3PL Services: business update

June 2019

We were grateful to the many pharmaceutical manufacturing clients and other stakeholders who joined us for the 2019 Channel Management Forum in Nashville. We appreciate the trust and confidence that each of you places in Cardinal Health 3PL Services to help ensure your products are delivered to patients as safely, compliantly and cost-efficiently as possible, each and every day.

As part of our commitment to you, Cardinal Health 3PL Services is constantly working toward expanding our capabilities and innovating the way we serve you.

Here are just a few of the service updates we were proud to share as we closed out the Channel Management Forum.

• Online ordering – now available: As part of Cardinal Health 3PL Services’ continual commitment to advance the customer ordering experience, self-service online ordering is now available, simplifying the ordering process and improving the experience for both you and your customers.
  • Customers can now check order confirmations online, track shipments, review their order history and upgrade shipments. They’ll also soon be able to create, submit and track return authorizations; view, print and export AR transactions; process credit card payments and request samples, all in one place.
  • Manufacturers can now get real-time product and pricing updates, see product exclusions and quantity restrictions and review standard APIs for simpler third-party application integration. We’re also developing the capability to approve new customers, manage credit limits, release inventory and orders—all online.
• Staff expansion to better serve you: To help ensure we have adequate resources to meet your needs, we have doubled our support staff over the last three years.
• Environmental stewardship: We are proud to say that 3PL Services recycles 96 percent of waste processed at our LaVergne, TN, facilities—nearly 836,000 pounds of recycled material in 2018 alone. In recognition of our commitment to implementing operational processes that reduce our impact on the environment, we recently earned ISO 14001 certification. This certification confirms our compliance with all applicable laws, regulations and other environmentally-oriented requirements.

• Facility expansion: Thanks to recent capital investments, we are now implementing a comprehensive facility expansion that will enable us to continue to seamlessly facilitate unprecedented growth, particularly when it comes to moving cold chain products.
  • By August 2019, our vault will be able to hold 1,200 additional pallets
  • By Spring 2020, our refrigeration facilities will be expanded to house 700 additional pallets; and our ambient facilities will be expanded to accommodate 4,000 additional pallets.
  • By Q4 2020, we’ll significantly expand our frozen product storage capacity.
• Technology enhancements: We’re investing in upgrading our Oracle database, and enhancing our data warehouse capabilities, which we expect to be deployed in 2020. These investments will help us standardize inbound data processing, outbound data feeds and systems integration, while also providing you with enhanced, more visual reporting and dashboard capabilities.
• Cold chain packaging offering: From our experience working with cold chain products, we know that creating customized packaging solutions can create costly delays. That’s why we’re developing a pre-validated cold chain pack out offering to help you simplify and reduce start-up costs, improve your speed to market and reduce complexity.
• White space sampling: Getting samples to physicians can be a challenge, particularly in geographic areas not covered by field reps, or during times of field rep transition. That’s why we’re developing a white space sampling solution to help you reach harder-to-access physicians, building on our established direct-to-physician sampling expertise and capabilities.

We’re excited to see our capabilities grow to anticipate the needs of your business. For more information or questions on these updates, contact your Client Relationship Manager.

The Dispensary of Hope is a non-profit organization dedicated to providing pharmacies and charitable clinics with reliable access to vital medications, generously donated by pharmaceutical manufacturers.

Cardinal Health 3PL Services is a proud supporter of Dispensary of Hope, and we invite our manufacturing partners to consider collaborating with this organization as a cost-efficient, convenient way to ensure excess product gets into the hands of patients who need it.

In addition to demonstrating corporate goodwill, key benefits of working with Dispensary of Hope include:

• Potential to tap into IRS Section 170E3 “Enhanced Inventory Tax Benefit” of double the cost of product, not to exceed fair market value
• Provides an opportunity to fulfill corporate social responsibility goals
• Reduces costs related to product inventory and destruction
• Transforms lives of our low-income and uninsured patients

For more information on how you can help, contact Scott Cornwell, Chief Supply Chain Officer for Dispensary of Hope, at scott.cornwell@dispensaryofhope.org, or 615.736.5175.