Langham Quarterly Magazine

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CLIENT MAGAZINE | 2024 Path in Cold Chain Logistics the Trailblazing Langham Logistics Partners with Life Science Leader on New Warehouse Design 12 Langham Logistics Receives Bronze Rating for Sustainability Efforts 08 A Shipper’s Guide to Building A Sustainable Supply Chain 09

Langham CEO Announced to Board of Directors of BioCrossroads

Langham Upgrades Phoenix GMP Warehouse, CRT Expansion

Exploring the Benefits of Langham Logistics’ Expanded Warehouse Space in Indiana

Ask Langham: Real-Time Temperature Monitoring

CONTENTS
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Langham Logistics Partners with Life Science Leader on New Warehouse Design Langham Logistics Receives Bronze Rating for Sustainability Efforts

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Building
Supply Chain 09 Maximizing Efficiency and Cost Savings
Pharmaceutical Operations 10
A Shipper’s Guide to
A Sustainable
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Press Release

Langham CEO Announced to Board of Directors for BioCrossroads

INDIANAPOLIS- Langham Logistics, an Indianabased warehousing and transportation company with a focus in life sciences, announced that CEO Cathy Langham has accepted an appointment to the board of directors for BioCrossroads. An Indiana organization, BioCrossroads aims to impact the continued growth of Indiana’s robust life sciences industry by advancing the state’s drug development sector and facilitating connections with the biotechnology and pharmaceutical industries.

The board announcement is the latest advancement in Langham’s growth plan for its life science logistics operations. In three years, Langham has received licensure by the Indiana Board of Pharmacy, accepted a board appointment to AZBio, and built three life sciences distribution centers: one in Whiteland, Indiana; one in Whitestown, Indiana; and one in Phoenix, Arizona.

“ “ IT’S AN HONOR TO RECEIVE THIS APPOINTMENT TO THE BOARD OF BIOCROSSROADS. AT LANGHAM LOGISTICS, IT’S OUR VISION TO USE OUR EXPERTISE IN LOGISTICS TO IMPROVE THE LIVES OF OTHERS, AND THIS OPPORTUNITY WILL MAKE AN IMPACT SO PEOPLE CAN LIVE MORE HEALTHY LIVES.
- Cathy Langham
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Langham Upgrades Phoenix GMP Warehouse, CRT Expansion

INDIANAPOLIS—Langham Logistics, an Indianabased warehousing and transportation company with a focus in life sciences, announced an adaptation of the second half of its Arizona building to GMP controlled room space. More than 9,000 newly-converted controlled room temperature (CRT) pallet positions opened for full operations on June 1st to serve the West Coast’s cold chain warehousing and distribution demands.

The warehouse first opened in the fourth quarter of 2020 to provide customized transportation, warehousing, and fulfillment services for the West Coast’s GMP and pharmaceutical industries. It is one day’s drive from the Port of Los Angeles, boasts 151,000 square feet of storage space, and has the capability to store goods at temperature ranges including a CRT space (15°C to 25°C), a walk-in cooler (2°C to 8°C), a walk-in freezer (-30°C), and an ultra-low temperature freezer farm.

“ “ THE EXPANSION OF THESE CRT PALLET SPACES REFLECTS LANGHAM’S COMMITMENT TO CUSTOM SOLUTIONS FOR THE GMP INDUSTRY. WE’RE GRATEFUL TO WORK WITH CLIENTS THAT PUSH US TO GROW SO QUICKLY.
- Cathy Langham

In the three years since the Phoenix facility’s first announcement, Langham Logistics has tackled an aggressive growth plan for the life sciences logistics industry. It has received licensure by the Indiana Board of Pharmacy, accepted a board appointment to AZBio as well as one for BioCrossroads, and built two additional distribution centers in Whiteland and Whitestown, Indiana.

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Exploring the Benefits of Langham Logistics’ Expanded Warehouse Space in Indiana

In the dynamic landscape of modern commerce, efficient logistics and warehousing are pivotal for businesses to thrive. Langham Logistics is now offering expanded warehouse space in two Central Indianapolis, Indiana facilities. Here are a few reasons these opportunities might be ideal solutions for your business.

Optimized Warehousing Solutions

Langham Logistics has taken a proactive approach to improve its warehousing infrastructure. The redesign of racking layouts and integration of operational efficiencies in these Indianapolis warehouses underscore our commitment to offering enhanced services. These enhancements provide businesses with increased flexibility to meet diverse logistics needs.

Enhanced Flexibility and Utilization

Strategic improvements are evident in Langham’s existing Indianapolis facilities, totaling 540,000 square feet. This space has been transformed to cater to various requirements, from special projects and kitting operations to cross-docking setups. Langham’s expanded capacities address the growing demands of businesses effectively.

Available Space Highlights

With the expansion, Langham Logistics offers approximately 16,000 open pallet positions across the two facilities. This added capacity, opened August 1, 2023, exists to accommodate businesses seeking efficient and adaptable warehousing solutions.

Indiana’s Strategic Advantage

Beyond the enhanced warehousing space, Indiana’s credentials as a prime logistics hub cannot be overlooked. Here’s why:

1. Central Location: Indiana’s position at the crossroads of major highways facilitates smooth transportation and distribution.

2. Market Access: With proximity to significant markets like Chicago, St. Louis, and Detroit, Indiana offers direct connections to economic centers.

3. Infrastructure Strength: The state’s robust infrastructure, including highways, railroads, and air cargo networks, supports efficient logistics operations.

4. Business Environment: Indiana’s businessfriendly policies and skilled workforce create an environment conducive to growth.

5. Proximity to Ports: Near major ports, Indiana provides valuable access to global trade routes, streamlining international shipping.

Langham Logistics’ expanded warehouse space in Indianapolis offers businesses an opportunity to enhance their logistics capabilities. With optimized layouts and increased flexibility, Langham is wellequipped to meet evolving needs. Complemented by Indiana’s strategic advantages, this opportunity presents a compelling proposition for businesses seeking efficient and effective warehousing solutions.

Press Release 05

Ask Langham: RealTime Temperature Monitoring

Managing the cold chain for pharmaceuticals and medical device products is more important than ever in the post-pandemic era—and its rapid growth confirms it. Analysts project a 45% expansion in the medical device market by 2029, making it worth more than $718 billion. For pharma, the growth rate is 54%, valuing it over $861 billion by 2028.

Yet the corresponding growth of the cold chain monitoring market that helps manage these industries and other temperature-sensitive supply chains dwarfs them both in percentage. Global cold chain tracking and monitoring are expected to grow 258% by 2030. A large portion of that includes real-time temperature management.

Despite the growing need for temperature tracking across the supply chain, adoption remains relatively low. That is finally changing. Langham is here to answer the most frequently asked questions on real-time temperature monitoring for your cold chain.

What Is Real-Time Temperature Monitoring?

Real-time monitoring uses sensors to measure and record temperatures for shipments. Temperature tracking happens from a product’s preparation for shipping to its final delivery point. The technology transmits the information to a remote hub for management. Depending on its setup, a device can send proactive alerts warning of potential temperature excursions. The sensors also track temperature fluctuations outside of normal tolerances and send to-the-minute alerts allowing people to take immediate action before permanent damage occurs.

Why Is Temperature Tracking Important?

Research shows the pharmaceutical industry loses $35 billion annually due to temperature-related issues. Even a one-degree fluctuation can affect the efficacy of a lifesaving medicine. A survey of pharmaceutical leaders found that 87% do not have full visibility of their supply chain through the last mile of delivery. That poor line of sight also affects the food chain with 40% of losses occurring during the supply chain before reaching the consumer.

Remarkably, many leaders from both industries say they rely on spreadsheets, pen and paper, and after-the-fact temperature reports to assess a shipment’s viability. Bad guesses can create state and federal compliance issues, generate costly product losses, and make people seriously ill.

How Does Continuous Temperature Tracking Work?

Continuous tracking uses wireless sensors that sit inside a unit—such as a refrigerated truck or warehouse freezer—or attach directly to a shipment to track its temperature in real-time. The data feeds into a centralized system that collects and analyzes the information.

The platform integrates the data as shipments move or change hands across the supply chain, ensuring products stay at the required temperature. The system is programmed with temperature thresholds, allowing the wireless sensors to create alerts when potential or actual excursions arise. Monitoring systems increasingly incorporate the use of artificial intelligence and machine learning for predictive actions to avoid the multi-million dollar losses that individual temperature excursions can create. The technology also stores the data allowing for report generation and post-event analyses to improve supply chain safety and meet regulatory requirements.

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By comparison, companies operating without endto-end real-time temperature monitoring often use an “alarm clock” technique. This method involves manually timing how long a product has been outside of temperature thresholds to determine its viability. A significant culprit of temperature excursions, particularly problematic for this risky approach, is the transition time between transportation method and long-term cold storage. Shipments can vary by several degrees in just a matter of minutes when moving on and off a truck. Making accurate assessments using the alarm clock technique is nearly impossible.

A better alternative, but far less sophisticated than real-time temperature monitoring systems, are PDF data loggers. This technology tracks product temperature using a start and stop time. The data is reactive and aggregated, often making it difficult to isolate when temperature deviations occurred or why.

What Is a Control Tower for Managing Temperature Excursions?

Control towers collect data from different sources via Internet of Things (IoT) devices, feed the information into a database, and configure it into an easy-to-read dashboard. Common cold chain control tower data inputs include product temperature, shipment location, external temperature and weather conditions, and transit time.

A control tower provides end-to-end shipment visibility by collecting and disclosing relevant information to all stakeholders. As a result, anyone relying on the safety and efficacy of the shipment can track its journey. The real-time monitoring of these control towers allows stakeholders to mitigate or prevent problems that can create temperature excursions. For example, desert heat may require temporary temperature adjustments to offset the impact, which can be adjusted remotely in advance.

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Langham Logistics Receives Bronze Rating for Sustainability Efforts

WE ARE PROUD TO ANNOUNCE THAT WE HAVE EARNED A BRONZE RATING ON OUR ECOVADIS SUSTAINABILITY ASSESSMENT FOR THE PAST TWO YEARS! OVERALL, LANGHAM LOGISTICS SCORED BETTER THAN THE INDUSTRY AVERAGE IN ENVIRONMENT, LABOR AND HUMAN RIGHTS.

EcoVadis is a trusted, international provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Their sustainability

scorecards provide detailed insight into environmental, social and ethical risks across 200+ purchasing categories and 160+ countries.

There is a rising need for more sustainable procurement, as 80% of greenhouse gas emissions and 90% of the average consumer company’s impact on air, land, and water resources comes from its supply chain. Langham recognizes the number of opportunities for supply chain green initiatives, and actively works toward more earth-conscious choices in running our business on a daily basis.

We are committed to ensuring our decisions today create the absolute best opportunities for all of us tomorrow.

Press Release

Take a look at our latest white paper about sustainability in the supply chain! Reach out to info@elangham.com for the full issue.

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Building
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Shipper’s Guide to
a Sustainable Supply
White paper 09

Maximizing Efficiency and Cost Savings in Pharmaceutical Operations

In the pharmaceutical industry, precision, reliability, and cost-effectiveness are paramount. As pharmaceutical companies navigate intricate supply chains, strategic partnerships with freight management and warehousing companies like Langham Logistics become essential. How can pharmaceutical firms leverage these partnerships to optimize operations?

Streamlined Supply Chains for Timely Deliveries

Collaborating with specialized life science logistics partners offers pharmaceutical companies a strategic advantage. Expertise in freight management ensures timely deliveries, reducing supply chain bottlenecks and the risk of stockouts. With efficient route optimization and real-time tracking, delays are minimized, guaranteeing that vital medications reach patients precisely when needed.

Maintaining Cold Chain Integrity

Pharmaceuticals, particularly biologics and temperature-sensitive drugs, require meticulous cold chain management to preserve efficacy. A skilled logistics partner understands the nuances of cold chain logistics, employing specialized equipment and protocols to safeguard product integrity throughout transit.

Real-Time Temperature Monitoring and Data Insights

Advanced temperature monitoring solutions have revolutionized pharmaceutical logistics. By partnering with a logistics company well-versed in these technologies, pharma firms gain realtime insights into temperature conditions during transit. This empowers proactive interventions in

case of deviations, minimizing the risk of product spoilage and ensuring compliance with regulatory standards.

Efficient Warehousing for Reduced Costs

Strategically-located warehouses are the backbone of efficient pharmaceutical distribution. Collaborating with warehousing partners with expertise in pharmaceutical storage ensures compliance with strict temperature requirements and reduces the need for frequent transportation. This, in turn, lowers transportation costs and minimizes the environmental footprint.

Cost Savings Advantages

1. Reduced Transportation Costs: Efficient route planning and shipment consolidation result in lower transportation expenses.

2. Minimized Inventory Holding Costs: Strategic storage reduces the costs associated with holding excess inventory.

3. Enhanced Resource Allocation: Outsourcing logistics and warehousing functions allows pharma companies to focus on core competencies.

4. Improved Regulatory Compliance: Expert logistics partners ensure adherence to stringent regulatory requirements, reducing the risk of fines and delays.

5. Optimized Cold Chain Management: Precise temperature monitoring minimizes product loss due to temperature excursions, protecting investments and reputation.

6. Responsive Supply Chains: Real-time tracking enables rapid adjustments in case of disruptions, ensuring minimal impact on patient access.

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Langham Logistics Partners with Life Science Leader on New Warehouse Design

Shingijutsu

Approach Anchors Layout

Around Continuous Process Improvement

Challenge

A global life science company is anticipating substantial growth from 2024 to 2032. At the beginning of 2023, the company’s third-party logistics provider handled 900 inbound and outbound lines daily—a number projected to soar to over 8,000 lines by 2032. To manage this staggering 909% surge in demand and align with forecasts, this figure would need to reach 1,175 by the end of 2023 and 1,499 by 2028— an expansion of 47% and 87%, respectively. Managing this increase will be complicated by inbound trucks carrying a mix of orders and express scripts, further challenging process management.

The warehouse must accommodate expanded storage, creating capacity across multiple temperature zones to cope with a 200% increase over the next decade, alongside meeting outbound shipping demands. However, their current facilities lacked the necessary layout to support the additional operations required to handle the surge in shipments.

Rather than solely seeking new space to accommodate the substantial increase in volume, the life science leader took a different approach. Instead of adapting its operations to fit a pre-

existing warehouse layout, the company aimed to design a warehouse tailored to its expanding needs. To accomplish this, they sought the expertise of a supply chain expert. Their search led them to a strategic partnership with Langham Logistics.

Solution

The life science company extended invitations to 45 of their employees worldwide, ranging from the c-suite to frontline workers, along with Langham Logistics in a Shingijutsu event. The primary objective was to conduct multiple Kaizens concurrently, fostering continuous improvement to conceptualize the new warehouse while proactively addressing potential challenges. Collaboratively, the company and Langham meticulously planned and executed a highly successful Shingijutsu event, leveraging their combined expertise garnered from prior experiences.

Shingijutsu was founded in 1987 by the pioneers of the Toyota Production System. This approach compels participants to reflect and question their habitual ways of operating, fostering the discovery of more effective methodologies. Shingijutsu follows four key principles:

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Case Study

• Always maintain a long-term vision

• The right process will produce the right results

• Add value to the organization by developing your people

• Continuously solving root problems drives organizational learning

The goal of the event was straightforward: in five days, design a facility layout capable of accommodating the company’s 10-year growth objectives. The sole constraint was that the warehouse was already in the construction phase; apart from that, the design was fair game. Participants divided into inbound, storage, and outbound teams, each tasked with creating a design tailored to their specific requirements and needs. Evaluations were conducted for each design, utilizing established key performance indicators.

Teams then physically built a section of the winning design to scale for testing. Following adjustments, the Langham Logistics’ engineers turned the designs into 2D and 3D models and a simulation video was created to provide the company a digital walkthrough of the layout. IT engineers then tested and troubleshooted the collective design. Langham conducted validation by processing 800 orders using real materials as a stress test. The team refined the design based on any issues that popped up.

The project was a big success. The group designed, validated, and tested a design in under a week capable of supporting a decade of development—all while warehouse construction was underway.

Results

Langham Logistics opened the new life sciences warehouse in January 2023 using the Shingijutsuderived layout. This approach empowered Langham to proactively tackle issues through design and continuous improvement, averting

the need to react to operational challenges postopening.

The design process, guided by lean methodologies, played a pivotal role in ensuring the warehouse construction remained within budget and adhered to the timeline. Langham provided regular progress reports, ensuring that construction aligned with the specific requirements identified during the design event.

The life science company is now poised to grow and benefit from a cutting-edge warehouse and logistics operation meticulously tailored to their unique needs, both immediate and in the future. The collaborative partnership with Langham Logistics has endowed both parties with unique insights and a profound sense of ownership over the operation’s success. Langham Logistics has elevated this process as an integral facet of their distinctive customer onboarding procedure.

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