Shanghai Pharma and DHL announce partnership

Shanghai Pharma has signed a Memorandum of Understanding (MOU) with DHL Supply Chain to prepare its logistics infrastructure for global expansion.

Under the MOU, Shanghai Pharma will partner with DHL Supply Chain to enhance quality control measures, streamline distribution processes, and strengthen compliance with local and international food and pharmaceutical regulations. A range of recent government initiatives, including the “two-invoice” or fapiao policy which was rolled out earlier this year, have put greater onus on China’s pharmaceutical sector to improve the transparency and efficiency of local supply chains.

“The quality and resilience of our logistics infrastructure will determine not only how successfully we adapt to new legislation like fapiao – which seeks to cut down on multiple distributors and mark-ups by only allowing two invoices per goods shipment – but also our ability to capitalize on the huge international growth opportunity for high-grade Chinese pharmaceutical products and medical devices,” said Cho Man, President and Executive Director, Shanghai Pharma.

To facilitate this planned expansion, the MOU will grant Shanghai Pharma priority access to DHL’s global logistics network including temperature-sensitive life sciences services to Europe. DHL Supply Chain will also support Shanghai Pharma’s supply chain optimization needs as the manufacturer ramps up its overseas distribution and retailing efforts.

“China’s pharmaceutical industry has historically suffered from high levels of fragmentation amongst its local customers and distributors, an issue which recent legislative changes like the ‘two-invoice’ policy have sought to combat,” said Yin Zou, CEO Greater China, DHL Supply Chain. “In this regulatory climate, end-to-end supply chain management plays an increasingly crucial role in determining how effectively Chinese pharmaceuticals firms not only maintain sales locally, but gain traction abroad in a cost-effective and sustainable manner.

Source: Deutsche Post DHL Group