Sanofi SA (NYSE:SNY) has established a new distribution center in Brazil. The new location will cater for its three divisions; covering all portfolios of Sanofi, Sanofi Pasteur, and Medley Brazil. The company has also redesigned its distribution networks to incorporate logistics specialist, DHL Supply Chain, which will now be part of the logistics operations.

In what sounds like a goof move by Sanofi, which apparently had inventory issues in Brazil several years ago, Javier Bilbao, DHL Supply Chain Brazil CEO emphasizes, “The objective of this project was to simplify and enhance Sanofi’s storage operations and distribution network in Brazil. Consolidating these operations into a single distribution center has enabled us to foster synergies and streamline the entire process.”

The operations process allows Sanofi to get drugs to points of sale

In every business efficiency in the delivery of products to distributors is of the essence bearing in mind that the competition is also very stiff.  This may have played a significant role in having Sanofi consolidate its operations in Guarulhos, near São Paulo. The location was found ideal due to its proximity to Sanofi’s industrial plants. It is also near large consumer centers and primary logistical hubs of the country the likes of Port of Santos.

The project, initiated by Sanofi in 2014 was redesigned for the entire Brazilian market and the similar export processes. Projections indicate that close to €200 million (about $212 million) will have been invested on the project between 2015 and 2020. The 36,000 square meter logistics center has a fully air-conditioned storage area and almost 50,000 pallet positions. Notably, DHL’s Distribution Center has significantly increased Sanofi’s daily shipping capacity while reducing operational expenses 30%.

Healthcare products are delicate, and their intactness must be ensured

The project is in line with Sanofi’s global line of attack that will help in strengthening its presence in emerging markets.  On the other hand, the vulnerability of healthcare products must not be put at risk. This is the more reason that Sanofi is investing in processes and technologies that will enhance secure distribution.   Besides DHL, which was responsible for choosing the most suitable equipment for the project, has the expertise in logistics.  Meanwhile, Sanofi’s stock was trading at $39.47 a decline of $0.15 or 0.38%.