Increased Outsourcing, Global Partnerships Drive Growth for UPS Healthcare
UPS (NYSE: UPS) today announced a significant expansion of its global healthcare distribution facility network to accommodate continued rapid growth in its healthcare business. Driven by expanding relationships with healthcare companies and an increasing trend toward outsourcing, the new facilities in Asia, Europe, Canada and the United States bring to 30 the total number of global UPS healthcare-dedicated facilities.
"We are seeing increased demand from healthcare manufacturers wanting more agile supply chains. This clear industry trend is driving companies to look for more global solutions and deeper supply chain partnerships," said Bill Hook, vice president, global strategy, UPS Healthcare Logistics. "We have a robust pipeline of healthcare business and are continuing to invest in this industry to meet the fast-evolving needs of our global healthcare customers."
The new facilities are located in Singapore; Venlo, the Netherlands; Burlington, Canada, and Louisville, Ky., and bring the total amount of UPS dedicated healthcare distribution space to more than 4 million square feet. These facilities are specially designed to meet the needs of pharmaceutical, biotech and medical device companies.
They are configured to help manufacturers meet stringent and often-complex regulatory requirements for healthcare products, provide flexibility for a changing business environment and serve an increasingly global customer base.
With an influx of biologics and temperature-sensitive healthcare products coming into the marketplace, UPS's healthcare facilities also include temperature sensitive capabilities to handle the specialized storage and distribution needs of these high-value products.
Some specifics on each facility:
Slated to open late first quarter of this year, UPS's healthcare operation in Singapore will consist of a 43,000-square-foot regional distribution facility to serve the increasing number of healthcare companies that are locating manufacturing operations in Asia. It will serve as an import-export facility and is strategically located to access air and road networks.
Capabilities will include cold chain capacity for products requiring temperature-sensitive storage and distribution, as well as postponement services such as re-labeling and kitting.
UPS's Venlo facility, also slated to open during the second quarter, will be the company's second location in the Netherlands. The 245,000-square-foot facility is being added after UPS's first facility in Roermond sold to capacity in less than nine months, demonstrating a surge in demand for healthcare distribution services in Europe.
Strategically located near UPS's European air hub in Cologne, Germany, this fully compliant facility will include controlled environments for temperature-sensitive storage and distribution.
At 177,000 square feet, this building marks the 10th dedicated healthcare facility in Canada. This is the second dedicated healthcare facility at UPS's Burlington, ON, logistics campus, which is located near three major international airports.
Set to open in the second quarter, the Burlington facility is designed to meet all regulatory compliance and quality assurance needs of healthcare products. The facility will provide additional capacity to the current network of dedicated healthcare sites strategically located to serve the Canadian market.
The newest healthcare facility in Louisville, Ky., will open in the fourth quarter of 2011 and is part of the company's existing healthcare campus totaling over 1 million square feet. The new building is strategically located near UPS's Worldport global air hub to provide next-day delivery for air shipment orders received as late as 11 p.m., as well as UPS ground deliveries within two days or less to 70 percent of U.S. locations. This 144,000 square-foot facility also will include temperature sensitive and vault storage capabilities.