Dive Brief:
- The global market for warehousing services is expected to grow at a compound annual rate (CAGR) of approximately 6% over the next five years, thanks to manufacturing, pharmaceutical, and healthcare industry demand, DC Velocity reported.
- To keep pace with costs and efficiencies, warehouse service providers, or 3PLs, are enhancing their offerings by adopting the use of barcodes and robots for picking; aligning with distant locations to allow for better proximity to ultimate product recipients, and offering multiple services, such as packaging and transporting.
- Both the users and vendors of warehouse services strive to meet regulatory requirements, achieve compliance and improve sustainability.
Dive Insight:
Cold chain warehousing is a rapidly growing field into which logistics providers are expanding. Storage facilities by companies like GENCO, now FedEx Supply Chain, are strategically located to limit travel time and ease delivery of medications requiring careful storage.
UPS has also expanded into cold chain warehousing through its recent purchase of Marken, a global provider of supply chain solutions to the life sciences industry. Marken's need for stringent regulation and scientific oversight requires ongoing observation, traceability and reliability within its logistics solutions provider, since any deviation in time or temperature could impact the results of expensive clinical trials.
Not to be left out, 3PL Kuehne + Nagel recently purchased Zet Farma, a logistics company in Istanbul, and the Italian company Ferlito Pharma Logistics, which specializes in the proper warehousing of pharmaceuticals. Both are cold chain experts.
