Polpharma and FM Logistic become strategic partners in the area of logistics
The largest Polish manufacturer of pharmaceuticals and FM Logistic have signed a long-term contract for the provision of comprehensive services related to the warehousing and transportation of the entire product portfolio offered by Polpharma Group in Poland. Under the contract, FM Logistic will complete, in Błonie near Warsaw, the next stage of the extension of the biggest pharmaceutical warehousing and distribution centre in Central and Eastern Europe. The facility will be used for the central distribution of Polpharma’s products manufactured in the Group’s 5 manufacturing plants in Poland.
The contract that significantly extends the current scope of cooperation was signed on 19 June this year by Markus Sieger, CEO of Polpharma Group, and Daniel Franke, Managing Director of FM Logistic Central Europe. Under the contract, the facility to be provided to Polpharma by FM Logistic will become a central wholesale warehouse and distribution platform for pharmaceutical products.
The central wholesale warehouse will be established in response to Polpharma Group continued growth and business expansion. It will enable simplification and optimization of logistics processes related to finished products, while contributing to environmental protection and reducing the company’s carbon footprint. It will also free up warehousing space for increasing quantities of raw materials and semi-finished products that need to be stored in the manufacturing plants.
“Following a thorough analysis of offers and months of intense negotiations, we have selected a well-established and reliable partner with considerable experience in providing services dedicated to pharmaceutical products. We are entrusting the distribution of all of our finished products to FM Logistic, looking forward to excellent cooperation and a long-term partnership that will contribute to an even better quality of our customer service and improved patient access to our products,” says Markus Sieger, CEO of Polpharma Group.
FM Logistic is going to invest more than PLN 60m in the extension of its facility to be able to meet the ever more demanding requirements of one of its biggest clients. Once this stage of the extension is completed, the multi-industry FM Logistic Health platform in Błonie will offer the total of almost 92,000 square metres of warehouse space with the capacity to store more than 140,000 pallets. Apart from services related to the warehousing and distribution of products on both local and international markets, the platform also provides large-scale co-packing and co-manufacturing services for multiple clients.
“Our primary objective when designing the solutions and negotiating the contract was to focus on co-creating value for Polpharma’s clients by making use of state-of-the-art processes and solutions we can expertly implement,” explains Daniel Franke, Managing Director of FM Logistic Central Europe. “There is no doubt that the quality and safety of operations were the ultimate priorities for the joint project team,” he adds.
The contract was concluded for 7 years. Polpharma’s new wholesale warehouse to be built in Błonie is due to be put into operation in the 2rd quarter of 2020 after the company has been certified by the Chief Pharmaceutical Inspectorate.
Polpharma is the leader of the Polish pharmaceutical market and one of the world’s 20 largest generics companies. Polpharma Group with its strategic partners employs more than 7,500 people, has seven manufacturing plants in Poland, Russia and Kazakhstan, and five research and development centres. Polpharma Group’s portfolio includes about 750 products, with another 200 being currently developed. The company manufactures prescription drugs, pharmaceuticals for in-patient care, and a wide range of over the counter medications. One in eight drugs in Polish pharmacies, and one in three in Polish hospitals comes from Polpharma. The company exports its products to 35 countries worldwide: international operations account for 40% of its revenue.
FM Logistic Central Europe
FM Logistic Central Europe is a division of an international logistics operator providing its services to clients on 3 continents. The company started its operations in Poland in 1995. FM Logistic Central Europe has 12 logistics platforms and 17 transhipment warehouses in Poland, and 10 more facilities located in the Czech Republic, Slovakia and Hungary. FM Logistic Central Europe employs more than 5,000 people. It has the total of 750,000 square metres of warehouse space with the capacity to store more than 1 million 100,000 pallets, and maintains a fleet of over 2,500 vehicles, which is continually upgraded.