UPS Healthcare Logistics Helps Endo Pharmaceuticals Manage the Pain of a Complicated Supply Chain
When a postoperative patient awakens to acute pain, there's no time to wait for the hospital's next shipment of Percocet. Pain is real-time. It doesn't respect shipping delays or reorders for drugs transported at improper temperatures. That's why Endo Pharmaceuticals turned to UPS.
Endo is a mid-sized specialty pharmaceutical company with a big-sized vision: to be the premier pharmaceutical company focused on pain management. Featuring drugs such as the well-known Percocet and Percodan, Endo's portfolio also includes medications that treat migraines, osteoarthritis and aroundthe- clock pain, such as pain stemming from cancer. From the start, Endo knew its supply chain had special requirements. The company needed to pack, store, route, track and deliver temperature-sensitive medications to customers in the retail, wholesale and physician markets. It needed real-time contact with its domestic and international customers. It needed a way to monitor outgoing shipments and get paid in a timely manner.
Meanwhile, storing and transporting the company's controlled substances was no small feat. Endo had to comply with the regulations and record-keeping requirements of the Drug Enforcement Administration (DEA) and the states. "We could not afford to internalize or recreate such an operation on our own. And the reality is, we didn't want to," says Daniel Carbery, senior vice president of operations for Endo. "We interviewed a number of the more traditional healthcare carriers, but UPS was the only company that understood our needs and knew how to fulfill them."
Streamlined from Order to Payment
As it turns out, Endo didn't need a refrigerated warehouse, a distribution center, a customs broker and a DEA-compliance team. It just needed UPS. Endo has a semi-fixed system with UPS for scalability. "We rent our own ‘sandbox' from them – dedicated space where our product orders are fulfilled, products are picked, packed and labeled, and all documents are recorded," Carbery says. This custom system streamlines everything from orders to payment.
UPS also holds the necessary DEA and state licenses and employs on-site compliance professionals to ensure end-to-end adherence with federal and state regulations that govern the delivery of controlled substances.
Endo's products require strict temperature control. From storage to air, ocean and ground transportation, UPS Temperature Truesm controlled environment can reliably and safely move Endo's medicines through the supply chain.
With UPS on its side, Endo reaches markets fast and with greater cost efficiency. While Endo's supply chain is complex, its freight delivery and distribution system is the envy of many in the pharmaceutical industry, Carbery says. In fact, he cites an example where Endo and UPS had to act quickly to accommodate a new product acquisition. "In 30 days we acquired a drug. On the day the deal closed, we moved products from the previous owner's warehouse to ours and started to ship under the new name," Carbery says, adding that such swift transition is unheard of in the pharmaceutical industry. "The experience was like buying a house and bringing your moving van to the closing."
With UPS's new logistics, Endo can focus on other things. Like managing pain.