facility located at its then-corporate headquarters in Costa Mesa, Calif.
When it moved to new headquarters in
nearby Aliso Viejo in 2006, however,
Valeant had to make other arrangements.
Part of the reason was its inability to obtain
the necessary Food and Drug
Administration permits to store products
on site at the Aliso Viejo facility. But for
Valeant, it was pretty much a moot point.
The company had already determined the
function would be better handled by a
focused third-party logistics service
provider (3PL). Not long afterward, Valeant
asked its long-time partner Kenco to begin
storing the drugmaker’s products at
Kenco’s Chattanooga distribution center.
Among the advantages a major 3PL like
Kenco brings to Valeant is the depth and
breadth of its coverage, a key factor when
lives may hang in the balance, says Soto.
“They have more carrier options, and
Kenco can react faster to manage the special
requirements for these shipments,” she says.
The transition was seamless, with no
service hiccups, according to Soto. “Kenco
thoroughly planned and prepared for the
switchover, and from our perspective, this
challenging 24/7 responsibility has been
handled very smoothly,” she says.
Soto says service quality improved as a
result of the transition. Valeant’s costs rose
as well, but the increases were not material,
she adds.
Shared values
Valeant and Kenco wear their achieve-
ments with pride. The staffs at both com-
panies track and document their accom-
plishments on a map showing “lives saved.”
As for what has made the partnership a
success, Soto says Kenco’s operational
abilities are just part of the story. Another
part is the companies’ shared values.
“Culturally, we have a great fit with
Kenco,” she explains. “Their people truly
recognize the critical nature of the prod-
ucts we manufacture, and they take seri-
ously the importance of their role in dis-
tributing these products. Beyond loca-
tions, facilities, and knowledge, it takes
dedication to handle these types of ship-
ments. A 3PL must share the same sense
of urgency that we have.”
Andy Smith, Kenco’s president and
CEO, says that although Kenco
strives to deliver consistent, high-quality logistics service throughout
Valeant’s entire U.S. supply chain,
the urgent distribution of drugs like
Virazole is special.
“As human beings, how can we
not sharpen our focus even more
than usual when we know lives are
at stake?” he asks. “I’m extremely
proud of the way we handle each of
these demanding and often unex-
pected shipments. This is one of the
things about our people that makes
me proud to be part of this great
team.” ;
