FedEx Corp. (NYSE: FDX) and Cardinal Health (NYSE: CAH) announced Tuesday a partnership that will expand the companies’ drug distribution channels, including direct-to-patient delivery at home.
The partnership will enable the companies to leverage their third-party delivery solutions through the combination of FedEx’s global transportation and logistics capabilities with the healthcare expertise of Cardinal Health.
In addition to providing access to more than 40 warehouses and distribution facilities across the U.S., the alliance will also help FedEx expand its delivery reach to businesses like home health care, hospitals and clinics located near Cardinal Health’s network of warehouses.
“FedEx and Cardinal Health are collaborating to stay in front of our customers’ needs and exceed their expectations,” said Carl Asmus, vice president of Supply Chain Solutions & Market Development, FedEx Services. “Through this collaboration, customers will have access to deploy their inventory at over 40 distribution points across the country, access to two proven networks that reach every U.S. ZIP code, and end-to-end inventory and transportation visibility.”
FedEx and Cardinal Health have been working together for more than 10 years to create collaborative third-party logistic (3PL) solutions for the healthcare industry.
This next phase of the partnership aims to provide a stronger, more competitive 3PL offering for customers of both companies, according to a release by Cardinal Health.
“The healthcare market is undergoing unprecedented changes, demanding more from an organization’s supply chain,” said Rob Doone, vice president of Integrated Logistics Services at Cardinal Health. “The combination of our healthcare expertise and 3PL capabilities with the global transportation, information systems and logistics capabilities of FedEx will bring new possibilities for healthcare manufacturers, care providers and patients.”
Written by Jason Oliva