory framework analysis including review of policies, approvals and compliance regimes in the centre, ease of doing business and trade facilitation by analysing EXIM data for the sectors and measure state-level Logistics Ease Across Different States (LEADS) scores, among others.
There was also expected to be a comprehensive gap assessment and analysis of future trends including key gaps, regional disparities, and interventions required for future.
The RFP also proposed to include development of the SPEL for policy and strategy formulation, infrastructure development roadmap, supply chain resiliency plan, digital transformation strategy, sustainability and circularity, performance framework and governance to develop a sectoral plan with SMART KPIs aiming at cost reduction in terms of percentage, transit-time reliability, spoilage rate, customs-clearance lead time, digital adoption index, among others.
In India, the need for a comprehensive study on pharmaceutical and medical device logistics is increasingly critical due to the sectors’ rapid expansion and significant role in both domestic and international markets, said DoP while floating the RFP. The pharmaceutical and medical device industry, which are critical to the nation's health, requires robust logistical support to ensure the efficient flow of goods from manufacturers to consumers.
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