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Hellmann Worldwide Logistics Making its mark in Pharma
Hellmann’s big and growing imprint in the healthcare industry
The company has carved a distinct niche for itself in the pharma logistics segment
Since its foundation in 1871, Hellmann has developed into one of the largest international logistics providers with an enviable track record. It has now made and consolidated its forays in the healthcare and pharma distribution sectors.
Complying with the stringent and highly demanding norms and regulations required by the UAE Ministry of Health, Hellmann Worldwide Logistics has provided temperature and humidity-controlled storage for frozen (-20C) and ambient controlled (15-25C) pharma products. Operating out of the 100,000sqft multi-user Healthcare HUB in Dubai, Hellmann also manages the regional distribution by air, road, and sea to meet customer strategic regional objectives.
Global Supply Chain engaged with Salam Sinno, Strategic Sales Director – Healthcare, Middle East & South Asia, Hellmann Worldwide Logistics, to bring us to current on the latest developments on all things healthcare related, performance, future prospects and new strategies going forward.
GSC: Briefly, what are your broad observations as logistics functions and processes are reset post-pandemic from the Hellmann WL healthcare viewpoint? Salam Sinno (SS): Whilst some countries are still facing lockdowns (notably in the APAC region) within the Middle East & South Asia we have seen a complete shift back to normality when it comes to air, ocean and road operating solutions.
This has helped to reduce the much higher than normal freight rates, especially in ocean and in airfreight, however due to related war factors in East Europe air capacity is down still by 3% (namely on freighters), but notably air volume/weight is down by around 11%.
In Ocean we are experiencing higher blank sailings from the ocean carriers due to the market volume reduction due to a mixture customer ordering normalization
Salam Sinno, Strategic Sales Director, Healthcare, Middle East & South Asia.
and high stocks in warehouses and in 2023 we are also expecting new vessel capacity to also enter the market, however with the higher energy costs being experienced by the manufacturers and also consumers 2023 will be a different scenario now with the upcoming 2023 global financial concerns.
The logistics industry will continue to challenge its resilience level by mapping the full end-to-end supply chain, including distribution facilities and transportation hubs as well as building flexible and agile systems, factoring risk management into all aspects of their decision-making, but ensuring that quality is at the highest level.
GSC: How important is the healthcare business for Hellmann WL? SS: Healthcare is a vital industry within Hellmann and we consider it one of our top sustainable verticals in our group compared to other industries. Not only does it impact people longevity in life, but also in the humanitarian sector we support bringing relief to people in need.
The Healthcare sector represents approx. 15% of Hellmann global business. Hellmann provides all air, sea, land and warehouse solutions with customer centric customized systems and high levels of training towards GDP (Goods Distribution Practices) standard we focus on creating healthcare specialists within our teams that ensure the needs of our customers are not just met, but the future strategies of our customers are supported with solutions that enable Hellmann to be the niche provider of choice for the Healthcare sector. GSC: Are you witnessing momentum or seeing a drop or slowing down in your pharma / cold chain operations as the situation inches towards normalcy? SS: We have witnessed the reduction in PPE and of course covid vaccine transports, however for pharmaceutical and medical devices we see a continued growth in movements due to population growth.
The pandemic has certainly brought forward the greater requirements for customers to extend the regional hubs they have in Dubai and with greater attention to
local licensing notably in UAE and Saudi Arabia we are seeing an upward trend in customers requiring direct domestic held stocks due to the shifting focus from managing cost implications to developing a structured approach to supply chain resiliency.
GSC: What is your general prognosis / forecast for healthcare logistics business in the future? SS: Improving the supply chain will continue to be a priority for the healthcare system with a drive to establish regional and country storage and distribution hubs. Third-party healthcare logistics providers will play a key role in orchestrating the hospital supply chain management by improving visibility, reducing cost, increasing efficiency, and enhancing patient-centric experience.
GSC: How are you faring in the GCC? SS: People, processes, infrastructure, and digitalization are the foundation of Hellmann’s healthcare network and enabler to offer compliant, transparent and innovative transportation and distribution solutions. Combining a risk-based approach and integration of secured digital solutions into supply chains, Hellmann offers qualified end-to-end transport with capabilities of realtime and proactive intervention.
In the Middle East, Hellmann Healthcare Logistics gained a leadership position by operating a proven-and-tested hub concept for more than a decade, using UAE healthcare warehouses as distribution platforms for the region and Saudi healthcare warehouses for the national distribution in the Kingdom of Saudi Arabia.
GSC: In which countries do you foresee a growth in healthcare logistics offerings for Hellmann within the Middle East and South Asia? SS: Our freight forwarding solutions out of India continue to show positive performance due to a stronger shift in customers manufacturing out of India versus China for which Hellmann India has been growing with a focus on exports into United States and Europe. Hellmann further expended their healthcare quality and commercial teams who together with our product, continue to innovate on the solution front
Egypt is one of the fastest growing healthcare markets in the Middle East. Hellmann is strongly positioned to offer a high level of quality and solutions by leveraging our regional structure, competency center, Healthcare Quality Management system, and GDP trained specialists.
GSC: How is Saudi Arabia doing where you have independent business entity? SS: Hellmann has been doing very well since 2010 in Saudi Arabia with 2022 Hellmann Saudi Arabia obtaining one of the first Logistics Licenses available. Healthcare has been a critical vertical in our business operating solutions for our customers with our own warehousing solutions in the key cities.
In 2023 we look forward to an amazing announcement when it comes to greater full end to end solutions to support our customers in the Kingdom by Hellmann, but sorry to say for now you will just have to wait to hear on that one, however it is certainly a massive game changer in our industry and the solutions we can provide to our customers!
