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Kuehne + Nagel manages cold chain for Ortho Clinical Diagnostics

Steve Rogerson
September 10, 2015
Ortho Clinical Diagnostics (OCD), a New Jersey-based provider of in vitro diagnostic products and services, has awarded an exclusive six-year contract to Kuehne + Nagel to manage its complex cold and temperature-controlled warehousing and distribution requirements in the USA.
As part of an on-going supply chain transformation, OCD sought to align itself with a logistics provider to help support its growth in the in vitro diagnostics market.
“Our decision to collaborate with Kuehne + Nagel is highly important as we need a partner with demonstrated capability managing high volume cold chain distribution operations and who understands the strict regulatory rules and logistics challenges of our industry,” said Robert Yates, chief operating officer of OCD.
Kuehne + Nagel’s contract logistics for OCD will include a GxP compliant infrastructure and IT capabilities to manage its inventory and distribution. The company also manages OCD’s cold chain transportation, both domestically and internationally.
Kuehne + Nagel added 11,600 square metres of warehousing space to its Memphis, Tennessee, facility, which already had 18,500 square metres of warehouse capacity mostly dedicated to life sciences. The new space includes 3400 square metres for +2 to +8ËšC service, 2300 square metres for -25ËšC cryogenic service, 4000 square metres for controlled-ambient warehousing conditions, and an additional 1800 square metres for packaging operations.
The Memphis operation is considered to be one of the largest cold chain logistics premises ever designed by a third party logistics provider on behalf of a specific client. The facility is highly automated, fully licensed and accredited, maintaining GxP-compliant and Verified-Accredited Wholesale Distributors (VAWD) standards to provide compliant cold-chain storage and handling.
“We are honoured that Ortho Clinical Diagnostics has chosen us as the best fit logistics partner for their company,” said John Hextall, president and CEO of Kuehne + Nagel in North America. “Kuehne + Nagel continues to invest in its KN PharmaChain solution in order to guarantee the highest service and quality standards for the inventory control and transport of pharmaceutical products.”
With over 64,000 employees at more than 1000 locations in over 100 countries, the Kuehne + Nagel group has a strong market position in the seafreight, airfreight, contract logistics and overland businesses, with a focus on providing IT-based integrated logistics.
OCD was created following Johnson & Johnson's acquisition of Eastman Kodak's clinical diagnostics division in 1994 to form Johnson & Johnson Clinical Diagnostics, which was then merged with Ortho Diagnostic Systems in 1997. It was sold to the Carlyle Group last year for $4.15bn.