Strategic alliance between Cardinal Health and FedEx will provide combined 3PL services


Combination will generate 'new possibilities' in supply chain solutions, say firms

Noting that the two companies have been working together for over 10 years to provide 3PL services to healthcare products companies, the two will now offer combined global transportation, warehousing and distribution services. FedEx brings, among other things, the No. 1 air cargo airline; Cardinal brings its 39 distribution centers, and expertise in managing healthcare products shipping. The combination will provide a single point of contact, and visibility across the FedEx and Cardinal networks.The companies say that among the improved service capabilities are direct-to-patient deliveries and deliveries to specific departments within hospitals.

As explained by Sanjeeth Pai, VP for Cardinal Pharmaceutical Stategic Sourcing, and Jenn Lewis, director of marketing for Cardinal Integrated Logistics Services, the company has had FedEx as a primary carrier for its OptiFreight business for 10 years (OptiFreight is focused on medical products deliveries). Now the relationship is being extended to the pharma 3PL business. These medical and pharma 3PL services are “firewalled” from the pharma and med distribution businesses of Cardinal; in effect, they are acting as an independent 3PL. However, the two DCs operated by Cardinal Specialty Pharmaceutical Solutions (in LaVergne, TN and Reno, NV), the general DC of FedEx in Memphis, and—when business needs warrant—DCs in Cardinal’s wholesaling business are all resources that can be brought to bear.

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