3PL warehousing and distribution

ICS 3PL warehousing and distribution

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?

What is a 3PL warehouse?

A 3PL warehouse is a specialized facility that provides third-party logistics services, including storage, inventory management, and distribution of pharmaceutical products. These warehouses are designed to meet stringent regulatory requirements, ensuring that medications are stored in validated, temperature-controlled environments to maintain product integrity and safety.

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

Partnering with ICS means pharmaceutical manufacturers can rely on our in-depth knowledge of industry regulations. Our commitment to compliance ensures that all products are stored and distributed according to good distribution practices (GDPs).
Regulatory compliance assurance ICS

Customized solutions

We understand that each pharmaceutical manufacturer has unique needs. Our tailored warehousing and distribution solutions allow manufacturers to optimize their supply chain based on specific product types, volumes, and market demands, leading to enhanced operational efficiency.
Customized solutions ICS

State-of-the-art facilities

Our modern, temperature-controlled warehouses are designed to meet the stringent requirements of pharmaceutical storage. This ensures the integrity and efficacy of sensitive products, safeguarding manufacturers' investments.
State-of-the-art facilities ICS

Streamlined order fulfillment

With our efficient processes, pharmaceutical manufacturers can expect quick and accurate order fulfillment. This not only improves customer satisfaction but also helps manufacturers respond promptly to market demands.
Streamlined order fulfillment ICS

Integrated supply chain services

ICS provides a seamless integration of warehousing and distribution with other supply chain functions. This holistic approach facilitates better communication and coordination, reducing delays and enhancing overall operational effectiveness.
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
ICS 3PL full inventory visibility

Pre-configured reports 

and customized reporting options

We provide our manufacturer partners with a web portal reporting tool — ICS MyPortal — that delivers standard and customizable reports for a range of areas like sales and inventory, order management, proof of delivery, cash posting, general ledger, and more. The web portal runs on a SQL server and provides clients the ability to export reporting into PDF, HTML, and Excel formats. Our tracking report is provided through Power BI and ICS MyPortal and provides the recipient, account, number, city, state, zip code, terms of payment, order number, shipped date, pick list number, manner of transport, and tracking number.
ICS 3 PL customized reporting options

Global reach

While other 3PL market players have reduced their global footprint, ICS, as a part of Cencora, has been expanding our market reach and solution innovation in key areas, including cell and gene therapies (CGT). Although therapies with small patient populations and complex patient journeys will always have a high-touch component, we are also investing in technology enablement for CGT integration and orchestration that drives automation, enhanced tracking and transparency, and greater insights across the continuum of care. We believe that an end-to-end (E2E) solution is more optimal for managing the complex patient journey of a CGT, and we are pleased to offer a range of expanded, integrated solution options that can help drive key efficiencies, greater stakeholder advantage.
Global reach ICS

Risk mitigation

With robust risk management strategies in place, ICS helps pharmaceutical manufacturers mitigate potential disruptions in the supply chain. This ensures continuity of operations and minimizes the risk of product shortages or delays.
Risk mitigation ICS

Sustainability practices

By partnering with ICS, pharmaceutical manufacturers can align with our commitment to sustainability. Our environmentally responsible warehousing and distribution practices can enhance their corporate social responsibility initiatives.
Sustainability practices ICS

Focus on core competencies

By outsourcing warehousing and distribution to ICS, pharmaceutical manufacturers can focus on their core competencies, such as research and development and product innovation, while we handle the logistics and supply chain complexities.
Focus on core competencies ICS 3PL

Partnering with ICS (part of Cencora family of companies) provides pharmaceutical manufacturers with a strategic advantage that enhances operational efficiency, ensures regulatory compliance, and supports their business objectives in a competitive market.

Partnering with ICS 3PL

Types of warehouse storage solutions provided by ICS

ICS offers a variety of warehouse storage solutions tailored to the specific needs of the pharmaceutical industry. Here are some of the most common storage methods used in our warehousing:

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

The ICS diverse warehouse storage solutions cater to the varied needs of pharmaceutical manufacturers, ensuring that products are stored in optimal conditions to maintain their integrity and efficacy. Each storage method is designed to meet the specific temperature requirements and hold times necessary for different types of products, providing clients with reliable and compliant warehousing options.
ICS 3PL customizable warehouse storage solutions

Types of 3PL distribution services provided by ICS

ICS offers a comprehensive range of third-party logistics (3PL) distribution services tailored to the pharmaceutical and healthcare industries.

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.

Temperature-controlled distribution

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.

Temperature-controlled distribution ICS 3PL
Reverse logistics

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.

Reverse logistics ICS 3PL
Kitting and assembly services

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.

Kitting and assembly services ICS 3PL

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. 

Simplify your operations with ICS