Supply chain and stewardship

Our commitment to healthier futures includes our promise of efficiency and security from the time a product enters the supply chain until it reaches its destination. As the distributor of tens of thousands of products, our infrastructure is built to enable secure, daily ordering, and distribution.

Complexity and rapid changes define the global healthcare supply chain

Complexity and rapid changes define the global healthcare supply chain. Cencora invests in our own infrastructure while also working with key partners around the world to react, respond, and proactively plan for managing the dynamic environment in which we move healthcare products. In the United States, we rely on our Fair Share Allocation program, which takes a data-driven approach to product allocation based on historical purchasing data. When products are in short supply or may become so — either due to a surge in demand or a loss of production — these products are placed on allocation. This means that any one customer can only order a certain volume of that product so that all sites of care can maintain some level of access to products. In the case of shortages or other distribution challenges, we engage a medical ethicist to provide guidance regarding product distribution practices. In FY24, Cencora continued working with Civica, a nonprofit committed to improving the availability and affordability of essential generic medications, as their exclusive distribution partner. This partnership provides supply chain support to address shortages and stabilize supply for these critical medicines across the United States.

Across Europe, Alliance Healthcare operates in 9 markets, each with its own approach towards allocation and fair share models related to the specifics of the market. We work on a market-by-market level with allocations largely determined by manufacturers against specific market requirements. We also seek to buy goods and services from suppliers, contractors, and vendors who share our responsible sourcing goals. The Cencora Supplier Code of Conduct outlines the values which we expect partners to uphold.

Explore the Supplier Code of Conduct

Product integrity and patient safety

Our state-of-the-art infrastructure and technology collectively comprise an efficient and secure pharmaceutical supply chain, supporting our adherence to regulatory compliance. We continuously improve the traceability of products through our business processes and technology, further enhancing patient safety. Our package offerings include a variety of reusable solutions with advanced monitoring for transporting sensitive medical shipments, to ensure all products maintain appropriate temperatures while in our possession. Our process includes assessing any instances where products went outside the appropriate temperature range, to ensure only products deemed salable are distributed to our downstream partners. In FY24, Cencora US Supply Chain strengthened product integrity efforts at distribution centers by leveraging technology at production to better monitor compressors and condensers in our storage and staging areas, enabling prompt detection and repair of issues. Additional safeguards include purchasing pharmaceuticals for distribution directly from manufacturers or their authorized representatives, warehousing the products, and delivering them to healthcare providers on a just-in-time basis.

As a wholesaler, Cencora strives to take a leading role in educating its stakeholders on the Drug Supply Chain Security Act (DSCSA). In FY23, Cencora strived to lead the effort on technology solutions to verify serial numbers at the unit level for pharmaceutical products as part of DSCSA regulatory requirements. In FY24, this momentum continued, with efforts focused on addressing DSCSA compliance through cross-industry engagement and regulatory collaboration with both upstream and downstream partners. Products purchased from manufacturers and other licensed suppliers undergo an extensive due diligence process, and in FY24, we strengthened the system for providing valuable feedback to manufacturer partners was strengthened. Technology solutions were deployed across tens of thousands of downstream partner accounts, extending beyond the minimum compliance requirements to remain proactive in championing accountability. As one of the first distributors to launch and now expand the ability to scan, track, and verify all items with unique serial numbers, Cencora continues to lead the industry in DSCSA compliance and education, demonstrating a commitment to bringing partners into the DSCSA process.

The European equivalent to DSCSA is the Falsified Medicines Directive (FMD), which has been in place since 2019. This introduced the European Medicines Verification System, which we are connected to within each of our EU markets. We undertake extensive due diligence on all the products we purchase from manufacturers and other licensed suppliers, including using the FMD system to check authenticity, as required.

Cybersecurity, data protection, and privacy

At Cencora, we are unwavering in our commitment to robust cybersecurity. Our dedicated teams actively monitor for data breaches and cyberattacks, ensure top-tier protection standards, and conduct regular training for all our team members.
Our comprehensive Information Security and Privacy Programs are designed to comply with regulations such as General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and the California Consumer Privacy Act (CCPA), where applicable. These programs, led by our Chief Data and Information Officer, Data Protection Officers, information security teams, and global privacy teams, align with industry standards and customer commitments. They encompass detailed policies and mandatory annual training for all employees, with more frequent role-specific training for key teams, such as monthly sessions for our Information Technology (IT) staff.

We implement leading data protection standards to ensure the compliant collection of personal data. All third parties we collaborate with are rigorously vetted to ensure they comply with Cencora's stringent policies and procedures. We maintain continuous monitoring and are prepared to respond swiftly to any potential issues. Regular internal testing and external audits help us identify and mitigate vulnerabilities.

Our commitment to cybersecurity excellence is validated by certifications from multiple independent auditors. Cencora holds ISO/IEC 27001:2022 (Information Security Management Systems), ISO/IEC 27701:2019 (Privacy Information Management Systems, as a data processor), ISO/IEC 27017:2015 (Cloud Security controls as a cloud service consumer), and SOC2 Type 2 for our data center and online ordering systems. These certifications demonstrate our adherence to the highest data security and privacy standards. Furthermore, Cencora maintains comprehensive cyber insurance.
By investing in cutting-edge cybersecurity measures and fostering a culture of continuous improvement, Cencora underscores its dedication to safeguarding the data and privacy of our customers and stakeholders, offering potential investors confidence in our resilient and secure infrastructure.

Learn about the ISO certificate

Disaster response and emergency preparedness

We rely on our vast global footprint and network, taking a proactive approach to finding alternative solutions to maintain customer access to critical pharmaceutical products during disasters and emergencies. Our team gathers information ahead of weather events and other potential crises to share with global operations teams who can enact their critical incident responses or business continuity plans. We work closely with federal, state, and local government officials to convey the critical role Cencora plays in global healthcare, sharing our expertise and partnering with them to sustain the supply chain for our customers and continue the delivery of critical shipments.

Cencora implements a comprehensive support approach to emergency preparedness and response that includes numerous levers to holistically support impacted communities and team members. One such lever is the Cencora Impact Foundation’s support of strategic partner charitable organizations that provide proactive year-round disaster response services. For example, through our annual funding, we are a long-term Americares Emergency Response Partner Through this program, Americares responds to crises worldwide, establishes long-term recovery projects, and brings preparedness programs to communities vulnerable to disasters. In the aftermath of natural and human-caused crises, the Cencora Impact Foundation aims to activate supplementary funds that enable communities to rebuild, enact preventative measures, and remain resilient. The Cencora Impact Foundation also periodically increases the standard 100 percent employee donation match to as high as 200 percent.

Cencora may provide in-kind donations of needed products, and team members contribute by volunteering to pack kits with critical hygiene items and other essential supplies for victims of disasters. Beyond support for impacted communities, the Cencora Team Assistance Fund provides financial assistance to global team members and their families who are experiencing severe financial hardship. Cencora’s Human Resources department also offers access to a myriad of free services for team members, including confidential emotional support and legal consultation.

“We are seeing weather events and disasters happening in areas where they didn’t used to occur and in greater frequency and intensity. Our team is playing an even more critical role every day to support our business operations with the information they need to be proactive as we continue to be resilient in the face of increasing environmental, geopolitical, and other challenges.”

Robert Crow

Senior Director, Emergency Response and Crisis Management

Sustainable food production

We are taking a leading role in finding ways to feed a growing, hungry world. The Food and Agriculture Division of the United Nations predicts that world meat production will double by 2050. MWI Animal Health’s production animal business offers advanced technology solutions for animal agriculture operations, helping veterinarians and producers optimize animal health, animal production, and efficiencies needed in the production process. By increasing the efficiency of feeding and caring for protein-producing livestock, we reduce the quantity of agricultural resources required. To help the next generation of leadership learn about sustainable food production, the Cencora Impact Foundation partners with the National FFA Foundation to ensure we cultivate that talent by supporting the school-based agricultural education model, which offers training necessary for students to be successful in the areas of science, technology, engineering and mathematics (STEM) within agriculture as well as other fields of study.

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