On August 8th, UPS announced that it plans to acquire industry-leading Italian multinational healthcare logistics provider, Bomi Group. This move will add temperature-controlled facilities in 14 nations and about 3,000 highly skilled employees from Bomi Group to the UPS Healthcare network in Latin America and Europe. If your business uses UPS for deliveries in these regions, you need to conduct a freight audit to determine if this affects your costs.
Why The New Acquisition?
According to the UPS International management team, the logistics giant is taking this new step because Bomi enhances the company’s portfolio of services. It also accelerates their plan to become the leading provider of complex healthcare logistics.
Additionally, Bomi Group and UPS Healthcare have the same values and cultures in providing quality services. Therefore, UPS hopes that by acquiring this Italian-based company, their two teams can improve their service delivery in healthcare and deliver life-saving innovations.
This transaction is expected to close by the end of 2022. This is subject to customary regulatory approval and review. Currently, the terms and value of the transaction have not been disclosed yet.
What Happens After The Acquisition?
Bomi Group has been in the healthcare logistics industry since 1985. Their high-value services for the Pharma and Medtech sectors has enabled the company to build a long-lasting business relationship with more than 150 multinationals globally. Following the acquisition, Bomi Group management will continue to execute their roles even after the transaction closes. Additionally, the employees will also have key roles in the merged organization.
The CEO Bomi Group Marco Ruini says, “With over 35 years in the healthcare logistics industry, our team has developed best-in-class services designed to meet and exceed the needs of our medical technology and pharmaceutical customers. Joining the UPS team will expand those capabilities and create an even more integrated and powerful global network for our customers.”
UPS Healthcare
As a leading logistics provider, UPS is also involved in providing its services in the Healthcare sector.
By acquiring Bomi, UPS gets a chance to expand the UPS Healthcare network and services to meet the growing demand. Since 2020, UPS Healthcare has doubled its presence globally. Apart from this new acquisition, UPS Healthcare recently constructed state-of-the-art healthcare logistics facilities in Australia and Germany, which are yet to be opened.
They also expanded their campuses in the Netherlands and Hungary. Additionally, the logistics giant also boosted its technology-led service UPS Premier to prioritize critical shipments within 10 feet of their global network. This service boosts global visibility, reliability, and product recovery capabilities for UPS Healthcare customers. UPS has now turned logistics into a competitive advantage.
The UPS Healthcare President Wes Wheeler says, “We are excited to combine Bomi’s talent, expertise and capabilities with UPS Healthcare – together, we will provide unmatched solutions to our customers, powered by UPS’s integrated, global smart logistics network.”
UPS Healthcare has played a huge role since the onset of the Covid-19 pandemic. They are a trusted partner for safe Covid-19 vaccine delivery. They had a cold chain plan to distribute the vaccines.
The Impact Of The Bomi Acquisition
This Bomi acquisition will also add over 350 temperature-controlled vehicles and increase coverage by four million square feet. Because of this, customers will also access faster shipping times. Therefore, if your pharma business relies on UPS for international shipping, you can lower your shipping costs.
Thanks to the increased coverage globally, you can also negotiate UPS rates to get the best deals for your business. You can also use this information to re-evaluate whether your total freight costs have been affected by the new changes.
Additionally, the acquisition will be important in the delivery of next-generation pharmaceutical and biologic treatments that need time-critical and temperature-sensitive logistics. This is important for the Medtech and Pharma industries that require fast delivery of their products.
Freight Audit For UPS Shipments
UPS is expanding its business across Europe and Latin America by acquiring a new company in the logistics business. Since the company already has experience in the delivery of healthcare products, this new move expands its footprint globally. Furthermore, they are looking to reduce shipping times and meet customer needs by adding the number of vehicles in their fleet.
Therefore, if you use UPS to ship your products, you need to re-evaluate your freight costs. Can this new acquisition reduce your shipping profits and get you better discounts? How can you save more money?
To determine this, you can use a reputable and reliable freight audit company like Betachon to examine the costs for you. You’ll get a handle on your delivery fees, reduce money spent on small parcels and get a complete audit to determine if you are eligible for better discounts or UPS refunds.
To get started, schedule a free demo today!