DHL Launches Distribution Center in Brazil for Sanofi

Brazil: Sanofi, a multinational pharmaceuticals company has established a new distribution center in Sao Paula, Brazil. Further, DHL will handle the distribution activities of Sanofi. DHL supply chain will consolidate the logistics operations of all the three divisions of Sanofi.

The development of the new site will cost around USD212 million and the project will cover area over 36,000 sqm. The distribution center will have fully air conditioned storage area with almost 50,000 pallet positons. The distribution center will be close to Sanofi’s industrial plant for more secure and efficient distribution.

TechSci Research depicts that Sanofi’s decision is a part of business growth strategy. Company is planning to target for the complete Brazilian market and for that purpose, it has decided to simplify and enhance their storage operations and distribution network in Brazil. This move is expected to foster synergies and streamline the entire process of supply chain. Cold chain market is highly fragmented and has witnessed high number of mergers and acquisitions in last few years and this move by company is expected to provide them a competitive edge in Brazil cold chain market.

According to a report published by TechSci Research,”Global Cold Chain Market  Forecast & Opportunities, 2020”, global cold chain market is expected to grow at a CAGR of over 11% during 2015-20. Currently, global cold chain market is fragmented, with a large number of players operating in the market. However, a number of mergers and acquisitions have been witnessed over the past decade. This trend is expected to continue over the forecast period, owing to which the market is moving towards consolidation in coming years. In terms of revenue contribution, North America captured the largest market share in 2014, and is expected to retain its dominance in global cold chain market over the next five years. Major players operating in the market include AmeriCold Logistics, Lineage Logistics, APL Logistics, Swire Group, Oxford Cold Storage, VersaCold, and Burris Logistics, among others.