| HDMA DMC Conference Highlights
Cold Chain, RFID, Pedigree and Pharmaceutical Returns topped the list of industry topics this year at the annual HDMA DMC Conference held in Boston, MA on June 10-12.
The HDMA Distribution Management Conference offered a balanced schedule of educational opportunities both in the classroom setting as well on the exhibit hall floor. This year’s educational sessions provided several insightful pieces of information. Summarized below are a few facts shared at the conference.
Did You Know?
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- Healthcare industry is experiencing growth in sales.
- Generics and BioTech are the high growth areas.
- Prescriptions are increasing due to the Medicare Part D.
- Medicare Part D is benefiting retail chains more than other classes of trade.
- RX is not the reason that the US healthcare expenditures are increasing. Pharmaceuticals only represent 10% of what is spent.
- Technology is driving costs in healthcare.
- High profit companies tend to have a lower percentage of total sales to independent drug stores; higher percentage to hospitals/HMOs and Government sales.
- Increasing the data sharing of ePedigree and returns verification will have the greatest impact on security and patient safety.
- To ensure the success of track and trace initiatives, the retailer and pharmacies need to close the data loop. Portal systems are needed for this to happen.
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Source: HDMA Presentations
An HDMA Foundation Sneak Preview Industry Benchmarks in 2007, Thomas J. Noon, Industry Insights, Inc.
Phase II: Industry Blueprint for Data Management and Data Sharing Across the Healthcare Distribution Supply Chain, Forrester Research
US Pharmaceutical Market: Trends, Issues, Forecast, Doug Long, IMS Health

HDMA Returns Task Force Shares Results of Projects at the HDMA DMC Conference
At the HDMA Distribution Management Conference, the HDMA Returns Task Force shared the results of all their hard work. Several members of the task force presented the key findings and then participated on a panel to address additional questions from the audience.
The following projects were discussed at the conference:
- Returned Goods Industry Profile - Due to be published Summer 2007.
Purpose: Research and publish industry aggregated profiles of benchmarks and published manufacturer policies for returned goods in all market segments
- Returns Logistics Practices- Due to be published October 2007
Purpose: Identify current industry practices in returned goods logistics and document trends over time to encourage industry adoption of practices that reduce costs and improve operational efficiencies
- Recalls & Withdrawals Guidelines - Guidelines published.
See the following article for more details.
CLS MedTurn expresses our appreciation for the efforts that both the HDMA and the returns task force have put into these projects. The information that has resulted from these projects will be very beneficial to the industry.
As the other reports are published, CLS MedTurn will continue to communicate key highlights. If you have additional questions, please contact us at cls.solutions@inmar.com.
HDMA Publishes New Product Recall and Withdrawal Guidelines
At the recent HDMA conference, the task force on recalls introduced the new Product Recall and Withdrawal Guidelines. The guidelines are extremely comprehensive and cover the areas of return authorization, shipping returns, receiving returns, product and data process and final disposition of product.
The HDMA describes the publication as “…voluntary guidelines that provide insights into current industry recall and withdrawal practices, as well as strategies for manufacturers and distributors of healthcare products to effectively communicate product recall or withdrawal information to trading partners. These guidelines can be used when the recall or withdrawal is undertaken by the manufacturer, requested by the FDA or initiated to replace existing merchandise with an improved product or new package design.”
During the presentation at the HDMA conference, there was discussion between trading partners regarding the impact that the return authorization process has in delaying both the recall return and credit. All agreed that the “approval gap” is an improvement opportunity area for streamlining the process. The challenge is balancing between the needs of finance and operations.
For more information on the new guidelines, go to www.healthcaredistribution.org.

CLS MedTurn Offers Full Service Recall Services
Both the international and domestic divisions of CLS MedTurn offer Recall Services to manage both voluntary and involuntary events. In addition, our parent company also processes a tremendous amount of consumer product recalls, including OTC.
Our full service offering covers the pre-event to the post event requirements as illustrated below.
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In 2006, 40+ recall events with over five million units processed |
For more information on our recall services, please contact cls.solutions@inmar.com.

Center for Business Intelligence (CBI)
Product Recall Summit
September 17-18, 2007 Washington , DC
CLS & CLS MedTurn will be attending and exhibiting at this conference. For more information, visit https://www.cbinet.com/show_conference.cfm?confCode=HB763.

CLS MedTurn Attending NACDS Pharmacy & Technology Conference
CLS MedTurn will be attending and exhibiting at the upcoming NACDS Pharmacy & Technology Conference. The meeting will be held on August 11-15, 2007 in Boston, MA. If you are planning to attend, please take time to stop by our booth located in space #641.
If you would like to meet with a CLS MedTurn representative, please contact one of the following CLS MedTurn representatives that will be at the Conference:
Jennifer Mauldin, EVP jennifer.mauldin@inmar.com
Mike Umbach, VP, Product Development mike.umbach@inmar.com
Christina Robinson, Business Development Manager christina.robinson@inmar.com
Sharon Joyner-Payne, VP Marketing sharon.joyner-payne@inmar.com
Sue Willard, Business Development Manager swillard@medturn.com
Robert Reid, Business Development Manager robert.reid@inmar.com
Cheryl Scoggins, Business Development Manager cheryl.scoggins@inmar.com
For more information on the conference, visit
www.nacds.org

CLS MedTurn to Introduce New System Enhancements at the NACDS Pharmacy & Technology
It’s Coming Soon! A Best of Breed Pharmacy Returns Solution that will change the way you manage your returns.
Want to learn more about this dynamic web based tool that not only provides information to improve credit yield, but also supplies the only returns benchmarking analysis in the industry?
Then plan to meet with us at the NACDS Pharmacy & Technology Conference on August 11-14 in Boston, MA for a demo of how this exciting tool will give you a new and different insight into your returns program…unlike anything you have ever had before.
To set up an appointment for your customized demo, please email us at cls.solutions@inmar.com. We can’t wait to share the details with you!

Cold Chain is Increasing in Importance
That was the message at the HDMA Distribution and Management Conference in Boston, MA on June 10-12. Part of the reason for the growing importance is that in 2004-2005, the biopharmaceutical market grew 17.1%, much faster than the traditional pharmaceutical market, which grew at ~7%. 1This growth has prompted a regulatory response that includes such items as:
- Accountability for the cold chain resides with the manufacturer, but the responsibility is shared across the supply chain
- Increased oversight, management, and control of environmental conditions across the entire supply chain
- Increased importance of temperature control and monitoring
- Heightened priority of patient safety – with focus on Product Quality 2
Regulatory Inspectors are looking for compliance in areas such as temperature monitoring in warehouse, validation of freezer and refrigerators, product storage conditions, and temperature control during transit.
The document U.S. Pharmacopeia (USP) General Chapter <1079> “Good Storage and Shipping Practices”, provides more details of the technical requirements for Cold Chain.
To address this growing concern, the HDMA Logistics Operating Committee has plans to create a guidance document draft by the 2007 Annual Leadership Forum on October 24-27. The intent of the project is to create guidelines for the distributor industry on the storage, handling and distribution of drug products that are considered refrigerated cold chain. Once the final document is published, the committee plans to evaluate expansion into other temperature controlled areas.
“Given the growth in the pharmaceutical industry, especially in biopharmaceuticals, it is important for the industry to review how such products are handled throughout the entire supply chain to ensure patient safety and product quality, says Rodney Bias, VP Regulatory. With the expanded global pharmaceutical market and the recent recalls in other industries linked to other countries, many people are beginning to question the quality of products imported. In order to ensure the integrity of pharmaceutical products, it is imperative that consumers have confidence in the distribution system, including the transportation segment.”
1-Source: Increasing Importance of Cold Chain, Henry Ames, Sensitech ; Reference: IMS Health Reports, March 2006
2- Source: Increasing Importance of Cold Chain, Henry Ames, Sensitech ; Reference: Rafik H. Bishara PH.D, “Cold Chain Management – Essential Component of the Global Pharmaceutical Supply Chain”, American Pharmaceutical Review, January/February 2006

CLS MedTurn International Expands for Growth
New space, New technology and New associates…..All part of CLS MedTurn International’s commitment to servicing our existing client base and investing for future growth.
Under the leadership of Greg Gauthier, Managing Director for CLS MedTurn International, the CLS MedTurn International division located in Toronto, Canada has been very busy over the past several months implementing many positive changes. Summarized below are just a few of the recent events.
New Space
May 1, 2007, marked the opening of CLS MedTurn International’s newest processing facility in Toronto, Canada - an investment in our infrastructure for future growth and new client programs. The facility, adjacent to the current center, provides an additional 19,400 square feet. This brings the total space to 37,000 feet.
To meet an implementation commitment for a new client, the expansion of the facility was accomplished in a record 45 days - an extraordinary task undertaken to quickly implement new services and to minimize any impact to existing business.
Greg Gauthier, Managing Director for CLS MedTurn International, acknowledged that an implementation that happened this quickly and smoothly is due to the CLS MedTurn team’s total commitment to client satisfaction. “This has been a full team effort, stated Greg. We have the right people in the organization that we can count on to make things happen.”
New Associates
One of the “right people” who will support CLS MedTurn International’s expansion plans is Eric Challenger. On June 11th, Eric joined the team as Operations Manager. Eric brings to MedTurn International a strong history of professional logistics experience and project management skills from his 23 year with IBM Canada. His positions in Project Management include America’s Cost Manager, Network Optimization Manager, Procurement Professional, Distribution Team Lead, Solution Delivery Representative, Senior Business Specialist and Manufacturing. In these roles he was instrumental in re-engineering, creating score cards, KPI’s and negotiating several large contracts. Coupled with customer and supplier relationship management, Eric is an excellent addition to the CLS MedTurn International Team.
New Technology
As CLS MedTurn International expands processing space and staff to meet current demands and future growth plans, it has also been busy laying the foundation with new technology for enhanced communication and service delivery. Under the leadership of Muhammad Khan, IT Systems Manager several upgrades have already been implemented. These upgrades are in keeping with CLS MedTurn International’s goal of providing clients with exceptional service and robust system support.
CLS MedTurn plans to continue investing in resources to deliver state-of-the-art solutions to our clients. If you have additional questions about CLS MedTurn International services, please contact us at cls.solutions@inmar.com.

Just Announced- HDMA “Looking Forward in Reverse Logistics” Seminar
A one-day HDMA Seminar designed as a “deeper dive” into Rx and OTC reverse logistics.
- October 10th 2007 (Reception)
- October 11th 2007 (Program)
- Newark Liberty International Airport Marriott
- Newark , New Jersey
Register online at www.hdmanet.org

CLS Selected as APQC Reverse Logistics Best Practice Partner
CLS has been selected as one of the nation’s best-practice partners in the American Productivity & Quality Center (APQC) study on Reverse Logistics: “Backwards” Practices that Matter. CLS shares this special recognition with other best-practice partners: McKesson and Raytheon.
Founded in 1977, APQC is a member-based nonprofit that provides “all industries” benchmarking and best-practice research for approximately 500 organizations worldwide. To be a Best-Practice Partner in an APQC Consortium Benchmarking Study, an organization must exhibit exceptional performance or employ innovative or uncommon solutions to common problems.
The study was co-sponsored by WERC and IBM with an objective to focus on major players in the reverse field and identify their best practices and key metrics. The results of this in-depth study of best practices in reverse logistics were recently presented at the WERC Annual Conference. WERC is the Warehouse Education and Resource Council. The presenters were Cheryl A. Harrity, Practice Leader, Supply Chain APQC and James R. Stock, PhD, Professor of Marketing & Logistics, University of South Florida .
As a best practice partner, CLS prepared and presented an overview of our processes associated with managing returns and returns policies, including the impact of product disposition- salvage, donation, repack, refurbish and package condition analysis and physical product handling, etc. It further outlined successes in collaborative planning for implementing a strategic returns programs, and/or avoidance of unnecessary returns. A final case study was prepared by APQC from the materials presented.
If you are interested in a copy of the case study, please contact cls.solutions@inmar.com. 
CLS MedTurn Featured in Industrial Engineering
CLS MedTurn was featured in an article on pharmaceutical returns in the May issue of Industrial Engineering. Click here to view the article.

Need Help With a Reverse Logistics Challenge?
If so, contact us and let us work with you to develop a solution that best fits your needs. Contact us at cls.solutions@inmar.com.
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