UPS to Open 4 New Distribution Centers to Meet Demand for Health-Care Services

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UPS Inc. on Jan. 4 said it is expanding distribution facilities this year in the United States and three other countries to handle growing global demand for outsourced shipments of health-care products such as medicines and supplies.

With the expansion, which includes shipping facilities in Louisville, Ky.; Burlington, Ontario; Singapore and the Netherlands, the company will operate a total of 30 distribution centers dedicated to the health-care industry. When the additions are completed, Atlanta-based UPS will have more than 4 million square feet of warehouse space to support health-care distribution services, an increase of about 15% in operating capacity.

“We are seeing increased demand from health-care manufacturers wanting more agile supply chains. This clear industry trend is driving companies to look for more global solutions and deeper supply chain partnerships,” said Bill Hook, a vice president at UPS Healthcare Logistics, part of the company’s supply chain solutions unit.

UPS’s announcement followed a 2010 survey by the company that found four of five companies that provide health-care services do business outside the United States and that one-third of those companies plan to boost outsourcing within three years.

UPS said in a statement that the facilities are designed to allow customers to meet complex regulatory and supply requirements while providing flexibility in operations, including temperature-sensitive services.

The Singapore shipping center is expected to begin operations in the first quarter this year, and the location in the Netherlands is expected to open in the second quarter. UPS’s first distribution center in Europe was filled to capacity within three months.

The Ontario facility is the 10th one that UPS operates in Canada for health-care customers. The Louisville facility is expected to open in the fourth quarter near UPS’s global air shipping hub, known as Worldport.

The 144,000-square-foot expansion will complement more than 1 million square feet of capacity in existing facilities. It is designed to be able to provide next-day delivery for air shipping orders received as late as 11 p.m.