The Pulse
DHL Life Sciences & Healthcare
Fall Issue 2012
Customer Feedback | p. 5
Network | p. 19
Network | p. 22
INSIGHTS FROM OUR 2012
CONFERENCE & WORKSHOPS
DHL’S NEW MUMBAI
DISTRIBUTION CENTER RESPONDING TO RARE
DISEASE TREATMENTS more
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Contents
Editorial3
From the Regions
Rome & Milan Pharma Forums China customer event
EyeforPharma and Canifarma events
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New solutions & Services
Medical Express global footprint extension
Product recall
DHL: Pharma Select
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Network
LSH distribution center, Mumbai
Hungary MUWH capability
DHL facility targets rare diseases
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Invitation
Save the date for next year’s conference
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New Kitting and Rework services
facility in The Netherlands
IMPRINT
Published by Deutsche Post AG
Charles-de-Gaulle-Straße 20
53113 Bonn
Represented by:
Angelos P. Orfanos, President
Life Sciences & Healthcare
Customer Solutions & Innovation DHL
Silje Skogstad,
SVP Global Media Relations
Editorial Contact:
d.rinas@deutschepost.de
19
DHL | The Pulse | Fall 2012
State-of-the-art life sciences
facility in Mumbai
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News
Indian government opens ports 24/7 LSHC trends based on conference exit survey
The Italian pharma market
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Dear Customers and Readers
Throughout 2012, the Life Sciences & Healthcare (LSH)
industry has continued to offer both tantalizing opportunities
and complex challenges. As we face 2013, that picture remains
unchanged — but so does DHL’s commitment to respond
to our customers’ quality needs. That’s why we have been
investing in sector-specific processes, sector-specific people
and good distribution practice(GDP)-compliant and good
manufacturing practice(GMP)-compliant infrastructure.
INFRASTRUCTURE INVESTMENT
In 2012, we continued to improve and expand our global life
science footprint with a vast range of logistics development
and innovation. DHL is currently developing five warehouses
in India to support the growth of the Life Sciences & Healthcare sector (one of these has already opened in Chennai). In
June we launched a 58,000 square meter facility in Mumbai;
plus, we have invested in our domestic express network in India to equip it with temperature-controlled express capability.
Also in 2012, we opened two new Life Science Competency
Centers in Miami and Atlanta to add to our 28-strong competency center network; while our European Hub now benefits from
an end of runway Integrated Solutions Center at Leipzig Airport.
Other key developments include the opening of a new
warehouse in Hungary to support our Eastern European
development. We’ve also been investing in temperaturecontrolled air freighters from Paris to Cincinnati and mapping
our Leipzig to US flights and our India to Europe flights.
REGULATORY AND TRADE COMPLIANCE
Looking ahead, the challenges the LSH sector faces are considerable. Emerging markets are soaring and will continue to
do so in 2013. At DHL, our response will be to increase our
DHL | The Pulse | Fall 2012
Angelos P. Orfanos
President
Life Sciences & Healthcare
Customer Solutions & Innovation
DHL
footprint and capabilities in those areas to allow our customers speed to market.
Country to country regulatory and trade compliance for
the transportation and storage of medicines will become stricter in 2013 and further increase pressure on the industry. Our
customers, therefore, will continue to demand a high quality
regulatory responsive service. Apart from our state-of-the-art
facilities which offer protective, standardized environments,
we are investing in specialist people — such as pharmacists —
who have knowledge and experience in the Life Sciences sector
that is second-to-none. We are also creating global customs
platforms that centralize visibility of the customs brokerage
process; and we look forward to DHL Global Forwarding
launching our Thermonet solution in early 2013 — a new addition to our temperature management services.
GLOBAL CONFERENCES AND WORKSHOP EVENT
The need for collaboration with our customers will become more
acute in 2013. As companies in the industry become leaner, they
will be looking for new ways to re-engineer their supply chains
in terms of cost-efficiencies and/or meeting regulatory need.
That’s exciting because it takes us into new conversations about
their future requirements and future demand. Out of those new
conversations come exciting new ideas and new solutions.
That’s why, since 2001, DHL has hosted an annual Global
Conferences and Workshop event, offering customers the
chance to talk to us about the challenges they face and the
solutions they need. In 2012, our Global Conferences and
Workshop event was held in Berlin and was an enormous
success. Attending were approximately 200 customers from
48 different countries, 35 supplier partners and a representation of DHL Life Science executives, all drilling into the key
issues and trends we will be facing together in the coming
years. I would therefore like to take this opportunity to invite
you to join us for our 2013 Global Conferences and Workshop
in Miami, 11–12 June — so make sure to save the date!
I hope you enjoy this Fall issue of The Pulse, which looks back
at the Berlin event and outlines our recent investment, innovation and solutions activity. And, as 2012 comes to an end,
I and the rest of DHL Life Sciences & Healthcare team look
forward to working with you in 2013!
Sincerely,
Angelos P. Orfanos
President
Life Sciences & Healthcare
Customer Solutions & Innovation
DHL
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Indian Government facilitates round-the-clock customs operations
In August, the Indian government announced that it would be making 24×7 customs operations available at identified sea ports and airports.
O
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ne of the major constraints for international trade in
India has been the non-availability of customs clearance
and other facilities at the country’s airports and seaports
round-the-clock, seven days a week.
This means that import and export cargo, delivered at a
time when clearance facilities are unavailable, have to wait until
clearance facilities are open to move on to their destination.
At airports and ports — which normally operate round the
clock — cargo piles up awaiting clearances.
In order to remove this bottleneck, the Government of
India has announced that, from August, customs clearances
will be available at identified sea ports and airports around the
clock in order to facilitate trade services.
The four airports where this 24×7 service is available are
Delhi, Bangalore, Chennai, and Mumbai; and the four ports
where this service is available are Chennai, Kolkata, Kandla
and JNPT, Mumbai.
DHL | The Pulse | Fall 2012
OPERATION BEGINS ON A PILOT BASIS
The 24×7 operations will begin on a pilot basis with customs
operations along with all other complementary services.
Along with customs clearances, other government agencies
such as the concerned port/airport authority, drug controller,
FSSAI (Food Safety and Standards Authority of India), quarantine — and private players such as custodians, CHAs (Customs House Agents), banks, transporters — are also working
24×7 to synchronize with the extended work hours. This
would be initially for four months after which efforts would be
made to expand similar operations at other locations.
“This customs clearance facility is allowed for specified types
of cargo (import and export) and at specified customs ports/
airports to begin with,” says Amit Dawar, Director — Customs
& Integrated Logistics, DHL Global Forwarding. “Eligible
customers can now ask for such facilitation with a right. This
obviously brings about faster turn-around of cargo. DHL
welcomes this move as it will enable us to provide enhanced
services to our customers. Closer coordination between all
stakeholders will yield greater benefits to a larger number of
importers and exporters.”
RESTRICTED TO A SECTION OF THE TRADE
For imports, 24×7 operations cover the category “No Assessment No Examination”. This accounts for 70% of imports. For
exports, the 24×7 facility could be extended to those exports
not claiming benefits.
“Since this service is currently restricted to a section of the
trade, its impact has been limited,” says Amit Dawar. “Closer
alignment amongst the various stakeholders — i.e. carriers,
custodians, customs brokers, freight forwarders, transporters,
etc — will result in improved facilitation. Customs departments at various stations are themselves following divergent
practices and, as of now, we have received a limited response
from our customers for this service.”
India’s Department of Revenue will assess the 24/7 customs operation pilot and propose expansion of coverage if it
is required.
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DHL’s 12th Life Sciences & Healthcare
Conference and Workshops
DHL’s 12th annual customer event for the Life Sciences and Healthcare (LSH) sector pinpointed
current and future industry trends and demonstrated how DHL is listening and responding to
customer needs.
Forty workshop sessions were held over three days on 20 different topics, offering attendees the opportunity to network
with expert colleagues, focus on the most current topics affecting their business, and to help DHL define its way forward
and develop the services that its customers need.
Interactive sessions included managing global cold chain
networks, supply chain outsourcing; order to cash and direct
to pharmacy distribution, end of runway solutions, clinical
trials logistics, and the challenges of recent regulatory developments. At these sessions, customers were able to voice their
concerns, share their needs and hear innovative ideas.
DIVERSE REPRESENTATION
Information booths were set up for DPDHL divisions such as
DHL Express, DHL Global Forwarding, DHL Freight, DHL
Supply Chain, DHL Global Mail and DHL Sameday. Exhibition booths for 15 leading suppliers of cold chain packaging
and data logging were also set up to further reach out and
disseminate sector knowledge to customers.
Plus, before the conference started, customers were offered a
unique opportunity to visit DHL’s European Express Air Hub
in Leipzig to see how multiple flights are handled and the
process for rapid sorting of shipments.
© gettyimages
DHL’s 12th annual cross-BU customer event for the Life
Sciences and Healthcare (LSH) sector was held in Berlin on
12-14 June. Approximately 200 customers from 48 different
countries attended, with experts from the pharmaceutical and
medical device industries, healthcare and hospital distribution services, clinical supply chain and regulatory affairs, plus
executives from across DHL’s life sciences team.
“As ever, we had a very successful and productive conference,”
says Angelos Orfanos, President, Life Sciences & Healthcare,
Customer Solutions & Innovation. “It’s extremely useful to
convene with a diverse representation of customers and experts from across the industry in order to spend time drilling
into the key issues and challenges we’re facing together. It’s
essential to understand the different trends shaping the sector
now — and identify the trends of the future.”
CONFERENCE FINDINGS
Trends and findings from the conference, outlined from
customer and supplier partner conversations, included the
importance of continuing and widening the focus on temperature compliance, and understanding the impact of new GDP
guidelines on temperature-controlled products.
Roger Crook, CEO DHL Global Forwarding, Freight
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The growing complexity of global supply chains, the patent cliff, the rise of generics and OTC medicines, slow or no
growth in health systems in developed economies and the
growing importance of emerging markets were all earmarked
as key trends to watch in the future.
CUSTOMER NEEDS
“As a service provider, we came away from the conference
with a good understanding of our customer needs and what
we need to do to support them,” says Angelos Orfanos. “And
our customers learned what solutions we have introduced
since our last conference and what we plan to work on going
forward.”
Customers highlighted that direct-to-market strategies have
been growing in importance, especially in new and emerging
markets. They also stressed the significance of the challenge
to reduce costs across the value chain and capture sustainable
efficiency gains.
Also emphasized was the continued growth in outsourcing
services (such as multi-user warehousing), the importance of
understanding how infrastructure can be moved from fixed
to variable cost while increasing efficiency and quality, and
the continued value of DHL developing LSH specific solutions (e.g. DHL Product Recall Solution and DHL Medical
Express).
FUTURE TRENDS
Attendees looked toward the future, too, and highlighted
mega trends with logistics implications as key challenges
in the months and years ahead — such as ever-increasing
regulation, personalized medicine (targeted directly to smaller
populations) and home care solutions for chronic patients.
DHL | The Pulse | Fall 2012
DHL investments include the introduction in 2013 of Thermonet and Temperature Controlled Freighters, new additions
to DGF’s temperature management services, solutions such as
DHL Medical Express, an LS-graded courier, and LS-graded
infrastructure such as the new ‘end of runway’ warehouse at
Leipzig Airport, the Life Science Competence Center network
and new LSH warehouses, most recently in Hungary and
Mumbai.
DHL’s 13th Life Sciences & Healthcare Conference and Workshops will take place on June 11 & 12, 2013, Miami USA
For more information on how DHL can help deliver logistical solutions in the Life Sciences & Healthcare sector,
Ken Allen, CEO DHL Express
The recent 12th DHL Life Sciences & Healthcare
Conference and Workshops highlighted the many
concerns facing Life Sciences and Healthcare teams, industry leaders and suppliers in today’s challenging supply
chain space. Key observations voiced by customers in a
post-event survey included:
• Cost efficiency continues to remain the most
important issue
• Gaining in significance was temperature control /
cold chain networks – moving to second from fourth
position last year in terms of importance
• Regulation/compliance is the third most important
issue for customers
• The DHL-organized workshop sessions brought
together expert speakers from different sectors within
the industry to discuss and share best practices to meet
these concerns and challenges
please contact your Customer Manager Representative.
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O
cean transportation, special equipment, customs. These
were the keywords for the 2012 edition of DHL Global
Forwarding Italy Pharma Forum, which gathered delegates in
Rome and Milan from many of the leading Italian pharmaceutical companies, eager to talk about their issues and pain
points — and to hear about solutions.
Milan
In Italy, 65% of Life Sciences and Healthcare companies are
located in Lombardia and Lazio. “That’s why we decided,
for the first time, to hold not one but two Forums, in Milan
and Rome,” explains Bruno Bergonti, Business Development
Manager, DHL Global Forwarding. “We wanted to give our
customers the chance to join us easily and with the highest
comfort.” And the customers answered our call and made our
forums a success, with over 40 companies attending.
RomE
Sea Change for Third Italian
Pharma Forum
Participants of the Pharma Forum in Milan
© dh.foto.de/hrdina
On April 19 and May 11, 2012, DHL Global Forwarding Italy hosted the third Pharma Forum
in Rome and Milan. This was a platform to discuss with customers the challenges,
opportunities and innovations in the Life Sciences and Healthcare sector.
DHL | The Pulse | Fall 2012
TEMPERATURE-CONTROLLED SEA TRANSPORTATION
The focus of this year’s conference was on sea transportation for temperature-controlled goods with a very technical
approach. Representatives of two carriers — MSC and Hapag
Lloyd — and their handling agent explained to customers
the main features of a reefer container and how the cooling
system works. “We also brought a 40’ reefer container to our
Milan and Rome Competence Centers,” continues Bruno, “be-
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cause we wanted to give our customers the possibility to see
and touch the equipment we use to ship their precious goods.”
The visit to our state-of-the-art Life Sciences and Healthcare Competence Centers in Rome and Milan was a very
important moment for the Forum delegates. Attendees had
the opportunity to enter the temperature-controlled rooms,
examine the monitoring system and the security appliances,
analyze the standard procedure and touch the new generation
airfreight container RAPe2 by Envirotainer®.
CUSTOMS SOLUTIONS & VALUE ADDED SERVICES
During the Forum, Ferruccio Giuliani, Customs Procedure
Manager, gave an overview of our customs solutions and
value-added services, such as the availability of bonded warehouses and VAT warehousing service, to facilitate the storage
of goods before customs duties and VAT are paid. Many
questions and comments came from the audience, such as the
possibility to expand the LCL import service from India to
Italy and to make it available also for export from Italy.
Top: DHL Competence Center in Milan
Bottom: New generation airfreight container Envirotainer®
“We are very proud to say that both events have been successful,” says Bruno. “Life Sciences and Healthcare is a very
technical sector, and for our customers it is very important to
understand that we speak the same language they do and that
we are ready to listen to their suggestions and needs. That’s
why we are already working on the next Pharma Forum!”
Invitation
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AN OVERVIEW:
THE PHARMACEUTICAL MARKET IN ITALY AND
DHL GLOBAL FORWARDING CAPABILITIES
Up to 10 years ago, Italy was the leading producer of API
(Active Pharmaceuticals Ingredients). But even now, with
India and China leading the way in the API market, Italian pharmaceutical companies sell around 60% of their
production abroad. Looking at the entire industry, export
remains a key activity: between 2000 and 2010, 85% of the
growth of the Italian production was driven by export and
in 2011 the export of pharmaceutical products grew by
19% over the previous year.
Life Sciences and Healthcare is also a key sector
for DHL Global Forwarding Italy: in 2011, the sectordedicated staff shipped 1,500 Envirotainer® or Unicooler®
containers, moved 1,300 ocean reefer containers and
managed over 13,000 air freight export shipments. Every
day, a team of 27 dedicated and well trained people takes
care of pharmaceutical goods and ensure they are managed in the most professional, risk-free and effective way.
DHL Global Forwarding Italy’s huge investments in this
sector have led to the realization of two Life Sciences and
Healthcare Competence Centers in Milan and Rome as
well as a dedicated GDP warehouse in Verona.
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DHL hosts ‘Evolving Life Sciences’
Logistics event in China
A DHL customer interactive event took place in Shanghai in September to address
the issues the LSH industry is facing in China and drive the future development of
new solutions and strategies.
T
he Life Sciences and Healthcare industry in the emerging market of China is facing a transformation in supply chain, creating demand for solutions with reach across
sub sectors, products and geographical regions within the
country. To address this, a regular one-day DHL Life Sciences & Healthcare customer interactive event took place
in Shanghai in September.
Called Evolving Life Sciences Logistics in China, the event
provided a forum for sharing learning experiences, best
practice and collaborative dialogue between industry leaders and DHL’s dedicated Life Sciences and Healthcare sector
teams.
© gettyimages
It was also a chance to explore industry trends and cover the
latest innovations in logistics products and services with an
array of leading keynote speakers from the pharmaceutical
industry and DHL, plus customer presentations and workshops.
DHL | The Pulse | Fall 2012
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LOCAL VOICES
“Evolving Life Sciences Logistics in China was about listening
to local voices and, in so doing, getting closer to the market,”
says Sue Arden, VP Life Sciences & Healthcare, Customer
Solutions & Innovation Asia Pacific.
“We really need to understand the idiosyncrasies of this
complex market and by opening up a dialogue and exploring
the issues facing customers — such as the fragmented market
and the challenges facing manufacturers who want to get their
products out to the second and third tier cities. How can we at
DHL help them reach some of these more remote areas?”
The event’s workshops, says Sue, addressed some of the most
talked about problems. “We looked at some of the solutions
that are successful in other markets and explored the possibility of leveraging from that knowledge to support the market
in China,” says Sue. “The conference invites MNCs and local
Chinese manufacturers to gain a clear understanding of what
suits the Chinese local market.”
Workshops included ‘Managing Complex Temperature Challenges Throughout the Logistics Chain’, ‘Hospital Logistics
– Future Trends and Opportunities’, ‘Managing the Medical
Device Supply Chain in China’ (including bonded and nonbonded strategies), and ‘International Logistics and Regulatory Changes – Impact for Emerging Markets’.
The new serialization, SFDA (Shanghai Food & Drug Administration) regulatory change mandated for 2014, 1D bar
coding which necessitates an additional label, was also a hot
topic. “This will add further costs to the supply chain as the
manufacturers endeavour to find a solution for this new requirement and potentially slow down supply,” says Sue.
“The implications are potentially enormous for manufacturers
— so we at DHL wanted to understand the impact of this new
development and ask how we could help.”
INDUSTRY ISSUES
The event was very well-received by delegates who welcomed
the chance to share their experiences and talk about industry
issues. Key trends validated included regulation and infrastructure challenges and increasing price pressures.
DHL | The Pulse | Fall 2012
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The Main Events: DHL at Canifarma
and Eyeforpharma 2012
DHL Supply Chain sponsored two of this year’s biggest life sciences events — the Eyeforpharma Congress in Miami and the Canifarma conference in Mexico.
Two of the most relevant life sciences events focusing on Latin
America took place this summer — and DHL sponsored
both of them: Canifarma (in Mexico) and Eyeforpharma (in
Miami). The objective in both cases was to engage with — and
better understand the needs of — pharmaceutical manufacturers and medical device companies.
MAJOR PRESENCE AT CANIFARMA
Canifarma — the Mexican Chamber of Pharmaceutical Companies Annual Conference — was held in Mérida, Yucatan,
Mexico, June 13-16, with 230 delegates from government,
regulatory authorities, manufacturers and pharmaceutical
suppliers participating.
DHL has solid capabilities in the region’s key markets, notably
Brazil and Mexico, with a total of more than 20 Life Sciences
focused sites. In addition, DHL offers a regional hub solution
in Panama to store goods ‘near to target market’ and benefit
from inventory consolidation across several countries.
DHL Supply Chain had a major presence at the event, including a booth where new and established customers had opportunities to discuss logistics opportunities in Mexico. DHL also
leveraged the global sponsorships of Manchester United and
Formula 1 Racing to offer raffle prizes.
At both events, stimulating industry discussions and workshops highlighted the importance of customer relationships
and direct-to-market solutions.
Buses sponsored by DHL Supply Chain provided complimentary transportation for customers’ spouses as well as transportation for 180 delegates to a luncheon at La Hacienda Temonzon. Bus passengers watched a welcome video that featured
DHL | The Pulse | Fall 2012
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© pressmaster/Fotolia.com
solutions and capabilities developed during DHL’s 16 years in
the industry in Mexico.
NEW INDUSTRY TRENDS AND LATAM MARKETS
Later in June (28 -29), DHL was a major sponsor of the marketing and sales excellence Eyeforpharma Congress, held in
Miami, Florida. The event played host to 180 delegates from
domestic and international manufacturers who participated in
conferences and workshops mainly focused on new trends in
the Latin American market.
DHL at Canifarma Conference 2012
Again, DHL Supply Chain had a central presence with a booth
at the event entrance and hosted a dinner at the Epic Hotel for
more than 20 customer executives.
Eyeforpharma attendees participated in ongoing discussions around regaining channel control, best ways to leverage
direct-to-market to increase product availability, recovering
supply chain margins, reducing unmanaged cross-border
trade flows, and improving sales force effectiveness.
© gettyimages
Angelos Orfanos, DHL’s President of Life Sciences and
Healthcare, also presented a workshop called “Servicing
Multiple Supply Chains: A key to success for customers.”
As a follow-up to the session, DHL will also be presenting
at ANEVIFAC, a Mexico-based pharmaceutical industry
association.
DHL | The Pulse | Fall 2012
DHL presence at Eyeforpharma
DHL raffle took place during customer dinner / Eyeforpharma Congress
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D
HL Medical Express — the unique logistics solution specifically tailored for the life sciences industry — is expanding its global footprint.
DHL Medical Express is now available in 70 countries globally. Leveraging the global DHL Express network, it provides
express transport services for time-sensitive pharmaceuticals,
medical devices and human specimens.
DHL Medical Express Extends
Global Footprint
Next to a variety of standard specifications, such as priority
handling and inhouse customs clearance, DHL Medical Express offers a certified temperature packaging range ensuring
ambient, chilled or frozen product temperature throughout
the journey. Dry ice supply and replenishment capabilities are
available in most countries of service.
Customer feedback around DHL’s Medical Express solution has been excellent —
and, as a result, its global footprint is being extended.
© gettyimages
Plus, customer needs are handled in an integrated manner by
experienced staff who are dedicated full-time to the transportation of investigational new drugs (INDs).
DHL | The Pulse | Fall 2012
DHL Medical Express simplifies the complexity for laboratories of running a clinical trial. Because it is a modular
solution, DHL Medical Express can easily be tailored to meet
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Vaccine scanning in a DHL Supply Chain warehouse
DHL’s SMARTSENSOR technology
Drugs labelling at a DHL Supply Chain warehouse
a customer’s individual needs; and it’s also a sustainable solution that maintains compliance with local life science regulations, customs legislation and environmental guidelines. Plus
it offers handling priority — from pick-up to delivery — and
full global visibility and traceability with 24-hour customer
service support.
In real terms, extending the global footprint of DHL Medical Express means intensively training operational teams and
couriers. “It’s important that life science and medical products
are dealt with by experts who completely understand the nature
of the package being handled,” says Marco. “For example, some
shipments require active monitoring — otherwise, if the products are not kept within the correct temperature range, they
could fail; or samples might not be usable for research purposes. It’s vital that these materials arrive on time and in order.”
“I see our DHL Medical Express solution being leveraged
by customers with high service need at a more cost-effective
price point,” says Marco, “particularly with regards to medical
devices and clinical trials and supplies; but also for specialized
pharma, such as drugs that need to be shipped under a controlled environment. I see a big growth in the life sciences sector, and this is where DHL Medical Express will come into its
own. It’s a very efficient, controlled and affordable solution.”
DHL | The Pulse | Fall 2012
THERMO-CONTROLLED PACKAGING INNOVATION
Because packaging requirements vary from product to product and country to country, DHL Medical Express has framed
the most frequently used packaging into one easy solution: a
global Thermo-Controlled Packaging (TCP) range of 12 different certified box types for ambient, chilled and frozen shipping. The range is currently being rolled out on a global basis,
and is already available in Europe. Many DHL customers are
now using the TCP range to standardize packaging dimensions, weight and cost.
Contact our expert:
marco.hogenboom@dhl.com
© Africa Studio/Fotolia.com
DELIVERING WITH THE EARLIEST POSSIBLE SERVICE
“DHL Medical Express focuses on small to medium-sized parcels and delivers shipments with the earliest possible service,”
says Marco Hogenboom, DHL Express Head of Industry Life
Science and Healthcare. “It’s been specifically designed to deal
with the requirements of clinical trials and customers who
supply medical devices and has been very well-received. Feedback has been excellent. Customers have been telling us that
this is exactly the kind of solution they need.” DHL Medical
Express is already available widely across Europe and is also
available on demand in countries in the Middle East, Africa
and Asia-Pacific. Roll-out to the US is being completed.
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Product Recall:
Planning for the Unexpected
Recalling a product is a major undertaking — but doing it quickly, sensitively and in accordance with each country’s
statutory regulatory protocols is absolutely vital. That’s why DHL Supply Chain has created DHL Recall Solution,
a scalable, end-to-end recall and fulfilment solution.
A
ccording to the US Food and Drugs Administration
(FDA), the average number of medical device recalls
per year has quadrupled over the last decade. Enforcement in this area is a top priority of the regulatory bodies
around the world. Major manufacturers see their annual
results impacted by recalls, and insurers typically refuse to
cover the risk of recalls for medical devices manufacturers.
© gettyimages
Despite the efforts of the increased regulations, oversight and communications methods in most product
recalls only successfully recover a fraction of the affected
products. Most recall activities need to be executed
in a short time frame and need to comply with
the strict requirements of regulatory bodies
such as the FDA. This means recalling and
scrapping ALL affected devices, reimbursing
customers for the value of the recalled device,
and assisting in finding a replacement for the
end-user.
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Thirdly, replacement units had to be returned to end-users
within a defined lead-time.
With DHL Recall Solution, key data collection is done during
the Request Phase to map all logistic processes and design the
most optimal operational model. Once the solution design
is ready, the Setup phase will ensure all the components are
integrated and ready for the execution.
Within a few weeks of the request, the DHL team can present
the project and is ready to execute the end-to-end solution
orchestrated by the unique DHL Recall Management System
(RMS), the flexible and fully integrated DHL IT Solution supporting recall projects that connects product registration, E2E
order management, monitoring, performance and exception
management as well as “state-of-the-art” reporting.
The process must also be handled sensitively: parties and partners must act with discretion. Statutory regulatory protocols
for handling end-user product recalls vary from country to
country, and each jurisdiction has its own end-user protection codes regarding safety awareness notification, customer
treatment and product replacement. End-user notification
timescales, for instance, range from 14 to 20 days. Despite the
complexity, the expectation for initiation and completion of
an entire recall cycle is limited to only a few months.
Recalling a product is a major undertaking. Although the risk
of end-user injury could be very small, a potential safety risk
will see the manufacturer eager to act without delay. Recalls
require a seamless customer experience. Logistics planning
must coordinate networks of local depots, creating efficient
hubs to administer and process returns.
THREE STEPS FOR SUCCESSFUL RECALL
In creating DHL Recall Solution for customers, DHL Supply
Chain recognized that, firstly, end-users, hospitals and clinics
needed a way to pack and return their product, with minimum inconvenience. Secondly, returns had to be gathered
and shipped to an agent for inspection, repair or replacement.
DHL | The Pulse | Fall 2012
The new DHL Recall Solution is enhanced with several
important features. The global network of DHL offers an
immediate activation capability and an advanced IT system
now handles the customer registration. The system engine can
manage any logistics partner, so clients have the choice of using their own agents in addition to DHL resources. Call center
services, can be integrated into the process if required.
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SEAMLESS CUSTOMER EXPERIENCE
The core challenge, then, is to devise a sophisticated, threestage response across multiple countries, within short time
period, over millions of end-users requiring product registrations, validations and receipt of repaired or replacement
products. This is exactly what DHL Supply Chain has done,
building on its pioneering insight into this vital part of the
logistics operation to develop DHL Recall Solution. This is a
scalable, end-to-end recall and fulfilment solution managing
local, regional, global, multi-lingual recall scenarios.
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CUSTOMER CHALLENGE
• Urgent safety recall
• End users, hospitals, clinics and pharmacies local —
global
• Complex logistics: network infrastructure plus multiple
language communications
“Our ability to augment or replace a customer’s own repair
vendors with DHL’s own service partners provides ultimate
flexibility and scalability.”
CUSTOMER BENEFITS
Despite very tight timescales, DHL Supply Chain is able to
develop and implement a global solution spanning active
recall management across multiple countries. On average,
customers only have to wait 12 working days for a repaired
or a replacement product – a key factor in protecting the
manufacturer’s brand reputation. The recall is executed fast,
professionally and in consideration of the customer’s specific
supply chain model.
DHL RECALL SOLUTION
• Customized end-user registration web portal
• Product return/drop-off, inspection/replacement and
return
• Product repair and return
• Integration of packaging, replacement product warehouse, repair vendor, scrap and recycle vendors • Dashboards and reports
• Individual end-user monitoring webpage and e-mail
communication
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DHL’s IT infrastructure provides open information flows to
the customer at any point in the recall process which provides
full visibility and control. Plus DHL’s extensive transportation
network and flexible pool of key service providers can provide
the required global reach.
Contact our experts:
RecallSolutions@dhl.com
DHL | The Pulse | Fall 2012
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“Building on our learning, DHL Supply Chain’s innovative new
Recall Solution now offers customers fast, scalable response
with customized control,” says Stefan Buschak, Director
Global Service Logistics DHL Supply Chain. “Schemes can
be developed and activated within 24-48 hours of customer
brief. Pre-integration of DHL worldwide logistics resources
ensures recall solutions are configured quickly, customized
and deployed to create dense service network coverage across
multiple territories.
CUSTOMER BENEFITS
• Brand protection, restoring trust
• Manageability, visibility and control
• Global reach, ability to execute
• Agility and flexibility
• Regulatory compliance
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DHL Global Mail delivers for mail-order pharmacies on price, speed and reliability
DHL’s Pharma Select product is a popular solution specifically designed to meet the needs of mail-order pharmacies,
offering “a courier level of customer service, support and
performance management.”
to manage information. Additionally, Global Mail offers reship management assistance and monthly dashboard performance overviews.
BEST VALUE FOR MONEY
A team focused on the pharmaceutical industry is also on
hand to help ensure optimum service quality by analyzing
delivery performance on a network-wide and customer-bycustomer basis.
DHL has been serving mail-order pharmacies for many years;
but in the USA — after identifying the specific needs of this
valued section of its customer base — DHL Global Mail
launched a specialized solution called Pharma Select.
SPECIALIZED REQUIREMENTS
“Mail-order pharmacies have a number of specialized
requirements,” explains Bill Sweeney, Director Life Sciences
& Healthcare, Pharma Select. “For instance, customers look
for enhanced security at facilities where packages are being
processed, and they also want to know where their packages
are at any given time. This is important because the majority
of the products we carry are pharmaceuticals — and primarily
maintenance medications.”
DHL Global Mail has a Workshare Partnership with the US
Postal Service where Pharma Select parcels are brought as
DHL | The Pulse | Fall 2012
© .shock/Fotolia.com
Designed specifically to meet the business requirements of
mail-order pharmacies, Pharma Select is a comprehensive domestic direct-to-patient service offering reliable, fast delivery
— between two to five days from pick-up — for high-value
shipments. What’s more, it features enhanced customer services and reduced postage costs. Since its launch, it has been a
popular innovation for mail-order pharmacies, delivering an
average of five million packages a month on their behalf.
close as possible to their destination by Global Mail before
they are transferred to local postal authorities for final delivery. While this partnership reduces postage cost significantly
for the shipper, the additional services provided by Pharma
Select such as proactive performance management, on demand
reporting and enhanced tracking abilities increase the savings
and offer the best possible return for their postage spend.
Pharma Select customers gain access to an unsurpassed level
of help and transparency with Global Mail’s industry-leading
Customer Web Portal. This enables companies to not only
track their shipments with tremendous visibility, but also set
up email notifications for patients and create internal reports
“The main benefit our mail-order pharmacies say they enjoy
with Pharma Select is the focus on protecting the patient
delivery experience,” says Bill Sweeney, “while also providing
a cost benefit to the pharmacy.
“Our customers also enjoy the high level of service they
receive. Even though their package is being delivered through
the regular mail service, pharmacies can contact us to receive
support on its performance. Plus, through access to our Web
Portal they have a transparent view to every aspect of their
business relationship with us, from Performance Summaries
and Detailed Reporting to Invoicing and Tracking.
“What we offer these customers through the Pharma Select
service is a courier level of customer service, support and
performance management — with added cost advantages.”
For more information on Pharma Select and other
DHL Global Mail services, visit
www.dhlglobalmail.com (USA) or www.dhl.com/mail
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State-of-the-art
Distribution Center
Opens in Mumbai
From the Regions
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Mumbai
© gettyimages
To serve the rapidly growing life sciences and healthcare market in India, DHL has opened a state-of-the-art
distribution facility in Mumbai, offering a complete
portfolio of innovative services to LSH customers.
DHL | The Pulse | Fall 2012
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E
merging markets are forecasted to contribute approximately 75 percent of global pharmaceutical sales growth
by 2015. India is one such market and a major growth engine.
Indeed, according to IMS Research, India’s rank as a pharmaceutical market is expected to increase from 12th to 8th place
between 2010 and 2015. The market’s share of US pharmaceutical spend is also expected to grow from 4% to 8% over the
same period.
This, then, is one of the most important emerging Life Sciences and Healthcare markets in the world. That’s why, in
June, to serve the enormous and growing demand from LSH
customers, DHL launched a new Supply Chain Life Sciences
& Healthcare distribution center in Mumbai.
MEETING INCREASING LOGISTICS NEEDS
The state-of-the-art life sciences facility in Mumbai is located
within a newly constructed 56,000 square meter multi-client
distribution center and will cater to the requirements of India’s
rapidly growing Life Sciences industry and to other sector
requirements as well.
“The new platform in Mumbai will enable us to provide a
world class service to our customers, enabling them to expand
their businesses,” says Vikas Anand, Chief Operating Officer,
DHL Supply Chain India. “Life Sciences & Healthcare is a key
industry for DHL Supply Chain in India. By setting up this
world class infrastructure we continue to meet the industry’s
increasing logistics and warehousing needs. We have the capabilities to distribute to wholesalers, pharmacists and hospitals
from our new center in Mumbai based on customer demands.”
DHL | The Pulse | Fall 2012
New life sciences facility in Mumbai
PORTFOLIO OF SERVICES
The new center offers a complete portfolio of innovative
services to manufacturers of pharmaceutical products, with
facilities ranging from order management to warehousing and
distribution, plus very specific solutions such as postponement services, clinical trials logistics and order-to-cash. The
Multi-Client Site (MCS) also uses green technology such as
LED lighting and wind-assisted ventilation.
DHL now has more than 150 life sciences and healthcare facilities worldwide, including 28 competence centers, 22 clinical
trial depots, four regional hubs (Turkey, Dubai, Singapore,
Panama) and five European road cross-docks. In India, DHL
is now constructing MCS facilities in Gurgaon, and Bangalore
and planning sites in Chennai and Ahmedabad. Other sites in
Delhi, Kolkata and central India are also being reviewed.
“DHL is strongly committed to investing in markets of growing importance,” says Angelos Orfanos, President and Global
Head of Life Sciences & Healthcare, DHL Customer Solutions
& Innovation. “Looking to 2015 and beyond, India, China
and other emerging markets are expected to be the key drivers
of growth in the pharmaceutical and medical device sectors.
With this warehouse, we take another step in pursuing DHL’s
global industry sector strategy by opening our new platform
and deliver exactly the specialized services that our clients are
asking for.”
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S
ince then, the Budapest Pharma Platform has been readying itself for its first two customers. Respectively, these are
one of the biggest global generic and specialty pharmaceuticals companies, headquartered in the USA, and a biopharmaceutical company specialized in the development, production
and distribution of plasma-derived products.
Budapest Pharma Platform to
Receive First Customers
Earlier this year, DHL’s Budapest Pharma Platform — operated by DHL Supply Chain Hungary
— came on stream to boost DHL’s ability to respond to the needs of the Life Sciences and
Healthcare industry in eastern Europe.
Over the last six months, customer implementations have
been conducted at the Budapest facility in preparation for the
customers’ arrival. Work has included facility upgrades and
customization of processes for both customers’ special storage
areas and goods handling requirements.
Multi-customer warehouse
For example, for one of the customers, a cold room has been
built for their finished products, plus a sampling room where
sampling of bulk products can be carried out. A new Plasma
Operation Center, where blood plasma can be stored and
manipulated, has also been created. This area has four different
temperature zones, including an office area with a laboratory.
In collaboration with the second customer, the Budapest
Pharma Platform has developed a specific 12M service including warehousing and sampling of the customer’s bulks, primary
and secondary packaging materials and transportation to their
manufacturing plant.
DHL | The Pulse | Fall 2012
© shutterstock
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At 34,000 square meters overall, the Budapest Pharma Platform
is a multi-customer warehouse than can accommodate 60,000
pallets. It offers storage zones for ambient (15°C to 25°C) and
chilled (2°C to 8°C) goods, along with a 2,400 square meter
Good Manufacturing Practice (GMP) area with a capacity for
storing 4,000 pallets.
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A
recent study published by Thomson Reuters claims that
rare diseases can generate as much revenue for their
manufacturers over the lifetime of their treatment as those
used for much more common health conditions. The study
also notes that the rare disease market was worth just over
$50 billion globally at the end of 2011, with a compound annual growth rate between 2001 and 2010 of almost 26%.
Responding to the unique
needs of rare diseases
DHL Supply Chain’s packaging and kitting services facility at its Regional Distribution
Center (RDC) in Nijmegen, the Netherlands, targets rare diseases.
Rare disease is defined differently around the globe. In the US,
a disease is rare if it affects fewer than 200,000 people, which
means that around 30 million Americans are afflicted with
rare diseases. In Europe, the definition is slightly broader. A
disease is considered as rare when it affects no more than 5
in 10,000 people in the EU — equivalent to around 250,000
people or fewer for each disease.
THE SPECIALIST NEEDS OF RARE DISEASES
Whatever the definition, many new treatments for rare oncology and metabolic diseases are now coming to market, and
in many cases these treatments are extremely expensive. Rare
diseases are an area in which big pharma wants to have a presence and these companies know that expertise in this area is
different from the ‘mass market’ pharma business.
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The specialist needs of rare diseases naturally extend into
the logistics arena. Very high value, temperature-controlled
(mainly chilled) product, with patients geographically
dispersed and relatively few in number, and with individual
market demand often difficult to predict, requires a logistics
partner capable of offering a very flexible, fast-reacting solution, which both reduces inventory levels and controls costs.
The facility provides an end-to-end service of warehousing and regional
cold chain distribution, production from naked vials to final product,
secondary packaging activities, and final packing.
DHL provides a GMP environment for packaging and kitting services at its Regional Distribution Center (RDC) in
Nijmegen, the Netherlands, and has recently strengthened its
assembly and postponement capabilities. It provides an endto-end service comprising warehousing and regional (EMEA)
cold chain distribution, production from naked vials to final
product, secondary packaging activities, and final packing.
Each element of the process meets different, country specific
legal and compliance requirements before finished products
are shipped across the region.
Invitation
BENEFITS OF A CENTRALIZED SOLUTION
The DHL facility receives from the pharma manufacturer the
relevant components and naked vials within a segregated,
secured and dedicated area. Manufacturing of final presentations include label printing, batch-number assignment, carton
printing, leaflet printing and physical packing for market specific products. QP release and storage is followed by regional
(cross-border) distribution (managed by DHL Supply Chain)
to pharmacies and hospitals across Europe.
The benefits of DHL’s centralized RDC solution for the rare
diseases manufacturer are clear: reduced investment in finished goods stock, in particular in difficult to predict marketspecific inventory levels, short lead-time / response time to
market specific requests (usually within a two day turnaround
period) and having one contract partner for both GMP certified warehousing and distribution.
INFORMATION
For more information contact: Arjen Hellinga, Business
Development Manager, DHL Supply Chain, Netherlands
Email: arjen.hellinga@dhl.com
DHL | The Pulse | Fall 2012
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Save the Date
© gettyimages
The 13th DHL Life Sciences & Healthcare Conference
and Workshops: June 11 & 12, 2013, Miami, USA.
DHL | The Pulse | Fall 2012
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temperature sensors and loggers — as well as DHL Express,
DHL Global Forwarding, DHL Freight, DHL Supply Chain
and DHL Global Mail — will allow for direct discussion. As
ever, the Conference and Workshops underpins our ongoing
commitment to listen to our customers — and then develop
innovative and tailored supply chain solutions based on their
specific requirements.
Angelos Orfanos, President Life Sciences & Healthcare Customer Solutions & Innovation DHL, addresses a previous conference
he Life Sciences and Healthcare sector continues to face a
complex environment of tightening regulations, increasing
cost pressures and evolving business needs, such as access to
emerging markets.
In order to help address these and other challenges and shape
industry direction, DHL is delighted to announce its 13th
Global Conference and Workshops event for 2013 — this time
taking place in Miami.
This annual event is a successful, dynamic and productive
forum for logistics professionals, including those from pharmaceutical and medical devices manufacturers, distributors
and clinical trial/research organizations. Delegates meet to
highlight and discuss the issues and trends affecting life sciences and healthcare today — and those the sector is likely to
face in the year ahead.
The Conference and Workshops event is the ideal
opportunity to engage and exchange
• Listen to top-level industry speakers sharing best practice
• Learn from recent experience in the industry in workshops
and presentations
• Exchange ideas and opportunities with other participants
• Learn about recent trends and shape future logistics
solutions
• Network with your peers and suppliers
Attendees can also choose from 40 workshop sessions exploring the most current topics affecting their businesses, hear
inspiring guest speakers from around the industry, and meet
with leading suppliers involved with some of the most innovative and advanced solutions in our sector.
Information booths from vendors of active and passive thermal packaging solutions for freight and express, suppliers of
DHL | The Pulse | Fall 2012
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T
A formal invitation will be released in January 2013, describing the agenda and offering a registration site. Do come and
join us at this unmissable industry event, help us understand
your current and future needs — and hear about our recent
investment and solutions activity in this most vital of sectors.
WORKSHOPS WILL INCLUDE:
• Cold chain/temperature management
• Global market access
• Cost management via shared infrastructure
• Cost management via road / ocean freight / mode mix
• Using control towers/ LLPs to outsource more of your
logistics and improve operational efficiencies
• Managing distribution
• Clinical trial logistics and express transport solutions
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