DHL commits $70 million to expand healthcare supply chain

Contract logistics provider DHL Supply Chain will spend more than $70 million to expand its North American life sciences and healthcare capabilities by expanding its use of autonomous mobile robots (AMRs) and developing specialized facilities in Memphis and Indianapolis.

Under the plan, DHL will create additional warehousing infrastructure and deploy new technologies in support of its pharmaceutical and medical devices customers, the company said Thursday. The initiative follows the company’s $150 million investment announced in 2019 to expand its U.S. distribution network for the industry, and bring critical healthcare products closer to trade partners and patients.

DHL Supply Chain, the third party logistics (3PL) unit of Deutsche Post DHL Group, currently operates 30 specialized facilities with over 11 million square feet of temperature-controlled and certified infrastructure in the U.S. The new investment will also support the deployment of emerging technologies, such as collaborative AMRs from warehouse fulfillment automation vendor Locus Robotics.

“We recognize that demand will only intensify in the future as the market develops its response to the Covid-19 pandemic and adjusts to new ways of addressing patients’ everyday healthcare needs,” Scott Cubbler, president of Life Sciences and Healthcare at DHL Supply Chain North America, said in a release. “By making this investment, which will also allow us to expand the use of efficiency-boosting new technologies, we are providing our customers with a platform for further growth, as well as the flexibility they need to respond as essential services in a fast-changing environment.”

According to DHL, the investment will allow it to better serve pharmaceutical, medical devices, clinical trials, and research organizations, wholesalers and distributors, and hospitals and healthcare providers.