Finding the logistical “sweet spot”
The first priority in our facility search was to identify somewhere that was within 50 miles of a major international airport. Since the clinical trials space is international, with many studies spanning the globe, the proximity to airports for receipts and distribution was critical. Being close to an airport not only reduces transit time to and from the airport, but less miles also translates into less gas, and a decreased carbon footprint. In addition, The FDA can also send items still under FDA review (while the receiver keeps the shipment intact) for holding at the receiving site, if it is within 50 miles of the airport.
This coupled with one of the other major factors the RxSource team had to consider, which is courier proximity. All the major integrators such as Fed Ex, UPS, and DHL have significant presence in Houston, Boston, and Philadelphia, all major areas for Clinical Trial supplies. Having couriers and corresponding distribution centers close to the facility is important because clinical trials are unpredictable and if you have a patient awaiting dosing, every minute counts. Often, with more driver saturation in a metro area, an integrator can make an additional stop to accommodate a late pickup. Much like the decision to be near an airport, this also reduces fuel consumption and decreases the carbon footprint of the integrator.
What is a facility without talent to fill it?
One of the other factors that the RxSource team had to consider when deciding where to locate the facility was proximity to talent. Since the facility is increasing in size and business is increasing, talent needs were a major consideration for the team. Having a presence in an area with other commercial and clinical pharma would give RxSource access to a larger talent pool as we grow. We also know that we already have a great and talented team within our West Deptford facility, so it would be a bonus if we could find a location where we could easily transfer our existing team to our new facility.
Local support and community considerations
Finding the right location wasn’t just about our own needs, we wanted to find somewhere that was just as accepting of us as we would be of them. Some townships are more friendly to warehousing type businesses and others would prefer not to have warehouses. Warehousing provides tax revenue for townships, along with revenue to local businesses for food, lodging, etc., but it also increases traffic and demands on township services. Each township has its own ordinances for noise, traffic, etc, but RxSource wanted to be respectful of this and to make sure we chose an area that would be excited to have us as a partner.
We have the location, but we need a building
When starting our search, the RxSource team targeted buildings in both Pennsylvania and New Jersey with a 50-mile radius from the Philadelphia airport. We were looking for a space that was either purpose built or a blank canvas that we could make our own. Due to the competition in the real estate market, there weren’t any purpose-built facilities in our search area. So, the search started for blank canvases to create our new flagship facility.
In deciding what building would best suit the business, the RxSource team had another list of criteria:
Although this list of must-haves seemed short, we saw many facilities that did not fulfill all the requirements. For example, Some buildings we saw had a peak roof, which would allow for 20ft of clear height, but only in small areas.
Jackpot!
We continued our search and eventually found a facility in West Deptford that ticked all of these boxes. The new facility is under 20 miles away from the Philadelphia area with close proximity to couriers (DHL is in the same office park, in fact) and courier distribution centers. The Philadelphia area talent pool is rich, with major commercial and clinical pharma in the immediate area. The building itself is 48,000 square feet with 30ft clear heights throughout the building and 8 dock doors. The site is in an established office park with mature trees and green spaces throughout. The warehouse was a blank canvas when we started, where we are currently working on creating purpose built spaces for storage, distribution, and packaging and labeling from -80 degrees C to controlled room temperature.
After finding the perfect location, enabling us to remain within the state of New Jersey, our Chief Financial Officer, Aziz Hirji, joined ‘Choose New Jersey’ at their New Jersey Canada Economic Mission in Toronto. It was a fantastic opportunity to talk about our plans and to hear how excited ‘Choose New Jersey’ were that we were remaining within the state. To view the press release, click here. We feel we have hit the jackpot with this location and are excited for where our plans will lead us.
Please follow us on this exciting journey by keeping an eye on our website and LinkedIn page where we will be sharing our progress along the way.
About the author
Meredith Gironta is the Director of Operations at RxSource. She joined the company 2 years ago and has over 21 years experience within the industry.
Connect with MeredithLast quarter alone, we were able to positively impact the lives of 44,500 patients. Our goal is to improve the lives of 10 million patients in 10 years. Contact us today to learn more about how we can work together to make a meaningful impact.
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