pharmaceutical segment distribution supply chain manual ... · holiday shipping/manufacturer...

REV 01/2017

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Manufacturer reference manual 2REV 01/2017

Index

Section 3: Getting set up with Cardinal Health ...........................................................6

Section 2: Understanding and working with Cardinal Health ...................4 Who to contact .................................................................................................................................5

Section 1: Introduction ...........................................................................................................................3

New manufacturer set up process ............................................................................................6

New item set up process ..............................................................................................................6

Section 4: Filling Cardinal Health orders ............................................................................7

Purchase orders ...............................................................................................................................7

Electronic Data Interchange (EDI) .............................................................................................8

Product Availability Report .........................................................................................................10

Item and manufacturer record maintenance and 60 day back order policy ............13

Section 5: Delivering Cardinal Health orders ................................................................14

Transportation ..................................................................................................................................14

Product packing and shipping requirements ......................................................................16

DC listing ............................................................................................................................................18

Section 6: Returned goods and recalls ..................................................................................19

Section 7: Collaborating and improving processes ................................................21

Section 8: Drug Supply Chain Security Act .........................................................................30

Attachment A: New manufacturer set-up worksheet ................................................................................34

Attachment B: DSCSA Trading Partner Status/Authorized Trading Partner letter ...................35

Attachment D: Consumer Health new item set up forms .........................................................................37

Attachment E: Preferred inbound carriers .....................................................................................................40

Attachment F Procurement and fulfillment statistics scorecard .......................................................41

Attachment G: Manufacturer pricing services (chargeback) requirements ..................................42

(Click on section title for hyperlink to section)

Section 9: Conclusion ................................................................................................................................32

Attachment C: Manufacturer Portal Terms Registration Form .............................................................46


Section 1: Introduction The Cardinal Health Manufacturer Reference Manual is a policy document governing the relationship between the Cardinal Health Pharmaceutical Distribution Business and its manufacturers. This manual provides guidance regarding Cardinal Health operational expectations to manufacturers/suppliers of pharmaceutical products distributed by the pharmaceutical segment of Cardinal Health. These policies were constructed to allow Cardinal Health and its manufacturers to meet the commitment to excellence expected by our mutual customers while reflecting an ongoing commitment to conduct business in a manner that respects the contributions of all stakeholders. The policies and standards contained within may be updated at any time and it is therefore important that manufacturers periodically review the current revision of this manual for updates.


Pharmaceutical Segment

Our Pharmaceutical segment consolidates pharmaceuticals from hundreds of manufacturers into site-specific deliveries to retail pharmacies, hospitals, mail-order facilities, physician offices, surgery centers and long-term and other alternate care facilities. Through this segment, Cardinal Health offers the most secure, efficient and economical source of pharmaceuticals, specialty plasma products and value-added services to healthcare providers and pharmaceutical manufacturers. Cardinal Health also operates the world’s largest network of nuclear pharmacies and is expanding its positron emission tomography (PET) agent manufacturing capabilities to support new drug development and the future of personalized medicine. In addition, about 200 hospitals across the U.S. outsource the management of their inpatient pharmacy to Cardinal Health because of our proven expertise and track record of improving efficiency and safety within inpatient pharmacies.

Products and services

• Access services

• Cold Chain – Refrigerated Pharmaceutical Tote Packaging

for Pharmacy Deliveries

• GPO contracts and services (VitalSource GPO)

• Healthcare Analytics and marketing communications

• Hospital Quality at Home

• LEADER™ brand pharmacy services

• Medicap Pharmacy® franchises

• Nuclear Pharmacy Services

• Pharmaceutical distribution –

this Manufacturer Guide is applicable to these businesses

• Pharmacy management solutions

• Scientific and Regulatory Consulting (Beckloff Associates)

• SonexusHealth

• Specialty Pharmaceutical Distribution –

this Manufacturer Guide is applicable to these businesses

• Specialty Pharmacy (OncoSource Rx)

• The Medicine Shoppe®

• Third Party logistics services

Section 2 Understanding and working with Cardinal Health

http://www.cardinal.com/coldchain/index.asp

http://www.cardinal.com/coldchain/index.asp

http://www.cardinal.com/us/en/pharmacies/offerings/leader/index.asp

http://www.cardinal.com/pharmacies/community/franchising/

http://www.cardinal.com/nps/index.asp

http://www.cardinal.com/pd/

http://www.cardinal.com/spd/index.asp

http://www.cardinal.com/pharmacies/community/franchising/


Section 2 Understanding and working with Cardinal Health

Who to contact

Request type Contact information (email, phone, etc.)

Accounts Payable [email protected]

Generic new item set-up [email protected]

Brand new item set-up GMB-DUB-Rx Brand-New [email protected]

Brand new vendor set-up request [email protected] or DSA Manager

Consumer Health new item set-up cardinal.marketgate.com

Consumer Health new manufacturer setup [email protected]

Contract pricing and membership questions [email protected]

Contracts supplied by manufacturers [email protected]

Case pack changes – generics Your Cardinal Health Buyer

Case pack changes – brand DSA Manager

Case pack changes – Consumer Health Category Manager

Product availability Cardinal Health buyer

Product recalls [email protected], fax is: 614.553.5671

Electronic Data Interchange (EDI) [email protected]

Customer service (dropship) 800.926.3161

Holiday shipping/manufacturer shutdown schedules [email protected]

Brand [email protected]

Brokerage [email protected]

Generics [email protected]

Consumer Health [email protected]

Wholesale Aquisition Cost (WAC) price changes [email protected]

DEA and State Facility Licenses [email protected]

Supply Chain Excellence Award Brand – DSA ManagerConsumer – Product Category ManagerGenerics – Advisor

Emergency purchase orders [email protected] or Buyer

Manufacturer Reference Manual Dianne Pfahl

Country of Origin [email protected]

QRA Drug Supply Chain Security Act [email protected]

QRA – Private Label [email protected]

Customer Service – Home Healthcare Drop 800.530.2696

Customer Service – Leader® Private Label 800.200.6313

Dropship billing [email protected]

Purchase Orders G-DUB-Brand Purchasing G-DUB-Consumer PurchasingG-DUB-Generic Purchasing


Section 3 Getting set up with Cardinal Health

Prior to engaging in business with the Pharmaceutical Segment of Cardinal Health, Cardinal Health requires that the manufacturer

and Cardinal Health enter into a services agreement. For more information on establishing a relationship with Cardinal Health,

contact [email protected].

Once a services agreement is in place, manufacturers will need to follow the new manufacturer set up process as guided by the

Cardinal Health Manufacturer Relations Team. Documents required by Cardinal Health to initiate new manufacturer set-up include:

• Certificate of Insurance, stating Cardinal Health and

Subsidiaries as additional insured

• New Manufacturer Setup Sheet

• New Manufacturer Checklist (Attachment A)

• Manufacturer EDI Information Sheet

• Rebate Management System (RMS) Letter

• DSCSA Trading Partner Status/Advanced Trading Partner (ATP)

acknowledgement (Attachment B)

• Wholesale Purchase Agreement/Wholesale Dropship

Agreement, Generic Wholesale Service Agreement,

Cardinal Health Supplier Agreement

• Diversity Affidavit

• Quality Agreement

• W9/W8

• Manufacturer Portal Agreement (Attachment C)

• DEA Controlled Substance or list chemical registration number

• Copy of state licenses for the following states:

- Colorado

- Florida

- Illinois

- Missouri

- New Jersey

- North Carolina

- Oregon

- West Virginia

• Current list price for all products

• HDA product information sheet

• Safety Data Sheets (SDS)

• Package insert sheet

• Guaranteed Sales Letter (Consumer Health only)

In the event of a conflict between the requirements of this Manufacturer Reference Manual and the terms of an agreement between

Cardinal Health and a manufacturer, the terms of the agreement prevail unless otherwise agreed in writing by Cardinal Health.

New item set up process

When launching a new item, please ensure you submit the following five documents to Cardinal Health Sourcing Manager or Category Manager in order to have the item set up in our system.

• HDA/NWDA Standard Product Information Form

(Most current version)

• Package Insert

• Copy of all sides of Package Label

• SPS Information

• Pricing Sheet

Cardinal Health must have all five documents before the item can be setup in our system. Failure to provide all of the above information will delay getting your new item ordered.

Please see Attachment D for Consumer Health documents.


Section 4 Filling Cardinal Health purchase orders

Orders and shipments must be made in accordance with written agreements in place between

Cardinal Health and manufacturer.

Standard purchase order transmissions

Cardinal Health transmits purchase orders (PO) to the manufacturer using three methods:

• Electronic Data Interchange (EDI 850) - EDI POs are collected approximately every two minutes throughout

the Cardinal Health work day. EDI services then recognizes and transmits to the manufacturers every 30 minutes

on the half-hour. This process begins at 5:30 a.m. EST and ends at 10:30 p.m. EST.

• Fax - Fax POs are generated and sent via fax using the Cardinal Health automated fax system (FAX401) or

manually faxed. The FAX401 system transmits to the manufacturer every 2 minutes.

• AS2/Cyclone - AS2 is a point-to-point file transfer protocol (ftp) that is used to encrypt and transfer data files

via the Internet. Cardinal Health is currently using Axway AS2 (formerly known, and also still sometimes referred

to, as Cyclone) to trade data with both customers and manufacturers. This managed file transfer system moves

EDI (x12-formatted) data as well as other types of data. For manufacturers already up on EDI, once they have the

applicable software on their side, they can contact [email protected] to test and implement.

Narcotic purchase order transmissions

Narcotic POs require special processing based on government regulations. Each manually transmitted narcotic PO

can contain no more than 10 items and must be accompanied by a DEA blank number. Cardinal Health generally sends

the PO and the accompanying DEA blanks (222) to the manufacturer via overnight delivery. However, processing of

the EDI transmission cannot occur until the receipt of the corresponding DEA blank. All blanks expire in 60 days.

Cardinal Health is now enabled with the DEA-approved Controlled Substance Ordering System (CSOS) through Axway/

Cyclone AS2. This enables direct EDI 850 ordering of narcotics, and provides the Electronic 222 (e222) forms. This method

requires that our manufacturers also be enabled with the appropriate technology and DEA Digital Certificate to receive,

process and report to the DEA. This provides several advantages, including electronic signing and transmission forms,

rather than physical overnight delivery and also eliminates the ten-line restriction that is in place for manual orders.

Purchase order management

Purchase orders are expected to ship complete and consistently within the agreed upon lead time. An expected

delivery date based on this lead time is generated for each purchase order transmitted by Cardinal Health. If for some

reason a purchase order or purchase order line will not arrive within the normal lead time or will be partially shipped,

Cardinal Health must be notified in advance. Please refer to the section on Product Availability reporting for information

on how and where to communicate this information to Cardinal Health.



What is EDI?

EDI is an electronic sharing of information in a global standardized format. Traditionally, communications between business

partners (like purchase orders or invoices) were conducted on paper and sent via mail or fax.

With the advent of electronic file sharing, communicating such information electronically greatly reduces the time and resources required

to manage such interactions. ANSI (American National Standards Institute) is the governing organization that establishes EDI standards.

Within ANSI, HDA (Healthcare Distribution Alliance) establishes standards unique to the health care industry. However, HDA standards

always fall within ANSI standards; they do not conflict with nor negate one another.

Ideally, when trading partners use standardized communications in accordance with ANSI and HDA, communications are

automated and efficient.

EDI Transactions

Cardinal Health supports a range of EDI documents and

transmission protocols to transfer information to and from

our business partners. In addition, Cardinal Health maintains

partnerships with various communication and van providers and

complies with both the American National Standards Institute

(ANSI) and the Healthcare Distribution Alliance (HDA) EDI

guidelines. Cardinal Health sends and receives EDI data every 30

minutes, starting at 5:30 a.m. Eastern and ending

at 10:30 p.m. Eastern, seven days a week.

EDI transactions received (inbound)

Document Description

810 Invoice

845 Bid award/Price authorization

849 Chargeback reconciliation

855 Purchase order acknowledgement

856 Advance ship notice

997 Data receipt

EDI transactions sent (outbound)

820 Payment order/remittance advice

844 Chargebacks

850 Purchase order

852 (Opt) Product activity data

867 (Opt) Product transfer and resale report

EDI Requirements and penalties

Cardinal Health expects all manufacturers, at their expense, to maintain the appropriate systems and software to facilitate the electronic

exchange of information pertinent to the respective business relationship. For those who are not EDI-capable, we have partnered with a

3rd party to provide solutions that can assist you in meeting our requirements.

Cardinal Health expects the manufacturer to be fully engaged and compliant with all applicable inbound EDI requirements. Compliance

is required within 90 days of becoming a manufacturer or upon notification of non-compliance. Full details on Cardinal Health EDI

requirements are contained within an EDI Technical Specifications Document available from the Cardinal Health EDI Team or a sourcing

representative. Please note that an EDI Technical Specifications Document exists for each EDI document type.

• Upon receipt of an electronic document from Cardinal Health, manufacturers are required to transmit an electronic acknowledgement

(EDI Document Type 997) within 24 hours of the transmission. The electronic acknowledgement will certify and establish evidence

that the electronic document has been properly received.

• Manufacturers are required to monitor the receipt of acknowledgements (Functional acknowledgement EDI Document Type 997)

from Cardinal Health for electronic documents sent by the manufacturer and take prompt action to resolve issues relating to

unacknowledged electronic transmissions.

• Manufacturers are required to maintain compatible electronic document version numbers in accordance with current

Cardinal Health software.



EDI Requirements and penalties cont.

Detailed guidelines and specifications for all required EDI documents can be found on the main page of the Cardinal Health website.

For additional EDI questions, email the EDI Team at [email protected] or call 614.757.5334.

EDI Penalties

Manufacturers must transmit all required EDI documents or a penalty will be assessed. Penalties will be calculated based on

EDI compliance of the previous month and will be communicated via a separate invoice.

EDI Required Document Penalty

Advanced Ship Notice (EDI 856) $10 per line for purchase orders received without an ASN*

810 Not applicable at this time






*Invoices will be sent to those manufacturers with a total quarterly penalty of $750 or more.



“MANUFACTURER NAME” CUT REPORT FOR THE WEEK ENDING IN MM/DD/YY

PO # NDC/CIN/UPC/MFG# Description Quantity cut Reason quantity cut

C0477600FND 68462019790 Product A 12 Allocating product

C0354627HUD 68462015713 Product B 12 Raw material issue

C0354627HUD 68462019890 Product C 10 Spike in demand

Cut report standard template

Below is the recommended cut report standard template. If the recommended template is not used, suppliers will not receive the

full score (see Appendix B) and points will be given at the scorer’s discretion and may vary from week to week. All purchase order

line items that have been canceled or cut by the supplier must be included in the report and sent within 24 hours following the

purchase order submission. This report will limit the number of times the buyer needs to contact the supplier to get updated

purchase order information.

“SUPPLIER NAME” PRODUCT AVAILABILIT Y REPORT FOR THE WEEK ENDING IN MM/DD/YY

Description NDC/CIN/UPC/MFG# Product availability categoryEstimated manufacturer ship date (mm/dd/yyyy)

Product availability information

Product A 68084023901 Allocation ETA 11/23/2009 Only shipping 200 unit per wk

Product B 68084023701 Backorder 11/16/2009 Short term/Raw materials shortage

Product C 68084023801 Regulatory issues No release date Recall on all lots

Product D 62584082721 Short dated ETA 10/26/2009 Best dating 4/31/2010

Product E 68084068301 Discontinued Discontinued Discontinued

Product F 62584073301 New item launch ETA 12/28/2009 Item has not launched yet

Product G 62584082721 Backorder No release date Long term/Suspension of production

Product H 68084036101 Dropship only 11/6/2009 Short term dropships available

Disclaimer: If a product does not appear on the Product Availability Report, the product will be indicated as available for purchase and shipping in full to Cardinal Health.

All reports must include the above disclaimer

Week Ending is the last date in the reporting period, Friday of each week.

Cardinal Health communicates product availability issues to customers via customer ordering systems. Product availability reports

contain information regarding the current status of all active products such as backordered items, allocated items, short dated items,

etc. Cut reports provide line item information on a purchase order that has been canceled by the supplier due to varying product

availability issues or other supplier issues.

Report Submission Requirements

Suppliers are required to send the product availability report or the cut report to Cardinal Health weekly via email to your

Cardinal Health buyer. If for some reason the status of a product changes between reporting periods, Cardinal Health must be notified

via email. In addition, if there are no product availability issues for a particular reporting period, Cardinal Health still requires an email

stating that all products are available for purchase and shipping in full weekly. If suppliers do business with Cardinal Health Brokerage,

brokerage specific items must be sent via email to your Cardinal Health buyer.

Standard report templates

Product availability report standard template

Below is the recommended product availability standard template. If the recommended template is not used, suppliers will not receive

the full score (see Scoring Criteria on p. 3) and points will be given at the scorer’s discretion and may vary from week to week. All active

products with an availability issue must be included in the report and remain on future reports until the issue is resolved. If an item

is not included on the product availability report, Cardinal Health will consider the item available for purchase and shipping in full to

Cardinal Health.



Appendix A: Report template field definitions

This appendix contains definitions of all fields in the above report templates. The definitions were derived in accordance with HDA.

Field name Field description

Description This is the product name.

NDC/CIN/UPC/MFG

National Drug Code Number (NDC) based off of First Data Bank (FDB) standards. The NDC must be in an 11 digit format with no dashes. Suppliers also have the option of providing the Cardinal Health Identification Number (CIN). This is a seven digit number that you receive on all purchase orders from Cardinal Health. If the supplier does not use an NDC, the UPC or Manufacturer’s number can be provided. The UPC must be in the twelve digit format with no dashes.

Product availability category

A general category used to describe the product availability issue. An appropriate category must be selected from the following list of seven categories:

1. Allocation — Product availability is limited and supply is being managed. The current purchase order may exceed pre-determined allocated amount resulting in partial shipment from the supplier to Cardinal Health.

2. Backorder — A backorder is defined as lines of a purchase order that are not shipped with the original order.

3. Discontinued Item — Product has been discontinued and is no longer manufactured for sale by the supplier. The discontinued status is also used when a supplier deems an item temporarily unavailable. The item will be reactivated at a later date and available for sale at the supplier’s request. Note: Supplier must provide official documentation of an item’s discontinued status.

4. Dropship — Products are transitioning from an item stocked at the Distribution center to a dropship status (shipped direct to the customer). The supplier may also offer dropshipments to the customer due to product availability issues.

5. Regulatory Issues — Any action that impedes the production or supply of products. Cardinal Health differentiates legal issues into three main categories: • FDA Issue — The Food and Drug Administration (FDA) has an issue with the product that

prevents the supplier from shipping product. • Quarantine — When the supplier’s product has been quarantined based on supplier issue. • Recall — When Cardinal Health receives a notification of a recalled product at the retail or the

wholesale level.6. New Item Launch — When a product has not been officially launched/released by the supplier.

This may be used to refer to a pre-ordered product.7. Short Dated — Any product that has less than 18 months to expiration. Supplier should note in

the Product Availability Information column, best dating available, if the short dated product is the best available in the market.

Estimated supplier ship date

(mm/dd/yyyy)

Product availability

information

Corresponds with the Product Availability Category. It gives more details regarding the product availability issue (ex. number of units allocated per week) or provides the customer better clarity on the cause of the issue (ex. material issues, spikes in demand, etc.). The supplier should specify if product is available for dropshipment in this section.

DisclaimerThe standard disclaimer must be included on the Product Availability Report. In this disclaimer, the supplier certifies that if a product does not appear on the ProductAvailability Report, the product will be indicated as available for purchase and/or currently shipping in full to Cardinal Health.



Cut Report Field Definitions

Cut reports provide line item information on a purchase order that has been canceled or cut by the supplier due to varying product

availability issues or other supplier issues.

Field Name Field Description

PO # This is the Cardinal Health purchase order number.

NDC/CIN/UPC/MFG# National Drug Code Number (NDC) based off of First Data Bank (FDB) standards. The NDC must be in an 11 digit format with no dashes. Suppliers can also provide the Cardinal Health Identification Number (CIN). This is a seven digit number that you receive on all purchase orders from Cardinal Health.

Description This is the product name.

Quantity Cut This is the amount of product the supplier canceled per line item.

Reason Quantity Cut This indicates the reason why the line item was canceled. The supplier should select a reason from the general product availability categories if applicable.

Appendix B: Product availability compliance metrics

Cardinal Health expects suppliers to comply with the business requirements set forth in this document. The requirements were

established to effectively manage Cardinal Health’s supplier interaction together with expeditiously moving product throughout the

supply chain.

Metrics are in place to measure supplier compliance with product availability reporting requirements. Supplier will receive points for

each reporting requirement met. A percentage compliance score will be calculated for each supplier based on the total points scored

out of 100 possible points.*

Product Availability Report scoring criteria: Cut Report scoring criteria:

Compliance with standard template:

*Score based off of the last report submitted

Compliance with standard template:

*Score based off of the last report submitted

Category Score Category Score

Description 10 points PO# 10 points

NDC#/CIN/UPC/MFG# 20 points NDC#/CIN/UPC/MFG# 20 points

Product availability category 10 points Description 10 points

Estimated supplier release date 10 points Quantity cut 10 points

Product availability information 10 points Reason quantity cut 10 points

Compliance with submission requirements: Compliance with submission requirements:

Category Score Category Score

Receiving Availability Report on a weekly basis and

sent to the Purchasing Services.

Contact your Cardinal Health buyer

*Score is calculated by the number of reports submitted

divided by the number of weeks in the reporting period

and then multiplied by 40 points.

40 points Receiving Availability Report on a weekly basis and

sent to the Purchasing Services.

Contact your Cardinal Health buyer

*Score is calculated by the number of reports submitted

divided by the number of weeks in the reporting period

and then multiplied by 40 points.

40 points

Total 100 points

Total 100 points

*Product availability metrics outlined above are included in the Supply Chain Excellence Award.



Item and manufacturer record maintenance

Cardinal Health understands that changes occur with item and manufacturer information. In order to reduce potential

service and inventory issues, Cardinal Health asks its manufacturers to communicate any item and manufacturer record

changes in a timely manner. The table below lists such changes and communication requirements Cardinal Health expects

of its manufacturers.

Type of change Notification requirement Contact information

Case pack 30 day notice prior to manufacturer shipment. Cardinal Health Sourcing manager and buyer

UPC/NDC change 30 day notice. Cardinal Health Sourcing manager

Line Discontinuation 30-60 day notice. Cardinal Health Sourcing manager

Price change Received two days before effective. Cardinal Health Sourcing manager

Manufacturer contact changes 30 day notice. Cardinal Health Sourcing manager

60 day back order policy

The Cardinal Health backorder policy serves as a default in the event a manufacturer does not have a policy of their own. In the

event an item is on backorder upon purchase, the purchase order will remain open in the Cardinal Health system for 60 days in an

attempt to fulfill the order. Once the 60 day window has passed, the purchase order will be cancelled. In the event the order was

originally placed on deal or the item as taken a price increase, the order will remain open in the Cardinal Health system until fulfilled

by the manufacturer.


Section 5 Delivering orders to Cardinal Health

The written agreement between Cardinal Health and an individual manufacturer governs the manner in which freight charges are

handled. There are non-routine events that occur during which Cardinal Health may assume responsibility for freight charges.

In an effort to reduce inbound transportation expenses, the Shipment Control Center of Cardinal Health directs the flow of

shipments where Cardinal Health is responsible for the freight charges.

Please follow these instructions when shipping products to a Cardinal Health facility and Cardinal Health is responsible

for the freight charge. These instructions must be followed in order to be in complete compliance with the Cardinal Health

Freight Billing and Routing Policy.

Use only Cardinal Health program carriers (Attachment E).

Less than truckload (LTL) and truckload (TL) routing:

Complete a Shipment Control Center routing request form and email

to [email protected].

The Shipment Control Center will respond with the authorization

number, carrier SCAC and carrier name. If you do not have email

capabilities, please fax the routing request form to 847.689.6477.

The shipper is responsible for arranging pick up with the selected

carrier(s) with the exception of truckload shipments which will

be arranged by the Shipment Control Center. If you have any

questions or need a copy of the form emailed to you, please contact

Cardinal Health Shipment Control at 1.800.624.8201. In order to

receive the routing request form via email, please provide the

Shipment Control Center with the appropriate email address.

If there are any changes to the shipment characteristics (quantity,

weight, etc.) after the routing instructions have been provided, you

must notify the Shipment Control Center of these changes prior

to shipping. Quantities and/or weight may change the mode of

transportation and carrier selection.

Parcel packages:

Please use UPS Collect account for ground shipments to a

Cardinal Health facility (example: 45XXXXXXXX) weighing 150 pounds

or less and for shipments weighing 150 pounds to 300 pounds that have

an average package weight of at least 13 pounds or more. As long as the

shipment meets these requirements, you are not required to send this

shipment information to the Shipment Control Center for authorization.

• All expedited shipments must be communicated to

Shipment Control for account number and authorization.

• Do not use UPS Collect when shipping direct to a Customer

for Cardinal Health.

• Do not ship UPS Consignee Billing when shipping into

Cardinal Health facilities.

Freight billing:

All Less than Truck Load, collect and expedited shipments

to a Cardinal Health facility (example: 45XXXXXXXX) must

be third party billed by Cardinal Health program carrier to:

Cardinal Health

Attn: Cardinal Health Corporate Transportation

7000 Cardinal Place

Dublin, OH 43017

• Mark the bill of lading Third Party Collect and include the

above address on your bill of lading for shipments into a

Cardinal Health facility only.

• Reference the Cardinal Health purchase order numbers

on the bills of lading.

• Please do not add insurance; additional insurance is not

necessary because Cardinal Health is self-insured.

Freight classification:

All shipping bills of lading must include:

• The National Motor Freight Classification (NMFC) item

number for each product being shipped.

• A proper freight description of the merchandise.

• The NMFC freight class for each product being shipped.

If you have any questions regarding classification of your

products, please contact contact Caitlyn Sweeney at

614.757.9577.

mailto:[email protected]



Inbound requirements

1. Case pack: The Cardinal Health NLC has been constructed to receive product from our manufacturers in full case packs only.

Many manufacturers have split ship product on our initial orders, or shipped partial cases (or mixed cases). Please limit shipments

to full case packs only. Every effort has been made to generate POs with full case quantities on every item, (or pallet quantities).

If PO quantities are not in full case quantities, please contact the NLC Inventory department with any quantity discrepancies or

changes immediately.

2. Product dating: Cardinal Health requires a minimum of 12 months dating on all orders. Any deviation from this policy must

be approved by Cardinal Health Corporate or the NLC inventory department, if applicable, before shipping.

3. Transportation and freight: When shipping multiple POs on the same truck, please identify pallets by PO number. When

possible, please do not “pinwheel” pallets. There should be a 10” gap from the top of the trailer with no obstructions on the truck

which would prevent unloading product. All pallets need to be readily retrievable on the tail of the trailer.

4. Refrigerated or frozen pallets (specialty): All refrigerated products must be clearly labeled and separated from ambient and

controlled products. Refrigerated product pallets must be clearly identified as such on all four sides of the pallet.

5. Controlled substance pallets (specialty): All controlled products must be separated from ambient and refrigerated products.

6. Pallet construction: All pallets should be in good, stable condition and should be the standard pallet dimensions (48 x 40 in.). The

pallet height should be no more than 54 in. Product should not exceed pallet dimensions (i.e., falling off or hanging over the side)

and shrink wrap should be intact. All pallets should be PO specific. PO numbers should be clearly identified on all four sides of the

pallet. Like product should on a pallet and grouped together as much as possible, separated by slip sheets with heavier product

on the bottom. Any pallets shipped to Cardinal Health from your organization or at your direction must be free of chemicals and

chemical treatments, including halogenated phenols (2,4,6-tribromophenol (TBP) or 2,4,6-trichlorophenol (TCP)).

Description: 1. Stringers (3 min – 11/2 x 31/2 in.) 2. Top deck boards (max space of 31/4 in. ) 3. Bottom deck boards

4. Bottom lead deck boards

7. Delivery schedules: All deliveries are by appointment only (please reference attached contacts list for delivery times and DC

contact or call 614.867.5309, for NLC delivery, call 614.409.6833). The inventory department will establish regular order and delivery

days. The transportation companies must call for an appointment 24 hours in advance of delivery. Failure to adhere to scheduled

delivery times may result in delays in the unloading process. Information requested at that time will include PO number(s), pallet

count and case count.

8. Advance shipping notice (ASN): We require ASNs (EDI 856) for all inbound shipments to a Cardinal Health facility. For EDI

questions or to obtain a copy of an EDI Technical Specifications Document, email [email protected] or call

614.757.5334.



Inbound requirements cont.

9. Case label: Cardinal Health requires that each case is individually labeled and is compliant with UCC128 barcode guidelines.

Cardinal Health will accept the following formats of the HDA recommended GS1-128 barcodes.

This GTIN label specifies two distinct GS1-128 symbols,

both of which are mandatory. One symbol is placed

directly above the other. The bottom symbol contains the

item identification (primary) data and encodes the GTIN

(only) using AI(01). The top symbol contains item attribute

(secondary) data and encodes expiration date using AI(17),

lot number using AI(10) and quantity using AI(30) — or

alternatively, AI(17) + AI(30) + AI(10).

Option 1 – Non-Serialized Homogeneous Case Option 2 – Serialized Homogeneous Case

The GTIN+Serial number label specifies two distinct

GS1-128 symbols, which are both mandatory. One symbol

is placed directly above the other. The bottom symbol

contains the item identification (primary) data and

encodes the GTIN using AI(01), plus the unique case pack

or shipping container serial number (SN) using AI(21). The

top symbol contains item attribute (secondary) data and

encodes expiration date using AI(17), lot number using

AI(10) and quantity using AI(30) — or alternatively, AI(17) +

AI(30) + AI(10).



Addressing product overages, shortages and damages

Cardinal Health is focused on proactive, timely communication in an effort to minimize any receiving issues

and to ensure timely resolution when they occur.

• Damages: Damaged freight that is found during the unload process will be noted on the BOL and coded

for communication to the manufacturer on the receiving discrepancy notification. In addition, concealed

damages found during the receiving process will also be coded for communication to the manufacturer on

the receiving discrepancy notification. The manufacturer should send a call tag for the damaged items.

• Shortages: When Cardinal Health finds and confirms shortages from the manufacturer, the information

will be coded for communication to the manufacturer on the receiving discrepancy notification. This is

notification that an invoice deduction will be taken.

• Overages: When Cardinal Health finds and confirms overages from the manufacturer, the exceptions

team will contact the manufacturer by phone and determine whether or not Cardinal Health will

keep the product and be billed for it or whether the manufacturer will send a call tag.

• Expectations: Manufacturers are expected to notify the Cardinal Health DC exceptions team of any

disagreement to the receiving discrepancy notification within two business days in order to attempt to

resolve the issue prior to an invoice deduction. Manufacturers should send call tags for pick up of damages

or overages within two business days of notification.

Backhaul

For manufacturers stocked within the NLC, there is an opportunity for cost savings and improved service by using

NLC’s dedicated fleet. The NLC backhaul program is an option for manufacturers who have shipping locations and

shipping days aligned with available NLC lanes. The service provided by the NLC dedicated fleet is equivalent to

premium services provided by many national carriers. The following is an overview of the service provided.

Service summary

• NLC Dedicated Carrier

• Satellite tracking: GPS tractor/GLS trailer.

• Team drivers ensure consistency with pick-up and delivery.

• Temperature controlled trailers (36° - 46° Fahrenheit) with temperature tracking capabilities.

• Freight continues straight through to NLC from time of pick-up to delivery.

• “7/24” dispatch with full messaging/tracking capabilities with each team.

• All teams have been cleared through proper background checks.

• Team photos of drivers sent to all locations prior to pick-up in an effort to escalate security measures.



Distribution center listing

Pharmaceutical Supply Chain Division Directory, 7000 Cardinal Place, Dublin, OH 43017 ❘ 614.757.5000

DivisionDivision number Division suffix Region Address Toll free number DEA Licenses

Aurora 15 AUR Central2353 Prospect DriveAurora, IL 60502-9418

888.999.8032 RW0231908

Boston 6 BOS East Region11 Centennial DrivePeabody, MA 01960

800.388.9000 RD0108200

Puerto Rico 66 GUACentro Intl de DistribucionEDIF #10 Carr 869 KM 4.2Guaynabo, PR 00965

800.981.2301 RB0374683

Dallas 16 DLS Central Region851 Henrietta Creek RoadRoanoke, TX 76262-6347

800.567.5832 RW0279996

Denver 29 DEN West Region4875 Florence Street Denver, CO 80238

800.554.9093 RW0263549

Indianapolis NA NA NA8401 Bearing Drive, Suite 100, Indianapolis, IN 46268

743.6123 RT0485020

Greensboro 26 GBO East Region4 Cardinal Health Court Greensboro, NC 27407

800.645.0641 RW0243903

Houston 28 HUS Central Region13651 Dublin CourtStafford, TX 77477

800.558.0770 RC0333524

Hudson 24 MIN Central Region2901 Enloe StreetHudson, WI 54016

800.670.7568 RW0243725

Jackson 10 JKS Central Region1240 Gluckstadt RoadMadison, MS 39110

800.365.6085 RC00221236

Kansas City 27 KAN Central Region7601 NE Gardner Ave.Kansas City, MO 64120

866.780.4071 RW0191926

Kinray 64 KRY East Region152-35 10th Avenue Whitestone, NY 11357

888.527.6806 RK0416900

Knoxville 9 KNX East Region2512 Westcott Blvd.Knoxville, TN 37931

877.692.4500 RC0238104

Lakeland 11 LKD East Region2045 Interstate Dr.Lakeland, FL 33805

800.637.8587 RC0182080

Memphis NA NA NA5960 E Shelby Drive, Memphis, TN 38141

877.272.9691 RT0457780

National Logistic Center (NLC) 99 NLC5995 Commerce Center DriveGroveport, OH 43125

866.853.8576 RC0314891

ParMed 95 PAR5960 E. Shelby Drive, Ste. 100Memphis, TN 38141-0000

800.727.6331 RC0501014

Pharmaceutical Repackaging3540 East PikeZanesville, OH 43701

800.299.2462 RN0209583

Pharmaceutical Repackaging850 Airport Distribution DriveZanesville, OH 43701

800.299.2462

Distributor: RC0346658

Manufacturer: RN0209583

Phoenix 19 PNX West Region600 North 83rd AvenueTolleson, AZ 85353

800.284.5844 RW0263056

Puerto Rico

St. Louis 18 STL Central Region2840 Elm Point Industrial DriveSt. Charles, MO 63301

877.899.8381 RW0283452

Sacramento 34 SAC West Region3238 Dwight RoadElk Grove, CA 95758

800.554.5135 RW0236009

Salt Lake City 35 SAL West Region955 West 3100 SouthS. Salt Lake City, UT 84119

800.258.5180 RW0191419

Seattle 37 SEA West Region801 C. StreetAuburn, WA 98001

800.456.5550 RW0191813

*Depending on what products are shipped and for what purpose, the manufacturer may ship on one or the other.



Distribution center listing

Specialty Pharmaceutical Distribution15 Ingram Blvd, Suite 140 LaVergne, TN 37086

866.476.1340 RC0403802

Swedesboro 43 SWD East Region1120 Commerce BoulevardSwedesboro, NJ 08085

877.860.2489 RW0269654

Syracuse 3 SYR East Region6012 Molloy RoadSyracuse, NY 13211

800.627.6666 PC0003044

Valencia 32 VAL West Region27680 Avenue MentryValencia, CA 91355

888.565.4002 RW0216449

Wheeling 8 WHE Central Region71 Mil-Acres DriveWheeling, WV 26003

800.777.6978 RO0153609

Pharmaceutical Supply Chain Division Directory, 7000 Cardinal Place, Dublin, OH 43017 ❘ 614.757.5000


Section 6 Returned goods and recalls

Cardinal Health utilizes Inmar to process our outdated and expired distribution center returns. Inmar creates

returns on behalf of Cardinal Health on a monthly basis, and product is sent to Inmar for processing from

potentially any Cardinal Health warehouse. Inmar is an agent of Cardinal Health, therefore if product is being

returned by Inmar on behalf of Cardinal Health, it is as if Cardinal Health is returning the product themselves.

• All Cardinal Health returns are identified with the prefix CHI or CHIR.

• Returns Authorizations cannot be denied. A response is necessary to tell Inmar to ship, destroy, or donate:

- To send a returns authorization for Rx or OTC returns,

please call 817-868-5300, Fax 817-868-5341, or email [email protected]

• A credit memo is required for each return, regardless of the credit value. Please send a copy to Cardinal Health.

Credits can be emailed to [email protected].

• Cardinal Health Account Manager: Laura Huffstuttler — [email protected] or 817-868-5683

Attached is a manual provided by Inmar for manufacturer use. It will assist in the following:

• Issue return authorizations

• Obtain debit memo copies

• Provide product distribution instructions

• Search for and retrieve new invoices or those in a HOLD status

• Issue special shipping instructions (non-Rx only)

• Print Proof of Destruction documents

• Track Product

Cardinal Health will take a deduction for the difference between credit value issued and the original debit

memo value if the credit is not issued at 100 percent. Cardinal Health will review the credit memos to determine

the reasons why credit was denied. Please include denial reasons on the credit memos.

If there are any questions regarding the process or to resolve open deductions, please contact

[email protected].

Please submit all new, changed or updated “Returned Goods Policies” to the GMB-DUB-Return Policies mailbox.

The returns team meets to review all policies and will respond to you within ten business days.

Cardinal Health has the right to return products to manufacturer for credit and manufacturer will process

and provide appropriate credits to Cardinal Health with respect to all product returns, all in accordance with

this section and the Cardinal Health return goods policy (“Returned Goods Policy”) in effect at the time of the

return or in accordance a mutually agreed policy within a written agreement between Cardinal Health and

manufacturer. The Returned Goods Policy may be amended by Cardinal Health from time to time. Cardinal Health

shall notify manufacturer of its intent to return products to obtain return authorization from manufacturer.

Return authorization shall not be unreasonably withheld by manufacturer. Products with more than six months

of remaining dating are not eligible for return absent prior authorization from manufacturer, such authorization

not to be unreasonably withheld. Cardinal Health may return specific products without limit, without regard to

remaining dating, and without authorization under the following circumstances: (a) new products during six

month period following their introduction; (b) products discontinued by manufacturer to the extent the then

current product inventory is not sold within 60 days; (c) products that experience decreased market demand

due to circumstances beyond Cardinal Health control; and (d) all products immediately upon termination of the

applicable agreement between manufacturer and Cardinal Health. Should any of the circumstances specified in

subsections (a)-(d) of this section occur, manufacturer shall have the option to issue an additional 90 days of dating

in which Cardinal Health may return the product. Third-party return companies shall be recognized as legitimate

processors and partial returns by the parties’ mutual customers shall be accepted and prorated at current WAC.

The return guidelines shall be in effect for all products originally purchased by Cardinal Health from manufacturer,

exclusive only of specialty or promotional program purchases specifically exempted by mutual written consent of

the parties.

mailto:GMB-DUB-Third-Party-Credits%40cardinalhealth.com?subject=

mailto:GMB-DUB-DCReturns%40cardinalhealth.com?subject=


Section 6 Returned goods and recalls

The following information, as applicable, is required for vendor Recall/Market Withdrawal notifications provided

to Cardinal Health:

• Level, i.e., wholesale, retail, consumer

• Class of recall (if FDA has classified at time of the notice)

• Affected product name, strength, size

• NDC and/or UPC number of affected product

• Lot numbers affected

• First date of distribution of affected product by the manufacturer

• Reason for recall/withdrawal

• Return instructions

• Recall response form

If bolded information is missing, it may delay further distribution of the notification.

Manufacturer shall reimburse Cardinal Health, consistent with Healthcare Distribution Alliance (HDA)

guidelines, for the full amount of all reasonable costs and expenses incurred by Cardinal Health in connection

with Cardinal Health performance of any recall or market withdrawal services or assistance relating to the

manufacturer’s products.


Section 7 Collaborating and improving processes

Delivering the highest levels of customer service via the lowest cost distribution platform requires continuous improvement and

collaboration between manufacturers and Cardinal Health. The Cardinal Health manufacturer performance management process

reflects the collaborative effort required to achieve those goals. The metrics reported on the Cardinal Health manufacturer scorecard

(Attachment F) are in place to manage our supply chain performance more effectively and to accurately assess manufacturer

performance for our business. Our manufacturer performance metrics measure and track some of the critical operational components

for delivering the highest level of customer satisfaction. For each manufacturer’s performance document, we show an average rolling

three month result, along with the prior three months average result. Those results are compared to a rolling twelve month and prior

twelve month average result. Based on our manufacturers’ final performance at Cardinal Health fiscal year-end (June 30 of each year),

we recognize the best manufacturers at an awards ceremony during our annual Bussiness Partners Conference.

Cardinal Health is committed to the safety and security of the healthcare supply chain as well as the health and well-being of our

mutual customers and their patients through supply chain excellence. This commitment is demonstrated in the perseverance during

challenging healthcare environment, the momentum we have already generated through solid collaboration with manufacturers

and pride in the work we do everyday. This commitment is also confirmed through the enhancements which have resulted in a more

stringent and demanding award.

Supply Chain Excellence Award scoring

Category Maximum points

Manufacturer fill rate 20

December Year-end service level 10

January Year-end service level 10

Item lead time 10

Manufacturer backorder 10

Product Availability Report (PAR) 10

Supply chain quality 20

EDI 25

Contract/chargebacks 15

Sourcing performance 15

National Logistics Center (NLC) 15

Bonus points 10

Manufacturer type Available points Must earn 80%

Brand / Generic / Consumer Health (NLC) 150 120

Consumer Health (non-NLC) 135 108


Section 7 Collaborating and improving processes cont.

Manufacturer fill rate

Cardinal Health expects there to be no disruption in the supply chain for any reason. This standard maintains the service level required by

Cardinal Health customers. Suppliers’ performance will be evaluated by the same measurement that Cardinal Health uses internally—a

commitment of 97 percent. Inbound service level points are determined based upon Cardinal Health units ordered versus units received.

97 – 100% = 20 pts

95 – 96.9% = 10 pts

95% and below = 0 pts

Maximum points = 20

Year-end service level (December and January)

Each year-end, Cardinal Health experiences delays in receiving orders in a timely and complete fashion. This is not necessarily caused by

weather or other delivery issues, but rather as a result of suppliers establishing inventory management techniques that severely affect

the ability of Cardinal Health to provide product and meet the demands of mutual customers. This practice not only limits the ability of

Cardinal Health to provide critical items to its customers and ultimately to their patients, but it also affects profitability and negatively

influences relationships with trading partners who institute such practices. In an effort to minimize this issue, points will be awarded for

exceptional service during the months of December and January.

December

98 – 100% = 10 pts

96 – 97.9% = 5 pts

Below 96% = 0 pts

Maximum points = 10

January

98 – 100% = 10 pts

96 – 97.9% = 5 pts

Below 96% = 0 pts

Maximum points = 10



Item lead time

Lead times must be projected accurately and met consistently. Cardinal Health expects 100 percent of its orders to be filled to

completion and delivered consistently, within the established time frame, 100 percent of the time. Therefore, lead times must be realistic

for Cardinal Health and for the supplier. It is the supplier’s responsibility to review its lead time commitments regularly, adjust them when

changes are needed and advise Cardinal Health of those changes immediately to ensure quality and service. Measurement of performance

in this category is based on the time from order date to receipt date.

Consumer Health manufacturers

0 – 10 calendar days = 10 pts


Brand manufacturers



Generic manufacturers



Private label manufacturers



Maximum points = 10

Manufacturer backorder

Cardinal Health monitors and rewards performance for manufacturers who reduce backorder situations. Measurement of performance

in this category is based on lines shorted to customer due to a manufacturer unable to supply product due to manufacturing issues.

Lines shorted

2% or less = 10 pts

3% = 8 pts

4% = 6 pts

5% = 4 pts

6% = 2 pts

Greater than 6% = 0 pts

Maximum points = 10



100% = 10 pts

90 – 99% = 9 pts

80 – 89% = 8 pts

70 – 79% = 7 pts

60 – 69% = 6 pts

50 – 59% = 5 pts

40 – 49% = 4 pts

30 – 39% = 3 pts

20 – 29% = 2 pts

10 – 19% = 1 pt

Less than 10% = 0 pts

Maximum points = 10

Product Availability Report (PAR)

Cardinal Health uses information from our manufacturers to communicate product availability issues to customers. Manufacturers

are required to send either the Product Availability Report or the cut report to Cardinal Health weekly via email to Cardinal Health buyer.

If manufacturers do business with Cardinal Health Brokerage, brokerage specific items must be sent via email to Cardinal Health

buyer. If there are no product availability issues for a particular reporting period, Cardinal Health still requires an email stating that all

products are available for purchase and shipping in full weekly. To receive a full score, PAR reports should be sent to the sent to your

Cardinal Health buyer include description, 11 digit NDC number without dashes, product availability category, date of availability

(mm/dd/yyyy), and product availability information.

Points structured on compliance with PAR:



Supply chain quality

As we experience a decrease in inventories and continual change within our industry, Cardinal Health is challenged with manufacturer

quality issues that affect our ability to efficiently manage the pharmaceutical supply chain. We provide the best services at minimal cost

to our manufacturers and customers, which continue to reduce costs in healthcare. Manufacturer quality issues increase the cost to serve

the needs of our mutual customers. These quality issues include recalls, contaminated pallets, market withdrawals (FDA mandated or

manufacturer decisions), request to quarantine products, and many other situations where there is a deviation within quality excellence.

If any of the situations below occur, points will be subtracted from the maximum score of 20.

Class 3 recall = -2 pts



• No indicator on shipment of cold chain = -2 pts

• Missing/incomplete required information on recall/withdrawal notices = -2 pts

• Concealed shortage on controlled substances = -2 pts

• Bonus: Complete, accurate and prompt recall notices = 1 pts

Maximum points = 20

EDI and EFT

Manufacturers are expected to maintain efficient EDI capabilities as well as provide on-time and accurate notification.

Points structured based on the following:

Utilizes EFT (Electronic Funds Transfer) = 2 pts

Provides accurate 810 (invoice) = 3 pts

Provides accurate 856 (Advanced Shipment Notice)

96 to 100% = 10 pts

91– 95% = 8 pts

86 – 90% = 6 pts

81 – 85% = 4 pts

76 – 80% = 2 pts

Below 75% = 0 pts

Provides 845 (Price authorization/contract pricing)

95 – 100% = 4 pts

90 – 94% = 2 pts

Below 90% = 0 pts

Provides 849 (Chargeback reconciliation)

95 – 100% = 4 pts

90 – 94% = 2 pts

Below 90% = 0 pts

Accepts electronic Cardinal Health

chargeback resubmissions (EDI 844/849)

= 2 pts

Maximum points = 25



Contracts/chargebacks

First time pricing accuracy has a tremendous effect on the supply chain. Maintaining pricing accuracy requires timely, accurate and

efficient data processing as well as collaboration towards root cause problem resolution. Seamless and high-quality processes also

have a major impact on operational expenses for both the manufacturer and Cardinal Health. Cardinal Health expects to leverage its

manufacturer partnerships to be the industry leader in first time pricing accuracy and contracts and pricing problem resolution for

manufacturer pricing services (chargebacks) requirements, see Attachment G).

Items related to contract notifications received two days prior to effective date

100% = 6 pts

97 – 99% = 5 pts

90 – 96% = 4 pts

85 – 89% = 1 pt

Below 85% = 0 pts

Membership related contract notifications received two days prior to effective date

100% = 6 pts

97 – 99% =5 pts

90 – 96% =4 pts

85 – 89% = 1 pt

Below 85% = 0 pts

Overall chargeback rejection rate per month

0 – 0.99% = 2 pts

1 – 1.99% = 1 pt

Above 2% = 0 pts

Manufacturer controlled pricing accuracy*

99.89 – 100% = 1 pt

Below 99.89% = 0 pts

*Calculation: 1 – (manufacturer root cause credit/rebills ÷ total billed lines).

Maximum points = 15



Generic Sourcing

Account Management:

Points if any of the below occur or are not applicable:

Responds to additional supply needs = 4 pts

Executes on new product launches = 3 pts

Provides competitive offer to Cardinal Health on new products (non-Red Oak) = 2 pts

Supports all SOURCESM Generics program contracts including back-up contracts (non-Red Oak) = 2 pts

Responds timely and competitively to cost request (non-Red Oak) = 2 pts

Provides rebates or other incentives for growth = 2 pts

Best Practices & Collaboration: = 5 pts

Manufacturer actively collaborates in developing joint business plans and supporting corporate programs and initiatives.

They are pro-active in tracking and addressing business shifts/needs, proactively communicates thoroughly and timely

supply chain issues, new item introductions, mfg deletes and product price changes. = 5 pts

If the manufacturer is unresponsive, not collaborative, and/or does not communicate proactively = -15 pts

Maximum points = 15 (no less than 0)

Consumer Health Sourcing

Account Management:

Sales: Percent variance from the Category average % sales change

-10.01% variance or less change = 0 pts

+5.00% to -10.00% variance = 3 pts

w+5.01% or more variance = 5 pts

Inventory efficiency: Percent variance from the category average turn

-30.01% or less variance = 0 pts

+10.00% to -30.00% variance = 3 pts

+10.01% or more variance = 5 pts

DSA and market support: Dollars spent from DSA and marketing programs as a percent of purchases

0.01 – 4.99% = 2 pts

5.00 – 9.99% = 3 pts

0.0 – 14.99% = 4 pts

15.0% or more = 5 pts

Best Practices & Collaboration: = 5 pts


They are pro-active in tracking and addressing business shifts/needs, proactively communicates thoroughly and timely






National Logistics Center

The National Logistics Center (NLC) allows manufacturers to improve their supply chain with a single point of entry into the

Cardinal Health pharmaceutical supply chain. This solution streamlines the delivery and inventory management processes, while

improving the ability to respond to market changes on demand. In addition to the logistics advantages of shipping to a central location,

the NLC facilitates increased collaboration and innovation between the supplier and Cardinal Health. To ensure this solution provides the

optimal benefits, the NLC uses a scorecard that measures performance against operational requirements. The scorecard focuses on the

communication and quality of inbound shipments, customer service responsiveness and use of the NLC backhaul program. The scorecard

will be sent quarterly or as requested by manufacturers. The scorecard tracks all shipments into the NLC and assigns points based on

performance and responsiveness.

95 – 100% = 15 pts

90 – 95% = 12 pts

85 – 90% = 8 pts

80 – 85% = 4 pts

Below 80% = 0 pts

Maximum points = 15

Brand Sourcing

Account Management

Points if any of the below occur or are not applicable:

Adherence to DSA/DSP service fee = 3 pts

No Inventory Floor = 2 pts

No Inventory Ceiling = 2 pts

Timely WAC Price Change Notifications = 2 pts

Providing Timely Access to New Item Launches = 2 pts

Providing competitive offer to Cardinal Health when a new product launches = 2 pts

Providing Compensation for REMS = 1 pt

Permit Off Cycle Order Planning = 1 pts

Best Practices and Collaboration = 5 pts


They are proactive in tracking and addressing business shifts/needs, proactively communicates thoroughly and timely






The above percentages are based on the following NLC operational requirements:

Measure Max Points

Description

ASN 10 Fully compliant ASN sent

Case Label 10 Case Label meets HDMA standard barcode and label requirements

Mixed Lots/Partial Case Shipment 10 Mixed Lots and Partial cases are not desired by the NLC, Cardinal Health POs that are

submitted as Full Cases should be shipped as Full Cases

Packing List Included and

Accurate

10 Packing list included and clearly identified on pallet by PO, with accurate counts at the item

level. Packing list must be on tail of the truck.

Scheduled Accurate Delivery 10 Delivery scheduled at least 24 hours in advance. Required information provided at time of

shipment POs, Pallet Count, Pallet complexity mixed and full, Delivery Date.

Container Lists 8 Each pallet with mixed NDCs must have a container list identifying the POs, items, and

quantities on that pallet.

Mixed Pallet ID 8 Pallets with mixed NDCs must be identified.

On Time 8 Delivery must arrive on or before the schedule delivery time. Late deliveries will be

processed per NLC availability.

Specialties by pallet and

Identified

8 Shipments with controls and/or refrigerated items must be separated onto their individual

pallets. Refrigerated pallets marked on all four sides. BLC POs need to be on pallets separate

from NLC POs

Damaged Cases 8 Shipment must be free of any damages

Good Pallet 5 Pallets are standard US heat treated 48 x 40

Pallet Construction 5 Pallet height less than 54” with PO labels on all four sides

Total 100 Perfect Order!

Backhaul utilization 5 5 Bonus points will be awarded per delivery shipped via the NLC Backhaul program.

Total with Backhaul 105

Manufacturer Portal

The Cardinal Health Manufacturer Portal provides visibility to core metrics driving

customer service level and satisfaction, and is the primary communication tool with

your Cardinal Health team.

If you are interested in learning more about the Manufacturer Portal, contact

[email protected]


Section 8 Drug Supply Chain Security Act (DSCSA)

Cardinal Health welcomes the opportunity to work with manufacturers to implement DSCSA requirements.

Supply chain integrity

The safety and security of our nation’s pharmaceutical supply is a top priority for Cardinal Health and a responsibility we take very

seriously. A safe and reliable drug supply is central to our customers’ business and critical to the health and well-being of patients.

We are committed to complying with the DSCSA track and trace legislation in the most efficient manner possible.

Drug Supply Chain Security Act (DSCSA)

Effective January 1, 2015 with each change of ownership of product, manufacturers are required to provide the subsequent owner

with Transaction Information, Transaction Statement and Transaction History.

• Transaction Information

- Name

- Strength

- Dosage form

- NDC

- Container size

- Number of containers

- Lot number

- Date of transaction(and shipment date if 24+ hours after transaction)

- Business name and address of the person from whom ownership is being transferred

- Business name and address of the person to which ownership is being transferred

• Transaction History

- Transaction Information for each prior transaction going back to the manufacturer of the product

• Transaction Statement — indicating the seller

- Is authorized under the Act

- Received the product from an authorized party

- Received transaction information and a transaction statement from the previous seller, as required

- Did not knowingly ship suspect or illegitimate product

- Has systems and processes in place to comply with verification requirements

- Did not knowingly provide false transactional information

- Did not knowingly alter transaction history

Note: Cardinal Health supports the use of the abbreviated Transaction Statement recommended by HDA and PDSA. Seller has

complied with each applicable subsection of FDCA Sec. 581(27)(A)–(G).

All shipments of prescription drug product sent without required information will be placed directly in quarantine and if unresolved,

will be returned to supplier based on established criteria.


Section 8 Drug Supply Chain Security Act (DSCSA)

HDA compliant ASNs required

Cardinal Health has adopted a standard systematic approach for accepting transaction information, transaction history and transaction

statement, collectively known as transaction data, from manufacturers.

To ensure accuracy and efficiency, Cardinal Health expects manufacturers to send transaction data in electronic format. We believe

that the Advance Ship Notices (ASNs), which are electronic documents transmitted via EDI, provide the most direct path to electronic

transmission of the required data.

ASNs must follow the format outlined in “HDA Electronic data Interchange (EDI) Guidelines for the 856 Advance Ship Notice to Support

Implementation of DSCSA”.

Cardinal Health will impose financial penalties for not complying with our preferred method of electronic receipt of transactional data.

Additional information

Please visit cardinalhealth.com/trace for more information about the Drug Supply Chain Security Act including videos, FAQs and trading

partner communications.

Questions may be sent to [email protected].


Section 9 Conclusion

Cardinal Health believes that the benefits of a common and unified approach to doing business are clear.

Defining and complying with common operational requirements and processes create efficiencies in the supply

chain for all stakeholders and result in improved service to our mutual customers. We welcome comments and

inquiries that you have regarding manufacturer performance management and this manufacturer reference

manual. Please direct such communication to Dianne Pfahl. We are pleased to work together with you as we

continue to strive to exceed customer expectations through the pursuit of continuous improvement in the way

we work together with our manufacturers. We appreciate your efforts and we thank you for your collaboration.


Att

achm

ents


Attachment A New manufacturer set-up worksheet

Ship From Information: Please attach additional ship from locations as needed

Are you utilizing a 3PL: If yes, please attach 3PL's shipping information

Are you shipping into the state of Florida:

Minimum Dollar Purchase? If yes, amount $ Quantity_______

If yes, supplier will supply:If yes, supplier will supply:

Requested lead time (calendar days):

Utilize EDI? If yes, please complete EDI form attached.EDI Contact NameEDI Contact Phone #EDI Contact Email

Do you have a backorder policy: If yes, # of days:_________ If no, willing to abide by Cardinal Health's 60 day backorder term? Preferred order day:____________________ Preferred order frequency:____________________

Are you a government supplier? If yes, select which applies: Manufacturer

Product Type (select all that apply):

Puerto Rico: Are the product(s) registered for distribution in Puerto Rico? If yes, please attach government stamped document.

Do you ship direct to Puerto Rico?If the product(s) can be distributed from a Puerto Rico facility, who is the supplier? _______________________________________Does Law 75 (Distributor who has sole rights to distribute the product(s) in Puerto Rico) apply?Is there a minimum dollar amount for Puerto Rico orders? Amount $_______________________

Internal Revenue Service Forms (select the applicable form)Is your remittance address international? Yes No If yes, please provide Form W8. If no, please provide Form W9.

A/R Finance Contact Name: E-Mail:

Customer Service Email:

Supplier Name: Date:

Address (Street, City, State, Zip):General E-mail:

Contact Name:Country: Fax:Phone:

Contact Email: Contact Phone:

Customer Service Phone:

SUPPLIER SET-UP SHEET

Will the supplier provide an MSRP:

Phone:

Broker Name: (if applicable) E-Mail:

Supplier Website:

Order Entry Fax #:

Customer Service Contact Name:

Remittance Address (Street, City, State, Zip):

Broker Address (Street, City, State, Zip):

Country: Fax:

Fax:

Phone:

Receiving Discrepancy Report Fax #:

E-mail:

Return Information:Return Address (Street, City, State, Zip):

Phone:If yes, Contact Name:

Terms: % Days: Net Days:

E-Mail:Facility Licensure Contact Name:

Address (Street, City, State, Zip):

Fax:Phone:

Chargebacks If no, State Reason :

Minimum Unit Purchase?

Revised: 05/11/2015

Will the supplier provide an AWP:

Bill-To Address (Street, City, State, Zip):

Advance Shipment Notice (ASN)?

Internal Use Only

Supplier ClassProduct Drop Ship Only

No Yes $ Amt. Markup %

Yes No $ Amt. Markup %

Accept Chargebacks Does Not Accept Chargebacks

Supply WAC Supply Contract Cost

If distributor, use manufacturer's NDC If distributor, use own NDC

RX OTC Supplies Vials and Caps Home Health Care Other:

Yes No

Yes No

Yes No

Yes No

Yes No

Controls

Yes No

Yes No

No Yes

No Yes

Yes No

Yes No

No Yes

Distributor Both

Eaches Cube Dozens Weight Cases

Yes No


Attachment B DSCSA Trading Partner Status/Authorized Trading Partner Acknowledgment letter

January 1, 2015

Dear Valued Trading Partner:

As one of our suppliers of pharmaceutical products, we value your company. Pursuant to company policy concerning supply chain integrity,

Cardinal Health, Inc., on behalf of itself and all subsidiaries (collectively “Cardinal Health”) is requesting confirmation of your status as one or

more of the following:

• Manufacturer (as defined below)

• Exclusive Distributor for a Manufacturer (as defined below)

• Repackager/Relabeler (as defined below)

• Other

Please note that these definitions have been revised to align with the Drug Supply Chain Security Act (DSCSA). Because of the complexities involved

in these definitions, it is possible that your company’s status may be different for different products. We encourage you to carefully read the

definitions and, if that is the case, please respond accordingly. Please complete the questionnaire at the bottom of this letter and, where

applicable, submit requested documentation.

Manufacturer status

For these purposes, a “Manufacturer” means, with respect to product:

a) a person that holds an application approved under section 505 or a license issued under section 351 of the Public Health Service Act for

such product, or if such product is not the subject of an approved application or license, the person who manufactured the product;

b) a co-licensed partner of the person described in subparagraph (a) that obtains the product directly from a person described in this

subparagraph or subparagraph (a) or (c); or

c) an affiliate of a person described in subparagraph (a) or (b) that receives the product directly from a person described in this

subparagraph or subparagraph (a) or (b).

To the extent your company is the Manufacturer of prescription pharmaceutical products it sells to Cardinal Health, please sign below

certifying your company meets the definition of Manufacturer for the products your company sells to Cardinal Health.

Exclusive distributor

For these purposes, an “Exclusive Distributor” is a wholesale distributor that directly purchased the product from the Manufacturer and

is the sole distributor of that Manufacturer’s product to a subsequent repackager, wholesale distributor, or dispenser.

For any pharmaceutical products that your company sells to Cardinal Health for which it is the Exclusive Distributor of those products,

please attach the following in support of your status as an Exclusive Distributor.

• A list of those products for which your company is the Exclusive Distributor, including NDC numbers;

• Documentation either on the Manufacturer’s letterhead or on your company’s letterhead that indicates the Manufacturer sells or

distributes those products exclusively through your company.

• Documentation on your company’s letterhead that indicates that your company has and will only purchase the products for which you are

an exclusive distributor directly from the Manufacturer.

Repackager

For these purposes, a “Repackager” means an establishment that repacks and re-labels a product or package for further sale. It refers to

an establishment that removes a product from its original container and places it into another container or otherwise changes the original

container, wrapper, or labeling of any drug package (but not pursuant to a prescription or as part of the practice of pharmacy). Repackagers

do not own the regulatory pathway for the product and are not in contract with the manufacturer to create original packaged product for

the marketplace. Repackagers are registered with FDA and may or may not own the product which they are packaging.

Other

If your company is not the Manufacturer, Exclusive Distributor or Repackager with respect to some or all of the products you sell to

Cardinal Health, please indicate for which products that is the case.


An additional requirement for wholesale distributors under the DSCSA is to transact only with “authorized trading partners” effective

January 1, 2015. DSCSA defines “authorized” as:

• For Manufacturers and Repackagers: having a valid U.S. Food and Drug Administration (FDA) establishment registration

• For Third Party Logistics Providers: having a valid state license—generally a state Board of Pharmacy wholesale distributor

or 3PL license.

• For Wholesale Distributors (including entities that qualify as “Exclusive Distributors” as defined by the DSCSA): having a valid

state license—generally a state Board of Pharmacy wholesale distributor license.

Please follow the steps below to provide Cardinal Health with documentation that you are an authorized trading partner.

1. Complete the form on the following page to certify your company is authorized as defined by the DSCSA.

2. Provide a list of all locations that sell (or distribute in the case of a 3PL) prescription pharmaceutical products to Cardinal Health.

Send the information in a spreadsheet and include the location name, full address and registration or state license numbers.

3. Send PDF or faxed copies of registrations or state licenses for all locations.

Please send all responses to the attention of [email protected] or fax to 614.757.8323.

Thank you in advance for your attention to this matter.

Dianne L. Pfahl

Vice President Industry and Supplier Relations

614.757.5155, Fax: 614.757.6155

Cardinal Health

Trading Partner Status

Please respond to all seven questions then sign to indicate your confirmation of the responses and attach other documentation

as applicable:

Manufacturer of all pharmaceutical products sold to Cardinal Health? Y / N

Manufacturer of some pharmaceutical products sold to Cardinal Health? Y / N

Exclusive Distributor of some pharmaceutical products sold to Cardinal Health? Y / N

Exclusive Distributor of all pharmaceutical products sold to Cardinal Health? Y / N

Repackager of some pharmaceutical products sold to Cardinal Health? Y / N

Repackager of all pharmaceutical products sold to Cardinal Health? Y / N

Neither Manufacturer nor Exclusive Distributor of some or all pharmaceutical products sold to Cardinal Health? Y / N

Authorized Trading Partner Acknowledgment

My company is a supplier of prescription pharmaceutical drugs to Cardinal Health. Any locations from which we sell (or, if we are a third

party logistics provider, any location from which we distribute) prescription pharmaceutical drugs to Cardinal Health, are authorized as

defined by the DSCSA. Along with this signed statement, we are providing Cardinal Health with a list of our applicable sites and their

registrations or licenses. Should any of this information change, we will immediately notify Cardinal Health of those changes.

Name (print): _______________________________________________________________________________________________________

Signature: _________________________________________________________________________________________________________

Title: _____________________________________________________________________________________________________________

Company name: _________________________________________________________________________ Date: _____________________

Attachment B DSCSA Trading Partner Status/Authorized Trading Partner Acknowledgment letter cont.


Attachment D Consumer Health new item set up forms

Consumer Health New Item Set Up

Once you have been given your Cardinal Health Supplier Number, you will be notified via email and given direction

on how to contact ECRM to gain access to the ECRM New Item Portal https://ecrm.marketgate.com/marketgate/

default.aspx

All new items need to be presented to your Category Manager before uploading to the New Item Portal. If items

are uploaded prior to a formal presentation, the items will be postponed or rejected until formal review takes place

with the category manager.

Additional requirements for any new item submission in the portal include:

• Mechanical artwork PDF or physical product sample. Requirements for high resolution images include product

name (if applicable: flavor, color or scent), size, ingredients, UPC barcode, and NDC (if applicable).

• Price List or Spec Sheet

• Safety Data Sheet (If applicable, SDS not required forms can be acquired through ECRM).

For additional information around Safety Data Sheet requirements, see

https://www.osha.gov/Publications/HazComm_QuickCard_SafetyData.html

Ingredient list

UPC Barcode

Product name (also if applicable: Flavor, Color or Scent)

Size1 oz.

https://ecrm.marketgate.com/marketgate/default.aspx

https://ecrm.marketgate.com/marketgate/default.aspx

https://www.osha.gov/Publications/HazComm_QuickCard_SafetyData.html



Item Maintenance

When updates are required to existing items, Cardinal Health requires all of the following attributes to be reviewed for possible changes: supplier name change, product name change, flavor, color, scent, UPC, NDC, case pack, UOM, size or count. An Item Maintenance form must be completed for any of these changes that occur. All maintenance requests should be provided 30 days in advance on the designated Item Maintenance Form. Once completed, please send to the designated highlighted email address provided on the form.



Price Changes

If an item requires a pricing update, the change must be communicated on a Cardinal Health Price Change Form. All fields should be completely filled in. Price changes are required to be submitted to Consumer Health within 60 days of the effective date on the designated Item Price Change Form. Once completed, please send to the designated highlighted email address provided on the form.

Email Location

Email Location


Attachment E Preferred inbound carriers

Carrier name Preferred? RegionCarrier type

First name Last name Email

Phone number

Smith Transport

Yes NE, MW, SE, SW

Dry Van Steve Williams [email protected] 814.932.0240

Redwood Multimodal

Yes National Broker Megan Milich [email protected] 312.698.8429

Ozark Yes NE, MW, SE, SW

Dry Van Scott Chumbley [email protected] 417.766.9125

Swift Transportation

No National Reefer /

Dry Van

Kristy Welch [email protected] 331.262.5312

Paschall Trucking

No NE, MW, SE, SW

Dry Van Alan Crowley [email protected] 270.293.6139

Paschall Trucking

No NE, MW, SE, SW

Dry Van Paul Cox [email protected] (800) 626-3374

Boyle Transportation

No National Reefer Tim Justofin [email protected] 978.808.2946


No National Reefer Andrew Boyle [email protected] 978.670.3409


No National Reefer Patrick Logue [email protected] 800.343.2004

Carrier Old Dominion Freight Lines

Routing National 48 State Routing

Small Parcel Ground FedEx Ground

Small Parcel Air/Express FedEx Express


Attachment F Procurement and fulfillment statistics scorecard

There may be format variations between generic, brand and consumer health manufacturers.


Attachment F Manufacturer pricing services (chargeback) requirements

Manufacturer pricing services (chargeback) requirements

1) Required method of communication:

a) Ability to receive EDI 844:

i) If unable to accept EDI 844 then, chargeback billings will be sent via excel spread sheet via email

communication

ii) Please contact the Cardinal Health EDI Team for questions on moving to EDI communication

at GMB-DUB-Vendor [email protected]

b) Ability to send EDI 849:

i) Ability to accept and send EDI resubmission in 2010

ii) Ability to provide comments with EDI resubmissions (80 character field) in 2010

(1) If unable to send EDI 849, manufacturer is required to send chargeback rejections via email to their

designated Cardinal Health Manufacturer Pricing Services Team (see Primary Point of Contact detail

below) in the excel format provided by Cardinal Health which will allow for the data to be uploaded

into our system

iii) Please contact the Cardinal Health EDI Team for questions on moving to EDI communication

at GMB-DUB-Vendor [email protected]

2) Required data elements needed for Cardinal Health to reconcile manufacturer chargeback rejections:

a) Cardinal Health submitted lines should not be over written when data is submitted back in the form of a rejection

b) Valid rejection reasons are required for all lines within debit memo that are being rejected

c) Data elements:

i) Debit memo number

ii) Customer identifier, DEA or HIN

iii) Invoice number

iv) Invoice date

v) NDC

vi) Submitted contract number and MFG contract number

vii) Submitted Quantity and MFG Quantity

viii) Submitted WAC and MFG WAC

ix) Submitted Contract Cost and MFG Contract Cost

x) Line variance

3) Required response time on original chargeback billings sent from Cardinal Health:

a) Fifteen days response time from original submission date is required for manufacturer or the debit memo(s) which

include all lines within debit memo can be closed with no future action allowing the AP deduction to occur

4) Required response time on any resubmission sent from Cardinal Health:

a) Fifteen days response time from resubmission date is required for manufacturer or the debit memo(s) which

include all lines within debit memo can be closed with no future action allowing the AP deduction to occur

5) Required frequency of chargeback billings:

a) Manufacturer will accept daily chargeback billings from Cardinal Health (Monday through Friday)

6) Primary point of contact:

a) All chargeback debit memo specific communication not sent via EDI 849 should be directed to your designated

Manufacturer Pricing Services Chargeback Team

b) All other chargeback communications should be sent to the Cardinal Health Manufacturer Relations Team



Manufacturer pricing services (chargeback) requirements cont.

1) Limitations on chargeback deduction inquires (AP checks):

a) Any chargeback specific deduction question(s) need to be filtered through the Manufacturer Chargeback Team

prior to communicating to the designated Cardinal Health Manufacturer Pricing Services Chargeback Team. This

will ensure all valid deductions are not sent to Cardinal Health causing undue rework of the chargeback.

b) Any valid chargeback specific deduction question is required to be sent to the designated Cardinal Health

Manufacturer Pricing Services Chargeback Team within 30 days of the deduction and within time limits outlined

in the original submission and resubmission response time frame sections above. Cardinal Health Manufacturer

Pricing Services will be unable to assist with any requests outside these time frames due to certain customer time

frame limitations regarding credit and rebills.

2) Received before effective:

a) Percentage of contract pricing and membership data received before the effective date from the manufacturer

3) Manufacturer controlled first time pricing accuracy:

a) Total billed lines to customers versus credit/rebill performed because of manufacturer error (late pricing

notifications and membership attachments)

4) Collaboration:

a) Interest in a collaboration session or conference calls to discuss strategic and tactical chargeback opportunities

should be directed to the Manufacturer Relations Team (see Primary point of contact section)

Membership requirements

1) Required Method of Communication:

a) Ability to send EDI 845

i) Send all adds and deletes

ii) Send all customer identifiers (DEA, HIN, name, city, state, zip)

2) Required lead time on any additions or deletions:

a) Five days minimum

Contracts requirements

1) Validation elements for submitting contract pricing:

a) Manufacturer contract number (for chargeback purposes)

b) GPO/Customer (if ancillary/individual contract) name of who the contract pricing is for

c) Effective date/end date of contract

d) Detailed if the contract is base/committed

i) base (for all GPO members) or

ii) tiered/committed (select members who are required to sign an LOC and or/declaration form in order to

be aligned to this contract)

2) Required method of communication:

a) EDI 845

i) If sending EDI 845, do not also send the pricing via Excel/hardcopy (creates duplication and confusion)

b) If not EDI capable, EXCEL is required

3) Lead time a minimum of five days prior to the effective date

4) Primary point of contact to submitted contract pricing and membership updates ONLY:

a) [email protected]


mailto:[email protected]


Attachment G National Logistics Center (NLC) scorecard

Measurements

The National Logistics Center provides a manufacturer scorecard to help communicate compliance with the receiving

requirements and to provide a tool to measure continuous improvement efforts. This report will be communicated on a

regular basis and will provide feedback to the Cardinal Health Manufacturer Measurement process.

Measure Points Description

ASN 10 Fully compliant, accurate ASN sent.

Case label 10 Case label meets HDMA standard barcode and label requirements.

Mixed lots/Partial case shipment

10 Mixed Lots and Partial cases are not desired by the NLC, CAH PO’s that are submitted as full cases should be shipped as full cases.

Packing list included and accurate

10 Packing list included and clearly identified on pallet by PO, with accurate counts at the item level. Packing list must be on tail of the truck.

Scheduled accurate delivery 10 Delivery scheduled at least 24 hours in advance. Required information provided at time of shipment PO’s, pallet count, pallet complexity mixed and full, delivery date.

Container lists 8 Each pallet with mixed NDC’s must have a container list identifying the PO’s, items, and quantities on that pallet.

Mixed pallet ID 8 Pallets with mixed NDC’s must be identified.

On time 8 Delivery must arrive on or before the schedule delivery time. Late deliveries will be processed per NLC availability.

Specialties by pallet and Identified

8 Shipments with controls and/or refrigerated items must be separated onto their individual pallets. Refrigerated pallets marked on all four sides. BLC PO’s need to be on pallets separate from NLC PO’s

Damaged cases 8 Shipment must be free of any damages.

Good pallet 5 Pallets are standard US heat treated 48 x 40 in.

Pallet construction 5 Pallet height less than 54 in. with PO labels on all 4 sides.

Total 100 Perfect order!

Backhaul utilization 5 5 Bonus points will be awarded per delivery shipped via the NLC backhaul program.

Total with backhaul 105


Attachment H Dock To Stock


Attachment I Manufacturer Portal Terms Registration Form

New User Registration Form

To enroll in Cardinal Health Manufacturer Portal, follow the instructions below:

1. Please read the “Acknowledgement of Responsibility” below. 2. Please print out this form. 3. Please fill out the Enrollment Form and Use Agreement below. 4. Make sure each section is complete. 5. Please have the appropriate individual sign the form and return it to Cardinal Health by

mailing it to:

[email protected]

6. Upon acceptance by Cardinal Health, your Authorized Users will be notified via e-mail of their USER IDs and passwords for access to Cardinal Health Manufacturer Portal.

[email protected]

Index



Enrollment Form and Use Agreement

This Enrollment Form and Use Agreement (the “Agreement”) is effective as of the date signed by both parties below ("Effective Date”). The “Standard Terms” attached hereto.

“Authorized Users” mean Manufacturer’s employees or contractors who are authorized hereunder to access the Cardinal Health Manufacturer Portal

“Administrator” means the Manufacturer employee who will be responsible for providing Cardinal Health the names and contact information (including email address, phone number, and title) for the employees and contractors needing IDs and passwords to the Cardinal Health Manufacturer Portal

Manufacturer Name: _____________________________

Name of Administrator: _____________________________

Name and Contact Information for Authorized Users: _____________________________

_____________________________ _____________________________

_____________________________

BY SIGNING THIS AGREEMENT THE MANUFACTURER DESIGNATED BELOW IS AGREEING ON BEHALF OF ITSELF AND ITS EMPLOYEES AND CONTRACTORS TO THE TERMS AND CONDITIONS IN THE ATTACHED ACKNOWLEDGEMENT OF RESPONSIBILITY FORM WHICH IS INCORPORATED HEREIN BY REFERENCE. The Manufacturer agrees that it shall be responsible for any acts or omissions of its employees and contractors on the Cardinal Health Manufacturer Portal.

IN WITNESS WHEREOF, the parties’ authorized signatories have duly executed this Agreement as of the Effective Date and by its execution have executed both the Agreement and any attachments hereto: CARDINAL HEALTH 110, INC. AND CARDINAL HEALTH 411, INC.

MANUFACTURER:

By:

By:

Name: Name:

Title:

Title:

Date:

Date:



Standard Terms Your access to and use of the Cardinal Health Manufacturer Portal (“Portal”) is subject to the following terms and conditions. By accessing the Portal, you accept, without limitation or qualification, these Standard Terms.

Ownership of Materials. All information or other material on the Portal is the property of Cardinal Health and/or its licensors. You have no right, title or interest in any information or material on the Portal other than as expressly set forth in this Agreement. You may not download, copy, modify, reproduce, distribute, publish, display, post, transmit or in any way exploit the information or material on the Portal, or any portion thereof, without the express permission of Cardinal Health. Any such authorized use will be limited only to the designated material specifically authorized by, and will be subject to any and all limitations imposed by, Cardinal Health. All trademarks, service marks, and logos ("Trademarks") displayed on or used in the Portal are the property of Cardinal Health or their respective owners, and you are granted no right or license to use any such Trademarks.

Means of Access. You are responsible for obtaining and maintaining all equipment, software and telecommunications and other services necessary to enable your access to and use of the Portal. Restrictions on Use. Your access to and use of the Portal shall be in accordance with this Agreement, any terms and conditions made available via the Portal and any instructions provided by Cardinal Health. You may not access or use the Portal in any manner that could damage, disable, overburden or impair any of Cardinal Health’s systems or services or interfere with any third party’s use of the Portal or Cardinal Health’s services. You may not circumvent any security mechanisms incorporated into the Portal or attempt to gain unauthorized access to the Portal or any information or accounts you are not entitled to access, and you may not assist others in doing any of the foregoing,

No Harmful Code. You represent and warrant that your submissions to the Portal will not contain viruses, Trojan horses, worms, time bombs, cancelbots, corrupted files or any other harmful code that may damage Cardinal Health’s systems or data.

Accuracy. Cardinal Health makes no representation or warranty regarding the accuracy, reliability, or completeness of the information available through the Portal.

Disclaimer of Warranty. THE PORTAL IS PROVIDED “AS IS” AND “AS AVAILABLE,” AND YOUR USE OF THE PORTAL IS EXCLUSIVELY AT YOUR OWN RISK. CARDINAL HEALTH MAKES NO WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE USE OF THE PORTAL OR ITS CONTENTS, AND DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY OF ACCURACY OR QUALITY, AND ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

Limitation of Liability. UNDER NO CIRCUMSTANCES SHALL CARDINAL HEALTH BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, WHETHER IN AN ACTION IN CONTRACT OR TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), RELATED TO THIS AGREEMENT OR THE PORTAL, INCLUDING, BUT NOT LIMITED TO, LOSS OF DATA, INABILITY TO ACCESS OR USE THE PORTAL, AND LOSS OF ANTICIPATED PROFITS OR BENEFITS, EVEN IF CARDINAL HEALTH HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Compliance with Laws. You agree to comply with all laws, rules and regulations applicable to your access to and use of the Portal.

Suspension; Termination. Cardinal Health may suspend or terminate your access to the Portal at any time and for any reason. You acknowledge and agree that Cardinal Health reserves the right to modify the Portal (including the functionality and information available via the Portal) from time to time and may, at any time, elect to cease providing the Portal.



Acknowledgement of Responsibility ATTENTION: PLEASE READ THIS ACKNOWLEDGEMENT OF RESPONSIBILITY CAREFULLY BEFORE USING THIS PORTAL. USING THIS PORTAL INDICATES THAT YOU ACCEPT THESE TERMS. IF YOU DO NOT ACCEPT THESE TERMS, DO NOT USE THIS PORTAL.

Your USER ID and password provide you the ability to use Cardinal Health Manufacturer Portal. It is extremely important that you are aware of your responsibilities regarding your access to Cardinal Health Manufacturer Portal and regarding the access, use, and disclosure of Confidential Information.

You acknowledge that information furnished via Cardinal Health Manufacturer Portal ("Data") constitutes valuable property of Cardinal Health. You acknowledge that the Data constitutes confidential information of Cardinal Health or third parties from whom Cardinal Health has acquired rights and is considered to be "Confidential Information" of Cardinal Health under this Agreement. "Confidential Information" shall also include all information related to methods, technology, techniques, and documentation relating to Cardinal Health Manufacturer Portal. This Agreement transfers no right, title or interest in or to the Confidential Information other than the right to use the Data as expressly provided herein in furtherance of your business transactions with Cardinal Health. All Confidential Information is proprietary to Cardinal Health and is restricted from redistribution pursuant to the terms of this Agreement; provided that you may use Data relating to your company’s products and services solely in furtherance of your business transactions with Cardinal Health. As an agent, you may use Data relating to the products and services of the company for whom you are an agent solely in furtherance of that company’s business transactions with Cardinal Health. You may not reproduce, disclose, or otherwise make any Confidential Information available to any other company, corporation, or individual.

Each USER ID and password is personal and confidential and is intended for use only by the individual to whom it is assigned. Your USER ID and password identify yourself, your company, and functions related to Cardinal Health Manufacturer Portal. You are not allowed to disclose your USER ID and password to anyone or permit other individuals to use your password (including colleagues at your company). Your USER ID and password uniquely identify you to Cardinal Health Manufacturer Portal. You will be held responsible for any use or security breach traceable to your USER ID. UNDER NO CIRCUMSTANCES WILL CARDINAL HEALTH BE RESPONSIBLE FOR MISUSE OF YOUR USER ID OR PASSWORD.

You may access only Data for which you have specific authorization. You may not access Data of other subsidiaries, affiliates, or companies for whom you have an agency relationship unless proper authorization has been provided to and accepted by Cardinal Health.

Cardinal Health may suspend or terminate any USER ID without notice for any reason, including breach of this Agreement, any failure to meet an obligation owed to Cardinal Health, or for any improper, abusive, or illegal use of the Cardinal Health Manufacturer Portal. If your USER ID is suspended, you must contact Cardinal Health to request reinstatement of your USER ID. IN NO EVENT SHALL CARDINAL HEALTH BE RESPONSIBLE FOR YOUR INABILITY TO ACCESS OR USE CARDINAL HEALTH MANUFACTURER PORTAL.

The Company shall be responsible for all USER ID's assigned to its employees or agents. The Company agrees to advise each person to whom a USER ID is issued of the terms of this Agreement and to obtain such person's agreement to such terms. The Company shall promptly inform Cardinal Health when an employee's employment or agent’s relationship with the Company is terminated or changes in a way that would require deactivation of his or her USER ID. CARDINAL HEALTH SHALL NOT BE RESPONSIBLE FOR ANY FAILURE TO DEACTIVATE A USER ID OR PASSWORD.

REV 01/2017

cardinalhealth.com

© 2017 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. Lit. No. 1SOU17-625813 (01/2017)

Cardinal Health 7000 Cardinal Place Dublin, Ohio 43017

Supply Chain Services - Pharmaceutical