How Cencora is Strengthening its US Pharma Distribution

Cencora has announced a US$1bn investment in its US pharmaceutical distribution network, a move designed to reinforce its role in supporting healthcare providers.

The strategy combines automation, an expansion of its cold chain capabilities and strategic infrastructure improvements, running through to 2030. With distribution central to its operations, Cencora is implementing a long-term plan to build capacity, improve supply chain resilience and adapt to the increasing demand for specialised medicines.

A major component of the investment is a second national distribution centre in Ohio, scheduled to be fully operational by spring 2027. The 49,240-square-metre (530,000-square-foot) facility represents a substantial increase in capacity and will introduce a higher level of automation into Cencora’s core logistics processes.

Automation and network expansion

Cencora's planned Ohio site will utilise AI, autonomous mobile robots and robotic handling systems to achieve more efficient order fulfilment and storage. By increasing throughput and overall capacity, the facility strengthens Cencora’s ability to meet demand from its healthcare customers across the US.

“Healthcare providers rely on us to provide efficient access to the medications their patients need, and we’re able to deliver on that promise because of the robust distribution infrastructure and operations we’ve built through decades of investment," explains Bob Mauch, President and CEO of Cencora.

"This investment highlights our commitment to and role in building a resilient pharmaceutical supply chain and in ensuring patients across the United States have timely and reliable access to prescribed medications, where and when they need them.”

Cencora’s expansion also includes a new facility in Fontana, California. At 39,950 square metres (430,000 square feet), the centre will be nearly twice the size of the existing location.

The building, expected to be operational by autumn 2026, is designed to feature automated systems and digital tools to bring improvements to speed, accuracy and storage.

Meeting speciality pharma demand

Alongside traditional pharmaceuticals, specialty medicines are now a central part of Cencora’s strategy. These are drugs developed to treat complex, chronic or rare conditions.

According to some data, 70% of all new medicines introduced by 2027 will fall into the specialty category. Many of these products require strict storage controls, particularly cold chain logistics, to maintain their integrity from the warehouse to the patient.

To meet this trend, Cencora is expanding its Dothan, Alabama distribution centre. This site is one of three within Cencora’s network focused on handling specialty medicines.

The expansion, set to be completed by autumn 2026, increases refrigerated storage space by 500% and frozen storage by 200%. These upgrades will equip Cencora to manage a broader range of sensitive treatments, adding operational resilience.

Rich Tremonte, Executive Vice President and President, US Pharmaceuticals and Animal Health at Cencora, says: “We’re committed to delivering an industry-leading customer experience – and that starts with listening to our customers, anticipating their needs and making strategic investments to ensure we can provide the exceptional service they expect."

He adds: "As demand continues to grow and more specialty pharmaceuticals reach the market, the investments we’re making today will strengthen our ability to support our customers’ current and future needs, enabling them to continue delivering high-quality patient care in their communities.”

Future-proofing pharmaceutical logistics

Through these infrastructure projects, Cencora is working to future-proof its national distribution operations. This includes adapting to a shifting pharmaceutical landscape where cold chain requirements are more common.

Between 2013 and 2017, it was reported that 37% of new pharmaceutical products required cold chain logistics. That figure is expected to increase to 50% by 2027, a trend Cencora is addressing through its investment in storage and automation.

The combination of automation, increased square footage and improved cold chain capacity gives it a supply network built to handle disruption while remaining responsive to customers.

By embedding AI and robotic technologies into its infrastructure, Cencora stands to enhance inventory accuracy and speed up distribution workflows.

With a US$1bn strategy in motion, Cencora is placing distribution at the centre of its service offering, backing it with the scale and technology focused on the medicines of the future.