DHL Supply Chain has completed the construction of a one-million-square-foot distribution center of excellence in Annville, PA, furthering securing its foothold in the life sciences and healthcare space in the process.¹

Foreign Trade Zone designation enhances customs efficiency and compliance

The facility is expected to open later this year and will operate as a Foreign Trade Zone—secure sites overseen by US Customs and Border Protection (CBP) that, once activated, are generally treated as being outside of CBP territory for customs purposes.² The plant is intended to help tackle the rise in demand for both tariff mitigation and expedited customs processing.

It will also allow medical technology and pharma companies to take advantage of any pre-certification opportunities and accelerate regulatory coordination with agencies such as the FDA and USDA. 

“As pharmaceutical companies navigate tariff changes, rising demand for temperature-controlled infrastructure, and strict regulatory compliance, they need logistics partners with proven expertise,” commented Mark Kunar, CEO of DHL Supply Chain North America. “The East Coast Center of Excellence is a critical next step in delivering scalable, end-to-end solutions for the healthcare industry.”

Temperature-controlled, GMP-compliant infrastructure supports biologics and specialty drugs

The new life sciences fulfillment center contained both FDA and good manufacturing practice (GMP)-compliant infrastructure, along with a setup that’s beneficial for temperature-controlled environments that biologics and specialty drugs can thrive in. Its systems are energy-efficient systems, with solar power integration, and charging stations for electric vehicles.

It’s also important to point out that Annville is located in central Pennsylvania, within a few minutes of major highways, allowing the distribution center to conveniently offer healthcare distribution at a time when speed and accuracy are paramount, especially for temperature-sensitive medications.

DHL Strategy 2030 drives investment in healthcare logistics growth

DHL’s latest investment line up with the company’s initiative, Strategy 2030, which points to life sciences and healthcare as a sector with potential as for major growth.

In other DHL news, DHL Supply Chain late last year agreed³ to purchase SDS Rx, a provider of final-mile delivery and specialized healthcare transportation services for long-term care and specialty pharmacies, radiopharmacies, and health system networks.

As a result, DHL grew its life sciences and healthcare (LSHC) capabilities, especially across this specific supply chain, expanding upon its existing healthcare logistics portfolio under DHL Health Logistics.

Handling specialized healthcare deliveries from over 200 US locations, SDS Rx is expected to bolster DHL’s healthcare transportation network with last-mile logistics services, while enhancing the logistics provider’s same-day and expedited delivery options at the same time.

When it comes to significance of the partnership, Drew Kronick, SDS Rx’s founder, CEO, and managing partner of SDS Rx, emphasized the company’s patient-first mission, stating that, "Our mission is to enhance the quality of patient care with every delivery. As the demand for last-mile delivery in healthcare continues to grow, we understand the importance of aligning with a partner who shares our patient-first commitment. Partnering with DHL represents a meaningful step forward, combining our strengths to improve the precision, reliability, and speed of delivery to patients most in need."

References

1 DHL Supply Chain Expands Life Sciences & Healthcare Capabilities With New Center of Excellence. DHL. January 7, 2025. Accessed January 7, 2025. https://www.dhl.com/ca-fr/home/presse/archives-presse/2026/dhl-supply-chain-expands-life-sciences-and-healthcare-capabilities-with-new-center-of-excellence.html

2. About Foreign-Trade Zones and Contact Info. US Customs and Border Protection. https://www.cbp.gov/border-security/ports-entry/cargo-security/cargo-control/foreign-trade-zones/about

3. Saraceno N. DHL Supply Chain Acquires SDS Rx, Expanding Last-Mile Healthcare Logistics. Pharmaceutical Commerce. September 12, 2025. Accessed December 19, 2025. https://www.pharmaceuticalcommerce.com/view/dhl-supply-chain-acquires-sds-rx-expanding-last-mile-healthcare-logistics