Shanghai Pharma, one of China’s largest listed pharmaceuticals groups, has signed a Memorandum of Understanding (MOU) with DHL Supply Chain, the global market leader for contract logistics solutions, to prepare its logistics infrastructure for rapid global expansion.
Under the MOU, the pharmaceuticals giant – which generated revenues of almost RMB121bn last year – will partner with DHL Supply Chain to enhance quality control measures, streamline distribution processes, and strengthen compliance with local and international food and pharmaceutical regulations. A range of recent government initiatives, including the “two-invoice” or fapiao policy which was rolled out earlier this year, have put greater onus on China’s pharmaceutical sector to improve the transparency and efficiency of local supply chains.
To facilitate 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 optimisation needs as the manufacturer ramps up its overseas distribution and retailing efforts.