EXEL BECOMES KEY EUROPEAN SUPPLY CHAIN PARTNER TO BAXTER

As a result of a project to review its European supply chain, Baxter has selected Exel, the global leader in supply chain management, as a key supply chain partner for the region.

The global healthcare company, with expertise in medical devices, pharmaceuticals and biotechnology, has awarded Exel a five-year contract to manage its freight and transport operations across all Baxter's manufacturing plants throughout Western Europe. A second contract sees Exel operating across parts of Central and Eastern Europe, including Russia.

Exel will operate the service as a fourth party logistics provider (4PL), which means the Company will manage and control the strategic, tactical and operational elements of the customer's transport across the region. This includes transport scheduling, carrier management, demand and capacity management systems. Products moved include pharmaceuticals and medical devices for Baxter's Bioscience, Medication Delivery, Renal and Transfusion Therapies businesses.

The partnership between Exel and Baxter began in 2004 with a pilot operation managing the roadfreight between Baxter's manufacturing plant in Italy to distribution centres across parts of Western Europe. This joint project was a success and in May 2005, Baxter asked Exel to commence service encompassing all other Baxter manufacturing sites across Western Europe and parts of Eastern and Central Europe. Opportunities to expand this service further in Central Europe, Middle East and Africa are now being evaluated.

Pier Pollini, Director Supply Chain Europe, Baxter, said, "We required a supply chain partner who would be able to work with us to optimise our European freight network and improve the efficiency of our supply chain. We chose Exel due to its proven transport management capability across the whole region and its commitment to a collaborative approach and excellent service levels."

Angelo Vedovi, Development Director, Exel, commented, "We are delighted to be awarded this contract. By becoming Baxter's key supply chain partner in Europe we are in a position to deliver significant benefits to Baxter's business through the rationalisation of distribution services."