Shanghai Pharma and DHL team up for life sciences distribution
Shanghai Pharma has signed a Memorandum of Understanding (MOU) with DHL Supply Chain to build a global life science distribution network. In a statement issued yesterday (7 August), DHL said the MOU will see the two companies work together to “enhance quality control measures, streamline distribution processes, and strengthen compliance with local and international food and pharmaceutical regulations”.
According to DHL, a range of recent initiatives from the Chinese government, including the “two-invoice” or fapiao policy which was rolled out earlier this year, have put greater onus on the country’s pharmaceutical sector to improve the transparency and efficiency of local supply chains.
“The quality and resilience of our logistics infrastructure will determine not only how successfully we adapt to new legislation like fapiao – which seeks to cut down on multiple distributors and mark-ups by only allowing two invoices per goods shipment – but also our ability to capitalize on the huge international growth opportunity for high-grade Chinese pharmaceutical products and medical devices,” said Cho Man, President and Executive Director, Shanghai Pharma.
“China’s national market for drugs has grown rapidly in recent years to become the world’s second-largest with an estimated growth to around US$167 billion by 2020. Our partnership with DHL will help Shanghai Pharma to become one of the world’s foremost pharmaceutical manufacturers – supported by a global distribution network that combines world-class quality control with fast, seamless delivery.”
To help with this planned expansion, the MOU will grant Shanghai Pharma priority access to DHL’s global logistics network including temperature-sensitive life sciences services to Europe. DHL Supply Chain will also support Shanghai Pharma’s supply chain optimization needs as the manufacturer ramps up its overseas distribution and retailing efforts.
