![]() ![]() In practice, the Axway CSOS solution links to the LMS system, which comprises systems for order management, warehouse management and accounts-receivable functionality. “We learned that the keys to implementing CSOS were not only having a good plan and being focused, but also being flexible, accountable and customer focused.” “We decided to move forward with CSOS anticipating the need to get ahead of the curve to better serve our customers, and being among the first companies in our industry to do this, we faced both challenges and opportunities,” said Daniel Carbery, SVP, Endo Pharmaceuticals. Another key factor was Endo’s relationship with UPS, which involved a commitment from both companies to change together based on the changing needs of the healthcare industry. Endo had been working with the agency as early as 2004 and became part of the original working group focused on the CSOS initiative. A key success factor of Endo’s CSOS initiative was its strong relationship with the DEA. They were also left with the challenge of interpreting and adhering to very strict guidelines. While the DEA cleared the way for CSOS, it did not mandate it, meaning that companies were left with a choice on whether to proceed. HDMA recognized Axway’s CSOS solution for its ability to deliver cost control, increased security and greater visibility into controlled substance transactions, while simultaneously ensuring DEA compliance. It was at this stage that UPS brought Axway on board.Īlready a recognized leader in CSOS solutions, Axway was awarded the prestigious Healthcare Distribution Management Association (HDMA) iBusiness Solution Award in 2006. This new system had to handle CSOS ordering while maintaining the highest levels of security. For its part, UPS was challenged with building a new and vastly different system from its original LMS (UPS’ enterprise management system). Endo faced several challenges, especially in terms of finding technology that would work for CSOS while also meeting the stringent requirements set forth by Endo, UPS and the DEA. ![]() In 2005, when Endo was ready to move forward with CSOS, approaching UPS for a solution was a natural decision. The company’s distribution is handled out of a UPS healthcare facility strategically located in the central US, enabling products to reach 75% of Endo’s customers across the country within two business days. Working together since 1999, Endo and UPS have built a collaborative supply chain partnership. The promise of an easier and more efficient cycle time was one appeal of CSOS for the company another was pioneering the next frontier in industry change, and putting a system into place before customers even asked for one. Handling distribution for Endo, UPS well understood the challenges of this form. With a large percentage of its business involving controlled substances, Endo Pharmaceuticals has completed more Form 222s than the company cared to count. Unfortunately, Form 222 also meant an order cycle time of anywhere from 14 to 21 days, a major drawback for retailers and pharmacies not in the business of lengthy delays in fulfilling customer orders. The decades-old manual ordering process was designed to verify that all parties involved in the transport and receipt of Class II controlled substances are who they claim to be, thus securing the supply chain. Now, Endo, UPS and Axway are ready to share the behind-the-scenes story of how CSOS was born at Endo, and their vision of what the future holds for others in the industry that choose to embrace CSOS.ĭEA Form 222 is a familiar document for any company involved in the manufacturing, ordering and order fulfillment of Class II controlled substances. In April 2009, UPS’s CSOS system for Endo Pharmaceuticals went live for a pilot customer - a large wholesale distributor serving pharmacies across the country. Recognizing both the challenges and opportunities of the process, Endo Pharmaceuticals (Chadds Ford, PA) and its distribution services provider, UPS Healthcare Logistics, began working with DEA in 2004 and then piloted a system in 2009. Recognizing these problems, DEA has worked with manufacturers and distributors to develop what is called the Controlled Substances Ordering System (CSOS), an all-electronic recordkeeping system.ĬSOS was finalized in 2006, but its take-up by industry has been slow in recognition of the complexity of the IT issues. The process has added difficult administrative burdens to manufacturers and their trading partners, and can interfere with the timely delivery of needed medications to patients. For nearly 30 years, the US Drug Enforcement Administration has required documentation for transactions involved controlled substances, which are primarily pain or neurological products with narcotic effects. ![]()
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