newsworthy
President Obama’s early December signing of legislation
establishing a nationwide template for the tracking and
tracing of pharmaceutical shipments is likely to have profound multi-industry implications for third-party logistics service providers (3PLs) and their warehouse
operations, according to a leading industry trade group.
The law, the “Drug Quality and Security
Act,” replaces a fragmented state-by-state
approach for monitoring pharmaceutical shipments
with a uniform standard governing wholesale distributors and 3PLs. It caps a three-year legislative effort by
the pharmaceutical industry and the International
Warehouse Logistics Association (IWLA), the Des
Planes, Ill.-based trade group representing the interests
of warehouse logistics operators.
The law elevates warehouse logistics providers to equal
partnership with drug manufacturers, wholesalers, dis-
tributors, and pharmacies in an effort to better safeguard
the product supply chain. But for the 3PLs and their ware-
house operations, it also clarifies the key distinction
between product ownership and product possession, mak-
ing clear that 3PLs are custodians of the merchandise but
not the owners.
The law puts the responsibility of product tracking and
tracing in the hands of the product owners, not the custodians. In so doing, it relieves 3PL warehouse owners and
operators of the onerous paperwork burdens that
come with being considered part of the
chain of ownership. In the past, 3PLs
were grouped together with manufacturers and wholesalers. This meant they were
forced to provide detailed transaction information,
history, and statements, and then keep that information for six years following transfer of the product to
another party.
By clearly establishing what a 3PL’s legal role is in the
warehouse and what is outside its purview, Congress has
provided a road map to guide warehouse logistics operations in other industry verticals, according to Pat
O’Connor, IWLA’s Washington representative.
“This is the first federal statute to contain a strong definition of a 3PL’s place in the supply chain,” O’Connor said
in a statement hailing the bill’s signing. “The impact is now
we can point to this law on other issues affecting 3PLs.” ;
—M.S.
22 DC VELOCITY JANUARY 2014 www.dcvelocity.com
New drug tracking law “defines 3PLs’ place in the supply chain”
Nice-Pak Products Inc., a provider of wet wipes, will be
extending its agreement with iGPS Logistics for pallet
pooling services. … Third-party logistics service provider
Genco was selected by Long Lake Supply Chain
Solutions to provide transportation consulting services
for a dedicated fleet carrier contract. … Winebow, a
New Jersey-based wine and spirits importer and distributor, has selected HighJump Software’s warehouse management system. Additionally, Binzagr Co. of Saudi
Arabia has chosen the HighJump Supply Chain
Advantage suite. … ABB Group, a power and automation technology company, is expanding its use of Amber
Road’s global trade management solutions as part of its
ongoing drive to centralize its worldwide supply chain
and logistics operations. In addition, Xylem, a global
water technology company, has implemented Amber
Road’s Export On-Demand solution. … Penske Logistics
has been selected to manage the logistics processes of
the Italian motorcycle brand Ducati in Brazil. …
RedMart, a Singapore-based online grocery service,
recently implemented Manhattan SCALE, a warehouse
management system developed by supply chain commerce solutions provider Manhattan Associates. …
RepairClinic.com of Canton, Mich., has awarded
Integrated Systems Design of Wixom, Mich., a contract
to improve the order picking and packaging areas of its
warehouse. … Easy Street JD&S of Carol Stream, Ill., a
provider of material handling solutions, has been
awarded a maximum $9.25 million contract for material
handling equipment by the U.S. Department of Defense.
… The airline group IAG Cargo and The Waco System, a
global freight management and logistics organization,
have signed a partnership deal. … Johnstone Supply, a
cooperative wholesale distributor in the heating, ventilation, air conditioning, and refrigeration industry, is
seeing improvements in its supply chain performance
following its upgrade to the Logility Voyager Solutions
Version 8 platform. … Stephen Joseph Inc., a supplier of
novelty items, has doubled warehouse productivity by
installing the AccellosOne Warehouse Management
System with integration to the Sage 300 ERP. … Heavy-lift specialist Project Professionals Group has appointed
WCT World Container Trading GmbH as a project support member for Germany. … U.S. Oil has partnered
with Dart Transit Co. to build a second Gain Compressed
Natural Gas station for the trucking company.
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