Mitigating risk: Q&A with GENCO's Kevin McPherson

GENCO, a FedEx company, provides supply chain solutions across a diverse range of industries, including health care. The company — known as a 3PL, or third-party logistics provider — specializes in product lifecycle logistics, offering a comprehensive range of services to enable growth, minimize cost, mitigate supply chain risk and improve customer service. Drug Store News recently spoke with GENCO VP of healthcare logistics, Kevin McPherson. With more than three decades of supply chain and healthcare experience, McPherson is driving the company’ efforts to improve the safety and efficiency of the healthcare supply chain through the company’s Lifecycle Logistics concept.

DSN: Health care is becoming a more complex industry every day. How are these changes impacting the supply chain and the ability of pharmacy retailers and manufacturers to continue to evolve?

Kevin McPherson: For pharmacy retailers and manufacturers, it’s about servicing patients — ensuring the right product is in the right place at the right time. A 3PL provider can help bridge that gap. Rather than having specialty items sit on a shelf — in the chance someone may need it — we partner with manufacturers on near-time models that reduce waste in the supply chain and provide greater value.

DSN: How can GENCO help companies to better manage and optimize their supply chain in a changing healthcare industry?

McPherson: At GENCO we say, ‘One size fits one.’ GENCO partners with our customers to understand the products, destinations, volumes and timing needed in order to customize a supply chain solution that fits each individual company’s needs. Data is a crucial driver when developing a supply chain strategy; however, the data will need to be maintained and evolved over time. GENCO Healthcare Logistics remains educated on industry trends in order to give our customers regular data on their current processes, while also offering best practice guidance based on our experience in the healthcare industry.

DSN: How would you define a 3PL provider? What are some of the benefits of the partnership to customers?

McPherson: A 3PL is a strategic partner with extensive expertise in managing all aspects of the supply chain. This can include anything from forward to reverse logistics, warehousing and labor capabilities, transportation analysis or even research and development. Utilizing its skill and experience, ideally a 3PL should seamlessly behave as an extension of the customer’s business, resulting in decreased risk, increased profitability and ultimately a better-performing supply chain. A 3PL like GENCO is uniquely positioned to expertly manage all logistics efforts, thus allowing customers to focus on their core business.

DSN: What are some of the most critical advantages for pharmacy retailers and manufacturers when partnering with a 3PL?

McPherson: One of the most important advantages is that they do not have to undertake the investment. A 3PL continually invests in fresh technologies to gain new efficiencies throughout the supply chain process to be on the forefront of industry intelligence. Similarly, the industry intelligence provided by a 3PL partner is another distinct advantage. It is a 3PL’s obligation to be knowledgeable, not only about how to operate a supply chain today, but also about how it will need to operate tomorrow.

DSN: Why is shared risk important for success in the changing healthcare supply chain?

McPherson: Shared risk is important because managing the supply chain with a 3PL is a partnership. Each entity serving the patient population is responsible for managing their individual roles throughout the supply chain, and with that comes associated risk. For example, your 3PL partner must ensure the integrity of products as it moves throughout the supply chain, while the pharmacy staff must assume responsibility for the proper handling and dispensing of the product. It’s pretty simple; if collectively we are committed to improving the health and safety of the general populous, we assume the related responsibility and the risk of our role in the supply chain.

DSN: How important will the collaboration be moving forward?

McPherson: Collaboration is key to success. Hearing from our customers where they see themselves in one, three, five years from now allows us to proactively develop custom supply chain strategies that meet their vision for the future. And as a 3PL provider, GENCO prioritizes providing industry insights to our customers — in regard to the current state of the industry and where it’s headed — to ensure they can implement visionary plans.

DSN: Are there any additional considerations?

McPherson: There remains a tremendous opportunity for such integrators as GENCO to increase participation in overall waste reduction and efficiency in the pharmaceutical supply chain. These include managing waste streams, providing access and solutions, and bringing to market advanced technologies that allow for the efficient return and management of outdated pharmaceuticals. The industry has historically been focused on the forward logistics process; however, at GENCO we challenge ourselves and encourage all to take a hard look at existing inventory management practices and reverse logistics processes, to collaboratively improve the speed, efficiency and integrity of the healthcare supply chain.