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Q1 2015 IATA - CEIV Pharma 1 HOW TO BECOME CEIV PHARMA CERTIFIED Q1 2015 By: Mazen Al-Homsi Manager Cargo, Gulf Area & Yemen IATA Abu Dhabi Office

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Page 1: HOW TO BECOME CEIV PHARMA CERTIFIED - Cold …€¦ · HOW TO BECOME CEIV PHARMA CERTIFIED ... 2014-2018 In US$ billion This market for temperature management ... packaging—the

Q1 2015

IATA - CEIV Pharma

1

HOW TO BECOME CEIV PHARMA CERTIFIEDQ1 2015 By: Mazen Al-Homsi

Manager Cargo, Gulf Area & YemenIATA Abu Dhabi Office

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2

Content Page

1.0 Introduction: Pharma logistical market growing but air cargo losing market share to other modes of transportation

3

2.0 Objective: CEIV Pharma is a concerted effort to improve the level of competency, operational and technical preparedness

15

3.0 Approach and methodology: Validate knowledge, facilities, as well as processes, train stakeholders and recognize compliance

23

4.0 CEIV Pharma governance: A partnership model and approach tailored to the needs of the different stakeholders in the value chain with qualified experts

44

5.0 Benefits: A win-win opportunity for all stakeholders 52

6.0 Why IATA: We are a standard setting organization 54

7.0 CEIV Pharma: Update of activities 59

IATA - CEIV Pharma Q1 2015

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3

Content

1.0 Introduction: Pharma logistical market growing but air cargo losing market share to other modes of transportation

2.0 Objective: CEIV Pharma is a concerted effort to improve the level of competency, operational and technical preparedness

3.0 Approach and methodology: Validate knowledge, facilities, as well as processes, train stakeholders and recognize compliance

4.0 CEIV Pharma governance: A partnership model and approach tailored to the needs of the different stakeholders in the value chain with qualified experts

5.0 Benefits: A win-win opportunity for all stakeholders

6.0 Why IATA: We are a standard setting organization

7.0 CEIV Pharma: Update of activities

IATA - CEIV Pharma Q1 2015

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Q1 2015IATA - CEIV Pharma 4

Industry Cooperation in Air CargoThe Time and Temperature sensitive goods play an important role in air cargo

Security

Safety (e.g.

Dangerous

Goods)

E-Cargo

Special Cargo (ULD, Mail)

Live Animals

Temperature Sensitive Products

� With the healthcare market becoming a key engine of the global economy, pharmaceutical and biomedical industries are facing new challenges in adapting to globalization.

� Speed to market is therefore essential and the healthcare industry is increasingly dependent upon air cargo.

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Q1 2015IATA - CEIV Pharma 5

Industry CooperationWhy is air cargo so important?

� Immunization prevents 2.5 million deaths every year.

� Air cargo is critical in flying vaccines to their destination in time to be effective.

Temperature Sensitive Products

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Q1 2015IATA - CEIV Pharma 6

Background: Pharmaceutical Product LogisticsGlobal pharma industry will spend $8.36 billion on cold-chain logistics in 2014

8.36

10.28

2013 2017

Temperature management market, 2014-2018In US$ billion

� This market for temperature management services is worth US$8.36 billion currently and is projected to rise to US$10.28 billion by 2018.

� Cold-chain spending for 2014 is divided between an estimated $5.58 billion for logistics services (shipping and storage) and $2.78 billion for tertiary packaging—the insulated and refrigerated containers in which products are transported.

� Nearly 100% of vaccines and 68% of biotech products need to be stored and transported between 2-8°C.

� 48% of diagnostics and 11% of products from large pharmaceutical companies have to be handled similarly.

Source: Pharmaceutical Commerce

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Q1 2015IATA - CEIV Pharma 7

Background: Pharmaceutical Product LogisticsTemperature control share of pharma

Temperature management market, 2013-2017In percentage of total business � A big share of pharmaceutical shipments in

the 15-25°C segment are shipped as general cargo.

� A significant part of pharmaceutical shipments requires temperature controlled transport.Of which 75% of shipments require passive cooling solutions, and 20% require active temperature control.

� Active temperature control solutions demand a yield premium due to complex requirements.

� Passive solutions drive volume and are less costly to implement.Source: Seabury, BRU Cargo

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Q1 2015IATA - CEIV Pharma 8

Background: Pharmaceutical Product LogisticsThe pharmaceutical industry has relied heavily on the airline industry for its speed and efficiency but air cargo’s share of global pharmaceutical products transport has dropped

Source: Pharmaceutical Commerce

HOWEVER

17

11

2000 2013

Air cargo’s share of global pharmaceutical products transport (in %)

Over the past 10 years, air carriers, handlers and freight forwarders have responded with branded products and services to grab a share of this lucrative and niche market.

Pharma air cargo growth; 2008-2018in %

6

12

2008-2013 2013-2018

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Q1 2015IATA - CEIV Pharma 9

Critical Issues Raised by the ShippersIncreasing shift in pharmaceuticals transported by sea due to air cargo challenges

� More than 50% of all temperature excursions occur while the package is in the hands of airlines/airports

� Temperature deviation denature the product, render it worthless and be harmful to the health of the patient

� Products can be lost, scrapped, returned leading to significant costs

� Annual product losses between US$2.5-12.5 billion due to various reasons including temperature excursions during transport and shipping.

Due to a lack of compliance, standardization, accountability and

transparency across the air transport supply chain

The use of air-mode transportation is re-considered unless industry partners

ensure quality services

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Q1 2015IATA - CEIV Pharma 10

Air Cargo Industry Concerns and ChallengesTemperature Excursions – Where do they occur?

Low Risk Medium Risk High RiskSource: Expeditors

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Q1 2015IATA - CEIV Pharma 11

Air Cargo Industry Concerns and ChallengesNo global certification for handling of pharmaceutical products has led to increased regulations and audits

Regulations for transporting pharmaceutical products vary around the world

� Increasing number of regulations around the world to implement and comply with

� Increasing number of audits

� Airlines, GHAs and forwarders subjected to multiple audits for handling, transportation and distribution (e.g. WHO Appendix 5, EU 92/25/EEC, IATA PCR Chapter 17 & TCR)

� No global certification for handling of pharmaceutical products

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Q1 2015IATA - CEIV Pharma 12

Air Cargo Supply Chain ChallengesFrom origin to destination pharmaceutical products can be exposed to different climates

+35°C -10°C

+35°C -10°C

Manufacturers & Shippers

Solutions Providers

AirportGround Handlers

Origin-DestinationAir Carrier

AirportGround Handlers

Distributors & Consignees

Origin Forwarders & Trucking Co’s.

Destination Forwarders & Trucking Co’s.

Road Transport

In-Flight Conditions

Unloading

Airside Transport

HandlingRoad TransportHandling

Loading

Packaging

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Q1 2015IATA - CEIV Pharma 13

Critical Issues Raised by the ShippersShippers have difficulties identifying industry stakeholders that meet standards and regulations at origin and destination

14 milestones from start to end.

HOW CAN YOU MANAGE THIS ?

Pick-up

Ground handler BRU

Forwarder X BRU

Shipper

In Out

In Out

Airline BRU – SIN - SYD

Forwarder YSYD

Consignee

InIn Out

SYD in

Ground handler SYD

SIN in outBRU out In Out

Example of Flow from BRU to SYD

Source: BRUCargo

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Q1 2015IATA - CEIV Pharma 14

Shippers Expectations in Cold ChainShippers need service providers that maintain product integrity and efficacy during transportation

� Compliance, standardization, accountability and transparency across the supply chain

� Properly trained stakeholders on regulations and standards

� Adequately equipped facilities throughout the supply chain

� Global certification for handling of pharmaceutical cargo

� Common audit format to minimize the disruptions and increase effectiveness

� Ability to easily search and identify stakeholders that meet requirements

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15

Content

1.0 Introduction: Pharma logistical market growing but air cargo losing market share to other modes of transportation

2.0 Objective: CEIV Pharma is a concerted effort to improve the level of competency, operational and technical preparedness

3.0 Approach and methodology: Validate knowledge, facilities, as well as processes, train stakeholders and recognize compliance

4.0 CEIV Pharma governance: A partnership model and approach tailored to the needs of the different stakeholders in the value chain with qualified experts

5.0 Benefits: A win-win opportunity for all stakeholders

6.0 Why IATA: We are a standard setting organization

7.0 CEIV Pharma: Update of activities

IATA - CEIV Pharma Q1 2015

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Q1 2015IATA - CEIV Pharma 16

Center of Excellence for Independent ValidatorsImprove together to protect and grow our industry

The solution� Develop standards with regulators

� Train industry stakeholders on standards and regulation

� Assess operations against standard check list

� Train independent validators on standards and regulations

� Certify and then register best players on a publicly website

� Get States recognition to ensure audits are valid for all

The Need� … for more safety, security and

efficiency

� … to raise the bar to (re)gain confidence

� … to improve compliance to standards/regulations

� … for independent assessments vs. self-assessments

� … to identify and recognize the best players

� … to harmonize and reduce the number of audits

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Q1 2015IATA - CEIV Pharma 17

Center of Excellence for Independent ValidatorsApproach of the CEIV

Regulations and Standards

EXISTING

Standards and Regulations

NEW

Training Training (Recurrent Training)

Validation (Audit) &

Award

Re-Validation (Re-Audit)*

Pre-Validation

Assessment

1 22 33 44 55

� Advocate for globally accepted standards and regulations

� Train instructors on behalf of the airlines, cargo and ground handlers

� Manage the pool of qualified instructors

� Train the Independent Validators to a common standard and validation methodology

� Train operational staff

� Run on-site pre-audits to prepare for validation

� Conduct the validations

� Manage the database of Independent validators

� Manage the database of certified companies

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Q1 2015IATA - CEIV Pharma 18

CEIV ACC3 – ExampleAll affected air cargo and mail carriers operating into EU and EEA from third countries (ACC3) must obtain an independent validation of their security program

� IATA has been encouraged by its member airlines and European Regulators to help prepare air carriers for the ACC3 EU Security Validation process.

� Center of Excellence for Independent Validators (CEIV) to train, advice and support industry stakeholders.

� CEIV offers a comprehensive solution in an effort to assist both the aviation industry and its regulators.

OBJECTIVES OF CEIV PRE-ASSESSMENT APPROACH

IATA RESPONSESITUATION

� Provide Pre-validation assessment guidelines.

� Provide standard validation methodology and self-assessment tools.

� Scope of countries and stations that need validation.

� Training courses to prepare validators and airlines.

� EU ACC3 Readiness Workshop.

� Aviation Security Independent Validators Training.

� July 2014 deadline for compliance with new EU regulation is fast approaching.

� Airlines and other entities (non-EU governments) have requested for assistance.

� Some airlines are not prepared.

� Carriers risk the loss of cargo revenues.

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Q1 201519

CEIV Pharma targetsWho does CEIV Pharma target?

IATA - CEIV Pharma

Trucking Companies

Freight Forwarders

Distributors

Ground Handlers

Airlines Airports

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Q1 2015IATA - CEIV Pharma 20

Proposed Solution for PharmaThe CEIV Pharma aims to ensure a higher and more consistent level of pharmaceutical handling through validations with registered independent validators and instructors

� Manage deployment of validators

� Audit documentation, processes and operations consistently

� Manage quality of validations

� Follow-up

� Award and recognize operators and locations as "CEIV Pharma certified"

� Advocate for globally accepted standards and regulations

� Establish validation checklist with industry

� Establish industry steering group

� Develop training contents

� Develop assessment criteria for instructors and validators exam

� Train instructors, validators and industry stakeholders

� Manage database of certified instructors and validators

� Develop pre-validation assessment toolkit

� Develop a standard validation methodology and assessment tool

� Manage database of validated locations and operators

� Manage re-validation schedule

EXISTING

Standards and Regulations

NEW

Training Training (Recurrent Training)

Validation (Audit) + Award

Re-Certification(Re-Audit)*

Pre-Validation

Assessment

1 22 33 44 55

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Q1 2015IATA - CEIV Pharma 21

Objectives of CEIV Pharma ServicesGlobal certification for handling of pharmaceutical products

IATA seeks to improve the handling of pharmaceutical cargo in line with existing regulations and standards:

� Operations will be audited, and certified by IATA against regulations and standards.

� Locations that complete and pass the validation will be awarded and recognized as “CEIV Pharma Certified”.

Such a qualification performed by a neutral organization is required by the shippers (pharmaceutical companies) that require high standards in quality of their products.

Organizations that undergo such a validation would simplify the audits conducted by various pharmaceutical companies and would be in a position to market the receipt of the award.

Pharmaceutical companies have auditors who audit the industry to ensure that relevant regulations are followed and services rendered according to SLAs

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Q1 2015IATA - CEIV Pharma 22

Objectives of CEIV Pharma ServicesTo ensure the integrity of the product is maintained throughout the supply chain

� Prevent sanitary issues caused by temperature excursions during transportation of pharmaceuticals.

� Ensure product integrity maintained during transportation until product reaches patient.

� Improve handling of pharmaceuticals and compliant with existing regulations.

� Create a globally consistent and recognized certification that industry can rely on.

� Address industry concerns and provide services to elevate level of competency.

OBJECTIVES

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23

Content

1.0 Introduction: Pharma logistical market growing but air cargo losing market share to other modes of transportation

2.0 Objective: CEIV Pharma is a concerted effort to improve the level of competency, operational and technical preparedness

3.0 Approach and methodology: Validate knowledge, facilities, as well as processes, train stakeholders and recognize compliance

4.0 CEIV Pharma governance: A partnership model and approach tailored to the needs of the different stakeholders in the value chain with qualified experts

5.0 Benefits: A win-win opportunity for all stakeholders

6.0 Why IATA: We are a standard setting organization

7.0 CEIV Pharma: Update of activities

IATA - CEIV Pharma Q1 2015

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Q1 2015IATA - CEIV Pharma 24

Approach of CEIV Pharma ServicesThe newly established CEIV Pharma offers a comprehensive solution in an effort to assist both the aviation industry and its regulators

� Pre-validation assessment guidelines.

� Standard validation methodology and self-assessment tools: to help airlines and other entities test their state of readiness.

� Training courses to prepare ground handlers, cargo operators and airlines.

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Q1 2015IATA - CEIV Pharma 25

Project Approach and MethodologyIATA will certify companies in several steps

Preparation1

Assessment 2

Validation3

� Assemble team

� Prepare project logistics

� Send data and information request

� Send interview request sheet for first visit

� 2 weeks before assessment

� On-site assessment by Independent validator

� Assessment versus minimum IATA Temperature Controlled Audit Checklist

� Comparison against best practice

� Establish findings and offer recommendations for change

� Develop implementation plan and secure resources.

� Drafting of report

� On-site visit by an Independent Validator to review progress made against recommendations during the assessment phase

� Drafting of report

� Min 6-8 weeks after the assessment

5

Certification

Training required for certificationAdditional Training

4

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Q1 2015IATA - CEIV Pharma 26

Focus of CEIV PharmaFocus is on assessment and training

On Pharma handling requirements through in-house training at the clients location

Raise awareness

As an integral element within the validation processAssess client

Of the facilities, staff, equipment, processes, practices, and systems using the IATA CEIV Pharma checklists to ensure compliance with documentation and requirements

Conduct on-site observation

For the subsequent validation exercisePrepare client

To assist client in achieving "CEIV Pharma Certified" status and maintaining it following the validation

Capture and convey ‘lessons learned’ and suggest ‘best practice

Highlighting the findings and recommendations that should implement prior to their independent validation

Analyze observations and produce report

Helping creating the independent validation action plan and project plan

Collaborative work

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Issues tackled

� Content of manuals and guidelines

� Procedures for Audits

� Procedures for describing packaging systems

� Acceptance checklist quality and operating agreements

� Packaging requirements

� Documentation & labeling

� Acceptance & control

� Facilities and equipment

� Staff training requirements

� Training adequacy and currency

Q1 2015IATA - CEIV Pharma 27

AssessmentReview, compare against best practice, establish findings, offer recommendations for change, identify and mitigate risks, develop implementation plan

Assessment

Criteria applied

� Quality management

� Personnel

� Training

� Documentation

� Infrastructure + equipment

� Operations

� Complaints, returns and counterfeit

� Supplier management

� Self-inspections

� Transportation

� Specific provisions for brokers

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Q1 2015IATA - CEIV Pharma 28

AssessmentFocus is on global coverage and universality

IATA GUIDELINES GOOD DISTRIBUTION PRACTICES

E.g. Singapore GDP & GDPMDS or FAGG in Belgium

LOCAL + REGIONAL GUIDELINES

CEIV Pharma:

� encompasses various regulations and standards e.g. EU GDP.

� covers GDP requirements.

� aims at covering international standards and country-specific requirements.

� aims at reducing the number of audits or simplifying them.

Assessment

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TCR

GDP

Q1 2015IATA - CEIV Pharma 29

AssessmentCEIV Pharma is looking at a global and consistent GDP+ certification as the “GDP” is very EU centric and not specific to air transport

� CEIV Pharma aims at global and consistent assessments specific to air transport encompassing international standards as well as national regulations.

� Some areas, such as ground and tarmac transportation, aircraft (un)loading are not covered by GDPs.

The goal being to have a network of certified trade-lanes assessed consistently.

Assessment

Local regulations

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Q1 2015IATA - CEIV Pharma 30

AssessmentSnapshot of the IATA Standard Check List

Table of Content Example of Questions

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Review of progress on action plan

Q1 2015IATA - CEIV Pharma 31

Validation Validate to ensure gaps and recommendations have been implemented

Validation

On-site visit by Independent Validators to review progress made against recommendations during the assessment phase.

Action Packages

Actions

Implementations

• Schedule

• Personnel• Quantitative• Qualitative

At the end of validation decision on whether all requirements have been

fulfilled.

x

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Q1 2015IATA - CEIV Pharma 32

Assessment and ValidationDeliverables

Step 1: Assessment Step 2: Validation

� Pharma handling criteria checklist.

� Report covering the findings and recommendations based on the assessment.

� Implementation plan.

� Report and implementation plan will set out assumptions, findings, results, conclusions and recommendations and will specifically:

� Identify critical elements that are not compliant with national and international Regulations and the defined CEIV PharmaHandling criteria (e.g. TCR);

� Outline the impact of non-compliance; and� Identify elements that are inefficient.

� Presentation to Senior Management.

� Progress report to review the progress made against recommendations during the assessment phase.

� Implementation plan update.

� Recommendation to award certification as "CEIV Pharma certified" based on satisfactory compliance of CEIV criteria.

� Presentation of the validation findings to Senior Management.

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Q1 2015IATA - CEIV Pharma 33

TrainingAnnex 5: WHO Good Distribution Practices for pharmaceutical products

Section 6. Organization and Management

� Section 6.1 “There should be an adequate organizational structure for each entity defined with the aid of an organizational chart. The responsibility, authority and interrelationships of all personnel should be clearly indicated.”

� Section 6.2 “Duties and responsibilities should be clearly defined and understood by the individual concerned and recorded as written job description. Certain activities may require special attention, such as supervision of performance activities, in accordance with local legislation. At every level of the supply chain, employees should be fully informed and trained in their duties and responsibilities.”

Section 7. Personnel

� Section 7.1 “All personnel involved in distribution activities should be trained and qualified in the requirements of GDP, as applicable.”

� Section 7.2 “Key personnel involved in the distribution of pharmaceutical products should have the ability and experience appropriate to their responsibility for ensuring that pharmaceutical products are distributed property.”

� Section 7.3 “There should be an adequate number of competent personnel involved in all stages of the distribution of pharmaceutical products in order to ensure that quality of the product is maintained.”

Training required forcertification

Additional Training

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Q1 2015IATA - CEIV Pharma 34

Training required for certificationSuccessful completion of the 2 mandatory courses for all participants is necessary for obtaining certification

Successful completion of:

� 2 key personal on the “audit” training (5 days);

� 2 key personal distance learning “handling” training; and

� 2 competent personal on the “handling” training (3 days).

Temperature Controlled

Cargo Operations

Risk, Audit and Quality of Temperature Controlled

Cargo

Training required forcertification

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Q1 2015IATA - CEIV Pharma 35

Training required for certificationTemperature Controlled Cargo Operations (Classroom, 3 days)

In this course, you will learn the healthcare product distribution in air cargo and the procedures required for handling time and temperature-sensitive shipments

Key topics:

� Overview of the global pharmaceutical industry

� Temperature Management in the supply chain

� Processes & Procedures, acceptance & handling

� Quality Management (overview)

� Packaging Technology

� Standard Operating Procedures (SOP) & Service Level Agreements (SLA)

Temperature Sensitive Cargo Handling

2 competent personnel involved in handling pharmaceutical products activities per station should be trained competent and pass the examination of the “IATA Temperature Controlled Cargo

Handling course” - before the certification.

Training required forcertification

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Q1 2015IATA - CEIV Pharma 36

Training required for certificationRisk, Audit, and Quality of Temperature Controlled Cargo (Classroom, 5 days)

Auditing is a powerful management tool in establishing how effectively a company controls the quality of its products and ensures compliance. This hands-on, practical course deals primarily with auditing tools and techniques which are applicable to the pharmaceutical industry.

Key topics: � Quality Management System (QMS)

� Effectiveness of risk management control

� Detection of counterfeits in the supply chain

� IATA Time and Temperature Sensitive Audit Checklist

� Self assessment and validation

� Trigger corrective and preventive measures

Audit and Quality of Temperature Controlled Cargo

2 key personnel per station should be trained and pass the examination of the “IATA Audit, Quality and Risk course” - before the certification.

� Quality Risk Management (QRM) procedures

� Risk assessment, control and management methodology

� Effects of temperature deviation on pharmaceuticals products

Training required forcertification

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Q1 2015IATA - CEIV Pharma 37

Training - Before certification

Training required forcertification

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Q1 2015IATA - CEIV Pharma 38

Additional TrainingIntroduction to Time and Temperature Pharmaceutical Products

4-6 hours training. Key topics:

� Pharmaceutical products

� Processes & procedures related to job functions

� Identification and labelling

� Effect of temperature on pharmaceutical products

� Avoidance of counterfeits

� Passive and active packing

� Product security

All personnel involved in handling pharmaceutical products activities per station should be trained on “IATA Introduction to Time and Temperature Pharmaceutical Products course“ (or equivalent))

within period of 12 months after the “Certification”

Additional Training

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Q1 2015IATA - CEIV Pharma 39

Path to certificationIn a nutshell

Certification!!!

Assessment

Validation

Step 1

Step 3

Step 2Training

Step 4Training (remaining staff)

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Q1 2015IATA - CEIV Pharma

Certification Timeline (general approach)

ValidationPreparation Assessment

2-4 days on-site

2-4 days on-site

Training required for certificationAdditional Training

2 weeks

12 months after

certification

2-8 weeks

2-8 weeks

Timeframe depends on results of

assessment.

� Ideally completed before assessment.

� Needs to be completed before validation.

40

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Certification

Q1 2015IATA - CEIV Pharma

Award Certificate "CEIV Pharma certified"Example

41

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Q1 2015IATA - CEIV Pharma 42

RecertificationRecertification will take place every two years – includes assessment and one refresher training plus a validation if necessary

2 years

����

X

"CEIV Pharma Certified"

Re-assessment

Validation

One RefresherTraining

Close gaps1 - 2 days

1 - 2 days

� e.g. update on new regulations, development on new standards, development of new containers, etc.

����

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43

Content

1.0 Introduction: Pharma logistical market growing but air cargo losing market share to other modes of transportation

2.0 Objective: CEIV Pharma is a concerted effort to improve the level of competency, operational and technical preparedness

3.0 Approach and methodology: Validate knowledge, facilities, as well as processes, train stakeholders and recognize compliance

4.0 CEIV Pharma governance: A partnership model and approach tailored to the needs of the different stakeholders in the value chain with qualified experts

5.0 Benefits: A win-win opportunity for all stakeholders

6.0 Why IATA: We are a standard setting organization

7.0 CEIV Pharma: Update of activities

IATA - CEIV Pharma Q1 2015

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Q1 2015IATA - CEIV Pharma 44

CEIV Pharma Certification ApproachThere are different approaches to obtain certification

� “Individual” approach: One company decides to get "CEIV Pharma Certified"

� “Community” approach: A group of companies at an airport decide to get "CEIV Pharma Certified" to form a “pharma gateway”

� “Coalition” approach: A group of companies decide to get "CEIV Pharma Certified" at several airports to form several “pharma gateways”

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Q1 2015IATA - CEIV Pharma 45

Advocacy governanceStrong emphasis on engaging stakeholder and advocate for endorsement and recognition

� Time and Temperature Task Group –CEIV Pharma Steering Group

Industry

� WHO� FIACA� TIACA

Global

� Approve standards� Approve trainings

� Endorse + recognize standards

� Endorse + recognizetrainingsLocal

� Local stakeholder associations (Shippers, Freight Forwarders, Ground Handlers, Airlines)

� Local BARs

Regional� US GDP � EU

� Global Shippers Forum (GSF) � Cool Chain Association� ICQP

WHO? TASK

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Q1 2015IATA - CEIV Pharma 46

Project structure – Who is involved and who can participate?Everyone in the value chain can participate in the certification process

Pharma shippers

Forwarders with pharma focus

Handlers

Truckers

Airlines

TTTF

Regulators

Facilitators

Example (BRUCargo)

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Q1 2015IATA - CEIV Pharma 47

Project structureThe project is conducted in close cooperation with relevant stakeholders

Example (BRUCargo)

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Q1 2015IATA - CEIV Pharma 48

CEIV Pharma – Who’s is auditing?Qualification and management of independent validators

Qualification Management

� IATA conducts preliminary interview with candidate to pre-qualify candidate for training

� IVs must undergo IATA training

� IVs need to complete trainings within six months

� IV’s can also become instructors but need to undergo the IATA Train-the-trainer course (optional)

� IVs are registered in IATA database and available to complete the assessments and validations

� Coordination of IVs is managed by the IATA team for assessments and validations

� IV cannot have been in a commercial relationship with entity to be validated 12 months prior to the engagement

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Q1 2015IATA - CEIV Pharma 49

Independent Validator Qualification and Recruitment Process

Pre-qualification

• Pharma and/or Auditing background;

• Cargo experience; or

• Ground handling experience.

Interview

• Motivation;• Social fit;• Experience;• Expectations.

Pharma Training

• TCC Operations;

• Risk, Audit + Quality Management.

On-the-job assessment

• 1 on-site assessment as a trainee.

Independent Validator

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Q1 2015IATA - CEIV Pharma 50

CEIV Pharma – Independent ValidatorsSelection

Bert Elsen Experience with successfully managing all aspects of a large international pharma distribution center. New EU GDP guidelines implementation in 2013.

Andrea Gruber With 15 years of experience in the transport industry first in road then in the air freight industry, Andrea is responsible for the regulations related to the transport of healthcare products.

Celine Crahay With 10 years of industry experience, Celine is a Black Belt Six Sigma with extensive experience in quality management and setting up new Pharmaceutical and Healthcare Centers.

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Q1 2015IATA - CEIV Pharma 51

Visibility for CEIV Pharma validated entitiesValidated entities will become visible on IATA’s website

Search Details on a validationResults

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52

Content

1.0 Introduction: Pharma logistical market growing but air cargo losing market share to other modes of transportation

2.0 Objective: CEIV Pharma is a concerted effort to improve the level of competency, operational and technical preparedness

3.0 Approach and methodology: Validate knowledge, facilities, as well as processes, train stakeholders and recognize compliance

4.0 CEIV Pharma governance: A partnership model and approach tailored to the needs of the different stakeholders in the value chain with qualified experts

5.0 Benefits: A win-win opportunity for all stakeholders

6.0 Why IATA: We are a standard setting organization

7.0 CEIV Pharma: Update of activities

IATA - CEIV Pharma Q1 2015

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Q1 2015IATA - CEIV Pharma 53

CEIV Pharma – Key BenefitsThe CEIV Pharma is a win-win situation for the industry

� Conduct simpler audits of operators� Obtain guarantee that products would be

handled in line with regulations� Experience lower rate of damage and loss

due to temperature excursions� Be able to prepare their products ready for

acceptance

Shippers Airlines, GHAs, Forwarders, Airports

Regulators IATA

� Protect and grow revenues in fastest growing segment of air cargo

� Obtain recognition for operations, facilities and staff after meeting standards

� Experience simpler audits from various organizations

� Promote their best practices to the shipper’s community

� Assured of safety of pharmaceutical products shipped by air

� Access structured and consistent training and registry of independent validators and assessed operators

� Disseminated standards in the industry� Common audit criteria and global

certification� Promote air transport and so limit the modal

shift

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54

Content

1.0 Introduction: Pharma logistical market growing but air cargo losing market share to other modes of transportation

2.0 Objective: CEIV Pharma is a concerted effort to improve the level of competency, operational and technical preparedness

3.0 Approach and methodology: Validate knowledge, facilities, as well as processes, train stakeholders and recognize compliance

4.0 CEIV Pharma governance: A partnership model and approach tailored to the needs of the different stakeholders in the value chain with qualified experts

5.0 Benefits: A win-win opportunity for all stakeholders

6.0 Why IATA: We are a standard setting organization

7.0 CEIV Pharma: Update of activities

IATA - CEIV Pharma Q1 2015

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Q1 2015IATA - CEIV Pharma 55

IATA a Standard Setting OrganizationSupply Chain Approach

IATACargo Services Conference (CSC)

Live Animal & Perishable Board (LAPB)

Time & Temperature Task Force (TTTF)

ShippersFreight

ForwardersGround

HandlersAirlines Airports

Temperature controlled packaging

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Q1 2015IATA - CEIV Pharma 56

IATA a Standard Setting OrganizationDevelopment of Standards – Temperature Sensitive Products

2007

2008 2009

2010

2011

2012

2013

2014Perishable Cargo Regulations (PCR) Industry

standard

PCR New Chapter 17 New T&T

Sensitive

Label

Mandatory

T&T Sensitive

Label

Mandatory

Standard

Checklist

Must be affixed to all shipments booked as T+T sensitive cargo

Provides requirements +

standards

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Q1 2015IATA - CEIV Pharma 57

IATA a Standard Setting OrganizationImplementation and Dissemination of Standards

Step 2: DisseminationStep 1: Implementation

Industry feedback driving improvements:

� Need for standardization in the handling of pharmaceutical products in air cargo environment

� Need to enhance partnership and communication

� Need to ensure appropriate training in the supply chain

Support AdoptionSupport Adoption

Prove ConceptProve Concept

Develop Standards

The industry usually asks IATA to address their needs to ensure compliance and quality services

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Q1 2015IATA - CEIV Pharma 58

IATA a Standard Setting OrganizationDissemination of Standards in the Industry

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59

Content

1.0 Introduction: Pharma logistical market growing but air cargo losing market share to other modes of transportation

2.0 Objective: CEIV Pharma is a concerted effort to improve the level of competency, operational and technical preparedness

3.0 Approach and methodology: Validate knowledge, facilities, as well as processes, train stakeholders and recognize compliance

4.0 CEIV Pharma governance: A partnership model and approach tailored to the needs of the different stakeholders in the value chain with qualified experts

5.0 Benefits: A win-win opportunity for all stakeholders

6.0 Why IATA: We are a standard setting organization

7.0 CEIV Pharma: Update of activities

IATA - CEIV Pharma Q1 2015

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Q1 2015IATA - CEIV Pharma 60

CEIV PharmaCertified Pharmaceutical Trade Lanes Development

Certification in Progress

Certification Completed

Locations

5

76

1

1

14

8

1

12 Certification in Discussion

1

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Q1 2015IATA - CEIV Pharma 61

CEIV PharmaEuropean Community

Certification in Progress

Certification Completed

Locations

13

7

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Q1 2015IATA - CEIV Pharma 62

CEIV PharmaAsian Community

Certification in Progress

Certification Completed

Locations

1

1

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Q1 201563

Number of entities assessedIATA will have assessed 36 entities by end of 2015 …and counting

Source: IATA

1

36

Area 3 Area 2

Entities assessed 2013 - 2015; in no. of entities assessed

Entities assessed / region in 2013 -2015; in no. of entities assessed

Area 1: The AmericasArea 2: Europe / CISArea 3: Asia / PacificArea 4: MENA / AfricaArea 5: North Asia

Total (2013-2015)

1

14

23

2013 2014 2015

1 15 37

IATA - CEIV Pharma

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Q1 201564

Number of entities assessed> 25 entities certified by the end of the year… and counting

1

18

Area 3 Area 2

Entities certified by 2015; in no. of entities certified

Entities certified / region by 2015; in no. of entities certified

Area 1: The AmericasArea 2: Europe / CISArea 3: Asia / PacificArea 4: MENA / AfricaArea 5: North Asia

Source: IATA

6

28

2014 2015

6 34

Total

Minimum no. of entities that will finalize certification

IATA - CEIV Pharma

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Q1 201565

Number of entities certified19 entities will have been certified between SEP/2014 and JUL/2015

Entities certified by June 2015; in no. of entities certified BY TYPE

Total (by June 2015)

6 19

Source: IATA

01

45

2

10

0

3

2014 2015

Airlines

Ground Handler

Freight Forwarder

Trucking+1

+1

+8

+3

IATA - CEIV Pharma

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Q1 201566

Number of entities assessedIATA will have conducted assessments at 6 airports between SEP/2014 and MAR/2015

1

16

Area 3 Area 2

Entities assessed 2013 - 2015; in no. of entities assessed

Entities assessed / region in 2014; in no. of entities assessed

Area 1: The AmericasArea 2: Europe / CISArea 3: Asia / PacificArea 4: MENA / AfricaArea 5: North Asia

Source: IATA

1

4

2

2013 2014 2015

1 5 7

Total

IATA - CEIV Pharma

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Q1 2015IATA - CEIV Pharma 67

SATS Coolport ProjectPilot project conducted between November 2013 and February 2014, trainings still on-going

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Q1 2015IATA - CEIV Pharma 68

SATS Coolport Pilot ProjectHandover ceremony in February 2014

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Q1 2015IATA - CEIV Pharma 69

SATS Recertification ProjectCeremony in November 2014

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Q1 201570

Community ApproachBRU Airport Project –started in Aug. 2014 and end date planned in Jun. 2014

� Regulators engaged (FAGG, Customs)

� Shippers engaged and

� All trainings conducted

� 11 company assessments completed in two waves (AUG/SEP/2014 and NOV/2014)

� 7 companies validated and certified

� Remaining validations in MAY-JUN/2015

� Second wave under preparation

IATA - CEIV Pharma

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Q1 201571

Individual ApproachBCUBE Project –started in Nov. 2014 and end date planned in Jun. 2014

� Shippers engaged

� Mandatory Trainings completed

� FCO, MXP and LIN assessed in November and beginning of December

� Validations start in June once construction is finished

VLE

IATA - CEIV Pharma

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Q1 201572

Individual ApproachCAL and LACHS Project –started in March and end date planned in Jun. 2015

Liege is the very center of gravity for CAL activities

� Airline and its proprietary ground handling company LACHS

� Shippers engaged

� Mandatory Trainings in April 2015

� Assessment of airline and facility in April 2015

� Validations start in June 2015

� LACHS owns a state-of-the-art facility including:� Temperature controlled warehouse� 16,000sqm of space� The largest capacity high loader (52 tons) in

Europe � High security clearance

IATA - CEIV Pharma

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Q1 201573

Individual ApproachALHA Group –started in March and end date planned in Jun. 2015

� Mandatory Trainings in March and April 2015

� Assessment of FCO facility in April 2015

� Assessment of MXP facility in May 2015

� Validations start in June 2015

IATA - CEIV Pharma

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Q1 201574

Individual ApproachCargologic –started in March and end date planned in Jun. 2015

� Mandatory Trainings in April and May

� Assessment of ZRH facility in May

IATA - CEIV Pharma

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Q1 2015IATA - CEIV Pharma 75

Advocacy GovernanceSupport from Shippers

Spain

Belgium

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Q1 2015IATA - CEIV Pharma 76

Testimonials

Holistic/community approach is the competitive advantage vs other program. The fact that the program is industry specific is a key differentiator vs GDP.

Frank van Gelder, Adelantex

The program helps reducing the scope of shipper audits. CEIV is good sales tool to promote our business to clients: it ensures a robust cold chain in every step in the supply chain through the airport for handling the pharma shipper’ temperature sensitive products.

Eric Veeckmans, UTi Brussels

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Q1 2015IATA - CEIV Pharma 77

Endorsement from Belgian RegulatorOn November 25, 2014, the Belgian Regulator FAGG – AFMPS formally endorsed the CEIV Pharma Program

The Belgian regulator, the federal agency for medicines and health

products (famhp) is endorsing the IATA CEIV program. It has been

involved in the BRUcargo community certification from the start of

the program. Famhp Inspectors have also participated in the

training sessions and workshops.

Josiane Van der Elst, Director General DG Inspection FAGG says

“Although this type of IATA certification is not an authority-issued

regulatory document, initiatives of structured control on transport are

important and welcomed by famhp DG INSPECTION. The IATA

certification gives more confidence that pharmaceutical air freight

shipments are handled in accordance with EU GDP guidelines”.

fagg – afmps, November 25, 2014

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THANK YOU

For further information, contact:

Ronald SCHAEFERProject Lead, Center of Excellence (CEIV) Pharmaceutical Logistics

Miami, FL

Email: [email protected]: + 1 305 779 9873

Mob: + 1 305 586 4666