News | September 19, 2011

New DHL Supply Chain White Paper Examines Increase In Supply Chain Outsourcing By Life Sciences Manufacturers

Six of the top 10 global pharmaceutical manufacturers have already outsourced at least part of their U.S. distribution operations with more to come. This new supply chain approach is also being leveraged as companies enter Latin American markets, reveals a white paper, "Tide Has Turned: Why Do Life Sciences Manufacturers Now Prefer Outsourcing?," published recently by DHL Supply Chain.

The paper examines the global and local forces driving this outsourcing movement across the Americas region and offers specific insights from life sciences manufacturers on the growing need for supply chain flexibility, expertise and cost efficiency. Content also spotlights the local factors at play in the United States, Canada, Mexico and Brazil and how they contribute to the complexities of designing and managing effective multi-national supply chains.

Life sciences manufacturers interviewed for the paper were surprisingly consistent on their strategic evaluations of the opportunities and risks they face. Across companies and countries, these supply chain managers drew common conclusions that obtaining much-needed flexibility and logistics knowledge, while managing costs, can be achieved by partnering with a third-party logistics provider (3PL) that provides a customized supply chain solution.

Primary forces facing life sciences and healthcare manufacturers include loss of patent protection, changes in distribution channels, regulatory compliance and profit pressures.

"These industry-wide opportunities and risks, combined with unique local factors, are pushing the evolution of supply chain models - now more than ever," said Luis Felipe Martinez, DHL Supply Chain's senior director of operations for the Life Sciences & Healthcare industry. "For example, many manufacturers are evaluating shared-use versus dedicated warehousing and transportation models to maximize flexibility and scalability, cost efficiencies and distribution synergies."

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