DHL Supply Chain is expanding its pharmaceutical and medical device distribution network by 40% in 2019, through a US $150-million investment, according to Logistics Management.
DHL said that a key aim of this investment, with nine new sites planned for the next year, is to bring critical healthcare products closer to trade partners and patients.
Included in the $150 million investment are costs to invest in buildings and new technology along with the fit-out and start-up of new or expanded operations.
When the nine new sites, which are dedicated to compliant pharmaceutical and medical device distribution, are complete, DHL said its total number of pharma sites in the US will be 30.
The new sites will be in Indianapolis, Raleigh, Memphis, South Central, California and Virginia.
The investment has been developed over the past two years as a larger part of DHL’s Strategy 2020 to focus in on high-growth industries like Life Sciences.
“As it stands, our Life Science sector is the fastest-growing sector at DHL Supply Chain, currently accounting for 10% of business in North America, growing about 15% per year,” said Scott Cubbler, president of Life Sciences & Healthcare at DHL Supply Chain.
Cubbler added that the addition of these strategically-located sites maximizes the value of customer supply chains by enabling greater predictability, flexibility, and speed, which is mission critical in the healthcare space.
“With closer sites, customers can provide a reduced travel time to consumers, maintain dedicated inventories, and leverage cutting-edge technology and process standardization that drives cost efficiency,” he said.
“The sites will offer fully-licensed, compliant, and temperature-controlled facilities for storage of product. In addition, customers have access to DHL’s complete range of fulfillment, packaging and transportation management services,” he added.