Articol
Building a more resilient pharmaceutical distribution ecosystem
In this article, we explore the strategies Cencora is taking to keep medicines flowing safely and consistently from manufacturers to the point of care.
Supply chain excellence
As a society, we’ve grown accustomed to full shelves. In healthcare, “full shelves” mean pharmacies can prepare chemotherapy on schedule, community practices can treat patients without rescheduling, and patients can undergo therapy without interruption.
That’s a testament to the efficiency of modern supply chains, which have provided unprecedented productive capacity and access to goods.
But efficiency has its limits. Systems optimized for speed and cost are often inherently brittle. Practices like just-in-time delivery and single sourcing leave little margin for disruption. Meanwhile, the complex, global nature of today’s supply chains increases exposure to infrastructure breakdowns, natural disasters, geopolitical friction, and other localized events.
The result is persistent vulnerability to supply bottlenecks. According to the Business Continuity Institute, nearly 80% of organizations experienced at least one supply chain disruption over a recent 12-month period.i
That’s a testament to the efficiency of modern supply chains, which have provided unprecedented productive capacity and access to goods.
But efficiency has its limits. Systems optimized for speed and cost are often inherently brittle. Practices like just-in-time delivery and single sourcing leave little margin for disruption. Meanwhile, the complex, global nature of today’s supply chains increases exposure to infrastructure breakdowns, natural disasters, geopolitical friction, and other localized events.
The result is persistent vulnerability to supply bottlenecks. According to the Business Continuity Institute, nearly 80% of organizations experienced at least one supply chain disruption over a recent 12-month period.i
Against this backdrop, the pharmaceutical supply chain has entered a new phase. Unlike a delayed shipment of consumer electronics, a disruption in the medical supply chain can have immediate consequences for patient care, hospital operations, and public health. It can also impact manufacturers through expediting costs and product integrity risks, especially for temperature-sensitive therapies. In this environment, resilience has become as critical as efficiency because disruptions are ultimately felt at the point of care.
Resilience as the new standard
Resilience influences whether providers can deliver treatment as planned and whether patients receive therapies without delay or disruption. First, let’s define “resilience.” Supply chain resilience is an operational capability built on three complementary elements:
In healthcare, resilience comes down to access, or the availability of therapies where and when they’re needed so care decisions aren’t constrained by supply. Unlike contingency plans, which are typically reactive and temporary, resilience is built into daily operations—through disciplined processes, diversified sourcing and distribution strategies, and the ability to plan ahead based on real-world signals. This helps stakeholders operate with greater stability amid changing conditions.
For providers and pharmacies, resilience means fewer substitutions, less time managing backorders, and more predictable workflows. For manufacturers, it enables clearer demand signals and more stable planning. And for patients, it’s about timely, consistent access to prescribed treatments.
Resilience is especially important in pharmaceuticals due to several converging trends. The growth of advanced, specialty, and temperature-sensitive therapies has made handling more complicated. At the same time, expectations for predictability and transparency are rising as supply chains become more intricate. In response, the industry is shifting from just‑in‑time efficiency toward resilience‑oriented design.
- Anticipation of potential disruptions so teams can respond before issues escalate
- Absorption of disruption so operations continue without compromising service or product integrity
- Recovery so the supply chain returns to stable performance quickly and consistently
In healthcare, resilience comes down to access, or the availability of therapies where and when they’re needed so care decisions aren’t constrained by supply. Unlike contingency plans, which are typically reactive and temporary, resilience is built into daily operations—through disciplined processes, diversified sourcing and distribution strategies, and the ability to plan ahead based on real-world signals. This helps stakeholders operate with greater stability amid changing conditions.
For providers and pharmacies, resilience means fewer substitutions, less time managing backorders, and more predictable workflows. For manufacturers, it enables clearer demand signals and more stable planning. And for patients, it’s about timely, consistent access to prescribed treatments.
Resilience is especially important in pharmaceuticals due to several converging trends. The growth of advanced, specialty, and temperature-sensitive therapies has made handling more complicated. At the same time, expectations for predictability and transparency are rising as supply chains become more intricate. In response, the industry is shifting from just‑in‑time efficiency toward resilience‑oriented design.
Strengthening access to medicines
So what does resilient design look like at Cencora? A guiding principle of ours is to reduce friction for the people who use the system every day. This includes manufacturer teams planning launches and inventory, pharmacy and materials managers managing shortage protocols, clinicians coordinating treatment, and patients waiting for therapy.
Here are some of our high-priority initiatives.
Here are some of our high-priority initiatives.
Next-generation distribution infrastructure
Cencora recently announced plans to invest $1 billion in our U.S. supply chain. This includes new distribution centers in Ohio and California, along with a significant expansion of cold chain capacity at our Dothan, Alabama facility.
Building on an existing network of 25-plus domestic distribution centers, these investments aim to create additional capacity, redundancy, and geographic balance, supporting stable access to medications nationwide.
As demand evolves, the network can scale and adapt without compromising reliability. These investments also contribute to local economies by creating new roles and expanding opportunities within our distribution network.
Building on an existing network of 25-plus domestic distribution centers, these investments aim to create additional capacity, redundancy, and geographic balance, supporting stable access to medications nationwide.
As demand evolves, the network can scale and adapt without compromising reliability. These investments also contribute to local economies by creating new roles and expanding opportunities within our distribution network.
Automation and advanced logistics technology
New Cencora distribution facilities will incorporate robotic handling systems, artificial intelligence, and autonomous mobile robots to increase accuracy and throughput. These capabilities complement existing investments in RFID-enabled inventory systems, advanced order fulfillment platforms, and real-time tracking and communication tools. As we expand automation across our network, these technologies are designed to complement our workforce by improving safety, reducing manual strain, and enabling teams to focus on higher-value activities. At the same time, Cencora continues to invest in training and upskilling programs that prepare employees to work alongside advanced systems and adapt to evolving operational needs. These investments support both innovation and long-term workforce development across our distribution network.
In our view, technology serves as a stabilizer during periods of operational strain. This includes a diversified transportation strategy with flexible routing and logistics visibility to help maintain continuity even when lanes are disrupted. The focus is on predictable, reliable movement of product rather than speed for its own sake. For manufacturer partners and providers and pharmacies, this translates to a clearer, more accurate view of inventory, delivery timelines, and other critical distribution insights.
In our view, technology serves as a stabilizer during periods of operational strain. This includes a diversified transportation strategy with flexible routing and logistics visibility to help maintain continuity even when lanes are disrupted. The focus is on predictable, reliable movement of product rather than speed for its own sake. For manufacturer partners and providers and pharmacies, this translates to a clearer, more accurate view of inventory, delivery timelines, and other critical distribution insights.
Operational readiness as a core capability
At Cencora, continuity planning is a part of business as usual. Advanced forecasting systems help anticipate disruptions, including weather-related events, and enable earlier coordination across operations and procurement to help mitigate downstream impact. Facilities are equipped with backup power and other safeguards to maintain continuity. Comprehensive security measures protect systems and data integrity. Regular emergency preparedness exercises set teams up to respond effectively without shifting into a separate mode of operation. Just as important, resilient execution depends on experienced teams; retaining and developing distribution talent helps preserve safety, consistency, and the day-to-day reliability customers count on. Large-scale disruptions—such as natural disasters, public health emergencies, or geopolitical events—require coordinated response across the healthcare ecosystem.
Together, these efforts support clear, timely communication with manufacturer partners and provider customers about expected impacts, alternative options, and recovery timelines. Strong partnership across the supply chain is essential to sustaining access during periods of widespread disruption.
Together, these efforts support clear, timely communication with manufacturer partners and provider customers about expected impacts, alternative options, and recovery timelines. Strong partnership across the supply chain is essential to sustaining access during periods of widespread disruption.
Product integrity and trust
Patient safety and customer trust depend on product integrity. Secure handling, temperature control, and traceability are essential components of Cencora’s supply chain. Advanced monitoring systems track storage conditions in real time, while ISTA-compliant refrigerated packaging helps maintain required conditions during transit.
As one of the first distributors to implement unit-level serialization and verification under the Drug Supply Chain Security Act (DSCSA), Cencora has extended these capabilities across tens of thousands of healthcare providers.
For providers and pharmacies, this supports safer, more efficient receiving and verification workflows. For patients, it strengthens protection against counterfeit or diverted products, reinforcing confidence in the medicines they rely on.
As one of the first distributors to implement unit-level serialization and verification under the Drug Supply Chain Security Act (DSCSA), Cencora has extended these capabilities across tens of thousands of healthcare providers.
For providers and pharmacies, this supports safer, more efficient receiving and verification workflows. For patients, it strengthens protection against counterfeit or diverted products, reinforcing confidence in the medicines they rely on.
Programs to mitigate drug shortages and secure patient access
Supply constraints and shortages remain persistent challenges across the pharmaceutical industry. To mitigate their impact, Cencora teams continuously monitor shifts in demand and supply, using predictive analytics to identify risks early and act proactively within the global pharmaceuticals market. We collaborate closely with suppliers to assess capacity and respond accordingly to secure patient access, whether by securing additional inventory from existing partners or activating alternative, pre-qualified sources.
Cencora deploys a range of innovative inventory strategies designed to help mitigate disruption and maintain continuity of care during constrained periods. For example, the Sure Supply program gives health systems immediate access to a six-month safety stock of critical medications, while the Fair Share Allocation program uses historical purchasing data to distribute products equitably and help maintain access across sites of care. These and other tailored approaches enable Cencora to respond flexibly to changing supply conditions and patient needs.
As a wholesaler, Cencora also helps strengthen coordination across the healthcare ecosystem by providing a unified data environment that improves visibility and supports more informed decision-making. By sharing supply and market updates from manufacturers to sites of care, relaying real-time demand signals back to manufacturers, and enabling better insight into inventory levels and product performance, we help stakeholders respond to emerging challenges faster and more effectively.
Cencora deploys a range of innovative inventory strategies designed to help mitigate disruption and maintain continuity of care during constrained periods. For example, the Sure Supply program gives health systems immediate access to a six-month safety stock of critical medications, while the Fair Share Allocation program uses historical purchasing data to distribute products equitably and help maintain access across sites of care. These and other tailored approaches enable Cencora to respond flexibly to changing supply conditions and patient needs.
As a wholesaler, Cencora also helps strengthen coordination across the healthcare ecosystem by providing a unified data environment that improves visibility and supports more informed decision-making. By sharing supply and market updates from manufacturers to sites of care, relaying real-time demand signals back to manufacturers, and enabling better insight into inventory levels and product performance, we help stakeholders respond to emerging challenges faster and more effectively.
Policy and advocacy to strengthen resilience
A resilient pharmaceutical supply chain cannot be built by any single organization alone, and public policy plays an important role in shaping the conditions for stable access to medicines. Cencora supports policy approaches that strengthen resilience and help reduce the frequency and impact of drug shortages, including public-private partnerships that enable buffer inventory for shortage-prone essential generics, incentives that support U.S. manufacturing of active pharmaceutical ingredients (APIs) while promoting supplier diversity, sustainable reimbursement dynamics for pharmacies and providers, and appropriate data sharing that improves visibility and enables more proactive planning.
As the healthcare landscape evolves, so do the laws and regulations that govern it. When new requirements take effect, there is often a learning curve across the supply chain as stakeholders adjust processes and systems. To help minimize disruption during these transitions, Cencora’s U.S. Public Policy and Advocacy team actively engages policymakers on issues that promote transparency, security, and efficiency, while also monitoring legislative and regulatory developments that could affect our customers, our operations, and the broader industry.
When major requirements take effect—such as the Drug Supply Chain Security Act (DSCSA) or provisions of the Inflation Reduction Act (IRA)—we provide resources and proactive communications to help customers navigate change and maintain continuity. By staying closely engaged in public policy and legislative developments, we help support a regulatory environment that fosters a stronger, more resilient pharmaceutical supply chain.
As the healthcare landscape evolves, so do the laws and regulations that govern it. When new requirements take effect, there is often a learning curve across the supply chain as stakeholders adjust processes and systems. To help minimize disruption during these transitions, Cencora’s U.S. Public Policy and Advocacy team actively engages policymakers on issues that promote transparency, security, and efficiency, while also monitoring legislative and regulatory developments that could affect our customers, our operations, and the broader industry.
When major requirements take effect—such as the Drug Supply Chain Security Act (DSCSA) or provisions of the Inflation Reduction Act (IRA)—we provide resources and proactive communications to help customers navigate change and maintain continuity. By staying closely engaged in public policy and legislative developments, we help support a regulatory environment that fosters a stronger, more resilient pharmaceutical supply chain.
Facilitating access in an unpredictable world
he world of medicine isn’t getting any simpler. Scientific breakthroughs will continue. Technology will keep advancing. And the tension between efficiency and resilience will persist, requiring supply chains to strike a balance where they operate efficiently under normal conditions while maintaining the capacity to withstand disruption.
Cencora’s approach—grounded in ongoing investment, operational discipline, and a commitment to innovation—is designed to meet that reality head-on. We continuously invest in people, process, and technology to strengthen secure, reliable distribution and help therapies arrive where they are needed. The strategies we’re implementing today are focused on future-proofing supply chain operations so patients can depend on uninterrupted access to the medications they need.
Cencora’s approach—grounded in ongoing investment, operational discipline, and a commitment to innovation—is designed to meet that reality head-on. We continuously invest in people, process, and technology to strengthen secure, reliable distribution and help therapies arrive where they are needed. The strategies we’re implementing today are focused on future-proofing supply chain operations so patients can depend on uninterrupted access to the medications they need.
Source:
i Business Continuity Institute, “Latest BCI report reveals escalating supply chain disruptions drive increased tier mapping and insurance uptake,” October 2, 2024.
i Business Continuity Institute, “Latest BCI report reveals escalating supply chain disruptions drive increased tier mapping and insurance uptake,” October 2, 2024.
