Cencora’s business is evolving along with that of its customers. That’s welcome news for members of the drug wholesaler’s Good Neighbor Pharmacy national independent pharmacy franchise and other health care providers that depend on Cencora for access to the medications their patients rely on. As pharmacy has become increasingly complex — with new horizons for members of the profession opening while increasing financial pressures call their viability into question — the company has strengthened its efforts and realigned resources to provide a more integrated customer experience to meet the needs of health care providers.
“There are no silos within our group,” says Rich Tremonte, who, as executive vice president and president of U.S. Pharmaceuticals and Animal Health, oversees interactions with all of Cencora’s downstream customers, including small-town pharmacies, large retailers and the nation’s biggest health systems, as well as oncologists, retina specialists and other community specialty health care providers. “There’s a lot of cross-collaboration in terms of how we service our customers and how we think about going to market. As our customers expand the scope of their business — for example, some of our largest customers that may play many roles in the industry — we’re evolving to deliver more cohesive support.”
The structure enables Cencora to be more efficient and responsive to customer needs, clearing new ground for closer collaboration.
“Strategic partnerships are the ethos of what we want to do,” Tremonte explains. “We provide world-class distribution services to support efficient and timely access, but we are always exploring how we can be more efficient and more customer-centric. In the community setting, the real value comes from how we help customers think about treating their patients, managing their business and creating incremental value.”
He cites some customers’ embrace of micro-fulfilment centers as an example:
“In recent years, some of our larger customers have opened a number of micro-fulfillment centers, which didn’t exist before. Whereas we were shipping just to stores before, we’re now shipping to stores and micro-fulfillment centers. There’s a value-add that we’re bringing that enables these retailers to improve service levels to patients. It’s just one example of how the market is forcing us to think differently.”
Cencora’s leadership and agility in adapting to evolving customer needs has been evident throughout the ongoing rollout of the Drug Supply Chain Security Act (DSCSA). Designed to ensure the traceability of pharmaceuticals, DSCSA aims to protect patients from counterfeit medicines and flag stolen products. The decade-long implementation process required a new level of cooperation on the part of all parties involved in the supply chain — from manufacturers of active pharmaceutical ingredients and suppliers of finished medications to wholesalers and community pharmacies.
Heather Zenk, president of Cencora’s U.S. supply chain operations and distribution services, characterizes the challenges associated with DSCSA as invigorating. “It’s forced the entire pharmaceutical supply chain to think and act differently,” she explains. “It’s forced manufacturers, regulators, sites of care and wholesalers to the table to say, ‘Tell me more about what you do and what’s important to you.’
“The increased collaboration and communication across the supply chain are exciting. We’ve learned a lot more about manufacturing,” adds Zenk, who was trained as a pharmacist. “And the manufacturers have learned a lot more about sites of care and how the pharmacies are administering care to patients.”
The ongoing dialogue has helped Cencora, which deals regularly with more than 1,500 pharmaceutical suppliers and ships almost 5 million units per day, prepare for the next phase of DSCSA implementation at the end of this month when wholesalers’ requirements for compliance begin.
“More than 99% of manufacturers are now sending data to us, and we’re working through some of the last accuracy issues with them. In a couple of weeks, it’s our turn, and we’re committed to not stopping any product in the supply chain. We’ve filed for exemptions for the products we’re not getting information for, so we can keep that product moving. We’re not going to leave patients without the medications they rely on.”
Like all of its work, Cencora’s efforts to ready the supply chain for DSCSA are focused on enhancing health care delivery and improving patient outcomes.
“Our role in the supply chain is to continue to collaborate with and innovate new ways to create value for our customers,” said Tremonte. “We’re out there with our customers and we see firsthand the value these providers play in the health care system, as well as the challenges they face in delivering high-quality care to their communities. We know it’s hard right now, and we’re committed to the sustainability and viability of community-based care — everything we do goes back to helping community providers care for patients.”
