When a leading global pharmaceutical company asked us to determine the most suitable location for its new secondary packaging hub in APAC, the DHL Consulting team undertook in-depth analysis from both external and internal perspectives.
We started by ranking 18 shortlisted countries against specific criteria. From this deep-dive, Singapore emerged as the second-best country in terms of flight frequency and available airfreight capacity, offering the world’s most efficient border administration results, very low tariff rates and trade barriers, and 10+ different types of tax benefits. The country also ranks highest for availability and quality of transport services, and has the best quality of air, port and road transport infrastructure, although it does have a relatively high cost of labor. Lastly, it takes an average of only 150 days to solve a standard commercial dispute with relatively low costs, and there is relative freedom on contract with rapid contract resolution.
To obtain an internal perspective, the DHL Consulting team conducted surveys and Q&As with employees located in the shortlisted countries to collect their feedback on location preference and requirements. With the assurance of objective analyses based on credible external and internal sources, the pharma company was able to identify Singapore as the best location for their new hub. Our team also supported this customer through the implementation phase, and the hub celebrated its go-live in July 2017.