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SPH joined hands with DHL to develop pharmaceutical logistics

On August 4, Shanghai Pharma (SPH) and DHL China performed a strategic cooperation and joint venture agreement signing ceremony in Shanghai. The two parties will join hands in life science and healthcare sector, and throughcapital and business cooperation, they will achieve complementary advantages and resource sharing, and jointly develop third-party logistics warehousing, distribution and value-added services related to medicine, health products and medical device.

Attendees of the signing ceremony included Mr. Cho Man (executive director and president of SPH), Mr. Li Yongzhong (executive director and vice president of SPH, and GM of Shanghai Pharmaceutical Co., Ltd.), Mr. Liu Dawei (vice president, secretary of Board of Directors of SPH),  Mr. Ren Gang (Vice GM of Shanghai Pharmaceutical Co., Ltd.), and Mr. Zou Yin (CEO of DHL Supply Chain China), Mr. Zhu Wei (CFO of DHL Supply Chain China), Mr. Michael Trinkus (GM of Life Science, DHL), Mr. Li Zhihao (head of corporate strategy and corporate communication, DHL), Mr. Tian Hua (business development director of life science and healthcare, DHL Supply Chain).

To promote the implementation of the strategic cooperation, both parties expected to launch the set-up of the joint venture, and further discussions on cooperation projects, aiming at improving the total quality management and standard operating procedures of the Chinese life science and healthcare sector in respect of circulation, and at boosting the transformation and upgrading of the industry.

Mr. Zou Yin said the cooperation with SPH would make China a core market of DHL in the life science sector around the globe, and enable it to provide one-stop and end-to-end full logistics services to global pharmaceutical companies within China. DHL will introduce pharmaceutical and bio-science products that are well accepted by global customers, as well as related logistics service innovation.

SPH indicated the cooperation would contribute to the flexible use of DHL's transport network and supplier resources across the country to synergize SPH's logistics development strategy, and by scale and network merits, further enhance the logistics operation efficiency and realize reasonable cost. In the future, the two parties will work to create an efficient, agile and smart supply chain service system that will rise as the first choice of logistics strategic partner in China’s pharmaceutical and life science industries. It will serve foreign pharmaceutical companies to expand the Chinese market, and meanwhile, help domestic companies to go global.

The life science and health industry in China is currently undergoing a rapid development, and along with gradual implementation of the Two-Invoice System and full upgrade of industry regulation, the industry is in a window period of change and transformation. The upstream and downstream customers will demand a great many value-added services, crying for excellent, efficient and professional logistics services to meet their needs.

SPH's main businesses cover pharmaR&D, production, distribution and retail, ranking top in comprehensive strength across China. In the field of distribution, SPH owns more than 200 commercial companies and over 40 logistics centers in China. In recent years, the company continued to accelerate its layout of national network, committed itself to developing a national supply chain services and innovation platform for the comprehensive healthcare field, thereby consolidating the leading superiority in distribution.

As a leading global logistics company, DHL has a complete logistics system in the Greater China region. It offers a full range of services including express delivery, freight forwarding, e-commerce and supply chain management; moreover, it has 15 years of experience in life science and health, offers a variety of services for improved stability and transparency of logistics, products covering several sub-industries, such as drugs, medical device and medical consumables.


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