Management Consulting

In the life sciences sector, organizations face significant challenges related to the integrity and security of their cargo, particularly when it comes to temperature-sensitive products. A notable issue is the risk of product loss due to temperature excursions, which can lead to severe consequences, including legal liabilities and reputational damage. The industry is also grappling with a complex regulatory environment, evolving compliance requirements, and increasing threats from cargo theft and fraud. These challenges necessitate a robust risk management strategy to ensure the continuity of supply chains and protect patient outcomes. To address these niche issues, a tailored solution was implemented through the adoption of Stock Throughput Insurance (STP). This insurance provides comprehensive coverage for inventory throughout its entire journey—from raw materials to finished products—across all transit and storage phases. The STP policy is designed to consolidate various exposures into a single overarching policy, which empowers risk managers to maintain business continuity and protect profit margins amid mounting pressures. Customizable add-ons, such as delay coverage and temperature excursion protection, further enhance the policy's effectiveness in mitigating risks specific to the life sciences industry. The results of implementing STP have been significant. For instance, a life sciences manufacturer that experienced a suspected micro-fracture issue during the transit of ventilator boards benefited from switching to a well-structured STP policy. This change not only secured better insurance terms but also provided coverage for damaged goods in the future, thereby enhancing the company's resilience against operational disruptions. Overall, the strategic use of STP has proven to be a critical component in safeguarding the integrity of life sciences products, ultimately contributing to improved patient outcomes and maintaining public trust in the industry.