Acquisitions and organic growth will help the company reach the challenging goal by 2026, VP Daniel Gagnon told Supply Chain Dive.
What happened
UPS is boosting its healthcare logistics business through in-house expansion and outside acquisitions as it looks to grow its package delivery activity in more profitable and less volatile sectors.
Coinciding with that strategy is an ambitious goal: The carrier wants to reach $20 billion in annual healthcare revenue by 2026 — doubling what it made in 2023.
Why it matters
"I'm not going to lie, there's some anxiety around that target, for sure," Daniel Gagnon, VP of global strategy and acquisition at UPS Healthcare, said of the goal. "So it is a very, very big ask."
But Gagnon said the UPS Healthcare team is confident it can double revenue by striking the proper balance between organic growth and inorganic growth.
In terms of organic growth, or expanding its network and capabilities on its own, UPS has targeted Europe this year. UPS opened its first dedicated healthcare facility in Ireland and expanded its flagship Netherlands facility with added ultra-cold storage capabilities to meet the needs of complex biopharma products.
This news brief is based on reporting published by Supply Chain Dive on 2024-10-07. The original report is linked below.
Supply Chain Dive
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