written by: Megan Eggers, Marketing
*This is the second installment in a blog series exploring the geographic locations in which MD Logistics operated state of the art pharmaceutical logistics facilities and the strategic decision to have a presence in these locations. This second blog will explore the expansion of the MD Logistics brand to the West Coast with the opening of a Reno warehouse.
To be a successful third-party logistics provider, one who meets the various needs of clients, you must be willing to broaden your scope of services to accommodate new needs, oftentimes that includes expansion to new regions. This is exactly what led MD Logistics to consider expanding their brand in the West Coast, opening a state-of-the-art life sciences and pharmaceuticals warehouse in Reno, Nevada in 2011.
Shipping product to the western most 11 states can be both challenging and costly. Our clients were regularly communicating this pain point with our operational and executive teams. Products within the life sciences and pharmaceuticals industry often have specific temperature requirements that must be adhered to, to ensure product integrity is maintained. That’s why it’s imperative to have product strategically positioned within the supply chain. In addition, transportation and delivery costs can be expensive. Optimizing the supply chain to have product as close to the next distribution point as possible can provide significant cost savings. Seeing the challenges that our customers were experiencing, we knew that we were in a position to help them.
Expanding to new regions can oftentimes be challenging. Perhaps the biggest question to arise, would simply be – where? Where do your clients need you to be? And where does it make the most sense, financially, for your business to expand? For MD Logistics, a presence on the West Coast was an overwhelming need and where our client’s needed us to be, next. After scouting locations and weighing different options, the infrastructure available to the supply chain industry made Reno, Nevada a perfect location for our Reno warehouse.
Known as the Logistics Hub of the West, Reno, Nevada offers many advantages to the movement of product to and from the west coast. These advantages make a Reno warehouse an attractive location for a distribution center and contributed to the decision to be the home of MD Logistics’ west coast hub.
Infrastructure. The state of Nevada has the infrastructure to support the movement of the supply chain. In a recent report, the state of Nevada ranked within the top 5 states in terms of their infrastructure, coming in behind Indiana, Ohio, Illinois and Minnesota. More specifically, the city of Reno offers close proximity to two major highway corridors, as well as access to the Reno-Tahoe International Airport. This infrastructure allows MD Logistics to be able to reach 80% of the United States within a 48 hour shipping window from both their West Coast and Midwest facilities.
Proximity. Many of the products within the life sciences and pharmaceuticals industry are temperature sensitive. It’s imperative that a products temperature is maintained throughout the entire supply chain. One of the easiest ways to do this, is by cutting down the time product is in transit, thus moving product closer to the next point of distribution. The city of Reno offers close proximity to several large metropolitan areas on the west coast. Reno is within a one day drive to over 60 million customers in the Western United States and easily a two day truck service to 11 states. Having a presence in Reno allows MD Logistics clients to quickly serve their customers on the west coast, while keeping their product within temperature requirements.
Business Climate. The state of Nevada offers an attractive tax climate, boasting no corporate income tax or personal income tax, making it both a striking place to work and operate a business. The state of Nevada also boasts lower operating costs than the state of California, allowing companies close proximity to the state without the increased fixed operating costs. This makes Nevada an attractive option for businesses wishing to have a presence on the west coast and is a primary driver for new businesses relocating to the state.
The numerous advantages that the state of Nevada offers, made it a natural fit for a distribution center dedicated to the life sciences and pharmaceutical industry. The proximity to California and the west coast, decreases the amount of time in which products are in transport. These advantages led to the decision in 2011 to open the third MD Logistics distribution center, the first one out of state. This Reno warehouse is 55,000 square feet of FDA registered, pharmaceutical grade storage, adhering to cGMP compliance. This facility allows us to offer both contingency planning and cost savings to our clients in the life sciences and pharmaceuticals industry.
Our team continues to look for additional opportunities for future growth to expand the MD Logistics network in the future. In the final installment of this series, we will explore the most recent expansion of the MD Logistics network with the opening of our first state-of-the-art facility in Garner, North Carolina. If you are in the life sciences and pharmaceutical industry, looking for an experienced 3PL with a nation-wide network of state of the art facilities, reach out to our team of experienced, supply chain experts today!
