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.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.
That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.
“It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face,” Michael Osborne, CEO of Appriss Retail, said in a release.
Specifically, the report lists the leading types of returns fraud and abuse reported by retailers in 2024, including findings that:
60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.
55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.
48% of retailers faced occurrences of returning stolen merchandise.
Together, those statistics show that the problem remains prevalent despite growing efforts by retailers to curb retail returns fraud through stricter returns policies, while still offering a sufficiently open returns policy to keep customers loyal, they said.
“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” Kevin Mahoney, managing director, retail, Deloitte Consulting LLP, said. “As retailers implement policies to address this issue, they should avoid negatively affecting customer loyalty and retention. Effective policies should reduce losses for the retailer while minimally impacting the customer experience. This approach can be crucial for long-term success.”