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New distribution centers in Asia, Europe and North America will add over 600,000 sq. ft of dedicated warehouse capacity for life sciences
Having undergone a steady stream of expansions up to 2008, one might expect a logistics company to seek to ride out the current turmoil in the world economy and in life sciences in particular. But UPS Healthcare Logistics, a multibillion-dollar/year unit of Big Brown, has announced four new or expanded facilities that will come online during this year, bringing its total dedicated capacity to over 4 million sq. ft.
Bill Hook, UPS Healthcare Logistics VP, says that the expansions are based both on booked business and on an expectation of near-term growth. “We have a robust pipeline of healthcare business,” he says, adding that one of the more recently completed expansions, in the Netherlands, was essentially sold out less than a year after its opening. Another key ingredient in UPS’ optimism: “Life sciences companies are expressing a greater willingness to collaborate with business partners in supply chain management, and they are growing more confident that their partners—especially global ones—can maintain quality and service levels to meet increasing regulatory and business requirements.” On the economics side, UPS Healthcare Logistics promotes the idea that a multitenant facility (handling the warehousing and distribution needs of multiple clients) can be run more cost effectively than a dedicated facility that is subject to the ups and downs of a company or product line.
The new facilities are in: