DHL partners with CWH

Chemist Warehouse Woden, September 2013.
Chemist Warehouse believes there is not enough competition under the current pharmacy model.

Under the new partnership DHL will be supplying Chemist Warehouse and My Chemist with front-of-store FMCG goods, directly into their network of 400+ pharmacies

The two organisations have reportedly finalised agreements and are now in the process of working through practicalities of the partnership.

DHL Supply Chain says the partnership will immediately streamline the supply chain into Chemist Warehouse and MyChemist pharmacies by reducing the reliance on wholesalers.

“There are some immediate synergies that enable this to be a beneficial partnership from day one,” said Saul Resnick, CEO DHL Supply Chain Australia New Zealand.

“Many of the FMCG and pharmaceutical manufacturers already store their products in our warehouses. This means we can go from a pre-wholesale environment direct to the Chemist Warehouse pharmacies, and ultimately take a movement out of the supply chain.”

He says the partnership will ultimately provide a more sustainable network for Chemist Warehouse.

“Chemist Warehouse and My Chemist is a significant player in the pharmaceutical landscape and obviously a company like DHL would look for opportunities to partner with organisations that are growing, that are strong performers with a track record such as Chemist Warehouse,” Mr Resnick told AJP.

“We’re obviously delighted that they’ve chosen us for partner and we’re obviously very keen to expand on the history we have with them … now dealing directly with them as a customer of ours,” he says, referring to the fact that they have been delivering to Chemist Warehouse and My Chemist pharmacies for some years.

On behalf of its 31 customers, global logistics solutions provider DHL distributes in excess of 60 million units of PBS medicines per year to community pharmacies through its direct-to-pharmacy distribution service, including the Chemist Warehouse network.

“We’re very excited and we think it’s a great testament to the work we’ve done in the pharmacy landscape for a number of years,” said Mr Resnick.

Damien Gance, director and co-founder of Chemist Warehouse, also said the company was “excited” about the new partnership with DHL.

“We look forward to working with DHL on further improvements to our supply chain to support the rapid and dynamic growth of the Chemist Warehouse business,” Mr Gance said.

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