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Safer, Increased Efficiency, and More Sustainable Distribution Center for Laos

DKSH’s new state-of-the-art healthcare and technology distribution center (DC) in Laos has become the benchmark for others to emulate. Designed with safety in mind, it also helps to increase operations productivity while staying environmentally friendly.

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Business Units

Healthcare

Services

Distribution and logistics

Markets

Laos

DKSH Laos was established in 1995, offering products and services from our Business Unit Technology. This was followed by the addition of our Business Unit Healthcare in 2000, and Business Unit Consumer Goods in 2002.

We are among the leaders in the healthcare, consumer goods, and technology industries in Laos. Our staff of dedicated professionals provides market expansion services within a variety of areas of expertise, supported by long-term networks and relationships, broad local knowledge, innovative competencies, and on-the-ground logistics.

Safer, Increased Efficiency, and More Sustainable Distribution Center for Laos

Challenge

We decided to relocate to a new facility to accommodate our clients' evolving needs, including increased demand and higher DC standards. Additionally, our existing DC was reaching its maximum storage and processing capacity, which we had anticipated.

Given a tight project deadline, we had to source the right equipment, warehousing systems, and the most strategic location. We wanted to ensure the new DC had an optimal location, to make it effective and productive for our clients, customers, and logistics providers.

To provide above-standard warehousing services in the market, we also wanted the new DC to be fitted with an advanced building management system, racking facilities, temperature alert, cold room, and air-conditioning areas. Most importantly, it was crucial that the temperature could be maintained at a consistent level.

Approach

The first steps were to source the appropriate systems and facilities to be installed in the new DC. With a total area of 2,240 square meters, the DC was going to house DKSH’s Healthcare warehouse operations and Technology workshop and storage facilities.

We designed the new DC with features that promote safety, productivity, sustainability, and be environmentally friendly. This includes solar panel installation to reduce carbon footprint and LED lighting to help reduce energy consumption, enhance productivity, and emphasize safety.

The facility has 24-hour air-conditioning and a cold chain system that monitors temperature movement within the premises. It also includes a racking system that increases pallet capacity and optimized operation flow.

We also ensured that the new DC complied with client audits, as well as met local and international healthcare standards such as ISO 9001.

Result

The new DC started operations in January 2023, and the feedback from our clients has been extremely positive. They recognize that there are no other warehouses or DCs in the market that feature our modern storage and advanced delivery services.

The new DC has allowed us to increase our capacity to more than 150 percent from the previous DC. More critically, the new facility is safer for our warehouse employees who now enjoy better working conditions.

Our new distribution center marks our commitment to the people of Laos. It offers our clients and customers the highest level of operational efficiency in logistics and distribution services as well as the capacity for future growth and expansion. This new facility also demonstrates our unflagging dedication to bringing high-quality healthcare and technology products to patients and in fulfilling our purpose of enriching people’s lives across the Asia Pacific.

Vishwas Gupta, General Manager, Business Unit Healthcare and Head Country Management, DKSH Laos

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