Press Release

Nippon Express to construct new pharmaceutical supply network

January 8, 2019

Four new Japan locations will ensure consistent pharmaceutical logistics quality control

Nippon Express Co., Ltd. (Mitsuru Saito, President), will be starting construction on warehouses in four key locations in Japan to put together a new pharmaceutical supply network capable of coping with changes to pharmaceutical logistics stemming from the introduction of GDP*1 for pharmaceuticals in Japan.

• 
  (Overview of pharmaceutical supply network)
• 
  (Image of completed location)

[Background]
After PIC/S*2 adopted GDP as a standard for the proper distribution of pharmaceuticals, Japan as a PIC/S member released its own GDP guidelines on December 28, 2018, requiring that pharmaceutical logistics be carried out in accordance with these guidelines.

In light of these developments, Nippon Express will be constructing a pharmaceutical supply network to provide overall optimized pharmaceutical logistics services that offer GDP-based quality control and BCP-compliant pharmaceutical supply while taking steps to cope with a shortage of drivers.

[Overview]

• Nippon Express will build a platform offering GDP-based quality control and BCP-compliant pharmaceutical supply as well as joint logistics and round-use of vehicles.
• New locations dedicated to handling pharmaceuticals will be built in East Japan (Kuki City), West Japan (Neyagawa City), Kyushu (Kita-kyushu City) and Toyama (Toyama City) to complement the existing medical hubs at Narita and Kansai International airports that have been handling the import/export of raw materials and finished products.
• Nippon Express will provide consistent quality control for storage, transport, and all other logistics processes incidental to procurement, manufacture and sales on pharmaceutical supply chains in Japan, and will seek to reduce temperature excursion and other risks.
• Nippon Express will employ new schemes to improve the efficiency and economy of operations, among these being joint storage and transport and round-use of transport/distribution vehicles on pharmaceutical supply chains.

[Features of new warehouses]

• The warehouses will satisfy all requirements put forth in the Japanese GDP guidelines.
• Receiving areas, storage areas, and shipping areas will be clearly demarcated to ensure safe and reliable operations, and dedicated EVs will be allocated for receiving and shipping (East Japan Center, West Japan Center).
• Truck racks, vestibules, and large air showers will be installed for insect control and security while receiving/shipping cargo (East Japan Center, West Japan Center).
• All supply chain needs will be met, including temperature control and refrigeration, bonded areas for import/export cargo and special areas for pharmaceuticals.
• Temperature and humidity in storage areas will be closely monitored using 3D mapping imagery.
• Earthquake-proof structures will be incorporated (with some exceptions) and emergency power generators will be installed in preparation for fires and other disasters.

[Profiles of warehouses] (tentative)

Facility	East Japan	West Japan	Kyushu	Toyama
Location	Kuki City	Neyagawa City	Kitakyushu City	Toyama City
Total floor area	Approx. 20,000 tsubo	Approx. 20,000 tsubo	Approx. 5,000 tsubo	Approx. 3,000 tsubo
Scheduled start of operations	December 2020	August 2020	August 2020	December 2020
Construction cost	40-50 billion JPY

In keeping with its pharmaceutical business philosophy of boosting the value of pharmaceuticals through transport, delivering them reliably to the people who need them and thereby contributing to their health, Nippon Express will strive for the best balance of time, information and quality in its pharmaceutical logistics to realize a new pharmaceutical supply network that continues to evolve day by day.

• GDP: Good Distribution Practices
  A Japanese version of GDP guidelines for pharmaceuticals was issued by the Ministry of Health, Labour and Welfare on December 28, 2018.
• PIC/S: Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme
  Currently comprising 52 member countries and institutions, this organization was created primarily at the initiative of pharmaceutical supervisory authorities in Europe to achieve international consistency in the pharmaceutical GMP of member countries (Japan: Ministerial Ordinance on Standards for Manufacturing Control and Quality Control for Drugs and Quasi-drugs) and in the methods for investigating manufacturers to ensure compliance with the GMP standards.