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					DHL Life Sciences & Healthcare



THE PULSE
    EDITORIAL

    Dear customers and readers,
      I am very pleased to send you this new issue of the
    DHL Life Sciences & Healthcare Pulse newsletter and to
    share the strategies, initiatives, solutions, and project up-
    dates our group has specifically developed for the sector.
      In March 2009 we launched our new DHL group-wide
    Strategy 2015 wherein we made promise to simplify our
    customer approach and to create sustainable solutions
    which generate new value propositions to meet today’s
    – and tomorrow’s – challenges. In the midst of a chal-
    lenging year for manufacturers, distributors, and service
    providers, we shared common issues around capacity management, mode shifts, cost controls, increased
    outsourcing, and higher service expectations. The industry demonstrated its strengths by finding ways to
    collaborate and innovate its supply chain to meet the many needs of its customers and stakeholders. Our
    team is very proud to have had an opportunity to contribute in making our customers, and ultimately their
    customers, successful!
      A key pillar to our Strategy 2015 is the selection of Life Sciences & Healthcare as a focus sector for the
    DHL group, reinforcing our position as a leading provider to the industry. In our aim to build on our experi-
    ence and infrastructure, we focused on increasing our Customer Engagement, leveraging our cross-divisional
    Expert Community, and developing a Fact Base to better understand the main drivers and KPIs of the sector
    supply chain. With the support of our customers, we laid the foundation to work towards our vision to be
    The Logistics Company for the Life Sciences & Healthcare sector.
      Our annual customer Conference and Workshops held in Miami this past June 2009 turned out a record
    number of customer attendees from 55 countries, more suppliers, and senior representatives from all of
    DHL’s business units. Over 440 participants had a unique opportunity to network with peers, learn from
    customer case study presentations, and collaborate in workshops covering 30 different topics chosen by our
    customers. This concentrated learning experience identified the solutions the industry will need to meet its
    future challenges and pointed the way forward for DHL. With this type of support, we are well on our way
    to develop the solutions expressed by our customers.
      This year our global customer conference will be held in Dubai, UAE, on September 21-23, 2010. Our
    agenda is enclosed for your review with exciting new supply chain solutions including cold chain, order to
    cash, outsourcing, network optimization, and much more. We look forward to your support and participa-
    tion.
      As always, I hope you will enjoy reading this issue of our newsletter and find value in learning about the
    new solutions and activities engineered to support your supply chain.
    Sincerely,
    Angelos P. Orfanos
    Global Head of Life Sciences & Healthcare
    DHL




2    THE PULSE
THE CHALLENGES OF THE
GLOBAL SUPPLY CHAIN
 BY ANTHONY MITCHELL
  In a recent survey carried         care manufacturers’ product port-    commitment to invest in Life
out by the Science Museum in         folios diversify, a greater volume   Science Competence Centers
London, the public were asked        and variety of new products will     at major Healthcare airport
to vote for the invention having     fill pipelines, creating increas-    hubs – so far, 15 are operational
made the greatest impact on the      ing complexity and risk – in turn    with a further dozen planned to
past, present, and future from       impacting quality and regulatory     be opened each of the next two
a selection of ten of the most       compliance from manufacturing        years. Similarly its European
significant objects in science,      through distribution to dispens-     road freight network is targeted
engineering, technology, and         ing.                                 specifically at the transport of
medicine.                                                                 these most vulnerable products,
                                     The shifT To biologics
  Out of nearly 50,000 votes                                              isolated from a harmful external
                                       The clear shift to harnessing
cast, 10,000 people named the                                             environment and from cross-con-
                                     biologic molecules for therapeu-
x-ray machine as the best in-                                             tamination from other products.
                                     tic purposes is increasing pres-
vention, beating the Apollo 10       sure on the global supply chain.       In-transit protection of temper-
space capsule and Stephenson’s       Such products, not to mention        ature-sensitive products, includ-
Rocket. Indeed the first three       the vaccines for pandemic flu,       ing biologics, requires consis-
positions were filled by medical     are highly complex, suscep-          tency, visibility, security, and
inventions or discoveries, the       tible to contamination, and very     control across the global supply
x-ray machine being followed by      sensitive to their environment.      chain. DP-DHL has many years’
the discoveries of penicillin and    Biologics need temperature-          experience of packaging solu-
the DNA double helix structure .     controlled conditions to keep
  The fact that the top three in-    them stable during transport and
ventions voted for by the public     storage.
are all healthcare related – X-        This requires commitment
rays providing the first possibil-   and investment from all the
ity of looking inside someone’s      stakeholders in the supply chain
body without cutting them open,      – beyond the factory gate, the
a massive advance – underlines       freight forwarder and warehous-
both healthcare’s importance to      ing and transport providers need
the public and the significance of   to ensure that they have made the
innovation in the sector itself.     necessary investments to ensure
  Such innovation also plays an      product quality and safety are
important part in shaping the        maintained. Hence, for example,
global supply chain. As health-      Deutsche Post DHL’s (DP-DHL)




                                                                                        THE PULSE              3
    THE CHALLENGES OF THE GLOBAL SUPPLY CHAIN
    tions, both active and passive,     manufacturer, the quality of the     tion team, enables the tracking of
    and works to offer the best-of-     product must be ensured at every     individual units on their journey
    breed cool chain products and       stage of the process, from facto-    to the end customer. To know
    services from a single source.      ry, through transport and storage,   the origin and the history of a
    This includes the provision of      delivery, and dispensing.            product is to know its pedigree,
    sensoring and data management         It is worth noting that out-       with the ability to accurately
    tools (such as DP-DHL’s own         comes-based payments also put        recall a given batch of products
    SmartSensor), protective pack-      much more emphasis on patient        without impacting the rest in the
    aging, as well as the underlying    compliance, since reimbursement      supply chain. Legislation may
    processes and services, such as     will be dependent on quantifiable    not be far off which will enforce
    exception management report-        improvements in patient health.      electronic pedigree (ePedigree),
    ing.                                So in the sense that the supply      and the RFID technology on
                                        chain extends to the patient, an     which the SmartSensor is based
    The Trend To ouTcomes-based
                                        element of its performance has to    is very well suited.
    paymenTs
      The healthcare industry is not    ensure that the product is taken       RFID tags can be scanned
    immune to the effects of the        in the right dose, at the right      automatically without needing
    financial crisis. Governments,      times of day, and for the appro-     to have line of sight. The lat-
    who pay for the vast majority of    priate duration. Where the envi-     est sensors can provide clear
    healthcare products, are finan-     ronment is the patient at home,      evidence of position and time
    cially constrained and will not     the packaging and the sensoring      (through GPS tracking) and also
    unquestioningly support new         technology have to be designed       record many aspects of the prod-
    products. There are increasingly    both to protect the product and to   uct’s journey, including physical
    rigorous cost-benefit analyses to   provide feedback to doctors on       shocks and environmental condi-
    be undertaken, with the industry    patient compliance and progress.     tions. All these features provide
    needing to prove that its thera-      The SmartSensor, developed         evidence of the integrity of the
    pies are effective at addressing    by DHL’s Solutions & Innova-         product on its way to the patient
    health problems in the real                                              and support the manufacturer’s
    world.
      Outcomes-based payments,
    or payments for performance,
    examples of which have been
    agreed between the UK’s NICE
    (National Institute for Health
    & Clinical Excellence) and the
    pharmaceutical industry and
    which seem to be setting a pat-
    tern for the future, not just in
    the UK but more widely, put
    particular pressure on the global
    supply chain. In order to secure
    maximum reimbursement for the




4   THE PULSE
                                                     THE CHALLENGES OF THE GLOBAL SUPPLY CHAIN




claims for maximum reimburse-        been distributed in western mar-     tion system is the model for ge-
ment.                                kets alongside branded drugs,        neric drugs and will fit the mixed
                                     their distribution costs in effect   portfolio of the pharmaceuti-
The imporTance of generics
                                     being subsidized by the branded      cal company of the future: one
  While the supply chain has
                                     products.                            which balances risk by integrat-
to cope with the challenges of
                                       This high-service, high cost       ing and co-ordinating a diverse
working with biologics, it has
                                     supply chain for drugs (in some      portfolio of products: biologics,
to be flexible enough to sup-
                                     western markets up to 5 times        small molecules, generics, con-
port products that are over their
                                     a day replenishment of retail        sumer healthcare, diagnostics,
patent protection period and
                                     pharmacies) has been challenged      and devices.
are now subject to competition.
Governments and payers in gen-       by those branded manufactur-         accessing new markeTs
eral encourage the prescribing       ers who have gone from the             In an effort to extend their
of lower-cost treatments and this    traditional trading model with       global reach and often as a
has resulted in significant growth   wholesalers to a fee-for-service     means of gaining access to new
in generic equivalents.              (3PL-type) relationship. This        international markets, the brand-
                                     gives the manufacturer visibil-      ed drugs manufacturers have
  In recent months, many of the
                                     ity and control over his product     created alliances with generics
established branded drugs have
                                     much further along the sup-          manufacturers. Emerging and
become generics, with many
                                     ply chain and at some point, as      developing markets, however,
more following in the next two
                                     costs continue to be squeezed,       although keen to promote health-
years. As the overall cost of
                                     the opportunity to introduce an      care and encourage the adoption
these drugs to the payer falls, so
                                     operating model closer to that of    of western medicines, as well as
in theory funds are freed up to
                                     a consumer industry.                 the use of western diagnostics
pay for new, branded products.
Up to now, generics drugs have        A low-cost, efficient distribu-     and devices, are extremely price-




                                                                                        THE PULSE              5
    THE CHALLENGES OF THE GLOBAL SUPPLY CHAIN
    sensitive.                              Whatever the product or            lack of accountability and vis-
      The industry players that first     wherever the geography, whether      ibility for a product after it has
    establish themselves in these         destined for the local market-       been packaged in the factory.
    markets are either local firms        place or as global sourcing, the     After passing through the factory
    that have set out to manufacture      supply chain plays a fundamental     gates, third parties, rather than
    off-patent medicines at low cost,     role in connecting the company       the manufacturer, are responsible
    or they are western generics          with the dynamics of the market-     for the product. The ability to
    manufacturers. In either case,        place: supply and demand. An         track and trace and report back to
    these companies will have set         effective supply chain should        the pharmaceutical company at
    up a factory, identified suppliers,   be designed so that it delivers      all stages and in as near real-time
    established links with govern-        reduced operational cost through     is crucial.
    ment departments and regulatory       working capital savings (in par-       Parallel trade, however, al-
    bodies, and developed channels        ticular lower inventory holdings)    though legal, creates another sig-
    to market. These latter might         and enhanced quality and supply      nificant challenge to the global
    be directly with hospitals, more      chain security.                      supply chain. Parallel trade
    likely with myriad distributors       adding complexiTy                    creates complexity, it fragments
    separately to hospital and retail       Overseas manufacturing, out-       the supply chain and provides
    customers, but who understand         sourcing, strategic alliances, and   opportunities where the quality
    the local customs and practices.      global sourcing, however, all add    of the product and patient safety
       Alliances by western manu-         complexity to the supply chain.      can be compromised. A batch
    facturers with partners in geog-      If only introduced as cost-cutting   recall is almost impossible to
    raphies such as India and China       measures, such initiatives can       carry out effectively as the mix
    provide the opportunity to source     create as many issues as they        of wholesalers, distributors, and
    products at lower costs – and         resolve, especially regarding        parallel traders make identifying
    to establish manufacturing and        product authenticity and quality.    the appropriate batch and sepa-
    research facilities in these coun-                                         rating it from the rest a thankless
                                            One of the biggest challenges
    tries, as significant investments                                          task.
                                          of the global supply chain is
    by branded manufacturers testify.
    At the same time, the increase in
    wealth of both governments and
    individuals in these and other
    markets, including Brazil, Rus-
    sia, South Korea, and Turkey,
    creates new opportunities. Such
    developing countries are reck-
    oned to represent the majority of
    the incremental growth potential
    in the industry, but, as has been
    said, accessing these markets
    will not be at prices comparable
    to those paid by western markets.




6   THE PULSE
                                                    THE CHALLENGES OF THE GLOBAL SUPPLY CHAIN




  Poor control over the global       healthcare products, through-          Through continued investment
supply chain in turn attracts sig-   out their product life cycle. Its    in people, training, systems, and
nificantly less desirable players    ability to track and trace, col-     facilities, Deutsche Post DHL
in the shape of counterfeit drug     lect and manage information for      enhance their global reach to
manufacturers. Lack of visibil-      manufacturers, as well as pro-       support the manufacturers of
ity in the supply chain prevents     vide appropriate protection of the   healthcare products – whether in
the identification of the point      product adds significant value to    handling increasingly complex
of entry of the counterfeit prod-    the manufacturer, who can focus      treatments, in providing more
uct, compromising quality and        on core capabilities yet still be    visibility to support outcomes
threatening patient safety, not to   assured he maintains control         based payments, or in carrying
mention damaging the genuine         over the supply chain.               greater volumes in a global sup-
product’s revenue.                     DHL’s Solutions & Innova-          ply chain subject to ever tougher
                                     tion team continue to work with      regulation.
keeping conTrol
  Deutsche Post DHL’s Life           internal business units as well
Sciences and Healthcare sector       as with external suppliers to
has pioneered the processes and      develop end-to-end solutions for
support mechanisms necessary to      temperature-sensitive products,
generate a standard for the global   in order to position DHL as the
transportation and storage of all    global “go-to” company for all
                                     healthcare supply chain needs.



                                                                                        THE PULSE             7
    CREATING A COLD CHAIN CULTURE
      “A cold chain is much more
    than a chilly set of logistics
    activities, it is a vital, health-
    preserving part of global trade,”
    says Angelos Orfanos, Head of
    Life Sciences & Healthcare at
    DHL.
      Frankfurt Airport on a pleasant
    summer afternoon. The outside
    temperature is 20 degrees cen-
    tigrade. An LD3 container has
    been sitting out on the tarmac
    for the last two hours is and its     distribution activities which         industry evolves, it continues to
    internal temperature is right         maintain a given temperature          globalize. Today’s pharmaceuti-
    now is a whopping 76 degrees.         range. And although this may          cal footprint looks very different
    That’s bad news if it contains        conjure images of refrigerated        that it did a decade ago.
    temperature-sensitive goods such      trucks delivering goods to icy          As pharmaceutical companies
    as pharmaceutical or life science     storage facilities, cold chain ex-    consolidate manufacturing bases,
    products.                             cellence depends on much more         increasingly, supply chains
      The complexities of a suc-          than infrastructure.                  are changing and products are
    cessful cold chain are often not        But first, let’s look at why cold   travelling greater distances and
    recognized or understood by           chain excellence has become an        through a more diverse range of
    the end-user – whether this be a      important deliverable for ser-        climates. A product that starts its
    healthcare professional, scientific   vice providers in the logistics       journey in a climate that requires
    researcher or medical patient.        industry, and a must for drug and     protection from heat may end
    However, the processes in place       pharma companies around the           up in a climate where it needs
    are vital for an increasingly         world.                                protection from freezing.
    globalised marketplace, facilitat-
                                          globalizing impacT                      In addition, as healthcare glo-
    ing trade, whilst at the same time
                                            Despite the economic down-          balizes, so do the associated le-
    ensuring product integrity and
                                          turn, the life sciences and health-   gal requirements. Products must
    safety.
                                          care sector continues to grow         meet an international patchwork
      Of course, this doesn’t mean        – whether it be by producing          of regulations relating to trans-
    that cold chain is merely a chilly    medicines to treat the common         port and handling. And new or
    set of logistics activities. Cold     cold, developing tests for an         revised regulations that pertain
    chain is a temperature-controlled     epidemic such as the H1N1 flu         to the required temperature range
    supply chain entailing an unin-       virus, or engaging in R&D to          of life science and healthcare
    terrupted series of storage and       find a cure for cancer. And as the    products, such as those set by




8   THE PULSE
                                                                    CREATING A COLD CHAIN CULTURE
the FDA in the US, also require     designed to ultimately protect the   the chain. As a product moves
service providers to respond with   health of the end-user.              from shipper to forwarder to an
cold chain solutions.                 For the manufacturer, tempera-     airline or ocean carrier and then
  The changing profile of phar-     ture excursions could mean hav-      to a customs environment and
maceutical products, such as the    ing to dispose of products and       back into a trucking environ-
increase in new biotech drugs,      face supply shortages. In ex-        ment, there are many openings
also has an impact, because these   treme cases, there could be legal    for temperature deviation.
have a larger molecular structure   repercussions such as fines, li-      cold capabiliTies
and are more sensitive to tem-      cense suspensions, site closures,      The importance of the cold
perature and humidity. But don’t    damage to corporate image and        chain requires pharmaceutical
forget that even “traditional”      health problems.                     companies to place a tremendous
medicines like insulin, fatty-         This makes third party logis-     amount of trust in their logistics
based suppositories, and eye        tics providers responsible for       service providers. Therefore,
drops require consistent tempera-   developing a culture of cold         they need to work with a service
ture control as they move along     chain excellence, where they         provider that has the competence
the supply chain.                   have a deep understanding of the     to manage the entire supply
hoT consequences                    product and how to manage it as      chain.
  The main concern with cold        it moves along the distribution        For example, we have already
chain is the possibility of tem-    line. Anything less than this will   identified the customs environ-
perature excursion – when the       fail to satisfy the customer and,    ment as a risky handover point
required temperature zone for a     worse, protect the patient. How-     for temperature sensitive goods.
product is exceeded. From re-       ever, as a temperaturesensitive      At some ports, customs have
lease by manufacturer to arrival    product moves to the market,         cold storage spaces, while at
on the market, pharmaceutical       there are numerous opportunities     others they do not. If a ship-
products have a certain tolerance   for things to go wrong.              ment of pharmaceutical products
for temperature excursion. How-       In fact, the greatest risk of      becomes held up at a customs
ever, if the temperature excur-     temperature excursions occur at      environment that does not have
sions during the transport period   the several handover points in       cold storage facilities, there is a
cumulatively                                                             real risk that they will become
exceed that                                                              compromised.
designated                                                                 Hence a rigorous testing pro-
by the manu-                                                             cess to qualify the trade lanes
facturer, then                                                           along the cold chain and map-
the product                                                              ping out the entire door-to-door
could spoil                                                              supply chain to get end-to-end
and poten-                                                               visibility is a recommended
tially cause                                                             3PL (third party logistics pro-
significant                                                              vider) capability, to ensure that
expense. All                                                             your products are not subject to
the measures                                                             unsuitable and potentially haz-
in place are                                                             ardous conditions. Once tem-




                                                                                        THE PULSE              9
 CREATING A COLD CHAIN CULTURE
 perature excursions on a lane are
 identified, they can be minimized     LEADERSHIP DIALOGUE:
 or even eliminated.
   For the service provider, the
 approach to creating a culture of
                                       FOCUS ON LIFE SCIENCES
 cold chain excellence involves
 having the right infrastructure
 in place – such as cold storage
                                       & HEALTHCARE IN INDIA
 areas where pharmaceutical
                                         DHL Global Forwarding’s            service solutions already devel-
 products are separated from dry
                                       work in the life science sector      oped by DHL for the industry;
 chain goods, and special vehicles
                                       continues to develop at a rapid      provide a forum for understand-
 to transport cold chain goods –
                                       pace. Following the Global Life      ing the current opportunities
 but it also involves well-tested
                                       Sciences & Healthcare Confer-        and challenges faced by the life
 processes and dedicated and
                                       ence and Workshops in Miami          sciences and healthcare industry
 knowledgeable people, who
                                       June 2009, the latest country un-    in the India; and to listen to our
 know how to do everything from
                                       der the spotlight was India. The     customers, and learn where we
 dry ice calculations to managing
                                       region’s life science industry has   need to further develop/adapt
 packaging solutions.
                                       been growing rapidly in recent       solutions for this market.
   Cold chain challenges are           years, driven by a cost efficient
 problems for life science com-                                             presenTaTion highlighTs…
                                       but highly skilled production
 panies. The logistics service                                                The conference was opened by
                                       base, supportive government
 provider needs to make its cus-                                            DHL’s CEO for Global Forward-
                                       policy, and a rapidly growing
 tomer’s problems its own. While                                            ing in India, Chris Rehmund.
                                       global demand for lower priced
 this requires investing in the lat-                                        Angelos Orfanos, Global Head
                                       pharmaceuticals. Not surprising
 est technologies and infrastruc-                                           of Life Sciences & Healthcare
                                       that the domestic Indian phar-
 ture, the largest investment needs                                         for DHL, provided an overview
                                       maceutical industry has grown
 to be made in cultivating the best                                         of DHL’s worldwide service
                                       quickly in recent years – and this
 processes and training competent                                           capabilities for the sector, focus-
                                       rapid expansion is set to con-
 staff . Ultimately, the goal of the                                        ing in particular on cold chain
                                       tinue.
 logistics service provider is to                                           solutions and the development of
                                         DHL has a key role to play in      DHL’s resources and people to
 get
                                       supporting the development of        continue to support the industry.
   the products to the right place     the life sciences and healthcare
 in the right condition and on                                                This was followed by a fas-
                                       industry. On September 11th,
 time. Only by taking a holistic                                            cinating overview, provided by
                                       2009, 75 customers, together
 view of the cold chain, con-                                               Dr. Tapan Ray, Director General
                                       with experts from the industry
 stantly monitoring for potential                                           of the OPPI (Organisation of
                                       and DHL representatives, gath-
 exposures and by closing gaps,                                             Pharmaceutical Producers of In-
                                       ered for an event in Mumbai to
 can this be achieved.                                                      dia), into the development of the
                                       focus on this sector. The Lead-
                                                                            Indian domestic pharmaceutical
                                       ership Dialogue Conference,
                                                                            market, and how it compares to
                                       the second in the region, was
                                                                            other economies. He also shared
                                       designed to share some of the
                                                                            with the audience his views on



10   THE PULSE
                         LEADERSHIP DIALOGUE: FOCUS ON LIFE SCIENCES & HEALTHCARE IN INDIA
                                                                           environment, and clinical trials
                                                                           logistics. Workshops also gave
                                                                           participants the opportunity to
                                                                           discuss the regulatory issues
                                                                           raised by Mike Meakin in his
                                                                           presentation, and the findings
                                                                           of the recent industry research
                                                                           study undertaken by DHL Global
                                                                           Forwarding.
                                                                             The Leadership Dialogue has
                                                                           received very positive feedback
                                                                           from those attending, and DHL
                                                                           plans to continue the model with
                                                                           future events across the Asia
                                                                           Pacific region to reach out to
how the industry has developed          Mike Meakin, Vice President
                                                                           our Life Sciences & Healthcare
and the challenges and opportu-       of Quality Assurance and Regu-
                                                                           customers to share our service
nities that face it in the future.    latory Affairs at DHL, closed
                                                                           capabilities and listen to their
  Dr. Ravi Prakash Mathur,            out the plenary session with a
                                                                           thoughts on future solutions.
Logistics Director, Dr. Reddy’s       detailed insight into the legisla-
                                      tive backdrop and the regulatory       As a further investment into
Laboratories, then presented
                                      hurdles that face the industry in    the life sciences industry in the
his views on how the industry
                                      getting their products to market.    region, DGF has recently named
needs to improve and streamline
                                                                           Deepak Kotak as Life Sciences
logistics processes to better adapt   workshop highlighTs
                                                                           & Healthcare Sector Head for
to future challenges and how            Delegates then moved to two
                                                                           India.
Dr. Reddy’s is customizing its        workshop sessions, in which
logistics solutions in partnership    participants had the choice of       For further information, please
with DHL.                             six workshops focusing on a          contact Deepak Kotak, Head –
                                      range of topics key to the indus-    Life Science, at deepak.kotak@
  The conference then focused
                                      try. This included discussion        dhl.com or +91 22 6698 3400.
specifically on the airline in-
dustry with presentations by K.       on air and ocean
Govindrajan, Vice President,          freight service
Mumbai International Airport          in India, cold
Authority, on the current barriers    chain solutions,
to development, and the airport’s     the development
plans to better support the in-       of Life Science
dustry in the future; and Carsten     Competence
Hernig, Regional Manager              Centers to meet
Indian Subcontinent & Middle          the demands of
East, on Lufthansa Cargo’s tem-       pharmaceuti-
perature controlled solutions for     cal customers
the industry.                         in the air freight




                                                                                      THE PULSE                11
 TSO – ENSURING MAxIMUM ACCESSIBILITY
 FOR PHARMACEUTICAL INFORMATION
                                        • A multi-channel contact         distribution of new publications
                                       center, delivering high quality    to the client’s database of health-
                                       customer service, enabled by       care workers and professionals
                                       the latest technology and cou-     within the pharma industry, who
                                       pled with user-friendly online     are given the option of receiv-
                                       ordering capability                ing the information in printed or
   TSO (The Stationery Of-                                                electronic formats, maximizing
                                        • Best in class logistics to
 fice), part of the Deutsche Post                                         convenience and accessibility.
                                       ensure that your communica-
 DHL Group, is the UK’s larg-                                             All recipients have different
                                       tions are stored and distributed
 est publisher by volume with                                             specialisms and areas of interest
                                       effectively
 over 200 years’ experience in                                            so need to receive the publica-
 providing no-fail solutions to         • Print on demand (POD) for       tions in different combinations.
 the public sector. We provide         suitable documents to reduce       TSO works closely with our
 expert management of all the          warehousing space, wastage,        colleagues within DHL to fulfill
 printed and digital information       and transportation costs           the mailing of printed copies
 organizations share with their         • Innovative digital delivery     from their specialist facilities,
 internal and external audiences,      capability to provide customers    distributing up to 100,000 pieces
 helping them to reduce costs,         with a choice of format and de-    of mail each month. Customers
 increase efficiency, and improve      livery channel, giving them the    who have registered to receive
 interactions with customers. Our      option to receive printed copies   information electronically are
 clients include the Department of     of your information or alterna-    sent an HTML email personal-
 Health and the British Pharmaco-      tive formats such as CD-ROM,       ized to their categories of interest
 poeia Secretariat; we also act as     eBook, or downloadable PDF.        and providing links for them to
 the UK distributor for a number
                                         One of TSO’s key clients
 of international pharma organiza-
                                       is an independent organiza-
 tions, ensuring that their publica-
                                       tion within the Department of
 tions reach customers in the UK.
                                       Health, which is responsible
   Our solutions cover the full        for the production of a series
 publishing process, from work-        of high profile documents each
 ing with clients on the creation      month. TSO manages the
 and production of publications        warehousing, distribution, and
 in the formats that will be most      fulfillment of both these new
 useful their customers through        documents and the client’s
 to promotion, order-taking, and       extensive back catalogue.
 distribution. The storage, fulfill-
                                        The solution provided by
 ment and distribution solutions
                                       TSO includes a complex
 we offer to our clients include:



12   THE PULSE
                               TSO – Ensuring Maximum Accessibility for Pharmaceutical Information
                                                                              stock items are then dispatched
                                                                              within 24 hours. TSO’s ware-
                                                                              housing and logistics services
                                                                              are provided by DHL, using
                                                                              their expertise and experience to
                                                                              optimize product flows and drive
                                                                              down supply chain costs.
                                                                                In addition to the distribution
                                                                              of warehoused stock, TSO’s
                                                                              experts work with the client to
                                                                              identify which documents are
access the information electroni-       ent with a cost-effective way of      better suited for delivery via our
cally. These HTML emails are            delivering information to their       print on demand (POD) capa-
sent to 20,000 email addresses          customers. It offers advanced         bility. This method is key in
each month, providing instant           search functionality and secure       keeping warehousing and print-
access to information and ensur-        ordering to make it as easy as        ing costs to a minimum while
ing minimal production costs,           possible for customers to find        ensuring that customers are still
increased sustainability, and           and purchase the information          able to access older publications
searchability of the documents.         they need 24 hours a day, 7 days      and those that are ordered less
                                        a week, wherever they are in          frequently. Our POD capability
mulTi-channel ordering
                                        the world. This is vital for our      enables us to print half a million
  In addition to the distribution
                                        pharma clients, as access to titles   pages in this way each month.
of new publications, TSO offers
                                        such as the British Pharmaco-         For more information on TSO’s
best in class solutions to fulfill ad
                                        poeia (BP) which we publish           solutions and for case studies of
hoc orders of the client’s publi-
                                        for the British Pharmacopoeia         our work with clients such as the
cations. Our specialist contact
                                        Secretariat, are essential to the     British Pharmacopoeia Secre-
center deals with orders placed
                                        work of pharmaceutical produc-        tariat visit www.tso.co.uk
across the full range of channels,
                                        ers and manufacturers across the
including phone, post, email,
                                        world. In addition to TSO’s on-
fax, and online. In 2008 these
                                        line bookshop, we also build and
solutions achieved a customer
                                        manage e-commerce websites
satisfaction ranking of 92.3% in
                                        which fit seamlessly with our
our annual customer satisfaction
                                        clients’ own websites to make it
survey, placing us in the top 2%
                                        easy for customers to order and
of over 500 organizations within
                                        access information.
the supply and distribution sec-
tor surveyed by The Leadership          warehousing and logisTics
Factor, independent experts in            Once a customer places an
customer satisfaction measure-          order it is processed at our secure
ment.                                   warehouse, which is dedicated to
  Our online bookshop www.              the storage, handling and fulfill-
tsoshop.co.uk provides the cli-         ment of printed materials. In-




                                                                                          THE PULSE                13
 GEOGRAPHIC PROFILE: RUSSIA




   Russia, the largest country in       and soils span vast distances.        Federation formed under the
 the world geographically, con-         From north to south the East          influence of several determin-
 tains more than an eighth of the       European Plain is clad sequen-        ing factors. The enormous size
 Earth’s land area. With 142 mil-       tially in tundra, coniferous forest   of the country and the remote-
 lion people, it is the ninth largest   (taiga), mixed and broad-leaf         ness of many areas from the sea
 country and accounts over 2% of        forests, grassland, and semi-des-     result in the dominance of the
 the global population.                 ert (fringing the Caspian Sea) as     humid continental and subarc-
                                        the changes in vegetation reflect     tic climate, which is prevalent
 geography
                                        the changes in climate. Siberia       in European and Asian Russia
   The Russian Federation
                                        supports a similar sequence but       except for the tundra and the
 stretches across a large extent of
                                        is taiga.                             extreme southeast. Mountains in
 the north of the super-continent
                                         The country contains 23 World        the south obstructing the flow of
 of Eurasia. Because of its size,
                                        Heritage Sites and 40 UNESCO          warm air masses from the Indian
 Russia displays both monotony
                                        Biosphere reserves.                   Ocean and the plain of the west
 and diversity. As with its topog-
                                                                              and north makes the country
 raphy, its climates, vegetation,        The climate of the Russian




14   THE PULSE
                                                                          GEOGRAPHIC PROFILE: RUSSIA
open to Arctic and Atlantic influ-   Siberia to the Pacific. Under        nist rule and Russian dominance
ences.                               Czar Peter I (ruled 1682-1725),      of the Soviet Union at a cost of
                                     hegemony was extended to the         tens of millions of lives.
weaTher and climaTe
                                     Baltic Sea, where the seaport of       The Soviet economy and so-
  Great ranges of temperature
                                     St. Petersburg was built, and the    ciety stagnated in the following
are typical. In winter, tempera-
                                     country was renamed the Rus-         decades until General Secretary
tures get colder both from south
                                     sian Empire. During the 19th         Mikhail Gorbachev (1985-91)
to north and from west to east.
                                     century, more territorial acquisi-   introduced glasnost (openness)
Summers can be quite hot and
                                     tions were made in Europe and        and perestroika (restructur-
humid, even in Siberia. A small
                                     Asia.                                ing) in an attempt to modernize
part of Black Sea coast around
Sochi has a subtropical climate.        Defeat in the Russo-Japanese      Communism, but his initiatives
The continental interiors are the    War of 1904-05 contributed to        inadvertently released forces that
driest areas.                        the Revolution of 1905, which        by December 1991 splintered the
                                     resulted in the formation of a       USSR into Russia and 14 other
  Throughout much of the terri-
                                     parliament and other reforms.        independent republics.
tory there are only two distinct
                                     Repeated devastating defeats of        Since then, Russia has shifted
seasons – winter and summer;
                                     the Russian army in World War        its post-Soviet democratic ambi-
spring and autumn are usually
                                     I led to widespread rioting in       tions in favor of a centralized
brief periods of change between
                                     the major cities of the Russian      semi-authoritarian state whose
extremely low temperatures and
                                     Empire and to the overthrow in       legitimacy is buttressed, in part,
extremely high. The coldest
                                     1917 of the imperial household.      by carefully managed national
month is January (on the shores
                                     The Communists under Vladimir        elections, former President Vlad-
of the sea – February), the warm-
                                     Lenin seized power soon after        imir Putin’s genuine popularity,
est usually is July.
                                     and formed the USSR. The bru-        and the prudent management of
hisTory and culTure                  tal rule of Iosif (Joseph) Stalin    Russia’s windfall energy wealth.
  The history and traditions of      (1928-53) strengthened Commu-        Russia has severely disabled
the country are extensive. Rus-
sia is a culturally diverse coun-
try, with dozens of ethnic groups
each contributing their own
languages, religious beliefs, and
traditions.
  Founded in the 12th century,
the Principality of Muscovy,
was able to emerge from over
200 years of Mongol domina-
tion (13th-15th centuries) and
to gradually conquer and absorb
surrounding principalities. In
the early 17th century, a new
Romanov Dynasty continued
this policy of expansion across



                                                                                      THE PULSE              15
 GEOGRAPHIC PROFILE: RUSSIA
 a Chechen rebel movement,
 although violence still occurs
 throughout the North Caucasus.
 economy
    After the period of the eco-
 nomic recession of the nineties,
 the Russian economy has been
 experiencing relatively con-
 sistent and continuous growth,
 leading Russia to be consid-
 ered a leading emerging market
 economy. However, the Russian
 economy remains unique in that
 it inherited and continues to op-
 erate under a planned economy
 model inherited from the USSR.
   As the country with the world’s    eration Organisation (SCO), as       within the transport and logistics
 greatest reserves of mineral         well as the leading member of        sector has resulted in weak infra-
 and energy resources, Russia         the Commonwealth of Indepen-         structure compared with interna-
 is considered an energy super-       dent States (CIS). The country is    tional standards.
 power, but the overall economy       also on the path to join the WTO.      However, despite these chal-
 is also heavily dependent on this
                                        One can distinctly see Rus-        lenges and additional macro-
 sector. The technological sec-
                                      sia building its own, sometimes      economic worries in 2009, the
 tor, including aerospace, nuclear
                                      controversial, civilization on the   Russian market continues to
 power, and the military industrial
                                      world arena – balancing between      offer some of the best long term
 complex are additional strong
                                      Eastern and Western values.          prospects in Europe for logis-
 economic drivers. Moderniza-
                                      However, Russia nonetheless          tics companies. Not only is the
 tion and restructuring of the eco-
                                      remains an attractive destina-       country a major source of oil,
 nomic and political infrastructure
                                      tion for business and investment     gas and minerals, but it has a
 remains an on-going challenge to
                                      opportunities due to diversified     fast growing consumer society.
 future growth and development
                                      natural resources, well-educated     The wealth generated in the past
 of the Russian economy.
                                      population, and geographical         few years has meant that there
   Russia has been playing its        location.                            has been high demand for West
 own role in building the world                                            European and global products,
                                      The logisTics indusTry in
 economic structures, as a mem-                                            particularly high value and
 ber of organizations such as the     russia
                                                                           luxury goods.
 United Nations Security Council,       Russian business – and the
                                      logistics environment – remain         Foreign direct investment has
 the Group of Eight Industrialized
                                      amongst the most challenging in      been poured into industries, such
 Nations (G8), the G20, the Asia-
                                      the world due to bureaucracy and     as the automotive, by multina-
 Pacific Economic Cooperation
                                      corruption. Lack of investment       tionals keen to take advantage of
 (APEC) and the Shanghai Coop-
                                                                           the growth in levels of dispos-



16   THE PULSE
                                                                          GEOGRAPHIC PROFILE: RUSSIA
able income.                         reaches 35%. As for the medi-        segment (excluding the federal
  International logistics compa-     cal equipment the import share       and hospital supplies) for the first
nies have followed their clients     in overall turnover equals 70%       half of 2009 remained strong at
into the market, creating interna-   and more than 80% for the            nearly US$5.5 billion, which is
tional and domestic networks to      federal supplies. This trend has     a 4.5% decrease from the same
facilitate the flow of commerce.     concerned the Russian federal        period in 2008. The federal
                                     authorities and has lead to the      and hospital supplies market
russia – a rapidly growing           development a National Pharma        (the reimbursement program)
life science markeT                  Strategy. The aim of the Strat-      for the same period comprised
  A short review of the history      egy is to reduce the dependency      US$1.4 billion, a volume drop of
for the Russian pharmaceutical       on the pharma import in the          33% compared to the previous
market shows that before the         coming decade by facilitating        year. Domestic pharmaceutical
collapse of the Soviet Union the     the development of the national      production was US$1.17 billion
country was nearly self-sufficient   fully integrated pharmaceutical      in 2009, 14% below the 2008
in terms drug availability and       industry.                            level.
production. Approximately 90%
                                       The Russian pharmaceuti-             Due to the strong dependency
of pharmaceutical demand was
                                     cal government established the       on the import of the pharmaceu-
satisfied by domestic manufac-
                                     Federal Reimbursement Program        ticals the Russian health authori-
turing.
                                     in 2005 with the goal of guar-       ties have started focusing on the
  In the 1990s, the Russian phar-    anteeing the availability of the     pricing policy and mark-up
maceutical industry, like many       pharmaceuticals for the certain      status of pharmaceuticals in the
other nationalized industries,       groups of people. Despite ad-        market. Since the devaluation
declined and has not yet fully       ministrative and technical issues,   of the ruble at the end of 2008,
recovered. Consequently 80%          the government continues sup-        prices have increased approxi-
of the overall pharma turnover       porting this project, which has      mately 30%-50% for medicines.
is currently being imported from     contributed to growth in the Rus-      Despite the challenges faced in
other countries. The import          sian pharmaceutical market.          the local environment as well as
share in federal reimbursement
                                      The value of the commercial         through the worldwide economic
supplies of pharmaceuticals
                                                                          downturn, global pharmaceutical
                                                                          manufactures continue to invest
                                                                          in construction of modern-GMP
                                                                          certified manufacturing facilities
                                                                          in Russia.
                                                                            For example, Nycomed an-
                                                                          nounced plans for a state-of-the-
                                                                          art production facility in Yaro-
                                                                          slav region this year. Starting in
                                                                          2014, this new plant will produce
                                                                          the pharmaceuticals mainly for
                                                                          Russian and CIS markets which
                                                                          comprise approximately 10%
DHL Moscow Head Office



                                                                                      THE PULSE              17
 GEOGRAPHIC PROFILE: RUSSIA




 of the total Nycomed turnover       to the Economist Intelligence      generic	products.	 Both private
 and is considered central to the    Unit, real disposable income       and governmental entities in
 company’s growth strategy. The      per capita in Russia is expected   Russia are seeking to find ways
 plant will be built in accordance   to grow at a compound annual       to reduce or contain healthcare
 with latest safety and environ-     growth rate of 5-10% from          costs. The broadening avail-
 ment protection standards, and      2005 to 2010. While drops in       ability of generic products,
 total investment is estimated at    disposable income lead to an       which are typically priced
 €65-€75 million. Additionally,      immediate drop in consumption,     lower than original products,
 global manufacturers, includ-       the growth effects of an in-       has helped met this increasing
 ing Servier and KRKA, as well       crease in disposable income on     demand for affordable pharma-
 as contract manufacturers, have     the demand for pharmaceutical      ceutical products.
 already opened production sites.    products often only come after      •	 Continued	improvement	in	
   According to Pharmexpert,         a significant time lag. None-      health	awareness. Continuing
 growth in the commercial seg-       theless, Pharmexpert reports       improvements in health aware-
 ment has been – and will contin-    increases in per capita spend-     ness and diagnostic capabilities
 ue to be – driven by the follow-    ing on pharmaceutical products     will give rise to greater utilisa-
 ing trends:                         from US$27 in 2001 to US$79        tion of preventive and curative
                                     in 2007                            pharmaceutical products, and
  •	 Increased	real	disposable	
                                     •	 Growing	availability	of	        thus greater healthcare expendi-
 income	per	capita.		According




18   THE PULSE
                                                                          GEOGRAPHIC PROFILE: RUSSIA
tures.                               tration status on the territory of   For further information about
 •	 Aging	Population.	 Along         Russian Federation assigned for      DHL Global Forwarding Russia,
with the rest of Europe, Russia      clinical trials;                     please contact Zoltan Rezsek,
has an aging population. The          • Pharmaceutical substances         Country Manager Russia, at
percentage of Russians aged          registered on the territory of       zoltan.rezsek@dhl.com or +7
60 or over grew from 16.5% in        Russian Federation;                  495 933 22 00.
1990 to 17.3% in 2004. The            • Biochemical reagents and          For further information about
health problems associated           culture mediums – including          DHL Life Sciences in Russia,
with an aging population will        required temperature control;        Denis Dobrovanov, Life Sciences
help drive demand for curative                                            Manager, at denis.dobrovanov@
pharmaceutical products and          • Medical devices and equip-         dhl.com or +7 915 377 35 83.
medical technologies, and thus       ment;
                                                                          For further information about
increase healthcare expendi-          • Assistance in obtaining per-      DHL Sales, please contact
tures.                               mitting documents for import/        Andrey Bogomolov, Sales &
 •	 New	trends	in	pharmaco-          export;                              Marketing Manager, at andrey.
therapy, including the discov-        • Consultancy on each stage         bogomolov@dhl.com or +7 985
ery of additional therapeutic ef-    of preparation and transporta-       763 75 83.
fects of existing pharmaceutical     tion.
products and increased access to
new generations of pharmaceu-
tical substances.
dgf russia – services for life
science cusTomers
   DHL Global Forwarding
(DGF) offers a wide range of
services to its customers in the
life sciences industry, for both
the import and export of air and
ocean freight.
  Import and export customs
clearance services include:
 • Medications registered on
the territory of Russian Federa-
tion in airports Sheremetyevo &
Domodedovo;
 • Medications with no regis-
tration status on the territory of
Russian Federation assigned for
pharmaceutical examination;
 • Medications with no regis-
                                     DHL St. Petersburg Branch Office



                                                                                     THE PULSE            19
 DHL LAUNCHES A NEw MOTOR
 OF INNOvATION: DSI
   Deutsche Post DHL (DP                 “Our customers expect sustain-       details of the supply chain.
 DHL) presented DHL Solutions          able solutions, understandable           DSI also proves that the Group
 & Innovation (DSI), its newly         services that are easy to use, and     Strategy presented in March
 launched business unit at the         uncomplicated access to their          2009, which is aimed at strength-
 26th German Logistics Congress        service provider. We are achiev-       ening Deutsche Post DHL’s
 in Berlin. As a motor of innova-      ing this among other things by         leading role in the international
 tion and a cross-cutting function     enhancing connections between          logistics market, is being imple-
 of DHL it pools and drives tech-      the various DHL units dealing          mented. The strategy is aimed
 nological development within          with research and development.         at leveraging the full potential
 the Group. Headed by Petra            This is a way to tap the full cre-     of the world’s leading logistics
 Kiwitt, it reports directly to CEO    ative potential of our staff,” Petra   provider and increasing the prof-
 Frank Appel.                          Kiwitt stressed.                       itability of DHL by improving
   “Logistics is becoming a sec-         Right from the start, DHL So-        cooperation as “One DHL” and
 tor for trendsetters and setting      lutions & Innovations has been         increasingly dovetailing opera-
 standards not only with respect       able to benefit from successful        tions with DHL Global Customer
 to technological development.         platform approaches, such as the       Solutions (GCS). The needs
 Petra Kiwitt and her team will        Control Tower Concept. Used            in particular of the 100 biggest
 contribute to ensuring that our       for several customers, this con-       customers handled by GCS are
 Group remains one of these            cept enables a strategic transport     valuable indicators, which are
 trendsetters and helps to secure      management through modern IT           now being fed into development
 the economic success of our           solutions which provide a per-         processes at an early stage.
 customers by offering future-         manently updated access to all
 oriented logistics solutions,” said
 Frank Appel. The newly created
 organizational unit consolidates
 the innovation activities of the
 individual branches of DHL.
 Based on the results of market
 studies, analyses of sector strat-
 egies and intensive customer
 surveys, DHL Solutions & In-
 novation lays the groundwork for
 future-oriented and standardized
 logistics solutions that are be-
 coming applicable across sectors.




20   THE PULSE
                                                   DHL LAUNCHES A NEw MOTOR OF INNOvATION: DSI
  The experience and innovative       petitors. DSI is active in search-     interface with the customer’s
strength of the DHL Innovation        ing for innovations in protective      IT-infrastructure required
Center, which opened in 2007, is      packaging and researching active        • Comfortable temperature
another asset.                        temperature tracking tech-             analysis – data provided via
   The DHL Innovation Center          nologies. DSI has also recently        secure web portal
is unique in the logistics sector;    brought the passive temperature
                                      monitoring device DHL Smart-            • Verified data security –
it has provided a space where                                                with automated processes
experts from the fields of sci-       Sensor to the market.
ence, technology, and industry           When transporting temperature        • Ease of work – time saving
can share their knowledge and         sensitive goods, quality must           The easiest to find out about
develop trend-setting solutions       be ensured to guarantee prod-         these features is to test the ser-
for logistics that can be ap-         uct safety, efficacy, and shelf       vice in a temperature study.
plied globally. It is here where      life – temperature monitoring
                                                                            dhl soluTions & innovaTion:
groundbreaking logistics solu-        during the transport is therefore
tions such as the parcel robot, the   essential. The challenge for          vision & sTraTegy
GO GREEN product develop-             the customer is to maintain an          The DSI unit also proves that
ment, Smart truck, and Smart-         overview of costs, coordinate         the Group Strategy presented
Sensor originated.                    with logistics providers, ensure      in March 2009, which is aimed
                                      accurate temperature monitoring,      at strengthening Deutsche Post
   Trends are being detected early                                          DHL’s leading role in the in-
to secure the innovative leader-      train staff, handle documents and
                                      datalogger read-outs, and finally     ternational logistics market, is
ship of DP DHL. Innovations                                                 being implemented. The strategy
triggered by a customer de-           draw reliable and validated tem-
                                      perature data out of this process.    is aimed at leveraging the full
mand are crucial to this process.                                           potential of the world’s leading
Customer voice is being heard         TemperaTure moniToring so-            logistics provider and increas-
and taken seriously into account      luTion: dhl smarTsensor               ing the profitability of DHL by
– projects are based on these           SmartSensor has features ap-        improving cooperation between
needs.                                plicable throughout all industry      business units as “One DHL”
dsi acTiviTy in TemperaTure           sectors and DHL business units,       and increasingly dovetailing
managemenT                            but is of special interest for Life      operations with DHL Global
  One workstream within DSI           Sciences & Health-                          Customer Solutions (GCS).
is focused on the challenges of       care customers.                             The needs in particular of
temperature management across           Since the Smart-                          the 100 biggest customers
the supply chain. This has been       Sensor is a passive                         handled by GCS are valu-
a reaction to customers’ demands      temperature moni-                           able indicators, which are
and to the growing need of            toring device, it can                       now being fed into develop-
temperature monitored transports      be used on all transport modes,       ment processes at an early stage.
across the globe.                     for long transport durations, and     For further information please
  Temperature management is           with a wide range of temperature      contact g.tuna@deutschepost.de
an opportunity for DHL to offer       profiles. Additional customer         or visit or visit http://www.dhl-
strong additional services and        benefits include:                     innovation.de/en/home/index.php
differentiate from logistic com-        • Plug and play solution – no



                                                                                         THE PULSE               21
 DHL GLOBAL FORwARDING AIRFREIGHT PLUS
 EUROPE FOR THE LIFE SCIENCE INDUSTRY…
 SUCCESSFUL FIRST 18 MONTHS
   DHL Global Forwarding                 thermore, the product is aligned
 launched “Airfreight PLUS Eu-           with WHO (GDP) and PCCDG/
 rope for the Life Science Indus-        PDA (Tech Paper 39) guidelines
 try” in September 2008, provid-         for transportation of temperature
 ing the first intra-European air        sensitive goods.
 freight solution geared specifi-          Through the use of DHL’s own
 cally to the requirements of the        freighter network, both active
 industry.                               and passive packagining solu-
   Offering a combination of the         tions can be transported. Dan-              Life Science service has become
 speed typically provided by an          gerous Goods are also part of the           part of their daily life.
 integrator with the flexibility of a    product portfolio.                          For further information, please
 freight forwarder, the Airfreight         For various life science compa-           visit www.dhl.com/airfreightplus
 PLUS for Life Science Product           nies in Europe, DHL Global For-             or contact product management
 has found its place in the intra-       warding’s Airfreight PLUS for               at afp.lisci@dhl.com
 European supply chains of the
 industry sector. The product
 reaches 46 countries overnight
 “door-to-door” meeting the
 stringent logistic requirements of
                                                                               Skelleftea
 the Life Science industry. Fur-
                                                                    Trondheim
                                                           BGO
                                                                    OSL
                                                                                       HEL
                                                          SVG             STO
                                              EDI                                        TLL
                                                   LIV         AAR
                                       BFS                                 GOT                                MOW
                                                                                        RIX
                                              Newcastle        KLL
                                    DUB MAN
                                               BHX                       CPH
                                CORK       BRS    LBA      AMS HAM                       VNO
                                               LHR (3)                            GDN
                                  Plymouth                             B
                                                     BDA                             WAW
                                     Southhampton       BRU      HAJ ER
                                                              DUS      LEJ       POZ
                                                     LIL         FRA DRE              KTW
                                             Rennes
                                                  CDG MZM                         WRO
                                                 Tours              NUEPRG
                                       NTE         (3)    SXB STR         BRQ                   KIEV
                                                             BSL MUC            B
                                            BOD     Dijon                  VIE T
                       La Coruna                    LYS GVA LNN BSL     LJU
                          OVD       Bilbao TLS                     PAD          S BUD
                    OPO                           Grenoble                    ZAG           BUH
                                                               MIL
                   LIS                                       TRN     BLQ
                             MAD         BCN        MRS NCE
                                                                         AOI
                                                               QPG ROM                               IST
                          XVQ             VLC                                 BRI
                                                                   NAP
                             XML                         CAG     PAL           CAT
                                                                         CTA                 ATH




22   THE PULSE
DHL LIFE SCIENCE & HEALTHCARE
COMPETENCE CENTERS – ExPANDING
OUR COMMITMENT TO QUALITY
  Life Science & Healthcare cus-     new Life Science Competence         a single day we loaded eighteen
tomers face the challenge to ad-     Centers in Rome, Italy, and         RAP Envirotainers,” says Carlo
here to elevated quality standards   Melbourne, Australia, as well       de Ruvo, DGF Rome Branch
and process quality throughout       as the expansion of our existing    Manager, with understandable
their supply chain. New and          Competence Center in San Juan       pride. “This is the Competence
stricter regulatory requirements     Puerto Rico.                        Center record for the moment,
for quality compliance are also                                          but we are working hard to beat
                                     dhl announces The
demanded throughout the entire                                           it!”
                                     opening of The life science
supply chain.                                                              The state of the art facility is
                                     and healThcare compeTence
  To help meet these challenges,                                         strategically located near Fiumi-
                                     cenTer in rome
DHL Global Forwarding (DGF)                                              cino airport. Since the open-
                                       2,250,000 kg. 3,632 ship-
has established a global network                                         ing in October 13th, 2009, the
                                     ments. Over 150 active tem-
of dedicated Life Science Com-                                           cross-docking warehouse has
                                     perature controlled containers.
petence Centers to improve qual-                                         been validated by many pharma-
                                     These are the numbers of the
ity levels, compliance, shipment                                         ceutical companies as perfectly
                                     Rome Life Science Competence
visibility and control, increase                                         aligned with Good Distribution
                                     Center since its official opening
speed to market, and reduce                                              Practices (GDP).
                                     six months ago. “And if you feel
service issues in the air freight                                         The 290 square meter facility
                                     impressed by them, think that in
environment. The Competence
Center concept consists of five
interlinked elements, rang-
ing from appropriate dedicated
facilities to qualified staff and
processes all designed to provide
our Life Science and Healthcare
customers with a competitive
advantage in their complex and
ever changing marketplace.
  In support of this strategy,
DHL has recently, in continuing
expansion of its global network,
 announced the opening of




                                                                                     THE PULSE             23
 DHL LIFE SCIENCE & HEALTHCARE COMPETENCE CENTERS
 is divided into two temperature      adding secondary package in          Global Forwarding South Asia
 controlled rooms: one between        order to minimize the risks of       Pacific, said: “We have expe-
 15°C and 25°C, the other be-         damages are also offered.            rienced double digit growth in
 tween 2°C and 8°C. In order to         “Our aim was to build up a         Australia over the past few years
 maintain the required tempera-       quality approved cross-docking       and the new warehouse is a
 ture range, a remotely controlled    warehouse according to GDP,”         substantial investment in Victoria
 system monitors temperature,         declares Carlo De Ruvo, “but         and Tasmania’s future. Infra-
 tracks data, manages reports, and    I can state we even exceeded         structure in the South Pacific,
 alerts staff per business continu-   guidelines and customers’ expec-     such as this new hub, also helps
 ity plan in case of excursion. An    tations by creating a state of the   support DHL’s overall growth
 independent generator guaran-        art facility.”                       strategy for Asia.”
 tees that the right temperature                                             Covering almost 50,000 m², an
 level is maintained even in case     dhl invesTs aud $35 million
                                                                           area more than twice the size of
 of power failure.                    (us$32m) in new melbourne
                                                                           the Melbourne Cricket Ground,
   Carlo de Ruvo finds, “The          logisTics hub wiTh life sci-         the new facility includes state-
 most important element is in         ence compeTence cenTer               of-the-art cool rooms designed
 respect to the highest security        DHL Global Forwarding              to handle the southern states’
 standards.” Access to the Life       opened its new AU$35 million         vibrant life science and perish-
 Science Competence Center is         airfreight facility at Melbourne     ables exports.
 limited to authorized personnel      airport in September 2009. The
                                                                             Tony Boll, Chief Executive
 through a control access key-        new facility offers the latest in
                                                                           Officer, DHL Global Forwarding
 board; the entire Competence         technology, security, and envi-
                                                                           South Pacific, said, “While the
 Center is camera monitored; and      ronmental credentials and will
                                                                           latest data shows overall Aus-
 the facility has a dedicated truck   boost Victoria and Tasmania’s
                                                                           tralian exports in the last quarter
 bay, ensuring both temperature       international trade.
                                                                           have declined, Victoria has seen
 and security control. Further-        Amadou Diallo, CEO, DHL             an increase in pharmaceutical
 more, a security cage is available
 to store narcotics and high value
 pharmaceutical products. “We
 are able to offer our customers
 the best and most secure ser-
 vice.”
   Additionally, the Competence
 Center is a bonded and fiscal
 VAT warehouse under tempera-
 ture control, in which inbound
 pharmaceutical products can be
 stored under correct temperature
 conditions without paying duties
 and taxes until the products enter
 the Italian market. Additional
 value added services, such as



24   THE PULSE
and perishables exports.” Rev-        multiple variable temperature         industry sectors benefit from
enues in the Australian pharma-       controlled cool rooms that meet       the building’s advanced security
ceutical industry approximate         GMP/TGA (Therapeutic Goods            features. These include the very
AU$20 billion per annum, of           Administration, Australia’s FDA       latest high resolution, 24-hour
which the pharmaceutical and          equivalent) standards – the high-     security monitoring system and
associated sectors export AU$3.9      est attainable industry standards.    a “secured holding” area for the
billion of product, making it         Superior perishable handling was      handling of high value and sensi-
Australia’s second largest manu-      top priority in designing the new     tive goods. It is also designed
factured export industry .            facility; the warehouse is specifi-   with advanced ‘green’ features
  “This state-of-the-art dedi-        cally designed to support Austra-     relating to indoor environmental
cated space in combination with       lia’s developing pharmaceutical,      qualities and energy-saving mea-
specialist life science operational   vaccine, and life science sectors     sures including three rain tanks,
and management teams, inter-          in trading with international         supporting our commitment to
national market knowledge, life       markets. In order to ensure a         the environment.
science specific standard oper-       seamless cold chain handling
                                                                            dhl global forwarding ex-
ating procedures (SOPs), and          environment, technologies such
                                                                            pands life science capabiliTies
quality control procedures offer      as automated temperature moni-
                                      toring alarms, extensive multiple     in san Juan, puerTo rico
unsurpassed expertise in the
                                      chiller chambers, freezers and          In 2007 DHL Global forward-
import and export of controlled
                                      temperature controlled handling       ing completed a new facility in
substances and cold chain goods.
                                      and loading area, ensure custom-      Carolina, Puerto Rico, with a
Productivity has been boosted,
                                      ers’ products are handled in ac-      significant portion of this facility
and time savings of 10% have al-
                                      cordance with all relevant safety     dedicated to the special handling
ready been achieved,” said Tony.
                                      standards.                            requirements of processing ship-
  The specialist nature of the                                              ments for the life science and
pharmaceutical and life science         The facility has been awarded
                                                                            healthcare industry.
sectors have been recognized          TAPA-A (Transported Asset
                                      Protection Association) accredi-        Since this time the staff has
by DHL Global Forwarding in
                                      tation and customers from all         focused on building knowledge
the development of 850 m² of




                                                                                        THE PULSE              25
 DHL LIFE SCIENCE & HEALTHCARE COMPETENCE CENTERS
 and expertise in safely handling    including active and passive tem-     facility through delivery to the
 their customers’ freight and ad-    perature control solutions.           airline for export.
 dressing the unique challenges in     San Juan has also been en-            Even in these trying economic
 safely transporting pharmaceuti-    gaging in an extensive review         times, management has stayed
 cals and cold chain freight.        and revision of their existing        the course following through on
   San Juan is focused upon “The     standard operating procedures;        our commitment to our custom-
 3 Ps” of the Life Science logis-    reviewing each procedure for          ers providing an environment
 tics environment: People, Pro-      accuracy, currency, and ease of       that assures proper temperature
 cess, and Property.                 use by the staff. These reviews       control of our customer’s Phar-
   The San Juan team has been        are on-going and will continue        maceutical products.
 actively investing time, re-        throughout the life of the proj-        This expansion in San Juan is
 sources, and energy maintaining     ect and carry over into normal        just the latest step in a continu-
 and enhancing their skills and      operations.                           ing process to systematically
 expanding their knowledge to          This past summer, San Juan          improve DGF’s capabilities in
 keep pace with this ever chang-     took the next step in the planned     handling life science and phar-
 ing specialized area for our Life   expansion of their Life Science       maceutical products. DGF has
 Science customers. San Juan         Competence Center by enhanc-          plans to implement five addi-
 continues to train their staff      ing their cold storage capabilities   tional Life Science Competency
 with both internal and external     to handle life science freight.       Centers in North America.
 training courses focusing upon      This expansion increases the          For further information on Life
 the proper handling and control     already high level of quality San     Science Competence Centers,
 of pharmaceuticals. They also       Juan’s customers have come to         please contact Laura Acker-
 schedule staff to take regular      expect from DGF.                      mann, Director Quality & Cold
 refresher training to assure the      Features of this expansion          Chain, at laura.ackermann@dhl.
 proper handling of cold chain,      include                               com.
                                       • 2°C - 8°C certified tempera-      For further information on
                                      ture controlled storage room.        Rome, please contact Carlo de
                                       • 15°C - 25°C certified tem-        Ruvo, Branch Manager Rome, at
                                      perature controlled storage          carlo.deruvo@dhl.com.
                                      room.                                For further information on
                                         These new storage rooms           Melbourne, please contact Tanya
                                      provide an additional level of       Anderson, Manager Life Science
                                      temperature control, safety,         and Healthcare, at tanya.ander-
                                      and security for our customers’      son@dhl.com.
                                      life science products. We are        For further information on
                                      able to offer our customers a        San Juan, please contact Lucia
                                      superior temperature controlled      Mulvey, Operations Manager, at
                                      environment by virtually elimi-      lucia.mulvey@dhl.com.
                                      nating temperature variations
                                      from pickup at the customer’s




26   THE PULSE
THE LOGISTICS COMPANY FOR THE
LIFE SCIENCES & HEALTHCARE SECTOR
  From June 2-4, 2009, DHL                this conference was the opportu-          that is what makes it so special,”
hosted more than 200 representa-          nity to bring customers and DHL           he said.
tives of the world’s leading phar-        together to share experiences and           Angelos Orfanos, President of
maceutical, medical device, and           learn from industry colleagues.           GCS LS&H, presenting the new
biotechnology companies in Mi-              In opening the 9th DHL Life             X15 Strategy at the 9th DHL
ami, along with senior represen-          Sciences and Healthcare Confer-           Life Sciences and Healthcare
tatives of DHL’s business units,          ence on June 2, 2009, Angelos             Conference in Miami.
at the 9th DHL Life Sciences and          Orfanos, Global Head of Life
Healthcare Conference.                                                                Ever since the first LS&H
                                          Science & Healthcare (LS&H)               Conference was held in Miami
  In addition to DHL execu-               for DHL, expressed his appre-             in 2001, with 12 customers, each
tive and customer presentations,          ciation that so many customers            annual event has built on the
some 30 workshops were held,              (over 200) and DHL colleagues             previous year’s success. Held
all of which exemplified both the         had come to Miami for the three-          in cities around the world, from
close partnership between the             day conference, despite the eco-          Bangkok to Buergenstock, and
DHL business units as well as             nomic downturn. “It reflects the          most recently in Munich last
that with customers, in creating          fact that the Life Sciences and           year, it has become a “must at-
optimized solutions for the Life          Healthcare sector is a community          tend” event for the industry.
Sciences industry. Customers              of professionals dedicated to
and DHL representatives alike             handling products which im-                 DHL Life Sciences & Health-
agreed that that the great value of       prove and save peoples lives, and         care has turned these events
                                                                                            into a true learning
                                                                                             environment that is
                                                                                             highly appreciated by
                                                                                             life sciences companies
                                                                                             from around the globe.
                                                                                             The sector particularly
                                                                                             values the opportunity
                                                                                             to share best practices,
                                                                                             according to Angelos,
                                                                                             given the impact of
                                                                                             its products on human
                                                                                             health.
                                                                                              Ever since the first
                                                                                            LS&H Conference was
Angelos Orfanos, President of GCS LS&H, presenting the new X15 Strategy at the 9th DHL     held in Miami in 2001,
Life Sciences and Healthcare Conference in Miami.                                          with 12 customers, each




                                                                                                THE PULSE               27
 THE LOGISTICS COMPANY FOR THE LIFE SCIENCES & HEALTHCARE SECTOR
 annual event has built on the         Emerging Markets, agrees, add-        Hermann underscored that the
 previous year’s success. Held         ing that working with this sector   value-add of this conferences
 in cities around the world, from      “Really gives an extra boost to     was the opportunity to bring
 Bangkok to Buergenstock, and          our daily job.” He states further   customers together, share experi-
 most recently in Munich last          that, “We enable our customers      ences, and listen to industry col-
 year, it has become a “must at-       to focus on their core compe-       leagues. He described the LS&H
 tend” event for the industry.         tence while we focus on expedit-    sector as one where “Innovation
   DHL Life Sciences & Health-         ing their products in a reliable    can play a particularly vital role,
 care has turned these events into     and efficient manner.”              and where we can use our cre-
 a true learning environment that                                          ativity to bring better solutions
 is highly appreciated by life sci-                                        to bear.” DHL, he added, would
 ences companies from around                                               work closely on this on a cross-
 the globe. The sector particu-                                            divisional basis.
 larly values the opportunity to                                             DHL’s Strategy 2015 sets
 share best practices, according to                                        the context for the LS&H sec-
 Angelos, given the impact of its                                          tor’s own X15 Strategy, which
                                      L - R: Andreas Sahli; Sue Arden
 products on human health.                                                 Angelos unveiled at the confer-
   Andreas Sahli, Vice President                                           ence. X15 consists of three main
 Life Sciences & Healthcare,                                               components which are designed
 GCS Europe & Emerging Mar-                                 sTraTegy       to leverage and build upon the
 kets, agrees, adding that working                          2015           foundation achieved from the
 with this sector “Really gives an                          Hermann        X2010 sector strategy:
 extra boost to our daily job.” He                          Ude, CEO        • Engaging customers in
 states further that, “We enable                            DHL Global     designing solutions to meet
 our customers to focus on their                            Forward-       their needs through global and
 core competence while we focus                             ing/Freight,   regional conferences, as well
 on expediting their products in a                         and Sponsor     as participation in supply chain
 reliable and efficient manner.”       for the LS&H Sector, presented      studies.
   Nor is it only the customers        Deutsche Post DHL’s Strategy         • Developing a fact base by
 who benefit from the conference:      2015 to the audience, includ-       conducting studies, talking to
 for Sue Arden, VP LS&H, GCS           ing the changes in organization,    customers, and exploring a
 Asia Pacific, “This conference        branding, and values. He empha-     customer’s entire supply chain
 adds value to our sector strategy     sized that all the Business Units   to identify key performance in-
 and our regional alignment with       were represented at the confer-     dicators and pain points in order
 the sector’s global strategy.”        ence, thereby demonstrating to      to create strategies and solu-
 She also stresses, “It brings up      customers that DHL has the most     tions specially tailored to satisfy
 to a global level two of the main     comprehensive logistics capabili-   customer needs.
 countries in Asia Pacific, In-        ties in the world. More impor-
                                       tantly, a key element in applying    • Leveraging DHL’s expert
 dia and China”. Andreas Sahli,                                            community, by strengthening
 Vice President Life Sciences          the new strategy, he noted, was
                                       DHL’s aim to be “The Logistics      its cross-divisional collabora-
 & Healthcare, GCS Europe &                                                tion, which will empower DHL
                                       Company for the LS&H sector.”



28   THE PULSE
                             THE LOGISTICS COMPANY FOR THE LIFE SCIENCES & HEALTHCARE SECTOR
 to develop global best practices          to tell, with solid facts, from      ing Cost and Quality.
 and processes, harness best-in-           working together with DHL. To-         Doug Winter, from SanofiAve-
 class supply chain and logistics          day, I have the story and I have     nis, explained the current situa-
 expertise throughout the DHL              the results.”                        tion and complexity on the US
 network, and build industry                 William D. McLaury, from No-       regulatory landscape for Imports
 competencies to better under-             vartis, spoke about an important     & Exports.
 stand and meet customer needs.            outsourcing initiative with DHL        And Ludovic Menedeme from
engaging cusTomers                         and some of the challenges the       Baxter stressed the importance
  The customer dialogue inher-             pharmaceutical industry is facing    of having an aligned and trusted
ent in the sector’s strategy is            and how to respond to those.         partner.
reflected in the degree to which             Hans Willems of Boston               Going forward, DHL will build
customers are a key part of the            Scientific gave a presentation on    on its experience, network and
conference program. At this                applying mathematical principles     infrastructure, to enhance its
year’s conference, there were              to improve packaging, which          offering to the Life Sciences and
six informative and inspirational          essentially is looking at ways to    Healthcare industry. This will
customer presentations.                    optimize packaging to reduce the     also include engaging custom-
  Ira Spector of Wyeth, who                volume of the shipment.              ers more in designing solutions
looked at trends and innovation              Dave Sparrow and Gary Pet-         to meet their needs, not only
in Clinical Trials, opened his pre-        terson, both from GlaxoSmith-        through its annual Life Sciences
sentation by saying: “I have been          Kline, discussed a topic on the      and Healthcare Global Confer-
waiting until I had a good story           minds of many today – Balanc-        ences, but also regional and
                                                                                                   country focused
                                                                                                   events to work
                                                                                                   with customers
                                                                                                   and stakehold-
                                                                                                   ers around the
                                                                                                   world in loca-
                                                                                                   tions such as
                                                                                                   China, India,
                                                                                                   Mexico, and
                                                                                                   Russia.
                                                                                                   Engaging
                                                                                                 Customers also
                                                                                                 means develop-
                                                                                                 ing a fact base
                                                                                                 by conducting
                                                                                                 studies, talking
                                                                                                 to customers,
                                                                                                 and exploring
Customers shared their logistic views and experiences at the LS&H conference.                    a customer’s




                                                                                            THE PULSE              29
 THE LOGISTICS COMPANY FOR THE LIFE SCIENCES & HEALTHCARE SECTOR
 entire supply chain, to identify      they require,” explains Hermann
 key performance indicators and        Ude, CEO of DHL Global For-
 pain points, in order to create       warding and Freight.
 strategies and solutions spe-           “Thanks to its global foot-
 cially tailored to satisfy customer   print and capabilities, DHL is
 needs. And it also means lever-       uniquely positioned to enable the
 aging DHL’s expert community          globalization that is happening in
 by strengthening its cross-divi-      the life sciences and healthcare
 sional collaboration, which will      industry,” adds Angelos. “With a
 empower DHL to develop global         high degree of competence, dedi-
 best practices and processes, har-    cated teams and infrastructure,
 ness best-in-class supply chain       and customized industry process-
 and logistics expertise through-      es, we’re very well positioned
 out the DHL network, and build        to continue to grow with our
 industry competence to better         customers, and to reinforce our
 understand and meet customer          leadership position in life sci-
 needs.                                                                     process. In this regard, the Busi-
                                       ences and healthcare logistics.”     ness Units played an active role
   “From top-to-bottom, DHL has                                             in the 30 workshops, all of which
                                       facTs and experTs
 invested significant resources –                                           exemplified the close partnership
                                         Developing a fact base and
 including infrastructure, sector                                           between GCS and the Busi-
                                       collaborating between DHL’s
 expertise, and network resources                                           ness Units in creating optimized
                                       business units to harness logis-
 – to develop a better understand-                                          solutions for the Life Sciences
                                       tics expertise from across the
 ing of our Life Sciences and                                               industry.
                                       company are key ingredients of
 Healthcare customers, the obsta-
                                       X15, and the conference work-         Among the topics tackled in
 cles they face, and the solutions
                                       shops form a vital part of this      Miami were 15-25°C Temper-
                                                                                  ature-Controlled Solu-
                                                                                  tions; B.R.I.C. (Brazil,
                                                                                  Russia, India, China) Lo-
                                                                                  gistics; Carbon Footprint;
                                                                                  Clinical Trials Logistics;
                                                                                  Life Science Competence
                                                                                  Centers for Air Freight;
                                                                                  DHL Freight Intra-
                                                                                  European Cold Chain
                                                                                  Network; India - Taxa-
                                                                                  tion Changes and Impact
                                                                                  on Supply Chain; Parallel
                                                                                  Trade - Track and Trace;
                                                                                  Quality vs. Cost; and Re-
                                                                                  gional Hubs - Singapore,
                                                                                  Dubai, Panama, Turkey;




30   THE PULSE
                          THE LOGISTICS COMPANY FOR THE LIFE SCIENCES & HEALTHCARE SECTOR
to name a few.                        as well as to listen to compelling    passion and commiTmenT
                                      customer presentations on top           The passion and commitment
dialogue and sharing
                                      of the wide range of workshops.       to the life sciences & healthcare
  In addition to the customer
                                      It was also an eye opener to see      industry is something that all
presentations and workshop
                                      how DHL is looking after the          participants shared and is what
sessions, informal networking
                                      operational and not just commer-      made the conference such a
opportunities throughout the
                                      cial aspects.”                        resounding success, as everyone
three-day conference help in this
                                         Hans Willems, VO Operations        agreed. This was evident in the
cross-pollination process of ideas
                                      from “Boston Scientific, “I am        wrap-up video, prepared on-site,
and expertise, bringing together
                                      quite happy that I came to this       which featured the DHL LS&H
industry colleagues from across
                                      conference, because the con-          community presenting an impas-
the Group, along with customers,
                                      tent was more relevant, and the       sioned message to customers
over coffee, dinner or drinks.
                                      people and companies attending        about our commitment to their
  Customers welcomed the                                                    business.
                                      were more interesting to me for
chance to network and com-
                                      networking than any other con-          In wrapping up, Angelos ex-
municate face to face with their
                                      ference I have been to in the last    pressed his gratitude to the entire
colleagues and partners.
                                      couple of years. As for DHL,          DHL Life Sciences & Health-
   Novartis’ William D. McLaury,      I think they have made a lot of       care team for their passion and
Executive Director US Supply          effort in the last few years, both    dedication, and thanked all the
Chain Management, commented:          in improving their network, and       customers and DHL colleagues
“I would definitely recommend         in taking a genuine interest in the   for their attendance and contribu-
this conference as it represents      customer and in understanding         tions to the Conference’s suc-
a good opportunity to share best      what is important to our busi-        cess. He concluded by saying
practices with colleagues as well     ness.”                                that the entire DHL LS&H team
as to meet other professionals                                              looked forward to welcoming
                                        And “Wyeth’s Charles Bennett,
and to network with colleagues.”                                            them again next year to find
                                      Director of Global Distribution,
He added that, “In terms of what                                            solutions needed to meet the
                                      added: “This conference is an
I like about DHL, the company                                               rapidly changing and challenging
                                      excellent opportunity for par-
is very progressive in listening to                                         global business environment – in
                                      ticipants to discuss the logistics
the customer.”                                                              Dubai!
                                      challenges that face our indus-
  For “Baxter’s Ludovic Men-          try.”
edeme, Director
Transport
& Distribu-
tion Services
EMEA, “I
found it inter-
esting to learn
about DHL’s
vision and its
focus on the
LS&H sector,




                                                                                        THE PULSE             31
 DHL GLOBAL FORwARDING SAN FRANCISCO, CA
 LIFE SCIENCE & HEALTHCARE CUSTOMER EvENT
    “DHL Global Customer            Science & Healthcare workshop        institutes in the world. More
 Solutions (GCS) along with         to evaluate the development of a     bioscience companies are lo-
 DHL Global Forwarding (DGF)        Life Science Competence Center       cated in Northern California than
 San Francisco is proud of its      in San Francisco, CA.                anywhere else, and an average of
 proven success in Life Science       The San Francisco Bay Area         30 new companies are founded
 & Healthcare product and sec-      was the birthplace of biotechnol-    here every year. The region
 tor development, industry train-   ogy in the 1970s with the dis-       also boasts a wealth of first-tier
 ing and certifications, strong     covery of DNA cloning. Today,        life science research and medi-
 customer relationships and its     the region is the national leader    cal care institutions, five major
 investment in customer events as   in biomedical research and the       research universities, and three
 a way to stay close to its cus-    largest bioscience cluster in the    medical schools.
 tomers needs. DHL has offered      world. More than 800 compa-            In order to increase the aware-
 Solutions dedicated to the sec-    nies throughout the Bay Area         ness of DHL’s potential advan-
 tor with customized products       provide more than 85,000 jobs.       tages to the Bay Area market,
 including air freight charters,    Estimates predict that by the end    DHL held a special event specifi-
 product launches, time sensitive   of 2010, the biotech industry will   cally intended for the biotech,
 deliveries, cold chain handling    grow by nearly 30 percent. The       pharmaceutical, and medical de-
 and general cargo. In keeping      Bay Area boasts the biggest con-     vice industries with the purpose
 with this commitment to innova-    centration of biotech firms, the     of presenting this innovative
 tion, on April 8, 2010, DGF San    best venture capital network, and    strategy to expand the service
 Francisco, together with local     some of the brightest research       capabilities specifically for the
 industry leaders, hosted a Life




32   THE PULSE
                                 DHL GLOBAL FORwARDING SAN FRANCISCO, CA CUSTOMER EvENT
Life Science sector.                 experiencing less damage
  The event was well received        and far fewer claims than
and the output demonstrated the      typically experienced by
variety of market demands and        shippers moving in a nor-
the challenges importers and         mal freight environment.
exporters face today. There was        The implementation of a
a positive response from the at-     Life Science Competence
tendees with the recognition of      Center will be based on:
DHL Global Forwarding’ invest-        • Life Science Expertise
ment in introducing innovative
solutions, such as Life Science       • Dedicated Facilities            of innovation, by identifying the
Competence Centers and other                                            needs of our clients, searching
                                      • Dedicated Staff qualified
sector dedicated solutions to                                           for new methods to control every
                                     and trained specifically for the   step of the process minimiz-
support the needs of the Life
                                     Life Sciences Industry             ing logistical challenges, and
Science industry. The collabora-
                                       • Process excellence and cer-    providing end-to-end qualified
tive setting and open discussion
                                      tifications                       transportation services world-
uncovered the need for proven
transportation solutions and          • Tailor-Made Solutions           wide. This initiative is designed
changes necessary to support                                            to provide superior services, high
                                      • Emergency Service
industry standards.                                                     performance results, and exceed-
                                      • Full Time Availability          ing our customers’ expectations.
  The introduction of industry
                                      • Additional Life Science           The event demonstrated DHL
specific solutions in the San
                                     specific services                  Global Forwarding’s continued
Francisco market are based
on the successful experience           The DHL Life Science and         dedication to be a key player
drawn from operations already        Healthcare strategy consists       in driving industry standards,
launched in markets and airport      on collaborating extensively       and confirming the Life Science
stations including Madrid, San       with our customers to develop,     Industry plays an essential role
Juan, Paris, and London among        implement, and control logistics   within the DHL global business
many other DGF locations across      processes for pharmaceutical,      interests.
the globe.                           biotech, and medical device        For further information on San
                                     products, complying with regula-   Francisco, please contact Dale
  It is critically important to
                                     tory standards for this sector’s   Ezell, District Manager, at dale.
create awareness in process
                                     special needs, ensuring quality    ezell@dhl.com
excellence in order to properly
                                     and process management ex-
develop the Life Science sec-
                                     cellence throughout the supply
tor. The main objective of the
                                     chain.
Life Science Competence Center
initiative is to protect and guar-     DHL Global Forwarding is
antee the integrity and quality      keenly aware of the high impor-
of the products by posting fewer     tance and care needed to handle
delays, reducing cycle time, con-    Life Science products. For this
trolling temperature deviations,     reason DHL is at the front line




                                                                                    THE PULSE               33
 AID & RELIEF SERvICES – wORkING
 wITH THE wORLD’S HUMANITARIAN
 AND CHARITABLE ORGANIzATIONS
   DHL Global Forwarding’s Aid        PreParation –	Experience and         other essentials for a family of
 & Relief Services (ARS) is a         research tells us that the world     up to 10 people. With the assis-
 specialist, commercial team that     will suffer numerous humani-         tance of ARS, more than 1,300
 leverages DHL’s wide range of        tarian disasters, many of which      of these are positioned globally
 logistics services and tools in      will require extensive initial       in the UK, Dubai, Singapore,
 support of organizations dedicat-    emergency supplies to be on          Melbourne, and Panama – ready
 ed to relieving suffering around     hand within the crucial first        for immediate dispatch to the
 the world.                           hours and days. ARS supports         nearest disaster area.
   Headed by John Brough, an          customers to ensure a range of
                                                                           Post Disaster –	using our exten-
 industry veteran, and expert in      immediately needed supplies are
                                                                           sive experience and knowledge
 this field, ARS has a global net-    pre-positioned at strategic points
                                                                           of the immediate needs post di-
 work of Control Towers ready to      around the world, and helps them
                                                                           saster, and working closely with
 respond in the shortest possible     to manage their stock.
                                                                           our customers, we aim to deliver
 time to humanitarian disasters         Example: The ShelterBox            support in the most timely and
 wherever they occur.                 Trust is an UK registered char-      efficient way regardless of the
   The involvement of ARS typi-       ity. Each ShelterBox weighs 56       local conditions. Flexibility
 cally falls into three categories:   kgs and contains a tent, sleeping    and adaptability are key success
                                      bags, cooking equipment and          factors as each situation var-
                                                                           ies, as does the range of goods
                                                                           and materials required. These
                                                                           can include any combination of
                                                                           pharmaceuticals, vaccines, water
                                                                           treatment, shelters, building
                                                                           materials, and large mechani-
                                                                           cal pieces of equipment. Tem-
                                                                           perature control and specialized
                                                                           handling equipment may also be
                                                                           required.
                                                                             Example: Cyclone Nagris, Ir-
                                                                           rawaddy Delta – within just 12
                                                                           hours of the devastation caused
                                                                           by the cyclone, ARS had a pre-
                                                                           liminary 62 tons of emergency




34   THE PULSE
                                                                               AIDS & RELIEF SERvICES
relief cargo in the air on its way     Example: British Red Cross        supplies (across a spectrum of
to Rangoon, having been coordi-      project for Sumatra – co-ordina-    donated pharmaceuticals right
nated by staff in the UK, Dubai,     tion of building materials from     through to medical devices),
Australia, and Singapore.            suppliers, planning, loading in     all of which demand exactly
                                     sequential build order, and ship-   the same levels of service and
regeneration	-	Flexibility,
                                     ping 446 forty-foot containers      controls as our commercial Life
planning and management of
                                     for re-building houses.             Science customer base. Many
supplies ensures all materials
                                       In all facets of humanitarian     of our partner agencies work to
required for regeneration proj-
                                     aid – post disaster, regeneration   the World Health Organization’s
ects post disaster, and long term
                                     or in support of development        Guidelines and the World Eco-
development programs, are at the
                                     programs – we are working with      nomic Forum’s Guiding Princi-
right place at the right time with
                                     agencies that provide medical       ples for Public-Private Collabo-
all formalities taken care of.
                                                                         ration for Humanitarian Action.
                                                                           For instance, ARS and Inter-
                                                                         national Health Partners, who
                                                                         since 2005 have donated over 7
                                                                         million treatments (£45million)
                                                                         of medical aid to communities
                                                                         in 60 countries, work closely to
                                                                         ensure all medical donations are
                                                                         delivered at destination, to link
                                                                         up with specialists working in
                                                                         the local communities.
                                                                           We are proud to work with,
                                                                         and share the passion of, such
                                                                         customers as UNICEF, UNHRC,
                                                                         Oxfam, ShelterBox, Medicins
                                                                         Sans Frontieres, The Red Cross,
                                                                         USAID, Muslim Aid, Sunrise
                                                                         Medical, Morningside Pharma-
                                                                         ceuticals, Norwegian People’s
                                                                         Aid, Tropical Diseases Research
                                                                         Centre, International Health Part-
                                                                         ners and many, many others.
                                                                         For further information on
                                                                         DHL’s Aid & Relief Services,
                                                                         please contact John Brough,
                                                                         Global Head - Aid & Relief
                                                                         Services Sector, at john.brough@
                                                                         dhl.com or +44/ (1675)/434 866




                                                                                     THE PULSE               35
 QUALITY ASSURANCE & REGULATORY AFFAIRS
   The DHL Supply Chain (DSC)         EU Directives and Guidelines.      in the Yellow Book,
 Life Sciences & Healthcare             Quality Guidance Docu-            • a Quality Plan, and
 Team has been very busy in the       ment ICH Q10 “Pharmaceuti-
 past year completing a variety                                           • Quality Risk Management.
                                      cal Quality System” describes
 of projects and initiatives. The     one comprehensive model for          One element of ICH Q10,
 launch of the third edition of       an effective pharmaceutical        which the Sector QA team has
 the “Yellow Book” with ad-           quality system that is based on    been developing, is Knowledge
 ditional focus on qualification      International Standards Organi-    Management. This is fed by a
 and validation as well as the        sation (ISO) quality concepts,     number of reports and QA pro-
 issuance of new guidelines for       includes applicable current Good   cess as seen in the above model,
 the distribution of vaccines and     Manufacturing Practice (cGMP)      including Deviation Reports,
 the transportation of products       regulations, and complements       Change Management, CAPAs,
 in transit represented significant   ICH Q8 “Pharmaceutical Devel-      Quality Reviews, Audit Pro-
 accomplishments, as did the roll     opment” and ICH Q9 “Quality        grams, Qualification & Valida-
 out of Quality Risk Management       Risk Management”. ICH E6           tion, Supplier Assessments, and
 (QRM) training and develop-          is the harmonized quality norm     Audits. Our Customers are also
 ment of QRM plans. New audit         for GCP Good Clinical Practice     a key input to this process and
 tools were introduced to ensure      covering Clinical Trials.          the sharing is enhanced via our
 compliant traceability, and regu-                                       Global Quality Assurance da-
 lar global web-based conference        There are three components       tabase and regular Quality Web
 calls were established focusing      which, like GAMP 5, launched       Calls with country Quality Spe-
 on Quality Assurance (QA) and        in March, and include:             cialists and Pharmacists.
 clinical trials. Work alongside       • a coordinated approach with
 GS1 Healthcare also continues.       our Quality Policy as laid down
 ich q10 global
 harmonizaTion cgmp
   We are seeing an in-
 creasing number of cus-
 tomers using the Inter-
 national Conference on
 Harmonisation of Tech-
 nical Requirements for
 Registration of Pharma-
 ceuticals for Human Use
 (ICH) Quality references
 for pharmaceuticals as
 well as the traditional
 WHO, FDA Codes of
 Federal Regulations, and




36   THE PULSE
                                                         QUALITY ASSURANCE & REGULATORY AFFAIRS
dhl yellow book cgxp guide-           able before the next DHL Life
lines                                 Sciences & Healthcare Confer-
  The third edition of the DHL        ence in 2010.
“Yellow Book” was published             In addition to the Yellow
for the 9th DHL Life Sciences         Book, the Sector maintains and
& Healthcare Conference in            issues new Quality Guidelines
Miami and has been reprinted.         to cover a consistent approach
The Yellow Book is Deutsche
                                                                                                               	
  
                                      which meets regulatory require-
Post DHL’s external industry          ments. New guidelines recently
                                                                          and Swedish to enhance Qual-
guideline. Additionally, there        issued include the “Transporta-
                                                                          ity Communication and assist
is an internal version controlled     tion and Products in Transit” and
                                                                          local operators in understanding
document which can be used as         handling “Vaccines”. A list of
                                                                          labelling, anti-counterfeiting
part of a QMS (Quality Manage-        Quality Guidelines can be seen at
                                                                          requirements, patient safety and
ment System). The book covers         Annex G page 88 in the Yellow
                                                                          the 5 Patient Rights, and need for
the Rules & Guidance for Good         Book, which also help with our
                                                                          picking accuracy.
Storage & Distribution Practices.
                                       •	 Harmonized gMP – iCH Q7-Q10 – aPis and          Where DHL may
                                          Finished Pharmaceuticals – iCH e6 gCP           sub-contract
                                       •	 Us cgMP:                                        specialised trans-
                                          - CFr 21 – Drugs general Parts 211 – Finished   port services we
                                            Pharmaceuticals                               should ensure
                                          - CFr 21 – Biologics - Parts 600 – Biological   as part of audits
                                            Products                                      such tests are
                                          - CFr 21 – Medical Devices Part 11 – elec       being performed
                                            tronic records; electronic                    as part of our
                                       •	 eU gMP – eudraLex Volume 4 Part 1 Medicinal     assessment of
                                          Products and annex 11 Computerised systems,     suppliers.
                                          13 investigational Medicinal Products, 15       dhl supply
                                       	 Qualifications	&	Validation                      chain qualiTy
                                       •	 gDP – eU (94/C 63/03), WHo trs 937 – annex      plan 2010
                                          5, eucomed – Medical Devices                       The 2010 Sec-
                                                                                          tor Quality and
                                                                                          Regulatory Af-
   The Sector team is now work-       process of Knowledge Manage-        fairs Plan covers:
ing on the fourth edition, which      ment as part of ICH Q10.
                                                                           • Governance – policy, direc-
will be the 2010 edition, which       gdp qualiTy posTers                 tives, audits, regulatory compli-
will pick up on latest legislation,     In the past year the Sector, in   ance, maintaining licenses, tech-
include new guidance around           conjunction with location Qual-     nical agreements, GxP training
clean rooms and contract manu-        ity teams, have produced addi-
facturing, and link with other                                             • Customer Needs – new mar-
                                      tional GDP Posters in languages     kets and geographies, license
quality guidelines and directives.    including Dutch, Portuguese,
It is planned to have these avail-                                        applications, opportunity man-




                                                                                      THE PULSE            37
 QUALITY ASSURANCE & REGULATORY AFFAIRS
 agement                                Contract Manufacturing           manufacturers to ensure that sup-
  • Qualification & Validation           » Traceability – new GS1        pliers have Quality Risk Man-
 – systems, packaging, fridges,         Healthcare audit tool            agement Plans and Files in place.
 HVAC, vehicles                                                          This has resulted that most of
                                         » Quality Risk Management       the issues with product failures
  • Knowledge Management –              – ICH Q9/EU GMP Annex 20 –       now occur after manufacture and
 global QA database, guidelines,        ISO 14971:2007                   in the supply chain and point of
 web calls, sharing results from                                         use.
                                     qualiTy risk managemenT
 audits, CAPAs, deviations, re-
                                       Further to requirements on          In order to address this logis-
 ports, reviews, training, etc.
                                     Quality Risk Management in          tics service providers need to
  • QA projects in 2010 in-          Pharmaceuticals from ICH Q9         focus on four areas: Products,
 clude:                              and EU GMP Annex 20, the            Environment, Facilities, and
      » ISO 13485:2003 accredita-    Global Harmonization Task           People, as seen in the diagram
     tions for Medical Devices and   Force (GHTF) for Medical De-        below from the Yellow Book
                                     vices finalized their guidance to   Section 17.
                                                                           For further information, or for
                                                                         a copy of the DHL Yellow book,
                                                                         please contact Mike Meakin, VP
                                                                         Quality Assurance & Regulatory
                                                                         Affairs, at mike.meakin@dhl.com
                                                                         For further information on Vali-
                                                                         dation, please contact Farakh
                                                                         Rashid, Validation Manager, at
                                                                         farakh.rashid@dhl.com




38   THE PULSE
FIRST LIFE SCIENCES & HEALTHCARE
wORkSHOP IN MOSCOw
  DHL Global Customer Solu-           tomers to develop, implement,         cluding Lilly, Sanofi Aventis,
tions (GCS) Emerging Markets,         and control logistics processes       Roche, Pfizer, Astra Zeneca,
in collaboration with the DHL         for pharmaceutical products,          GSK, Servier, and Bristol-Myers
business units, hosted the first      comply with regulatory standards      Squibb, among others – took
Russian Life Sciences & Health-       for the sector’s special needs,       part in the workshop. DHL was
care workshop in Moscow on            and ensure quality and process        represented by Angelos	Or-
March 11, 2009. The event was         management excellence through-        fanos, Head Life Sciences &
organized to explore DHL ser-         out the supply chain. The event       Healthcare,	Andreas	Sahli, Vice
vice capabilities and new supply      also allowed the DHL team to          President GCS Life Sciences &
chain solutions to address the        present its innovative Life Sci-      Healthcare EMEA, and senior
challenges and meet the rapidly       ences & Healthcare strategy to        managers from the business units
changing needs of the pharma-         customers, including plans to         in Russia and from the GCS
ceutical, biotech, and medical        significantly expand service ca-      team.
device industry sectors in the fast   pabilities in this sector to better     “Russia is a growing market
growing and complex Russian           serve the Russian market.             for DHL, and we are committed
market.                                 Some 30 invitees representing       to making the necessary invest-
  DHL Life Sciences & Health-         19 companies within the Russian       ments in people, processes, and
care demonstrated its commit-         pharmaceutical, medical device,       assets to support the growth of
ment to collaborating with cus-       and biotechnology sector – in-        the sector,” Angelos told the




                                                                                       THE PULSE              39
 FIRST LIFE SCIENCES & HEALTHCARE wORkSHOP IN MOSCOw
 gathering. “DHL is uniquely                “There are
 positioned to offer all modes of         plenty of op-
 transport with a high degree of          portunities
 healthcare sector competence,            for DHL in
 with dedicated people and a              the Life Sci-
 global network to support both           ences industry
 domestic and international logis-        in Russia,”
 tics services.”                          commented
                                          Robert Rosen,
 challenges and opporTuni-
                                          former Execu-
 Ties
                                          tive Director
   Participants attended interac-
                                          Association of
 tive breakout sessions on the top-
                                          International       Steve Kay, Sub Sector Head GCS Life Sciences &
 ics of Clinical Trials, Multi-User
                                          Pharmaceutical Healthcare EMEA
 Warehousing, Temperature Con-
                                          Manufacturers                             hope that DHL’s commitment
 trolled Transportation in Russia,
                                          and one of the guest speakers at          to providing efficient transport
 and Quality in the Pharmaceuti-
                                          the event. “In order to capture           links between their production
 cal Supply Chain. The workshop
                                          those big opportunities, the dif-         facilities in Europe and the US
 output demonstrated the many
                                          ferent business units of DHL              and Russia, and by providing the
 market demands and challenges
                                          must invest in the life sciences          infrastructure customers need
 faced by importers into Rus-
                                          industry and tailored logistic            within this country, will stimu-
 sia, particularly in the field of
                                          solutions for this industry.”             late further growth.”
 clinical trials. “The insights into
 key customer requirements and                Summarizing the day’s discus-       For further information about
 pain-points will enable DHL to             sions, Adrian Marley, Country         DHL Life Sciences in Russia,
 provide solutions and custom-              Manager DHL Express, com-             Denis Dobrovanov, Life Sciences
 ized services, thus becoming               mented: “It is close coopera-         Manager, at denis.dobrovanov@
 important differentiators and              tion and dialogue with our key        dhl.com or +7 915 377 35 83.
 added-value generators,” ex-               customers that allows us to stay
 plains Andreas.                            on top of the latest trends in key
                                                           industry sectors.
                                                           Life Sciences &
                                                           Healthcare is one
                                                           of the key fo-
                                                           cus areas for our
                                                           company in Russia,
                                                           and we are very
                                                           encouraged by our
                                                           customers’ devel-
                                                           opment in this mar-
                                                           ket, and particular-
 Andreas Sahli, Vice President GCS Life Sciences &        ly by the growth in
 Healthcare EMEA                                          clinical trials. We




40   THE PULSE
DHL RELEASES RESULTS OF ITS LIFE
SCIENCES INBOUND LOGISTICS STUDY
  DHL strives to build up a fact-
based understanding of supply
chain challenges faced by its
customers. As such, the DHL
Life Sciences team together with
Inhouse Consulting – Deutsche
Post DHL’s internal consulting
arm – dissected and analyzed in-
bound logistics activities of three
major Life Sciences players.
sTudy meThodology
  During the field study con-         generally limited or poor. This      of the analyzed production sites,
ducted in 2009, the team deep         main observation revealed by         it was evaluated that savings
dived into the inbound logistics      the study is largely explained by    achieved by switching to collect
practices of three leading Life       the tendency of Life Sciences        terms could range from €500,000
Sciences players with operations      companies to utilize prepaid over    to about US$2.5 million per year.
in the US and Europe. Improve-        collect INCO terms. Although
                                                                           operaTional efficiency
ment areas were identified based      this trend shows signs of chang-
                                                                             Another lever identified to
on data analysis and production       ing, the vast majority of volumes
                                                                           reduce total cost of inbound
site visits; the identified levers    remain controlled by suppliers:
                                                                           logistics lies in the consolidation
were validated during workshops       on average 69% of raw materials
                                                                           of shipments. It was assessed
that brought together customer        (and in some cases up to 100%)
                                                                           that 95% of inbound volumes
senior management teams and           are shipped under prepaid con-
                                                                           are transported by road, of which
topic experts.                        tracts. On the one hand, prepaid
                                                                           LTL (less than truckload) ac-
                                      sales terms lessen administrative
key findings                                                               counts for 37%. This clearly
                                      efforts of purchasing depart-
  Benchmarking conducted                                                   points to consolidation poten-
                                      ments and shift transport risks to
across the three analyzed Life                                             tials. One of the analyzed play-
                                      the supplier. On the other hand,
Sciences customers as well as                                              ers leveraged this potential by
                                      this practice reduces manufactur-
the comparison to other indus-                                             outsourcing 98% of its inbound
                                      ers’ control over the total cost
try best practices revealed high                                           logistics to a 3PL (third partly
                                      of their inbound logistics supply
potential to reduce total inbound                                          logistics provider). The combi-
                                      chain. Moreover, prepaid freight
supply chain costs and to gain                                             nation of programs established
                                      is typically more expensive than
operational efficiency.                                                    in collaboration with the 3PL
                                      collect terms as transport modes
                                                                           (including central order manage-
cosT reducTion                        are not always optimized accord-
                                                                           ment, dedicated call center, and
 Transparency on costs is             ing to recipients’ needs. For one
                                                                           reduction of inbound inventory)



                                                                                       THE PULSE             41
 DHL RELEASES RESULTS OF ITS LIFE SCIENCES INBOUND LOGISTICS SURvEY
 resulted in estimated savings of     DHL INvESTS US$15 MILLION IN LOGISTICS INFRASTRUCTURE
 US$1 million over four years.
                                      FOR FAST GROwING LIFE SCIENCE INDUSTRY IN ASIA
 The sTudy in pracTice
   In summary, the study high-         DHL, the world’s leading            will also be key markets for
 lights that inbound logistics       logistics company, is investing       consumption. Investing in dedi-
 contain significant potential for   US$15 in three Life Science           cated Life Science Competence
 cost reduction and efficiency       Competence Centers to fulfill         Centers enhances our global
 improvement. As Life Sciences       growing demand for higher             network as we deliver health for
 companies are put under increas-    levels of quality compliance.         the region and the world,” said
 ingly high cost pressure (due       Strategically located in Mum-         Frank Appel, CEO, Deutsche
 to the “patent cliff”, shrinking    bai, Hyderabad and Singapore,         Post DHL.
 margins, governmental pressure,     the centers will bolster DHL’s           As the world’s second most
 etc.) inbound logistics has al-     logistics capabilities for the Life   populous country, domestic
 ready been defined as a strategic   Science industry in the region.       demand for drug consumption
 priority for 2010 by many major
                                       The company also announced          in India is expected to grow at
 industry players.
                                     the launch of the DHL Global          a CAGR of more than 13% to
   In this context, the Life Sci-    Forwarding Aid & Relief Logis-        reach US$11.2 billion by 2012
 ences sector can benefit from the   tics unit in Asia Pacific. Drawing    . Having established itself as a
 experience of logistically more     on DHL’s expertise in Life Sci-       preferred destination for out-
 mature industries such as Auto-     ences, DHL Global Forwarding          sourced drug discovery, clini-
 motive. Despite larger inbound      Aid and Relief Logistics focuses      cal research and manufacturing
 volumes, much denser supplier       on logistics solutions for Hu-        functions, India’s pharmaceutical
 networks, and extremely high        manitarian organizations dealing      production is projected to grow
 cost pressure, the automotive       with sensitive and life critical      at a CAGR of over 40%, valued
 sector managed to achieve high      shipments involved in aid and         at US$2.5 billion by 2010 .
 inbound transparency – thanks to    relief efforts.                         In 2009, the global pharma-
 control-increasing solutions like
                                       “Asia and other emerging            ceuticals sector, a key segment
 Control Tower or Origin Man-
                                     markets are a key sourcing,           of the Life Science industry, is
 agement.
                                     manufacturing and distribution        estimated to be worth US$820
   DHL is committed to leverag-      base for the global pharmaceuti-      billion, with an expected growth
 ing its experience with other       cal industry. Increasingly they       rate of 14-15% in emerging
 industries as well as the results
 of the study to further develop
 those solutions and customize
 them to the specific requirements
 of the Life Sciences industry.
 For further information, please
 contact Katrin Hitzig, Associate
 Partner at Deutsche Post DHL
 Inhouse Consulting, at katrin.
 hitzig@dp-dhl-ic.com




42   THE PULSE
             DHL INvESTS IN LOGISTICS INFRASTRUCTURE FOR LIFE SCIENCES INDUSTRY IN ASIA
markets.                             augments DHL’s on-going inno-            Relief Logistics unit in will man-
                                     vations in the industry. In India,       age the movement of aid cargo in
dhl life science compeTence
                                     Blue Dart, part of DHL Express,          humanitarian efforts around the
cenTers in asia
                                     recently introduced a Tempera-           world and develop tailored solu-
  The Life Science industry in
                                     ture Controlled Logistics (TCL)          tions to provide critical round-
India has seen new and stricter
                                     door-to-door service which               the-clock support for the sector.
regulatory requirements for qual-
                                     provides customers best-in-class           A significant amount of phar-
ity compliance. DHL’s Life Sci-
                                     network, quick transit time, track       maceuticals and other aid and
ence Competence Centers fill the
                                     and trace, specialized handling          relief supplies are procured from
gap in the existing supply chain
                                     and packaging solutions that             India. In 2008, the United Na-
by providing improved tem-
                                     maintain temperature of 2°C to           tions procured US$620 million
perature controlled handling and
                                     -20° C.                                  of pharmaceuticals, medical
storage, greater product transpar-
ency and visibility, and complete      DHL Express has also devel-            equipment, cold chain equipment
end-to-end logistics capabilities.   oped solutions for Life Science          and diagnostic test kits from
                                     projects and
  The DHL Life Science Com-
                                     clinical trials
petence Centers in Asia will
                                     offered in 103
comprise a core team of industry
                                     countries across
professionals who will develop
                                     the DHL global
solutions for customers to better
                                     network. These
manage their international sup-
                                     services include
ply chains. Currently, DHL has a
                                     the transporta-
network of 15 Competence Cen-
                                     tion of temper-
ters across the globe, strategi-
                                     ature-sensitive
cally located to ensure proximity
                                     shipments which
and accessibility to customers.                            Sue Arden, VP GCS Life Sciences & Healthcare Asia Pacific
                                     require time-def-
  Within Asia, dedicated teams       inite temperature-
manage Life Sciences & Health-       controlled services, IATA-vali-        India.
care business: South Asia Pacific    dated packaging and temperature          “With our experience in the
is headed by Nick Revell, based      loggers.                               Life Science sector and disaster
in Singapore; Cynthia Wang
                                     dhl aid & relief logisTics               management, the Aid & Relief
of Shanghai recently took over
                                     services                                 Logistics unit will help organiza-
responsibility for North Asia
                                       With its core expertise in Life        tions in the Aid, Humanitarian
Pacific; and Deepak Kotak has
                                     Sciences, DHL Global Forward-            and Development sector manage
recently been nominated Head of
                                     ing’s Aid and Relief Logistics           their cargo fast and efficiently
Life Sciences for India.
                                     Unit is established especially for       to deliver to people most in
TemperaTure conTrolled lo-           Humanitarian and Development             need” said Amadou Diallo, Chief
gisTics offered by blue darT         organizations. These organiza-           Executive Officer, DHL Global
and dhl express                      tion deal with sensitive and life        Forwarding South Asia Pacific.
  The launch of the Life Science     critical shipments involved in
Competence Centers in India          aid and relief efforts. The Aid &




                                                                                           THE PULSE              43
 AIR TO ROAD – AN INNOvATIvE SOLUTION
 FOR TEMPERATURE CONTROLLED TRANSPORT
   A leading pharmaceutical and       road network using only life sci-    Customs Clearance, temperature
 diagnostics company with activi-     ence compliant temperature con-      monitoring, and overall coordi-
 ties in 150 countries came to the    trolled trucks with ADR equip-       nation with the customer.
 table with an impressive list of     ment, licensed and registered in       The result of the process was
 challenges: devise a new method      the destination countries. Rout-     an impressive 84% reduction in
 of transportation to the Middle      ings were carefully examined to      carbon emissions when compar-
 East and Africa that will ensure     determine the most time and cost     ing the DHL solution to that in-
 a stable cold chain through the      effective methods of transport.      volving air freight as the mode of
 entire transportation process and    Lead times agreements were           transportation. The final benefit
 provide predicable lead times.       developed to assist in inventory     was a large, double digit percent-
 The solution must be compli-         planning.                            age cost savings to the customer.
 ant with all regulations covering
 the transportation of dangerous                                             The true measure of success
 goods, be process driven, more                                            for any solutions is its sustain-
 cost effective than airfreight and                                        ability will the solution last over
 reduce the carbon footprint. The                                          time and can it be expanded to
 company turned to their current                                           gain additional benefits? The
 providers for a solution and DHL                                          answer to this critical question
 emerged as the provider equal to                                          is a resounding “yes”, as plans
 the challenge.                                                            are in development to expand
                                        To ensure cold chain integrity,    the program to other destinations
   DHL began with a strategy to       DHL employed the latest ad-          within the region.
 leverage its global network, and     vances in temperature monitor-
 cold chain expertise to integrate    ing. “SmartSensor” technology,         Meeting the challenge set
 the numerous sites, systems, and     developed by the DHL Innova-         by this large and sophisticated
 people into a single networked       tion Center, is used to capture      customer required creativity, in-
 supply chain to ensure outstand-     temperature data, scan points        novation, and collaboration. The
 ing service, high quality, and       were established and a return        Air to Road solution brought out
 enhanced productivity. Through       process developed using DHL          the best of both organizations
 the collaborative efforts of DHL     Express.                             and clearly demonstrated what
 Global Forwarding, the DHL                                                can be done when companies
                                        To provide predicable lead         work together in the spirit of
 Innovation Center, and the DHL       times and monitor the material
 Freight network, DHL built a                                              partnership.
                                      flow, a Control Center was estab-
 solution that addressed all of the   lished in Damascus. The Control      For further information on DHL
 company’s challenges.                Center is responsible for char-      Freight, please contact Thomas
   The integrated solution began      tering and truck management,         Ellmann, Sector Head - Life Sci-
 by developing a comprehensive        daily status and tracking reports,   ence & Healthcare, at thomas.
                                                                           ellman@dhl.com



44   THE PULSE
                                                DHL LIFE SCIENCES & HEALTHCARE




         10TH DEUTSCHE POST DHL LIFE SCIENCES AND HEALTHCARE
                     CONFERENCE AND WORKSHOPS
                                                  SEPTEMBER 21 - 23, 2010
                                               DUBAI, UNITED ARAB EMIRATES

Dear Customer,

Deutsche Post DHL is delighted to invite you to our 10th DHL Life Science & Healthcare Conference and Workshops to be held
in Dubai, United Arab Emirates on September 21-23, 2010. This exciting city will provide the forum to culminate 10 years of
learning experience, best practice and collaborative dialogue between industry leaders, suppliers and the global DHL dedicated
sector team. Our future looks bright and we are very excited to explore industry trends and share the latest innovations in
logistics products and services with an array of leading customer presentations, exhibits, and workshops.

The industry is facing a transforming supply chain creating demand for solutions which reach across sub sectors, products and
geographical regions. Together with the DHL community of senior management from Global Customer Solutions, Express,
Freight, Global Forwarding and Supply Chain, we will discuss the industry’s supply chain needs and drive the development of
new solutions and strategies. You will also have the opportunity to visit the Danzas Life Sciences Hub in Dubai, Jebel Ali Free
Trade Zone.

With a vast infrastructure and industry specific capabilities, you will have an opportunity to learn about customized products and
services engineered specifically for the pharmaceutical, medical devices, biotechnology, generics and contract manufacturing
sectors. We will share our 2015 Strategy designed to enable your globalization and provide the quality and efficiency needed to
evaluate and implement alternative strategies which can optimize and streamline your supply chain.

Your industry peers will share their views and findings on reengineering supply chains, including new initiatives in China and
India, temperature control distribution systems for 2-8C and 15-25C, and streamlined clinical trials solutions. In the workshops
you may expect to contribute actively on subjects ranging from Security, Middle East logistics, Air and Ocean freight benefits and
challenges, Inbound to manufacturing strategies, Control Towers, Outsourcing Logistics and Sustainability solutions.

The combination of keynote presentations and focused workshops, with industry leaders and DHL executives collaborating on
topics relevant to the industry, will make this one of the most exciting, dynamic and worthwhile events to attend this year!

You can register for this event online at http://dhl.sharepointspace.com/sites/lsh/default.aspx or simply fill out the attached FAX
form and send it to +1 630 563 1343. Should you have any questions please feel free to contact us at life.sciences@dhl.com.


We look forward to seeing you in Dubai.


Sincerely,




Angelos Orfanos                             Sue Arden                                    Andreas Sahli
Global & Americas Head                      Asia Pacific Head                            Europe & EMA Head
DHL Life Sciences & Healthcare              DHL Life Sciences & Healthcare               DHL Life Sciences & Healthcare
                                                        DHL LIFE SCIENCES & HEALTHCARE




           10TH DEUTSCHE POST DHL LIFE SCIENCES AND HEALTHCARE
                       CONFERENCE AND WORKSHOPS
                                                          SEPTEMBER 21 - 23, 2010
                                                       DUBAI, UNITED ARAB EMIRATES

DAY 1 (SEPTEMBER 21, 2010)
In the morning you will have the opportunity to visit the Danzas Life Sciences Hub in Dubai, Jebel Ali Free Trade Zone. After
lunch, Life Sciences & Healthcare industry leaders will address relevant topics and discuss how they are responding to today’s
market trends and preparing for tomorrow’s supply chains. Experts from around the globe, together with DHL executives will
provide attendees an unparalleled opportunity to exchange logistics information, network with peers, and discover solutions to
global logistics challenges. A wide range of topics will be presented including the latest updates on DHL Life Sciences and
Healthcare solutions. You can expect to hear key note presentations from customers on topics such as, benefits of China
manufacturing, supply chain reengineering of promotional material distribution, 15—25 C optimized and cost effective packaging
systems.

DAY 2 (SEPTEMBER 22, 2010)
Day 2 will consist of a full day of workshops on topics selected from previous attendee feedback and customer input on major
issues affecting the industry. We will explore new products and outline the strategies needed by the industry. Our workshop
sessions dive deep into the most relevant logistics topics and are guaranteed to invigorate and contribute to our attendees
learning experience.

Attendees can register to participate in the following workshops:
India - New Business            Middle East Cold Chain Distribution -      Air Freight                                 Creating Supply Chain Flexibility by
Environment (Order to Cash)     Business Case                                                                          Outsourcing
Healthcare Logistics in China   Ocean Freight - Creating value for the     15 - 25 C - Case Study                      Understanding Type of Deviation &
                                Supply Chain using an NVOCC                                                            GDP Issues
Healthcare Supply Chain         Insuring High Value Goods for Ocean        2015 Strategy - Prioritizing DHL Solutions & Green Logistics
Optimization                    Transportation                             Product Development
Security through the Supply     Inbound to Manufacturing - Case Study      Control Tower - Case Study                  Sub-Saharan & African Logistics
Chain                           findings, Improving your Supply Chain
DHL Cold Chain                  Supply Chain Reengineering of Promotional Qualification of Ocean Containers for the    Developing Clinical Trials
                                Material Distribution                     Transportation of Vaccines - Case Study      Capabilities in Emerging Markets




“Arabian Nights” Dinner


DAY 3 (SEPTEMBER 23, 2010)
Day 3 will continue presentations from Life Science leaders regarding topics that directly affect the industry such as supply chain
optimization case study, streamlined clinical trials and India new business environment.


PAST ATTENDEE STATEMENTS                                                                                DUBAI INTERCONTINENTAL
“Very good hands-on approach to learning and understanding Life Sciences &                                        Dubai Festival City
Healthcare supply chain logistics”                                                                                  PO Box 45777
                                                                                                                     Dubai, UAE
"The event clearly demonstrates DHL’s commitment to Healthcare and Life                                         Phone:+ 971 4 701 1111
Sciences.”

“Great format, well organized, liked the interactive workshops”
Confirmation Fax Sheet
To:        Deutsche Post DHL Life Sciences & Healthcare                    From:     ________________________________________

Fax #:     +1 630 563 1343                                                 Phone #: ________________________________________

Date:      __________________________                                      Pages:    2


Subject: DHL Life Sciences & Healthcare Global Conference RSVP

To confirm your spot at the 10th Deutsche Post DHL Life Sciences & Healthcare Global Conference, please fill in your contact information.

         First Name __________________________________________________________________________

         Last Name __________________________________________________________________________

         Title / Position ________________________________________________________________________

         Email ______________________________________________________________________________

         Company Name ______________________________________________________________________

         Address ____________________________________________________________________________

         Address 2 ___________________________________________________________________________

         Address 3 ___________________________________________________________________________

         City ________________________________________________________________________________

         State/Province _______________________________________________________________________

         Postal Code _________________________________________________________________________

         Country _____________________________________________________________________________

         Telephone ___________________________________________________________________________

         Fax_________________________________________________________________________________


To book your room we ask that you please enter your arrival information.

         Check-In Date _______________________________________________________________________

         Airline / Flight Number__________________________________________________________________

         # of Guests in Room ____________________________________________________________________

         Smoking or Non-Smoking________________________________________________________________


Please enter your departure information below.

         Departure Date _______________________________________________________________________

         Airline/ Flight Number __________________________________________________________________


Do you have any additional info that we should know about in order to make your stay as wonderful as possible (i.e. Dietary Restrictions,
Allergies, Special Arrangements, etc....).
          ________________________________________________________________________________

         ________________________________________________________________________________

         ________________________________________________________________________________
                                                                                                                     Continued on next page
 Confirmation Fax Sheet Page 2
 Dubai Danzas Life Sciences Hub Tour: (Day 1, September 21, 2010)

 In the morning, prior to the start of the conference, you will have the opportunity to visit the Danzas Life Sciences Hub in Dubai, Jebel Ali
 Free Trade Zone. Please confirm if you plan to attend the tour.

 ◊    Yes
 ◊    No

 *Attendance is optional

 Workshops: (Day 2, September 22, 2010)

 Please choose one workshop per session that you would be interested in attending. Each of the 20 different workshop topics is
 being offered 2 times across 4 sessions.
Session 1                                Session 2                               Session 3                              Session 4

◊    India - New Business                ◊   India - New Business                ◊   Healthcare Logistics in China      ◊   Healthcare Logistics in China
     Environment (Order to Cash)             Environment (Order to Cash)

◊    Healthcare Supply Chain             ◊   Healthcare Supply Chain             ◊   15 - 25 C - Case Study             ◊   15 - 25 C - Case Study
     Optimization                            Optimization

◊    Security through the Supply         ◊   Security through the Supply         ◊   Green Logistics                    ◊   Green Logistics
     Chain                                   Chain

◊    DHL Cold Chain                      ◊   DHL Cold Chain                      ◊   Control Tower - Case Study         ◊   Control Tower - Case Study

◊    Middle East Cold Chain              ◊   Middle East Cold Chain              ◊   Qualification of Ocean             ◊   Qualification of Ocean
     Distribution - Business Case            Distribution - Business Case            Containers for the                     Containers for the
                                                                                     Transportation of Vaccines -           Transportation of Vaccines -
                                                                                     Case Study                             Case Study

◊    Ocean Freight - Creating Value      ◊   Ocean Freight - Creating Value      ◊   Creating Supply Chain              ◊   Creating Supply Chain
     for the Supply Chain using an           for the Supply Chain using an           Flexibility by Outsourcing             Flexibility by Outsourcing
     NVOCC                                   NVOCC

◊    Insuring High Value Goods for       ◊   Insuring High Value Goods for       ◊   Understanding Types of             ◊   Understanding Types of
     Ocean Transportation                    Ocean Transportation                    Deviations & GDP Issues                Deviations & GDP Issues


◊    Inbound to Manufacturing - Case     ◊   Inbound to Manufacturing - Case     ◊   2015 Strategy - Prioritizing DHL   ◊   2015 Strategy - Prioritizing DHL
     Study findings, Improving your          Study findings, Improving your          Solutions & Product                    Solutions & Product
     supply Chain                            supply Chain                            Development                            Development

◊    Supply Chain Reengineering of       ◊   Supply Chain Reengineering of       ◊   Sub-Saharan & African              ◊   Sub-Saharan & African
     Promotional Material Distribution       Promotional Material Distribution       Logistics                              Logistics


◊    Air Freight                         ◊   Air Freight                         ◊   Developing Clinical Trials         ◊   Developing Clinical Trials
                                                                                     Capabilities in Emerging               Capabilities in Emerging
                                                                                     Markets                                Markets



 Interview:

 We will be filming the Deutsche Post DHL Life Sciences & Healthcare Conference, as well as conducting customer interviews. Would
 you be willing to sit down for a brief video interview?

 ◊    Yes
 ◊    No

 Visa:

 Will you require a signed letter from DHL inviting you to the 10th Deutsche Post DHL Global Forwarding Life Sciences and Healthcare
 Global Conference in order for you to obtain a visa from the United Arab Emirates Government?

 ◊    Yes
 ◊    No
   SIT BACK AND RELAX!
                                                                              DHL Solutions & Innovations

   TEMPERATURE MONITORING
   SIT BACK AND RELAX!
   AT A GLANCE.
   TEMPERATURE MONITORING
   AT A GLANCE.                                70

                                               60

                                               50
                                               70
                                               40
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                                              20
                                              40
                                              10
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                                      0        0
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                                     0          0
                           30
www.smartsensor-temperature.com
                                     10
   Take the way! way!
Take the easy easy Peace of mind to concentrate on your core
business: we’ll manage your temperature sensitive products flexibly
                                       20
    seamlessly – to concentrate the cold chain to scanning manage your
andPeace of mindfrom organising on your core business: we’lland
documenting the data. And our web portal lets you conveniently
   temperature sensitive products flexibly and
www.smartsensor-temperature.com seamlessly – from organising
                                       30
monitor the entire process. Anytime, anywhere.
   the cold chain to scanning and documenting the data. And our web portal
   lets you conveniently monitor the entire process. Anytime, anywhere.
   Take the easy way!
Take the easy way! Peace of mind to concentrate on your core
business: we’ll manage your temperature sensitive products flexibly
    www.smartsensor-temperature.com
    seamlessly – to concentrate the cold chain to scanning manage your
andPeace of mindfrom organising on your core business: we’lland
documenting the data. And our web portal lets you conveniently
   temperature sensitive products flexibly and seamlessly – from organising
monitor the entire process. Anytime, anywhere.
   the cold chain to scanning and documenting the data. And our web portal
   lets you conveniently monitor the entire process. Anytime, anywhere.

   www.smartsensor-temperature.com
DHL Life Sciences & Healthcare



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