The time to plan is now: interview with Dr. Clive Hohberger
Once we have a Covid-19 vaccine, what happens next? That’s a question the supply chain community should be asking itself right now, says Dr. Clive Hohberger.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Our lives and our economy will never really get back to normal until we have an effective vaccine for Covid-19. But just developing the vaccine is not enough. There’s also the matter of distribution—that is, creating a plan for swiftly, safely, and equitably distributing billions of doses to patients all over the world.
Dr. Clive Hohberger has been giving the matter a lot of thought, both tracking the progress of various vaccine trials and considering the logistics implications of what happens next. With a background in both biomedical engineering and supply chain tracking technology, he brings a unique perspective to the coronavirus vaccine discussion.
In the 1970s, Hohberger, who has a Ph.D. in engineering from Case Western Reserve University, worked in biomedical engineering at Brookhaven Lab and Abbott Laboratories, and conducted postdoctoral research at the Montreal Neurological Institute of McGill University. He then shifted to the automatic-identification and data-capture field, working at Zebra Technologies for 24 years before retiring as vice president of technology development in 2008. He continues to consult with blood banks and pharmaceutical companies on systems to track and monitor vaccines and medical devices.
Dr. Hohberger spoke recently with DC Velocity Editorial Director David Maloney about the prospects for a Covid-19 vaccine and why we need to be planning now for the monumental logistics challenges ahead.
Q: The whole world is waiting for a vaccine so that we can resume our normal lives. Why does it seem to be taking so long?
A: The Covid-19 vaccine development process is actually going to be remarkably short compared with all the vaccines we’ve previously developed. Normally, this process takes two or three years. In this case, we are trying to condense it into about one year by overlapping R&D and manufacturing startup, and fast-tracking regulatory approval.
Through the World Health Organization (WHO), we’ve had tremendous world cooperation at the scientific level with all countries. The regulatory agencies—like the U.S. Food and Drug Administration—are closely monitoring the field trials so that approvals can come very quickly. So, if anything, it’s going to be a much shorter development process than we’ve seen with other vaccines, probably by several years.
Q: I understand the actual development of candidate vaccines took relatively little time. So are we now waiting to see how they do in clinical trials?
A: Yes. Clinical trials involve testing vaccines in a large number of infected patients. That is a process that takes time. First of all, you have to have a large patient population. Unfortunately, we do. You also have to have prototype vaccines manufactured in sufficient quantity for the trial and multiple medical institutions that can manage the trials.
There are a lot of cooperative alliances between research organizations and manufacturing organizations to build the facilities and start manufacturing some of the vaccines while the clinical trials are still in progress. A tremendous amount of capital is being risked on vaccines that may not make it to market. But the fact that very large corporations like AstraZeneca, Pfizer, and Johnson & Johnson are investing in this indicates the degree of confidence among pharmaceutical manufacturers.
Q: Why do scientists feel a vaccine is the solution for the pandemic?
A: Part of it is we have no choice! There is no therapeutic cure for Covid-19. There are some promising new therapies, but there is no cure yet. The only way to keep this virus from posing a continual threat to our lives is to develop a vaccine and then vaccinate a large enough population to create herd immunity. This is a really critical point. Eventually, all 7.8 billion people in the world will need to be vaccinated. It is a massive global effort.
Q: So, without a vaccine, developing that same level of protection through herd immunity would require too many people getting sick and dying?
A: Yes, we aren’t even sure about how much immunity people are going to have after they’ve had Covid-19. It may not be like chicken pox, where you have the disease once and are immune for life. It may be entirely different. We don’t know that yet. We’re taking a tremendous amount of risk on the final solution, which is to come up with a long-lasting vaccine that will prevent people from contracting the disease in the first place.
Q: The scientists and medical community are taking different approaches to creating a vaccine. Why are they developing different types of vaccines all at the same time?
A: Well, for several reasons. The first reason is that while traditional methods of developing a vaccine using an inactivated virus are tried and true, they take time and they have very complex manufacturing requirements. The second is that this is a very unusual virus, and it has a couple of features that will make it possible to develop a vaccine that will be less sensitive to the virus mutating, which is a key issue with all viruses. Researchers are very confident they can develop a vaccine because of the unique features of this particular virus.
The other thing is that we now have processes based on knowing the DNA sequence of the virus, and we are putting into practice new technologies like recombinant DNA and the use of messenger RNA that have been developed in the laboratory. So, we are using all of what we’ve learned about genetics in the last 30 years to try and take a different, and maybe better, approach to making a vaccine.
Q: Where are we with some of the more promising candidates?
A: By way of background, there are three phases of clinical trials. Phase One is where you just determine that the vaccine is safe. Phase Two is when you actually start testing it to see if it will produce patient antibodies. In Phase Three, you test a large population of infected patients—typically, 10,000 to 30,000—on a double-blind basis and see how well it works compared with a placebo.
Today, one vaccine is well along in Phase Three trials. It is a relatively conventional vaccine developed at Oxford University. And there are three other ones that are starting Phase Three clinical trials, which means they have already been proved safe and have been shown to produce antibodies in patients. There are also another 120-plus candidates in the pre-clinical R&D stage.
Q: We’ve had trouble developing adequate testing capabilities in this country. What makes you confident that we’ll actually be able to develop, produce, and distribute the vaccine?
A: Part of the testing problem is that we’ve been developing the tests on the fly while we’re also trying to treat patients. So, there wasn’t time for the tests to go through the normal development process. Remember that Covid-19 did not exist until last December, so we have been trying to test and treat in parallel. Yes, there have been problems developing effective tests. But there are tests now that work adequately, so we’ve been able to conduct widespread testing.
Vaccination is a different matter entirely. One, you’ve got a lot of people you need to vaccinate, and during manufacturing startup, you’ve got to pick which subpopulation you’re going to immunize first. Do you start with the elderly population? People in nursing homes? One country can’t just hog all the vaccine for itself because people in all parts of the world are going to need it as well. So, you are going to have to figure out which subpopulation to begin with limited vaccine availability.
The next challenge is convincing people that the threat is real and that they need to get vaccinated. We have to get to the point where at least 50% to 80% of the population has been immunized in order for the vaccine to create herd immunity.
One problem is that, in this country at least, there’s a vocal anti-vaccine movement among people who don’t trust science and who don’t trust vaccinations. It’s going to take a lot of work to convince them that it’s safe.
Q: So far, the Covid-19 response has been largely left up to the states, which have ended up competing with each other for personal protective equipment, testing kits, and supplies. Given the current model, how will vaccine distribution be any different?
A: We’ve got to change the model. Unfortunately, the process has become so politicized that we have states competing for resources that the federal government ought to be managing and providing. Due to the lack of federal leadership, we have a few states like New York, Illinois, New Jersey, and Connecticut that have done a great job of controlling the spread of the virus, while states like California tried to do a great job and basically got sabotaged. And then you have had deniers in places like Florida and Texas who are now suffering the consequences. It is really because the national leadership was never there and is still not totally focused on its response to the pandemic.
Q: How can we ensure that enough vaccines will be manufactured and then made available to people who need them?
A: I think the vaccine manufacturing part of it is already well in hand. You have some of the largest companies in the world engaged in the effort—companies like AstraZeneca, Pfizer, and Sanofi as well as the huge Serum Institute of India and Sinovac and SinoPharm in China. So, the manufacturing side is probably more committed to it than the distribution side simply because people haven’t yet thought about how we’re going to distribute Covid-19 vaccines at the same time we’re also distributing vaccines for measles, shingles, polio, and other diseases.
Q: Will the Covid-19 vaccines require any special handling?
A: Virtually all of the vaccines that are in clinical trials right now are cold chain products. We have a well-established global distribution system for vaccines like polio. However, the last-mile problem is very serious when you get to developing nations that may not have adequate refrigeration capabilities in field clinics. The challenge there is to deliver the vaccine to the point of use quickly and ensure that it’s safe at the time it’s administered.
This is why WHO standardized time-temperature indicator labels—known as Vaccine Vial Monitors or VVMs—that allow a person to visually confirm that the vaccine has been properly handled during storage and transport. The last thing you want to do is inoculate someone with a vaccine that has expired or been mishandled, because they won’t develop immunity but they’ll still think they have.
There is also a brand-new sensor bar-code technology that the automatic-identification industry developed in the last year that allows you to put a sensor on a bar-code label that can be read by a cellphone app or scanner at the point of use, and automatically indicates whether or not the vaccine is within safe-usage limits.
Q: Is any vaccine manufacturing going on yet?
A: Not yet, but facilities are being prepared. My guess is that manufacturing will start around the fourth quarter. I would expect that manufacturers would then want to pre-position product in the cold chain in multiple countries while it’s awaiting regulatory approval.
Q: Does the U.S. medical supply chain have the capacity to handle hundreds of millions of doses of vaccines on top of all of the other medicines we need every day?
A: I think there are two groups that need to discuss that. One is the large pharmaceutical distributors that get the products from the manufacturers to some of the intermediaries, the Cardinals, McKessons, and so on. And the other group is the people who distribute them to the hospitals and clinics and places where people are vaccinated.
I also think that we need to turn the question around and ask: What do we have to do to ensure we have enough cold chain distribution capacity? I am not sure we have it, and I am not sure we even know to get there.
You don’t have time to build brick-and-mortar facilities. One thing we can do is leverage all the high-speed delivery services we have right now. So, rather than building a warehouse in Arkansas to store 50 million doses for that region, you could store them at an unused refrigerated DC in Massachusetts and ship them to Arkansas via overnight air. We are going to have to be creative.
Q: Most of the world’s current vaccines are manufactured in India and China. Will the U.S. have to compete with the rest of the world to get what we need?
A: Not initially. We are probably going to have two to three viable vaccines next year, which will be manufactured globally, including in places like Serum Institute of India, which services Southeast Asia and Africa. Then there are companies like Sanofi in France that basically deal with Europe and the Americas. You have American companies like Pfizer, Merck, Moderna, and the Janssen Division of Johnson & Johnson servicing the American market. So at least initially, we should not be competing with other countries.
Q: I understand we may be looking at a shortage of glass vials for the vaccines. Is that still a problem?
A: Yes, it is. We can’t just take existing vials and stoppers because they are still needed for polio and influenza vaccines. And the shortage could become particularly acute if we end up needing multiple doses to immunize people. It is definitely going to put a strain on some of the packaging suppliers—the people who make vial closures, for example. They’re going to have to ramp up their production. The same is true of companies that make containers for cold chain transport and even the syringes needed to administer the vaccine. There is a lot of stuff that will be needed other than just the vaccines themselves.
Q: There are several different vaccines being developed at the same time. Are there advantages in that?
A: Yes. There are a lot of parameters here that are more important than just being first to market. The holy grail of all vaccines is to have something that can be kept at room temperature or is not temperature-sensitive, but that is probably not going to happen, at least initially. Another thing is that a single-dose vaccine is highly preferable to a multi-dose vaccine, so if someone can produce a single-dose vaccine, it will likely displace some of the others eventually.
Q: I expect there will be some holdups and delays. Are they likely to be caused by supply chain issues?
A: I hope delays will not be due to supply chain issues. The supply chain has to anticipate that it is going to be on the “critical path” and think it through beforehand. We really have to look at nontraditional ways of distributing the vaccine to the point of care—this is going to be a global last-mile problem.
Q: The bottom-line question is when can we realistically expect a vaccine to be ready?
A: My guess is that in the fourth quarter of this year, we’ll see manufacturers start to ramp up production and pre-position product in anticipation of regulatory approval, which I expect will come in the U.S. in the early second quarter of 2021. At that point, people like Pfizer and AstraZeneca are going to be knocking on the door of logistics companies asking if they’re ready to pre-position the product because it will have to be stored somewhere until the Food and Drug Administration approves it for use.
In the meantime, I think that people in the distribution end of the supply chain ought to be looking at how quickly that vaccine, once approved, can be delivered to a clinic in Tennessee, Peru, or Bangladesh. Can that be done without building a lot of new infrastructure? We’ve learned a lot about last-mile distribution in the last five years, and I think we ought to leverage what we have already developed. Even so, I think it’s going to be really challenging and chaotic in 2021 and 2022 until we get a good chunk of the world vaccinated.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.