DHL spending US$200m to upgrade healthcare logistics

DHL Supply Chain is spending US$200 million to expand its life sciences and healthcare capabilities.

This includes the construction of warehouse facilities that will expand its footprint to over 13 million square feet. The company will also invest in warehouse technology.

“Resilient life sciences and healthcare supply chains are critical to the well-being of communities around the world,” said Jim Saponaro, President of Life Sciences and Healthcare, DHL Supply Chain.

“This significant investment reflects our commitment to providing the industry with the reliable, efficient, and temperature-controlled logistics solutions that’s needed to deliver life-saving treatments and products to patients in need.”

DHL Supply Chain currently has 35 warehouse facilities dedicated to life sciences. The new money will add five more by the end of 2024.

New warehouses will be built in Pennsylvania and North Carolina, which the company has identified as strategic markets. The new facilities in Pennsylvania will position the company close to major pharmaceutical hubs and research institutions. The North Carolina facilities will serve the growing demand for life sciences logistics in the southeast region, offering proximity to major airports and transportation infrastructure.

The company’s expansion coincides with an upsurge in the pharmaceutical industry, characterized by the steady stream of groundbreaking treatments, particularly those targeting weight management and diabetes. This, coupled with the resurgence of domestic drug production, has ignited a demand for enhanced capacity. As brands increasingly ramp up domestic manufacturing, the need for efficient inbound logistics to feed production lines has grown.

Beyond its physical expansion, DHL Supply Chain is investing in warehouse technologies, including automated guided vehicles and autonomous mobile robots to boost productivity, address labour challenges and provide flexibility to warehouses especially in picking and material handling.

It’s also adding dedicated cold chain solutions.

“Recent events have highlighted the importance of agile and resilient supply chains in the life sciences and healthcare sectors,” said Saponaro.

“Our investments in technology and strategic locations will empower our customers to better anticipate and navigate disruptions, ensuring uninterrupted delivery of critical supplies.”