Imperial Health Sciences/Yusen Logistics team up for special deliveries
Imperial Logistics group’ company Imperial Health Sciences has partnered with global ocean freight specialist Yusen Logistics to launch the pharmaceutical industry’s first dedicated, temperature controlled sea freight consolidation service to southern Africa.
This weekly service kicked off in January with solutions for East and West Africa to follow later in 2014.
Imperial Health Sciences managing director Dr Iain Barton explains that this service will maximise the cost effectiveness of sea solutions versus airfreight for pharmaceutical customers, providing them with a transparent and comprehensive solution for the supply of replenishment stocks.
He said: “The innovative solution has been developed in response to demand from pharmaceutical customers for a robust, total supply chain service.”
“With a door-to-door pallet rate structure for consignments which can range from a single pallet to a dedicated container, the new service maximises quality and minimises risk, with a complete audit trail for temperature control and security.”
Collections will be made throughout Europe by the Yusen Logistics’ network, and received into the company’s European pharmaceutical hub in Antwerp.
“Weekly seafreight will depart from the Port of Antwerp direct to Cape Town, where the product will be precleared and offloaded into Imperial Health Sciences’ warehouse,” Barton explained.
Onward transportation by fully temperature controlled vehicles will then take the pharmaceutical goods directly to the consignee, to the manufacturer’s warehouse or to Imperial’s pharmaceutical distribution facilities around South Africa.
“All in all this represents the pharmaceutical industry’s first comprehensive seafreight solution from Europe to southern Africa, offering quality and cost benefits for both large and small shipments,” Barton concluded.
Imperial Health Sciences is a leader in cold chain management for pharmaceutical supply chain services.
From fully compliant, world class warehousing facilities, the company practices internationally benchmarked cold chain procedures and is raising the bar for cold chain practice across South Africa and for export into Africa.
Through its global network, Yusen Logistics provides air and ocean freight forwarding and contract logistics services that meet customers’ increasingly sophisticated logistical needs.
Billionaire Kumar Birla Champions Regional Supply Chains
As the head of the Aditya Birla Group, a US$46bn firm that operates in 36 countries, Kumar Mangalam Birla is no stranger to splashy strategic moves. Yet his recent announcement that he no longer wants to acquire globally distributed supply chains stood out. While many companies have struggled to cope with shipping backlogs, his firm has chosen to pivot and focus on regional networks. Said Birla: ‘We wouldn’t look at a company or a business where you source in one corner of the world and sell in another’.
He cited protectionism, the pandemic, and the limited movement of products and people around the world as ABG’s primary causes of lost profits. And they aren’t alone. Over the past year, 900 of the U.S. and Europe’s biggest IT, defence, and financial services firms have lost an average of US$184mn apiece.
An Era of Global Disruption
Over the past few decades, low shipping rates and rapid delivery times have lulled multinational firms into a false sense of security. In the early 2000s, companies chose to take on significant global supply chain risks in exchange for increased profits. First, it made sense to manufacture higher-value goods, such as electronics, in low-cost regions throughout Southeast Asia, India, and Africa. Second, first-tier suppliers started to outsource the manufacturing of specific components to second-, third-, and even fourth-tiers—leaving supply chains with extremely limited visibility.
So when COVID-19 disruptions struck certain regions, companies were caught unprepared. Usually, these events come few and far between. But over the past ten years, we’ve seen a number of ‘black swan’ events that have thrown the supply chain industry into chaos. Here’s a quick history of the most significant events in recent years, thanks to the MIT Sloan Management Review:
- 2010. China creates export quotas for rare earth elements.
- 2011. The Tōhoku Earthquake hits East Japan; flooding sweeps throughout Thailand.
- 2016-present. Trade wars between the U.S. and China hurt suppliers.
- 2020-present. COVID-19 pandemic shuts down international shipping ports.
Now, Kumar Birla is one of many who want to re-evaluate how we run our supply chains. Though his company has acquired 40+ companies in the last quarter decade, Birla intends to build up local hubs rather than expand operations.
Why Pursue Regionalisation?
Combine Chinese economic dominance, global supply chain vulnerabilities, and major government policy shifts around the world, and you have a storm brewing on the horizon for big multinational firms. As Brookings noted, ‘the biggest risk for trading opportunities in the developing world is growing protectionism in more advanced economies, often dressed up as national security protection’.
Altogether, from the U.S. to the European Union, governments are trying to protect their domestic supply chains, secure adequate stockpiles of materials, and build world-class local networks. Consider Biden’s recent executive order, which seeks to bring semiconductor manufacturing back to home soil, or Japan’s bid to open more memory chip fabrication factories near Tokyo. The Aditya Birla Group intends to react in kind. Said Birla: ‘We’re looking at regionalism as a very big theme’.
Will Others Follow Suit?
In the post-pandemic economy, global businesses must decide whether to expand or contract. On one hand, the Alibaba Group’s Cainiao Smart Logistics Network recently launched a direct flight between Hong Kong, China, and Lagos, Nigeria. On the other, the Japanese government is desperate to make its chip manufacturing domestic. Indeed, as two supply chain strategies diverge in a post-pandemic world, the one businesses take may make all the difference.
Yet Birla is confident that regionalisation is the right call. According to his words at the Qatar Economic Forum, even necessary cross-border transactions should be smaller in scope. And as the Bloomberg Billionaires Index now lists his net wealth at US$10.4bn, up 52% from 2020, he may have the cash to test his theories out. ‘Regional hubs, regional presence, regional employment, catering to regional demand’, he stated. ‘We’re a global company rooted in local economics’.