UPS expands distribution deal with drug company Merck

UPS has signed an agreement to provide global supply chain services for Merck, one of the largest pharmaceutical companies in the world. Merck, known as Merck Sharp & Dohme (MSD) outside Canada and the US, has been using UPS for distribution, warehousing and transportation within North America since 2003.

Now, the deal has been expanded to provide distribution and logistics in certain markets within Asia and Latin America, as well as in Europe.

Willie A Deese, executive vice president at Merck Manufacturing Division, said UPS offered “proven logistics experience” to help his company expand into new markets.

“This expanded agreement with UPS allows us to focus on our core business as a global healthcare leader that looks for innovative ways to bring our medicines and vaccines to patients in emerging markets and markets around the world,” he said.

UPS is planning to establish a new distribution centre to support Merck’s manufacturing and packaging facilities, and is already developing solutions for distributing products to key markets like China and Brazil.

Arrangements will include strict temperature and environmental controls for distributing goods like vaccines and specialty medicines.

Although financial details of the expanded deal were not disclosed, UPS said Merck expected long-term cost efficiencies from the deal.

Commenting on the agreement, UPS chief financial officer Kurt Kuehn said his company was investing “deeply” to meet the needs of the pharmaceutical industry.

He said: “The UPS-Merck collaboration brings together the expertise of two companies that are globally strong, customer-focused and committed to driving positive change in the healthcare supply chain.”