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Healthcare Issue 1 2016 Bulletin WELCOME TO YUSEN LOGISTICS HEALTHCARE BULLETIN The Bulletin aims to keep readers up to date on developments in solutions and services for our clients in the heathcare

Over the past 25 years, Yusen Logistics has invested significantly in specialised services, facilities, personnel and knowledge to fully meet the requirements of the Pharma & Healthcare industry.

1 Healthcare Issue Bulletin WELCOME TO YUSEN LOGISTICS HEALTHCARE BULLETIN The Bulletin aims to keep readers up to date on developments in solutions and services for our clients in the heathcare vertical. Over the past 25 years, Yusen Logistics has invested significantly in specialised services, facilities, personnel and knowledge to fully meet the requirements of the Pharma & Healthcare industry. As you ll see there s a lot going on in the sector and we hope you enjoy catching up on our news. YUSEN LOGISTICS The Best Medicine for Your Supply Chain Although the operational and safety procedures for healthcare logistics are complex, it is in our Yusen Logistics genes to always go a step further, offering additional services, solutions and facilities. A considerable dose of IT-power secures smooth communications with our customers IT-platforms, to guarantee stable order flows and permanent traceability of the products. Healthcare is all about people. Here too, nothing is left to chance. Yusen Logistics invests in GDP-trained operational employees, dedicated account managers and critical quality controllers. In addition, there is a qualified pharmacist available for indispensable product expertise and process monitoring. And last but not least, Yusen Logistics offers 24/7 availability. Because even in the ultimate case when it comes to one specific medicine for that single patient somewhere in Europe, the pharma service of Yusen Logistics can make the difference in a life-threatening situation.

Yusen Logistics SPECIALIST TEMPERATURE CONTROLLED AIRFREIGHT BUSINESS CONTINUES TO GROW Yusen Logistics is seeing major growth in temperature controlled pharmaceutical volumes to and from Japan and

API manufacturers are increasingly looking to Yusen Logistics to provide bespoke airfreight solutions as part of their total supply chains for these extremely valuable and temperature sensitive

Manufacturers run the risk of significant stock write-offs from temperature excursions on airport and in the air.

2 Yusen Logistics SPECIALIST TEMPERATURE CONTROLLED AIRFREIGHT BUSINESS CONTINUES TO GROW Yusen Logistics is seeing major growth in temperature controlled pharmaceutical volumes to and from Japan and Oceania, as well as increased demand for international cross trade products. Volumes by chargeable weight were up 57% from FY , following on from 70% growth the previous year. API manufacturers are increasingly looking to Yusen Logistics to provide bespoke airfreight solutions as part of their total supply chains for these extremely valuable and temperature sensitive products. Maximising availability of stock, whilst minimising risk in the supply chain are the driving factors behind the growing demand for these solutions to highly exacting standards. Manufacturers run the risk of significant stock write-offs from temperature excursions on airport and in the air. Demand for the highest quality standards, stringent temperature control and robust onward networks has never been higher. Yusen Logistics is now providing solutions for a number of leading global API manufacturers, CONTINUED GROWTH IN SPECIALIST TEMPERATURE CONTROLLED PHARMACEUTICAL AIRFREIGHT VOLUMES FOR YUSEN LOGISTICS EUROPEAN CONTROL TOWER ensuring these essential products reach destinations throughout Europe, as well as the US, China, North Africa and Brazil. It s all about attention to detail throughout the supply chain, refining every step of the process. Yusen Logistics provides specialist, dedicated pharmaceutical warehousing on airport and bespoke thermal protection for pharmaceutical products as part of its solutions. Through this It s all about attention to detail throughout the supply chain approach Yusen is achieving industry leading quality in terms of temperature range compliance accuracy. Our European gateways in Amsterdam, Frankfurt and Heathrow linked to our fully temperature controlled, GDP approved, distribution centres in the UK & Belgium provide the perfect platform for cost effective airfreight export and import services. LATE STAGE DIFFERENTIATION & REPACK AT YUSEN ANTWERP FACTFILE Yusen Logistics Antwerp Crossdock Hub 18,000 sqm bonded, GDP-licensed warehouse 1,500 cold store pallet positions (2-8 C) Dangerous Goods handling Pharmacist available ISO-, GDP-, AEO-certified Yusen Logistics GDP/temperaturecontrolled, bonded warehouse at Antwerp provides specialist late stage differentiation for a number of pharmaceutical customers, using its secondary repack room. By delaying product customization until the latest possible supply chain stage, as close to market as possible, flexibility is maximised and cost savings can be achieved. In highly specialist markets, with such valuable products, these advantages can provide an extra competitive edge. Yusen Logistics services include full re-packaging of medicines and quality control. A secure archive space is also available where products with quality deviations can be saved. In addition, there is a qualified pharmacist available for indispensable product expertise and process monitoring. Example One batch (55,000 packs) re-labelled in four days to meet market authorisation requirements 2

OPTIMISING INTERNATIONAL FLOWS WITH OCEAN FREIGHT For customers with regular international flows, ocean freight movements may provide a key to optimising movements and taking cost out of the supply

3 OPTIMISING INTERNATIONAL FLOWS WITH OCEAN FREIGHT For customers with regular international flows, ocean freight movements may provide a key to optimising movements and taking cost out of the supply chain. Focusing a customer s solution infrastructure on to Yusen s MHRA approved, specialist healthcare distribution centre at Antwerp as the primary hub, provides excellent access for ocean movements and is at the heart of Yusen s Pharmaceutical Superhighway, giving access to thousands of delivery points throughout Europe. Step change improvements in both cost and carbon dioxide emissions can be achieved, whilst enjoying complete stock visibility within an audited environment. ANNUAL HAULIER CONFERENCE Yusen logistics European SuperHighway is a subcontracted network of 44 hauliers. This network is managed through our European Pharmaceutical Control Tower, in Milton Keynes, in the UK. The hauliers are managed by a dedicated team, who ensure they meet and exceed current GDP regulations, as well as providing the highest level of reliability and security to Yusen Logistics healthcare clients. Handling over 1.6 million pallets per annum through this network, Yusen Logistics ensures its clients have access to the best LTL/FTL temperature controlled European road service available. Yusen Logistics brings the hauliers together regularly to build strong relationships, look at opportunities for improvement and to network. Many of the hauliers have worked as part of the Yusen team for many years. The event, held at Yusen Logistics Regional Headquarters in Amsterdam and was attended by 40 of the 44 hauliers within the network. Discussions on the day included vision for the future and current issues, in particular the current security issues being faced by hauliers and the importance of collaboration on information between the haulier network. The feedback was extremely good, with comments such as excellent day, very informative, was pleased with the openness Yusen Logistics had showed, really feel that we are part of a family. Bulldog Locks & Door Alarms Many with Temperature Excursion Alarm System All Vehicles Sealed Panic Button as Standard Roof Identification Numbers Temperature Printout as Standard Trailer Temperature Mapped Euro 4/5/6 Traction Vehicles EN12830 EN13846 Compliant All Network Drivers are Security Checked & have minimum 6 months service Hands Free Mobile & Secondary Satellite & Journey Tracking 3

Yusen Logistics Yusen Logistics European Pharmaceutical Superhighway is contracted to carry over 1.

This growth is set to continue as more manufacturers buy into this award-winning high security service, which provides quality, cross border, temperature controlled coverage on a true pan-european

The Superhighway operation is based on a strategic network of specialist pharmaceutical hubs that consolidate and cross-dock product for onward delivery throughout Western and Eastern Europe and

4 Yusen Logistics Yusen Logistics European Pharmaceutical Superhighway is contracted to carry over 1.6 million pallets this year, providing both shared and single use solutions to highly complex supply chain requirements for customers ranging from global manufacturers to small biotech companies. This growth is set to continue as more manufacturers buy into this award-winning high security service, which provides quality, cross border, temperature controlled coverage on a true pan-european basis, with flexible GDP solutions ensuring complete product integrity and legislative compliance. The Superhighway operation is based on a strategic network of specialist pharmaceutical hubs that consolidate and cross-dock product for onward delivery throughout Western and Eastern Europe and worldwide. Yusen Logistics GDP licensed approved hubs in Belgium and the UK also manage global YUSEN LOGISTICS AWARD-WINNING PHARMA SUPERHIGHWAY SET TO PASS 1.6 MILLION PALLET MILESTONE IN 2016 INTEGRATED IT SOLUTION FOR THE SUPERHIGHWAY inbound/outbound shipments by air and sea, enabling optimisation of freight by the most efficient transportation mode. Superhighway movements are managed by the Yusen Logistics Control Tower, which provides aerial views across Europe, whatever the origin or destination, as well as managing inbound / outbound global flows. This enables centralised planning of pan-european transport movements to maximise vehicle utilisation, minimise empty running, reduce pallet costs and achieve environmental benefits, whilst ensuring product integrity. All vehicles used are temperature controlled (for both ambient and cold chain products), GPS tracked, with remote temperature monitoring and operating to GDP guidelines, ensuring safe transit and delivery of all products. For controlled drugs and narcotics additional security controls are in place to ensure safe delivery, including dedicated solutions for a single pallet upwards where required. Through the Control Tower, Yusen Logistics offers a single centre to manage global air and sea freight movements together with a full range of Customs and fiscal services, offering efficient solutions to deliveries into and collections from its established pharmaceutical road transportation network. Yusen s integrated IT system manages all transactions from receipt to final delivery, providing full shipment transparency. Yusen s strategically developed VISION transport management application has been tailored to pharmaceutical tracking requirements. Using VISION, the planning team can build milkruns, co-loads, round trips and decide whether to crossdock product or deliver direct. VISION also manages payment of our haulier team and generates customer invoices. The system ensures receipt of POD s and temperature reports, providing reports to support operations and KPI data, so that freight can be optimised, delivering continuous improvement and cost-down. With maximised co-loading opportunities for onward movement enhancing performance, reduced lead times and costs can all be achieved, whilst achieving performance targets. 4

pharmaceutical supply chain. The official opening ceremony was performed by Mr Hiromitsu Kuramoto, President of Yusen Logistics.

5 Yusen Logistics recently opened a dedicated Pharma Gateway at Amsterdam Schiphol. This new operation represents the official launch of Yusen Logistics GDP compliant global pharma airfreight services, the latest step in the company s customer-driven development in the pharmaceutical supply chain. The official opening ceremony was performed by Mr Hiromitsu Kuramoto, President of Yusen Logistics. Mr Kuramoto commented: This opening represents the next step in the realization of our global healthcare strategy, with this strategic European operation at its very heart. Yusen Logistics Europe is playing an outstanding and important role in leading our global business in this sector. As we make this important step, I confirm Yusen Logistics commitment to further developing and improving our services to the healthcare sector. We shall work to support and maintain our strong relationships with our pharmaceutical manufacturer customers into the future, as they continue to develop ever more sophisticated products. I would like to take this opportunity to sincerely thank them all for entrusting us with their products. We never forget that at the end of the supply chain, there is a patient. This new operation has been developed in close consultation with Yusen Logistics YUSEN LOGISTICS OPENS GLOBAL PHARMA AIRFREIGHT GATEWAY AT AMSTERDAM SCHIPHOL central warehouse (EDC) with its Schiphol Air operations, to form a true multi-modal hub. This is managed from a single Control Tower, manned by a UK based international team linked to Yusen Logistics offices around the world. FACTFILE Pharma Gateway Amsterdam 1,200 sqm bonded, GDP-compliant warehouse 125m³ / 45 cold store pallet positions (2-8 C) ISO-, AEO-, TAPA-certified, GDP-compliant FROM LEFT TO RIGHT: Etienne Vesseur, Branch Manager Yusen Logistics Schiphol, Ian Veitch, CRO Yusen Logistics Europe Hiromitsu Kuramoto, President Yusen Logistics, Piet Boogaard, Managing Director Yusen Logistics Beneluxand Bart Pouwels, Director Business Development Amsterdam Airport Schiphol Cargo pharma customers, who are increasingly looking for new ways to optimize flows within the constraints of GDP. The operation links Yusen Logistics Antwerp import/ export consolidation centre and European Customers can now call off full / or part load consignments for movement by air, sea or road through Yusen Logistics European Pharmaceutical Superhighway. This gives Yusen Logistics the flexibility to create efficiencies, driving out cost, providing value to customers in this highly demanding environment. 5

Yusen Logistics YUSEN LOGISTICS DELIVERS CRITICAL -60 C MEDICATION FOR BRAIN SURGERY PATIENT FROM IRELAND TO TURKEY Yusen Logistics expertise in handling the most sensitive of cargoes was recently

With a patient awaiting surgery for a brain tumour in hospital in Ankara, a box of Gliadel implants needed to be transported urgently with a lead time of three days door to door from Prostrakan s

Gliadel implants, which contain a powerful chemotherapy drug, are inserted into the patient s brain after a tumour has been removed in order to continue fighting the cancer after the operation has

The implants then dissolve over two to three weeks, releasing carmustine directly into the brain tissue.

6 Yusen Logistics YUSEN LOGISTICS DELIVERS CRITICAL -60 C MEDICATION FOR BRAIN SURGERY PATIENT FROM IRELAND TO TURKEY Yusen Logistics expertise in handling the most sensitive of cargoes was recently put to the test, when vital medication was required in order for brain surgery to take place at a specialist ward in Turkey. With a patient awaiting surgery for a brain tumour in hospital in Ankara, a box of Gliadel implants needed to be transported urgently with a lead time of three days door to door from Prostrakan s stockholding in Ireland to the hospital. Gliadel implants, which contain a powerful chemotherapy drug, are inserted into the patient s brain after a tumour has been removed in order to continue fighting the cancer after the operation has been completed. During surgery the surgeon will put up to eight implants into the area from where the tumour has been removed. The implants then dissolve over two to three weeks, releasing carmustine directly into the brain tissue. It is imperative that this unique, specialist product is maintained under the most stringent conditions throughout the supply chain, remaining at extremely low temperatures in order to avoid contamination. The Yusen Logistics designed solution successfully achieved a Mean Kinetic Temperature of -60 c throughout the entire movement from Ireland to Turkey. The delivery was completed successfully with the product arriving in perfect condition. YUSEN EXPANDS COLLABORATIVE PHARMA NETWORK SERVICING FINAL MILE DISTRIBUTION THROUGHOUT EUROPE Yusen Logistics collaborative network services final mile distribution requirements across the whole of Europe and beyond within the healthcare sector. The service manages in-market supply to end users hospitals, pharmacies, doctors, dentists, wholesalers, vaccination centres in 8 countries initially: Austria, Denmark, France, Italy, Spain, UK, Germany, Belgium, and Poland expected to follow later in the year. Healthcare manufacturers are increasingly searching for innovative end-to-end solutions to move their products throughout the supply chain, whilst maintaining a stringent temperature regime at all times. Maximising availability of stock, whilst minimising risk in the supply chain are driving the growing demand. Maximising availability of stock, whilst minimising risk in the supply chain are driving the growing demand. Working alongside aviation industry stakeholders and regulators, IATA created the Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma), to help organizations and the entire air cargo supply chain to get on the right track to achieve pharmaceutical handling excellence. Safe transportation of pharmaceutical products for customers worldwide is a top priority for Yusen Logistics. In order to take its Amsterdam operation above and beyond GDP compliance and to meet the highest possible standards in global pharmaceutical air freight, Yusen Logistics Benelux has started the IATA-CEIV This service is dedicated solely to the stringent requirements of the pharmaceutical and healthcare industry, with over 50,000 delivery points. Yusen currently makes 20,000 deliveries per week across 36 countries. The Control Tower managed Yusen network offers huge benefits to the customers, with stringent management of the in-market transport providers and the ability to maximise economies of scale in the purchase of the best in-market freight lanes. The operation drives common standards, optimising quality and compliance to drive towards complete assurance of supply. Yusen s IT infrastructure enables audit and approval of every carrier to drive standards in line with GDP regulations. Centralised data management also enables customers to benefits from single invoicing. Yusen Logistics General Manager Healthcare, Matthew Ray explains: This innovation gives Yusen a unique position across the pharmaceutical supply chain, offering a complete end-to-end service from raw material to patients across the whole of Europe. IATA-CEIV CERTIFICATION Pharma certification process for the Yusen Pharma Gateway at its Amsterdam Schiphol facility. This certification will underline Yusen s total commitment to safe transportation of highvalue temperature and time sensitive shipments across our global network. With the IATA-CEIV Pharma certification, Yusen Logistics takes part in the joint Schiphol Cargo and Air Cargo Netherlands initiative to become the Preferred Pharma Gateway, which was launched at the IATA World Cargo Symposium in Berlin on March 16,

Yusen Logistics recently launched a new operation for the storage and distribution of dangerous goods at its Duisburg facility in Germany.

Investing nearly two million Euros, the launch is part of an extensive expansion for Yusen, adding significantly to its services in the storage of dangerous goods.

Through this opening, Yusen aims to ensure that its customers receive the highest quality of service in the dangerous goods sector.

7 Yusen Logistics recently launched a new operation for the storage and distribution of dangerous goods at its Duisburg facility in Germany. The site is equipped to carry out warehousing, trans-shipping and picking operations for dangerous goods. Investing nearly two million Euros, the launch is part of an extensive expansion for Yusen, adding significantly to its services in the storage of dangerous goods. This new operation responds to the growing demand for dangerous goods logistics and is an integral part of our future strategy. Through this opening, Yusen aims to ensure that its customers receive the highest quality of service in the dangerous goods sector. Yusen Logistics is one of the leading logistics service providers in Duisburg. Its strategically located European distribution centre based in Logport enjoys excellent connections to the region s motorway network and the world s largest inland port. The centre offers a total warehousing service with an area of approximately 60,000 m². YUSEN LOGISTICS INVESTS IN DANGEROUS GOODS STORAGE OPERATION IN DUISBURG THE FACILITY IS FULLY BUNDED; DESIGNED TO ACT AS A COLLECTION PAN WITH A LEAKAGE, WATER AND FIRE RETAINING BASIN. IT IS LICENSED FOR WATER POLLUTION GRADES 1 TO 3. The new dangerous goods warehouse has a total capacity of 10,000 m². It includes euro pallet storage locations and an industrystandard trans-shipment and disposal area. The site is fitted with a gas-warning automatic air ventilation system and features three fire zones, each with state-of-the-art fire extinguishing equipment and fire protection alarm systems. The largest of the three fire zones is safeguarded by a rack sprinkler system with a foam additive. The remaining two fire zones are each rigged with a unique location based light-foam-extinguishing system. The facility is fully bunded; designed to act as a collection pan with a leakage, water and fire retaining basin. It is licensed for water pollution grades 1 to 3. Dangerous goods approved for storage at the site include Warehouse Storage Classification 2B, 3, 4.1B, 5.1B, 6.1C, 6.1D, 8A, 8B, 10, 11, 12 and 13. Goods currently stored at the facility include dispersants, resins, inks, compressed gas packs, motor oils and similar off-the-shelf goods. Yusen Logistics views its social and ecological responsibilities as being of the highest priority. The Company guarantees that industry standards are met by ensuring that all personnel are highly qualified and use only the most modern technology across the complete supply chain. 7

Yusen Logistics FOR ANY ENQUIRIES, PLEASE CONTACT: Carsten Reuter

Logistics (Europe) Carsten.Reuter@eu.yusen-logistics.

Development Healthcare Frank.Packman@uk.yusen-logistics.

Logistics Stefan.durt@bnl.yusen-logistics.

8 Yusen Logistics FOR ANY ENQUIRIES, PLEASE CONTACT: Carsten Reuter Head of Healthcare Vertical General Manager Europe Region Yusen Logistics (Europe) M: +49 (0) Frank Packman General Manager Business Development Healthcare M: Mob: Stefan Durt Sales Manager Contract Logistics M: +32 (0) Scan the code to access further Healthcare information and service details from Yusen Logistics. 8

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