Strengthening our supply chain
Cencora is working to build a stronger and more resilient supply chain through continued investments across our distribution network, partnerships with a diverse set of suppliers, and strategies to optimize inventory and execute robust business contingency plans.
Monitoring risks and mitigating shortages
Through supply chain risk monitoring, communications with manufacturers and provider customers, and proactive inventory management, we're able to identify and respond to demand spikes and supply disruptions – including identifying substitute sources and products for providers to meet patient needs.
Our system is designed to safeguard the stability of the pharmaceutical supply chain
Monitoring product availability
Our teams constantly monitor for spikes in demand or dips in availability and manage a database that uses predictive analytics to help identify and proactively address challenges in today's global generic marketplace.
Securing additional sources
We work closely with suppliers to understand their capacity and respond to the issue by making swift adjustments – whether it's securing additional inventory from an existing partner or identifying an alternative source.
Supply chain stability
Given our unique position in the supply chain, we can help stabilize demand by reliably communicating supply and market updates from manufacturers to sites of care and from sites of care back to manufacturers.
Press release
Cencora reinforces efforts to strengthen pharmaceutical supply chain with expansion of Drug Shortages Mitigation Program
As drug shortages continue to force hospitals to expend additional resources, including the administrative burden to find, procure and administer alternative drugs, Cencora’s sure supply program enables access to critical treatments spanning a wide range of therapeutic classes and disease states, including oncology, critical care, cardiovascular care and infectious diseases.
Innovative solutions
Innovative solutions are critical to addressing this issue. We've launched unique solutions designed to create stability in the supply chain and ensure our customers have reliable access to the medications they need.
Sure Supply program
Through our sure supply program, health systems customers can commit to six-month "safety net" reserve of critical medications that are at-risk of going on shortage. The program helps sites of care mitigate the impact of potential supply gaps and increases the quantity of medication in the supply chain. Once providers enroll, manufacturers produce additional inventory, which Cencora stores and distributes.
Since we launched the sure supply program in 2021, the number of products available via the program has increased by ~350%, spanning a variety of disease states.
Since we launched the sure supply program in 2021, the number of products available via the program has increased by ~350%, spanning a variety of disease states.
Establishing long-term supply commitments
We have recently engaged with generic manufacturers to execute long-term commitments in an effort to strengthen supply chain resilience. We are confident these commitments provide additional surety of supply and stability for the targeted molecules.
Building demand stabilization and first-to-market solutions
We are investing in solutions to help meet individual customer needs. In addition to the Sure Supply program, we continue to innovate with our customers and have solutions currently in testing and development that aim to provide better insulation and autonomy over their inventory, ultimately helping to deliver a nearly uninterrupted medication supply.
Economic solutions
We are exploring economic solutions that address customer concerns on under reimbursement relative to market price fluctuations.
Equitable distribution when shortages occur
When a product is in short supply or may become so, Cencora and our manufacturer customers use programs to manage the amount of in-demand and short-supply drugs can be purchased by one entity – with intent to stabilize supply chains and ensure access to care. Cencora's fair-share program helps to ensure every healthcare provider can receive as much of needed medications and supplies as possible – regardless of zip code.
We are united in our responsibility to create healthier futures
Through our businesses, we are well-positioned to understand the complexity of the pharmaceutical supply chain, the drivers and impacts of disruptions to the supply chain, and the solutions – including policy – needed to prevent shortages.