Cencora plans to spend $1 billion over the next five years to expand its operations in the U.S., including opening a second national distribution center in Ohio.
The goal of the outlay is to bolster the sourcing and distribution giant's capacity and efficiency, as well as strengthen its supply chain resilience in The States, Cencora said in a Nov. 5 press release.
Cencora, formerly known as AmerisourceBergen, said it expects the upcoming 530,000-square-foot distribution facility in Harrison, Ohio, to be fully operational by spring of 2027. The site will come equipped with with a suite of automation tech including robotic handling systems, artificial intelligence and autonomous mobile robots, Cencora added.
“This investment underscores 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,” Bob Mauch, Cencora’s president and chief executive, said in the company's press release.
Additionally, Cencora will open a 430,000-square-foot distribution center in Fontana, California, by this time next year. That facility is slated to be roughly double the size of Cencora’s current West Coast distribution center and will also be heavily kitted out for automation.
As part of the expansion project, Philadelphia area-based Cencora is also investing in expanding its specialty pharmaceutical services to meet growing industry demand for cold chain logistics.
To achieve that goal, Cencora plans to grow its operations in Dothan, Alabama, to increase refrigerated storage capacity by 500% and frozen storage capacity by 200%. That project is also expected to be completed by the fall of 2026, Cencora said this week.
Cencora cited recent research from IQVIA that suggests half of all pharmaceutical products launched globally through 2027 will need cold chain storage, which is up from 37% of products between 2013 and 2017.
On a typical day, Cencora noted that it ships more than 5 million medications and healthcare products to providers.
News of the infrastructure investment comes almost a year to the day after Cencora shelled out $4.6 billion to buy Retina Consultants of America from Webster Equity Partners. The deal was designed to bolster Cencora's specialty drug business specifically.