Supply Chain Optimization: Leveraging DDP and COD in Cross-Border Pharmaceutical Logistics

 Supply Chain Optimization: Leveraging DDP and COD in Cross-Border Pharmaceutical Logistics

The pharmaceutical industry’s stringent regulatory requirements and high-value cargoes necessitate strategic use of DDP and COD. Under DDP, pharmaceutical exporters shoulder the responsibility of navigating complex international regulations, such as the EU’s Good Distribution Practice (GDP) guidelines and the US Food and Drug Administration (FDA) import protocols. A global vaccine manufacturer, for example, leveraged DDP to ensure end-to-end temperature-controlled supply chains and seamless regulatory compliance across 50+ countries. This approach minimized transit delays and safeguarded product integrity.

In contrast, COD in pharmaceutical logistics is less common due to high security risks but finds application in emergency supplies. During the COVID-19 pandemic, some countries adopted COD for rapid distribution of personal protective equipment (PPE), with buyers paying upon receipt to expedite transactions. To optimize supply chains, pharmaceutical companies integrating DDP and COD invest in blockchain-enabled traceability systems. These systems provide real-time visibility into cargo movement, duty payments, and financial transactions, reducing administrative bottlenecks and enhancing overall operational efficiency.