ICS is a premier provider of 3PL warehousing and distribution solutions tailored for the pharmaceutical industry. By storing therapies in validated, temperature-monitored environments, ICS safeguards product integrity and ensures patient safety, recognizing the risks associated with improper storage.
With over a million square feet of managed warehouse space, ICS excels in supporting drug manufacturers store and distribute while achieving an impressive 99.97% inventory accuracy. ICS also assists manufacturers in meeting serialization needs under the 3PL Drug Quality and Security Act (DQSA), ensuring compliance with DSCSA mandates.
Cencora provides state-of-the-art 3PL storage and distribution services
Our industry-leading U.S. 3rd party distribution and warehousing capabilities are strategically located to reach all points of the U.S. in the most timely and cost-effective manner, and we offer a range of scalable storage solutions to accommodate your growing business needs. We use sophisticated refrigeration systems, specialized handling procedures, and enhanced security protocols, including in our DEA vault and cage, to keep products secure. ICS, part of the Cencora family of companies, manages distribution services across 8,000 SKUs and over 1 million square feet of warehouse space with four state-of-the-art facilities centrally located in Brooks, Kentucky (suburban Louisville), Lockbourne, Ohio (suburban Columbus), and Reno, Nevada. We can cost-effectively reach all points in the U.S. with our proximity to Muhammad Ali International Airport in Louisville.
Our facilities are cGMP compliant and designed to support unique product requirements
Our fully cGMP compliant warehouse and distribution facilities offer manufacturers superior distribution flexibility as well as regulatory and quality compliance. ICS was the first ISO 9001:2015 certified pharmaceutical third-party warehousing and distribution provider in the U.S. (certificate registration number 10001994 QM15). Our facilities are constructed and licensed to manage any unique product requirements for specialty products.

What is a 3PL warehouse?
3PL warehouses support manufacturers by managing supply chain logistics, including serialization and traceability, while optimizing efficiency and compliance with industry standards. This enables pharmaceutical manufacturers to focus on their core operations while ensuring timely delivery of life-saving therapies to patients.
What is 3PL distribution?
3PL distribution, or third-party logistics distribution, occurs when an pharmaceutical manufacture company outsources the processing, fulfillment, and shipping of orders to a 3PL logistics partner.
The 3PL distribution provider manages various logistics services, which include: ·
- Procurement
- Inventory reception, storage, and labeling
- Picking and packing
- Kitting and assembly
- Arranging shipping and delivery to the customer's doorstep
- Managing reverse logistics and returns
- Financial services: full order-to-cash.
At ICS, 3PL distribution is more than just a service; it is a commitment to excellence in the pharmaceutical industry. Our comprehensive third-party logistics solutions are designed to meet the unique needs of our clients, ensuring that every step of the process is handled with precision and care.
We begin with state-of-the-art storage facilities that are temperature-controlled, safeguarding the integrity and safety of pharmaceutical products. Our commitment to inventory management means we efficiently track and manage stock levels, achieving an impressive accuracy rate that clients can rely on.
When it comes to order fulfillment, ICS shines. We pride ourselves on our ability to pick, pack, and ship products promptly, often offering rapid delivery to meet the demands of our clients. Our transportation methods are versatile, including trucks and air freight, allowing us to reach various locations across the U.S.
Moreover, compliance is at the heart of our operations. We support our clients in navigating the complex regulatory landscape, including serialization and traceability requirements under the 3PL Drug Quality and Security Act (DQSA).
How our 3PL warehousing solutions can benefit you
Regulatory compliance assurance

Customized solutions

State-of-the-art facilities

Streamlined order fulfillment

Integrated supply chain services

Full inventory visibility
and a range of real-time reporting options
DC1 is Cencora’s 3PL ERP system and runs on an IBM POWER9-series computing platform and is Part 11 validated. This system combined with our integrated data mart can provide clients with complete transparency into inventory, including:
- Full box and tub inventory tracking and control
- Shared storage library management
- Reporting with 21-CFR-11 support
- Easy LIMS integration via web API
- Aggregation of storage and logistics cold chain data in Freezer Pro application

Pre-configured reports
and customized reporting options

Global reach

Risk mitigation

Sustainability practices

Focus on core competencies

Types of warehouse storage solutions provided by ICS
Ambient storage
Description: This method involves storing products at controlled room temperature, typically between 15°C and 25°C (59°F and 77°F). It is suitable for non-sensitive items that do not require specific temperature controls.
Examples: Over-the-counter medications, medical supplies, and packaging materials.
Hold time: Generally long-term, depending on the product's shelf life and stability.
Refrigerated storage
Description: Products are stored at controlled temperatures ranging from 2°C to 8°C (36°F to 46°F). This method is essential for items that are sensitive to higher temperatures and require cooler conditions to maintain efficacy.
Examples: Vaccines, some biologics, and certain pharmaceuticals.
Hold time: Typically varies based on product requirements; often aims for medium to long-term storage.
Frozen storage
Description: This method involves storing products at temperatures below -18°C (0°F). It is crucial for preserving the integrity of temperature-sensitive items that require freezing.
Examples: Certain biological products, tissue samples, and some medications.
Hold time: Extended, depending on the product's stability when frozen.
Controlled environment storage
Description: This storage solution maintains specific temperature and humidity levels. It is used for highly sensitive products that require strict environmental controls.
Examples: Certain biologics, advanced therapies, and specialty pharmaceuticals.
Hold time: Varies based on product stability; typically designed for long-term storage.
Bulk storage
Description: This method involves storing large quantities of products in pallets or bins, often in a less organized manner. It is efficient for high-volume items that are picked in bulk.
Examples: Raw materials and high-demand pharmaceuticals.
Hold time: Generally long-term, depending on product shelf life and demand.
Rack storage
Description: This method utilizes shelving systems to store products in a more organized manner, allowing for easy access and inventory management. It’s suitable for both ambient and refrigerated items.
Examples: Packaged medications and supplies that require quick access.
Hold time: Varies based on product type, typically long-term for stable items.
FIFO (First In, First Out) storage
Description: This inventory management method ensures that older stock is sold or used before newer stock. It's particularly important for perishable items or those with expiration dates.
Examples: Pharmaceuticals with a limited shelf life, such as certain vaccines.
Hold time: Managed to minimize waste and ensure product efficacy.
Kitting and assembly areas
Description: Dedicated spaces for preparing kits or assembling products, which may require combining various items into a single package for distribution.
Examples: Custom medication packs or diagnostic kits.
Hold time: Short-term, as items are typically assembled for immediate distribution
Cryogenic storage
Description: Relatively new to the market, this method stores high-value therapies at temperatures as low as -200°C (-352°C). Unbroken cryogenic temperatures are essential for the preservation of highly-sensitive therapies and human cells.
Examples: CGTs or human cells to be used in the manufacture of these therapies. Commercial CGTs include Kymirah and Yescarta.
We offer customizable warehouse storage solutions

Types of 3PL distribution services provided by ICS
Order fulfillment services
This service encompasses the entire process of receiving, processing, and delivering customer orders. It includes picking, packing, and shipping products to end customers.
Benefits
Efficiency: Streamlined processes reduce order processing time.
Accuracy: Advanced technology ensures precise order fulfillment, minimizing errors.
Scalability: Easily adjusts to varying order volumes, accommodating seasonal fluctuations.
Inventory management
ICS provides comprehensive inventory management services, including tracking stock levels, managing reorders, and ensuring optimal inventory turnover.
Benefits
Visibility: Real-time inventory tracking provides transparency and aids in decision-making.
Cost reduction: Minimizes holding costs by optimizing inventory levels.
Risk management: Reduces the risk of stockouts and overstock situations.
This service ensures that temperature-sensitive products, such as pharmaceuticals and biologics, are stored and transported within specified temperature ranges (ambient, refrigerated, or frozen).
Benefits
Compliance: Adheres to regulatory standards for temperature-sensitive products.
Product integrity: Maintains the efficacy and safety of sensitive items throughout the supply chain.
Flexibility: Accommodates various temperature requirements based on product needs.

This service focuses on managing the return of products from customers back to the manufacturer or warehouse. It includes processing returns, handling recalls, and managing product disposal.
Benefits
Efficiency: Streamlined processes for returns improve customer satisfaction.
Cost-effectiveness: Reduces expenses associated with product returns and waste management.
Sustainability: Supports environmentally responsible practices through proper disposal and recycling.

ICS offers kitting and assembly services where products are bundled or assembled into kits for distribution, tailored to specific customer needs.
Benefits
Customization: Provides tailored solutions that meet specific client requirements.
Efficiency: Reduces handling time and costs by preparing products for quick delivery.
Enhanced Value: Offers added value to customers through complete kits or customized solutions.

Frequently Asked Questions
A third-party warehouse is an external facility that provides storage and logistics services for businesses. These warehouses manage inventory, order fulfillment, and distribution, allowing companies to streamline their supply chain operations. By outsourcing to a third-party provider, businesses can reduce costs, improve efficiency, and focus on their core activities.
A distributor is a company that purchases products from manufacturers and sells them to retailers or directly to consumers, often taking ownership of the inventory.
In contrast, a third-party logistics (3PL) provider specializes in outsourced logistics services, such as warehousing, transportation, and order fulfillment, without taking ownership of the products.
A 3PL warehouse structure typically consists of designated areas for receiving, storing, picking, packing, and shipping goods. It is designed for optimal inventory management and efficient workflow, often featuring advanced technology for tracking and handling products, as well as specialized zones for different types of items, such as temperature-sensitive or high-value products.
Simplify your operations and enhance your market presence
Our careful and meaningful onboarding process features dedicated team members who collaborate closely with you to develop tailored project plans that ensure a seamless launch, regardless of whether your timeline is 18 months or just 90 days.
As a market leader in onboarding strategies, we are committed to laying a solid foundation for your success. Don’t miss out on the opportunity to streamline your processes and focus on what you do best — contact ICS today to become a valued client.
