DHL Supply Chain to grow pharma logistics network

Contract logistics provider DHL Supply Chain North America is investing more than $400 million to expand its pharmaceutical and medical device distribution network in the United States, with plans to add nearly 3 million square feet of temperature-controlled space, the company said this week.

Company leaders said DHL will expand its U.S. Life Sciences and Healthcare (LHSC) segment to 34 locations across the United States, adding six new facilities by the end of the year. DHL said its network is strategically located nationwide, including Atlanta; Cincinnati; Memphis; Reno, Nev.; and Lebanon, Pa. The company did not specify where the six new sites will be located.

The investment will cover infrastructure for new and expanded operations as well as technology.

“This latest investment in our Life Sciences and Healthcare sector is testament to our track record and pedigree for delivering unrivaled supply chain expertise to our partners,” LHSC division President Jim Saponaro said in a press statement Wednesday. “This substantial expansion will only further deepen the connections between our customers and the patients they serve by providing best-in-class end-to-end supply chain solutions.”

DHL Supply Chain’s LHSC segment is the company’s fastest-growing division, according to company leaders; services include warehousing, secondary packaging, managed transportation, and end-to-end supply chain management services.

The expansion aims to capitalize on growing demand for pharmaceutical logistics, a market that is expected to double in size in the United States between 2020 and 2030, according to some industry estimates.