Pharmaceutical companies faced many challenges when it came to producing and distributing the new COVID-19 vaccines. One that received the most attention? The need to keep the new mRNA vaccines super cold during shipment and distribution.
Yossi Sheffi, Ph.D., is Elisha Gray II Professor of Engineering Systems at the Massachusetts Institute of Technology and Director of MIT's Center for Transportation and Logistics.
The race to deliver a COVID-19 vaccine has been likened to a moonshot, but in several ways landing a man on the moon was easier. In MIT Professor Yossi Sheffi’s new book, Shot in the Arm, he explores how science, engineering, and supply chain converged to vaccinate the world.
In Chapter 2, Sheffi recounts the many challenges that pharmaceutical companies faced as they sought to mass produce and distribute the approved vaccines to the entire world. These included: overcoming supply shortages for key ingredients and equipment; ramping up fast for production of hundreds of millions and then billions of doses; developing and implementing brand new manufacturing processes; and transporting supplies and finished product through a constrained global supply chain.
In this excerpt, Sheffi discusses the cold-chain innovations that companies created to respond to the challenge of transporting and storing the new mRNA vaccines at subzero temperatures. As Meri Stevens, a global supply chain leader in Johnson & Johnson’s consumer health business, told Sheffi in an interview about J&J’s vaccine, “Initially it was very much about the science and discovery, but very quickly we were having to create whole cold chains that didn’t exist before.”
A cold, hard challenge
“Ensuring over a billion people globally have access to our potential vaccine is as critical as developing the vaccine itself,” said Pfizer’s CEO [Albert] Bourla.1 Adding to the challenge of both the volume of shipments and the urgency of delivery was the need to properly handle the vials of vaccine while sending them to the far corners of the earth.
Whereas most vaccines require some refrigeration, the new mRNA vaccines require the most careful handling because of the delicate constitution of their lipid nanoparticles. Molecular biologist Phillip Sharp of MIT explained, “This is an oily particle with carbohydrate around it. So, it’s a pain to keep it from fusing. It’s just one big ball of oil if it’s not taken care of. That’s why all this shipping and freezing and thawing and everything is really very important.”2 Moderna’s vaccine requires freezing between –50°C and –15°C (–58°F and 5°F), and Pfizer’s requires ultra-low-temperature freezing between –80°C and –60°C (–112°F and –76°F). As a result, these vaccines require cold-chain handling: global distribution activities at very low and controlled temperatures.
The colder the temperature, the more challenging the cold-chain transportation and storage issues. In the case of the Pfizer vaccine’s deep-freeze needs, very few facilities—only a handful of pharmaceutical distribution centers, hospitals, and research laboratories—had the kinds of deep freezers needed. “I don’t think we have all the cold storage that people think we have,” commented James Bruno, president of the consulting firm Chemical and Pharmaceutical Solutions.3
Helping Shipments Keep Their Cool
As part of its development strategy, Pfizer began setting up its downstream supply chain for the finished product in March 2020—at the same time as the kick-off of its COVID vaccine development. Pfizer said it developed a “just-in-time system, which will ship the frozen vials direct to the point of vaccination.”4 That system included packaging for shipping, continuous monitoring of vaccine temperatures to ensure safety, and a means to store the vaccine for up to a month at clinics, vaccination centers, and distribution facilities that lacked deep freezers. These efforts used supply chain partners with respective expertise in cold-chain packaging and supply chain monitoring.
Pfizer worked with SoftBox, a multinational British manufacturer of temperature-controlled packaging, to develop a reusable insulated thermal shipping box5 that holds 1,200 to 6,000 doses. The box, measuring 17 x 17 x 22 inches, holds up to five small “pizza box” trays, each with 195 vials, in an inner payload sleeve box nestled deep in the heavily insulated outer box.6 On top of the precious cargo sits a “pod” with up to 50 pounds of dry ice at –109°F (-79°C). An insulated lid completes the cozy ensemble.
The result is a medium-sized, robust, 70- to 80-pound box (with side straps) that can be handled by any air or ground parcel delivery service. (Pfizer and SoftBox even designed the box to reduce the sublimation of the dry ice during flight, reducing the generation of potentially hazardous caron monoxide (CO) levels in air freighters and significantly increasing the number of doses that air-freighters were permitted to safely carry.)7
As an added bonus, this thermal container can maintain ultra-cold temperatures for up to 10 days. Moreover, if needed, the recipient can replenish the dry ice every five days to extend storage in the box for up to 30 days.8 That enables facilities that lack the required freezers to temporarily store, distribute, and dispense the vaccine. Finally, when needed, the vaccine is thawed and can be kept in an ordinary refrigerator for up to five days before dilution and injection.
A view to a chill
To maintain 24/7 visibility of shipments, Pfizer contracted with Controlant, a provider of real-time supply chain monitoring devices that go into shipping boxes.9 A small, battery-powered sensor tracks vaccine temperature, the opening of the box, and its GPS location. Using a standard cellular data connection, the sensor sends the information in real time to Controlant’s cloud-based software, where customers can receive alerts and view the information. When the box is opened, red-green status lights show the shipment’s temperature status, data connection status, and battery status. “Controlant’s reusable, real-time data loggers and visibility and analysis platform integrates with Pfizer’s existing control tower technologies,” said Tanya Alcorn, vice president of biopharma global supply chain at Pfizer, “to help manage temperature proactively, identify and react expeditiously to any events that can impact the supply chain, all while automating quality and logistics processes.”10
One tricky issue with the monitoring system occurred at the handoff when Pfizer delivered the doses to government distribution or vaccination centers. As the shipment left Pfizer’s hands, Pfizer turned the monitoring off for legal liability and practicality reasons; once delivered, Pfizer had no control over the status of the shipment or the means to make the recipient take a corrective action. But recipients wanted the ability to monitor the boxes too, especially if they planned to use them for interim storage by refilling the dry ice. Fortunately, because the monitoring device was actually made and monitored by a third party, Controlant, all any recipient had to do was to sign up with the tracking company to restart monitoring and route the data and alerts to the recipient.11
Getting ready to move ’em out
Pfizer bought large numbers of deep freezers to set up freezer farms to buffer and distribute the output of its production facilities in Michigan and Belgium. The company also built its own dry ice plant to make the freezing pods that keep the vaccines cold during transit. As of November 2020, Pfizer planned to have a fleet of 24 trucks to ferry shipments from Pfizer’s facilities to local airports, where a combination of air charter and air freight companies such as FedEx, UPS, and DHL could carry the vaccine anywhere in the world within a day or two. As the clinical results of the Phase 3 trials confirmed the efficacy of the Pfizer–BioNTech vaccine, Pfizer announced plans to move roughly 7.6 million doses per day.12
Similarly, airfreight companies and facilities prepared for the vaccine distribution campaign. UPS, for example, built its own freezer farms and dry-ice production equipment at key air hubs.13 Airports invested in additional security and cold storage.14 Airlines conducted trial runs of vaccine deliveries to both debug systems and ensure the CO emissions from the dry ice remained within Federal Aviation Administration (FAA)-required limits.15 In coordination with Operation Warp Speed, FedEx and UPS divided the U.S. in half to improve delivery efficiencies.16 The efforts were intended to ensure fast, efficient, and problem-free delivery of the vaccines once they were approved and started shipping.
The bigger picture of bigger demand
Overall, vaccine suppliers had to face and overcome a long list of challenges: Shortages began in the product development labs, moved into the ingredient supply chains, and then hit the packaging ends of vaccine development and production processes. Shortages also hit capital equipment supply chains as pharmaceutical makers attempted to ramp up their capacity. As the adage goes, supply chains are only as strong as their weakest links. Successfully delivering large quantities of a new product depends on delivering all of the required quantities of every one of the raw materials, ingredients, and all other parts in the bill of materials (BOM) of the final product, as well as all the plant equipment and machinery needed for manufacturing and delivering the product. Supply chains aren’t about doing one thing well; they are about doing every one of many things well, because final products and customer satisfaction depend on every one of those many things for a complete, high-quality product delivered on time.
Even the packaged final product—billions of doses of safe and effective vaccines—wasn’t the end of the challenge. Those vaccines still needed to get to the customers: all people in all the countries of the world. Although modern supply chains have become adept at quickly and accurately making and moving millions of shipments of consumer products per day anywhere in the world, actually getting those doses into people’s arms was a real challenge that tested national and local institutions.
11. Goldhill, Olivia. “Pfizer Decision to Turn Off Temperature Sensors Forced Scramble to Ensure COVID-19 Vaccines Kept Ultra-Cold.” Stat, December 17, 2020.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.
That strategy is described by RILA President Brian Dodge in a document titled “2025 Retail Public Policy Agenda,” which begins by describing leading retailers as “dynamic and multifaceted businesses that begin on Main Street and stretch across the world to bring high value and affordable consumer goods to American families.”
RILA says its policy priorities support that membership in four ways:
Investing in people. Retail is for everyone; the place for a first job, 2nd chance, third act, or a side hustle – the retail workforce represents the American workforce.
Ensuring a safe, sustainable future. RILA is working with lawmakers to help shape policies that protect our customers and meet expectations regarding environmental concerns.
Leading in the community. Retail is more than a store; we are an integral part of the fabric of our communities.
“As Congress and the Trump administration move forward to adopt policies that reduce regulatory burdens, create economic growth, and bring value to American families, understanding how such policies will impact retailers and the communities we serve is imperative,” Dodge said. “RILA and its member companies look forward to collaborating with policymakers to provide industry-specific insights and data to help shape any policies under consideration.”