Covid-19 customer FAQs 3.19.2020.pdf

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Attached to
Pharmaceuticals and Biologicals
Contract number
505ENT-M20-PHARMBIOLG-01
Issued by
Wisconsin

About this file

This document is a Frequently Asked Questions guide issued by Cardinal Health on March 19, 2020, addressing customer concerns and operational changes during the COVID-19 pandemic. The document serves as a customer communication tool rather than a formal contract, outlining Cardinal Health's policies and procedures for managing supply chain disruptions affecting their pharmaceutical distribution services to primary and secondary customers nationwide.

Cardinal Health implemented a weekly fair share allocation methodology across all products during the pandemic, with tighter allocations applied to products experiencing supply disruption. The company suspended shipments of non-essential products and limited processing of One Time Buys, Special Orders, and Average Monthly usage increases, though emergency overrides remained available through customer service. Personal Protection Equipment (PPE) products were available through their Pharmaceutical Distribution division but in limited supply, with priority given to primary customers over secondary customers during allocation periods. The company maintained normal return policies, continued deliveries to all routes despite potential delays, and implemented contactless delivery procedures to reduce physical contact between delivery providers and recipients. Cardinal Health emphasized their commitment to working with manufacturer partners to replenish inventory and maintain service continuity through pre-established business continuity and pandemic contingency plans.

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COVID-19 customer letter 3.13.20.pdf PDF

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© 2020 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.

Frequently Asked Questions: 3.19.20

1. Is Cardinal Health allocating product?

During times of increased demand, Cardinal Health implements a fair share allocation process to ensure all primary customers have access to supply of the available products on hand. Due to large increases in customer demand, we have implemented our weekly fair share allocation methodology on all products. If a product is in supply disruption tighter allocations are being applied.

2. Are we able to do overrides?

As the COVID–19 situation progresses we will continue to consider how to best manage our inventory to help maintain product availability for all customers as best we can. At this time we will not be routinely processing any One Time Buys, Special Orders, or Average Monthly usage increases. If you need an emergency override, please contact Customer Service at 800.926.3161.

3. Am I able to order non-prescription and OTC products?

As part of our continued effort to ensure a healthy supply chain, we are taking action to suspend the shipments on a limited number of non-essential products. Starting tonight we will institute a policy that will suspend the shipment of these items on all customer orders until further notice.

4. How can I find out the amount I am allocated?

Using Order Express, the Stock Status Icon (refer to image on the right) will indicate whether the item is stocked (green), in low stock (yellow) or out of stock (red) at your Distribution Center. Clicking on the Stock Status icon will pull your current quantity available to order. This value is the account-specific quantity immediately available at the DC. The quantity displayed may change daily based on account usage and product receipts. If the number is zero, either the DC is out of stock or you have already reached your allocated amount for the week based on your historical usage.

5. Has there been a change to how backorders are being handled?

In order to maintain our fair share allocation methodology and continue to steady our supply chain we have instituted similar allocation methodology for backorders.

6. Are you experiencing delivery delays?

We are still delivering to all routes. However, due to increased demand and additional precautions, some deliveries may be delayed. Effective March 20, submitting your order complete and final by 6 p.m. local time will allow our team more time to plan for the number of orders we need to pick that day and will help to keep us running on time.

7. If my store is closing or changing their hours how do I let Cardinal Health know?

With the spread of COVID-19, many facilities are changing their hours or closing. Knowing this information is critical to the efficiency of supply chain and logistics. If you are changing your hours or closing, please be sure to contact Customer Service at 800-926-3161.

8. Are we requiring customers to sign for deliveries?

Amid growing concerns surrounding the COVID-19 virus and the potential risk associated with physical contact, we are implementing a temporary change to our delivery process when a signature is required. In lieu of the recipient taking physical possession of the signature pad or paper proof of delivery document to provide a signature, delivery providers will retain control of both their handheld devices and their paper proof of delivery documents and at delivery they would enter the first initial and last name provided by the shipment receiver as a part of the proof of delivery process. We believe this precaution will help reduce physical contact betweencustomers and service providers during this unprecedented situation.

9. Are you increasing the volume of inventory replenishment?

With the increase demand, our teams are working around the clock to get orders replaced and we are working with our manufacturer partners to get shipments replenished as quickly as possible.

© 2020 Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO and ESSENTIAL TO CARE are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.

10. Has Cardinal Health developed contingency plan specific to the Coronavirus issue?

Cardinal Health takes its responsibility to maintain service to our customers during crisis situations very seriously, as demonstrated through our history of service during natural and human-made events. We take a holistic approach to emergency preparedness and are committed to the continuity of service in the event of a crisis.

As the coronavirus outbreak (COVID-19) continues to spread, Cardinal Health has implemented pre-established business continuity and pandemic contingency plans, working in accordance with guidelines set by the World Health Organization (WHO), the Centers for Disease Control and Prevention (CDC) and the U.S.

Department of Health and Human Services (HHS).

11. If I have a Pharmaceutical Distribution account with Cardinal Health am I able to purchase Personal Protection Equipment (PPE) products?

Yes, Pharmaceutical Distribution offers a limited portfolio of PPE items; however, these products are currently in short supply.

12. If the National Logistics Center (NLC) or another distribution center are unable to ship does Cardinal Health have a contingency plan in place?

Each business within Cardinal Health is responsible for business continuity planning by running tabletop exercises based on a plethora of scenarios. We recognize the important role we play in delivering product and medications from suppliers to customers. The National Logistics Center is a recognized best-in-class model for effective, efficient delivery both for suppliers and customers – but it is not the only method of distribution during a significant event. We have contingency plans for all of our distribution centers across our network work to provide continued delivery of product should the need arise. At times there may be delays or changes in routes required by the contingency plan.

However, if changes were to occur, we would notify our customers directly or through the account manager or sales executive.

13. Are you currently experiencing a drug supply shortage for any drug and/or NDC?

Cardinal Health is managing supply disruptions through our weekly fair share allocation methodology for all products.

Cardinal Health will continue to work closely with our supplier partners to provide available product to our customers.

14. Can we make bulk buys of items used for cough/cold/flu and other medications used to treat flu-like symptoms?

As part of our business continuity process, we are planning to support our customers to continue to receive the product they regularly receive. All items have been set up for weekly fair share allocation. If the fair share allocation changes in scope, we will communicate the change. Please use the ordering platforms (Weblink, EDI or OE) to determine product availability. If it is not available, the system will recommend alternatives. If product is not available to order on the ordering platform (OE, EDI or Weblink), the product may be in supply disruption or otherwise unavailable.

15. What is the return policy on items purchased during this time?

Our customer’s normal return policy applies.

16. If I am not a primary customer of Cardinal Health am I able to purchase product?

When products are on allocation, Cardinal Health gives priority to primary customers. Secondary customers will have limited access to purchase product.

17. Are distribution centers cleaning totes?

Proper cleaning procedures can reduce the risk of a potential virus from spreading, especially on hard surfaces. Cardinal Health has cleaning practices in place for handling totes and packages We expect to continue with our cleaning practices throughout the COVID-19 outbreak.

18. Can a distribution center hold product for customers?

Cardinal Health is managing supply disruptions through our weekly fair share allocation methodology for all products. At this time, we are unable to accommodate sequestering product for customers.

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