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Switch from a direct air freight distribution network of vaccines to a sea freight network including the implementation of regional distribution centers - Magellan program : Singapore case

Baudoin, Thomas
(2023)

Files

BAUDOIN_21461800_2022-2023.pdf
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Details

Supervisors
Chevalier, Philippe
Faculty
Louvain School of Management
Degree label
Master [120] : ingénieur de gestion, à finalité spécialisée
Abstract
This paper presents an in-depth analysis of the Magellan program at GSK, with a particular focus on its Singapore RDC project. The first part of the paper provides a comprehensive overview of the Magellan program, an avant-garde initiative in the pharmaceutical industry. Magellan aims to revolutionize vaccine transportation by transitioning from direct air shipments from global distribution centers to customers to utilizing sea freight and establishing RDCs worldwide for live vaccines. The main objectives of the program are to achieve costs reduction, carbon footprint emissions reduction and lead time optimization by relocating inventories closer to customers. With global climate change concerns, the Magellan program becomes a crucial step towards mitigating carbon footprint emissions associated with traditional air transportation. Subsequently, this paper delves into the analyses of the results and the impacts of the Magellan program on GSK's Singapore RDC. Encouragingly, significant potential for costs and carbon emissions reductions is evident once the program is fully implemented. While there is a negative impact on lead times, it falls within acceptable limits for the majority of markets served by the Singapore RDC. The recommendations proposed at the end of the thesis aim to further enhance costs and carbon footprint emissions reductions. As the Magellan program continues to evolve, it is expected to play a vital role in achieving sustainable and efficient vaccine distribution. Overall, the Magellan program represents a groundbreaking and promising initiative that is poised to set a trend in the pharmaceutical industry. Considering the prevailing global economic and environmental challenges and the Magellan program's early stage, there are numerous opportunities for further optimization. As Magellan advances, it is expected to play a pivotal role in revolutionizing vaccine distribution, paving the way towards a more sustainable and responsible future.