Story | Supply chain
Disruption redefined: Embracing innovation to avoid supply chain breakdowns
Rather than trying to cope with complications that disrupt the flow of pharmaceuticals through the supply chain, Cencora is developing new solutions that are changing the way the industry responds to potential threats.
The increasing need for supply chain resiliency
The healthcare landscape is rapidly evolving to keep up with shifting patient needs, and the pharmaceutical supply chain is growing more complex every day as a result. Meanwhile, challenges new and old constantly threaten to derail operations and further complicate the already difficult task of getting essential medications into the hands of patients who need them.
To maintain consistent access to pharmaceuticals, we’re continually expanding our capabilities across the entire pharmaceutical supply chain to make processes more resilient so we can circumvent impending disruptions before they impact patients. We’re also implementing tools to help us forecast potential issues and address them faster, so we can help the industry weather even the most tumultuous storms.
Check out the illustration below to trace the path from suppliers to patients and see where points of friction pop up along the way. Then keep reading to see how we’re finding creative ways to overcome those imminent supply chain disruptions.
Medication shortages
Addressing medication shortages is a multifaceted challenge because they can be caused by a variety of factors and create a far-reaching ripple effect. Issues can arise due to manufacturing and quality problems, delays, discontinuations, or even increased demand. Given Cencora’s pivotal role in supply chain operations, sourcing, and distribution, we focus on proactively mitigating the root causes of shortages through these key activities:
Our sure supply program is a great example of our innovative approach to stability. It allows health systems to commit to a six-month “safety net” reserve of critical medications that are at risk of shortages. Since being launched in 2021, the number of products available via the program increased roughly 350 percent by February 2025 and now spans a variety of disease states.
In addition, we are engaging with generic manufacturers to execute long-term commitments that provide more surety of supply and stability for targeted molecules. We’re also continuing to collaborate with federal and state government entities, like-minded organizations, and nonprofits so we can work together to reduce medication shortages and prevent disruptions to the supply chain.
- Vigilant risk monitoring
- Continuous investment in our distribution network
- Building strong and diversified relationships with suppliers
- Implementing strategies to optimize inventory when deviations occur
Our sure supply program is a great example of our innovative approach to stability. It allows health systems to commit to a six-month “safety net” reserve of critical medications that are at risk of shortages. Since being launched in 2021, the number of products available via the program increased roughly 350 percent by February 2025 and now spans a variety of disease states.
In addition, we are engaging with generic manufacturers to execute long-term commitments that provide more surety of supply and stability for targeted molecules. We’re also continuing to collaborate with federal and state government entities, like-minded organizations, and nonprofits so we can work together to reduce medication shortages and prevent disruptions to the supply chain.
Regulatory and legislative changes
As the healthcare landscape changes, so do the laws and regulations that govern it. When a new law or regulation goes into effect, there is often a learning curve for stakeholders along the supply chain. Process changes may be required, and the time spent adjusting can slow down normal operations.
To help minimize any disruptions that might occur, we’re dedicated to shaping and staying at the forefront of regulatory and public policy developments that impact the pharmaceutical supply chain. Our U.S. Public Policy and Advocacy team actively engages policymakers on behalf of our company and our customers, advocating for policies that promote transparency, security, and efficiency within the supply chain.
We also monitor legislation that could affect our operations and the broader industry. When laws take effect, like the Drug Supply Chain Security Act (DSCSA) or the Inflation Reduction Act (IRA) , we provide valuable resources and proactive communications to support our customers through those periods of change. By having a team deeply engaged in government affairs and actively leading and partnering on legislative reform, we’re able to help shape a legislative and regulatory environment that fosters a stronger, more resilient pharmaceutical supply chain.
To help minimize any disruptions that might occur, we’re dedicated to shaping and staying at the forefront of regulatory and public policy developments that impact the pharmaceutical supply chain. Our U.S. Public Policy and Advocacy team actively engages policymakers on behalf of our company and our customers, advocating for policies that promote transparency, security, and efficiency within the supply chain.
We also monitor legislation that could affect our operations and the broader industry. When laws take effect, like the Drug Supply Chain Security Act (DSCSA) or the Inflation Reduction Act (IRA) , we provide valuable resources and proactive communications to support our customers through those periods of change. By having a team deeply engaged in government affairs and actively leading and partnering on legislative reform, we’re able to help shape a legislative and regulatory environment that fosters a stronger, more resilient pharmaceutical supply chain.
Delivery interference
Disruptions caused by weather disasters, power outages, logistical delays, and other anomalies that impede delivery can severely impact access to medications. These occurrences have the potential to slow down the pharmaceutical supply chain, and in some cases, they could even halt it entirely. That’s why we work closely with manufacturers, providers, government entities, and nonprofits, leveraging our vast distribution network and robust continuity planning to mitigate these types of disruptions when possible.
In addition, our state-of-the-art distribution centers are strategically positioned and uniquely integrated so we can move inventory from one location to another when these types of disruptions occur. This enables us to reduce business continuity risk and maintain the ability to make crucial deliveries.
By investing in technology that provides real-time tracking and communication, we’re able to respond to these situations swiftly and make customers aware of potential delays earlier so patients receive the medications they need with minimal impact.
In addition, our state-of-the-art distribution centers are strategically positioned and uniquely integrated so we can move inventory from one location to another when these types of disruptions occur. This enables us to reduce business continuity risk and maintain the ability to make crucial deliveries.
By investing in technology that provides real-time tracking and communication, we’re able to respond to these situations swiftly and make customers aware of potential delays earlier so patients receive the medications they need with minimal impact.
Time of crisis
Safeguarding and preparedness in times of crisis are top of mind these days, as the COVID-19 pandemic highlighted the critical need for a resilient pharmaceutical supply chain during a viral outbreak. The immediate and overwhelming demand for effective treatments during that time put an immense strain on all stakeholders across the healthcare spectrum. Additionally, as we all experienced, public health events like that can result in quarantines, lockdowns, and labor shortages, making it even more difficult to keep pharmaceuticals flowing smoothly to patients.
We’ve taken big steps to adapt and respond to the challenges posed by these types of events, like ramping up our logistics capabilities to further enable the timely delivery of vaccines and essential medications. In 2024 alone, we shipped more than 23 million flu and COVID-19 vaccines to sites of care across the U.S.
By leveraging advanced technologies and data analytics, we can efficiently track inventory levels and optimize our distribution processes during a major health event. Moreover, we maintain open lines of communication with healthcare providers and government agencies to address emerging needs swiftly. Our commitment to flexibility and innovation makes all the difference when it comes to effectively responding to viral outbreaks and safeguarding public health.
We’ve taken big steps to adapt and respond to the challenges posed by these types of events, like ramping up our logistics capabilities to further enable the timely delivery of vaccines and essential medications. In 2024 alone, we shipped more than 23 million flu and COVID-19 vaccines to sites of care across the U.S.
By leveraging advanced technologies and data analytics, we can efficiently track inventory levels and optimize our distribution processes during a major health event. Moreover, we maintain open lines of communication with healthcare providers and government agencies to address emerging needs swiftly. Our commitment to flexibility and innovation makes all the difference when it comes to effectively responding to viral outbreaks and safeguarding public health.
The more we can proactively mitigate potential disruptions across the pharmaceutical supply chain, the more successful we’ll be in providing patients with reliable access to the medications they need.
Learn more about how we can help you safely navigate the supply chain
From flexible logistics to innovative distribution solutions, we’re creating supply chain resiliency to outmaneuver any obstacles that could get between you and the patients you serve — today, tomorrow, and years into the future.
