Ensuring Continuity of Care Through Smart Supply Chains

Q: What are Cardinal Health’s main priorities in Mexico, a market that is facing increasing pressure on access and efficiency?

A: Mexico is the largest market for Cardinal Health in Latin America, representing about 25% of the region’s business. We are prioritizing three areas. First, we aim to strengthen our leadership in prevention, particularly in DVT prophylaxis. Second, we are scaling our safe and accurate enteral nutrition delivery systems. Third, we are expanding and differentiating our portfolio of surgical gloves, with a specific focus on powder-free surgical gloves, where we offer a comprehensive range of products.

We are implementing a hybrid strategy. We work directly with selected private hospitals while also serving both private and public institutions through our distributor network. We maintain strong relationships with our distributors, trusted partners who enable us to extend our reach across the country. Across all initiatives, we prioritize compliance and operational excellence. We focus on disciplined execution, effective inventory management, and the delivery of comprehensive solutions that meet the needs of the Mexican healthcare market.

Q: What benefits do hospitals gain from Cardinal Health’s products?

A: Many of the products we offer could traditionally be considered commodities, such as compression stockings, surgical gloves, and urology catheters. However, Cardinal Health does not approach these products as commodities. We differentiate each of them through added technology, quality standards, and clinical value. Every Cardinal Health product incorporates additional technology and performance features designed to improve safety, efficiency, and patient outcomes.

Clinical education is a fundamental differentiator for us. Adoption does not end with delivery; it requires continuous training, technical support, and close collaboration with clinical teams. We work closely with healthcare professionals, including nurses, epidemiology teams, and hospital administrators, to explain the clinical and operational benefits of our solutions. Education and collaboration are central to our strategy.

Powder-free surgical gloves are now the global standard, as powdered gloves have been banned in several markets due to safety concerns. Powdered gloves are still in use in parts of Latin America, representing an opportunity for us to expand the powder-free segment by introducing powder-free alternatives aligned with global standards and supporting market evolution. 

Q: How do you plan to position Cardinal Health as a reliable partner for the healthcare ecosystem?

A: We do not aim to provide a product; we aim to deliver a comprehensive solution and to serve as a strategic partner for hospitals. Our goal is to be a trusted partner that hospitals can turn to when they need guidance or solutions

Several of our product launches in Mexico have been driven directly by market demand. Hospitals and healthcare professionals have approached us asking for products available in the United States. In response, we have worked closely with stakeholders to introduce those products in Mexico. As the leading market for Cardinal Health in Latin America, Mexico plays a central role in generating regional value. We strive to position the country as a reference market within the region, often seeking to lead in the adoption of new solutions and higher standards of care. We aim for Mexico to continue playing a leading role in the adoption of new solutions across Latin America

Although standards may vary depending on the product category, Mexico generally represents one of the most dynamic and demanding healthcare markets in the region. The county offers significant potential for expansion, which creates opportunities to attract further investment, which must be supported by strong and timely results.

And also, a core component of our partnership model is clinical education. We support hospitals through ongoing training programs, both in-person and digital, that help strengthen clinical practice and optimize patient outcomes

Q: How will you solidify Mexico’s role within Cardinal Health’s broader Latin America strategy?

A: We must adapt to the realities of the Mexican market. We operate with two clearly defined strategies. In the private sector, our focus is on innovation. In the public sector, our priority is product availability. As product shortages are common in Mexico, ensuring consistent availability is essential. We thus focus on providing reliable supply and cost-effective solutions that meet institutional budget requirements without compromising quality. We do not view market conditions as barriers, but align with the specific needs of the country, which often requires flexibility. For example, in the public sector, timelines can be short. A purchase order may require multiple internal approvals and processes, yet delivery expectations may be set within a month due to the timing of a tender. In such cases, we must anticipate demand rather than react to it.

Adapting a global organization with well-defined processes to the pace and complexity of a local market is not always simple. However, this operational agility is essential to remaining competitive and responsive in Mexico.

Q: How is Cardinal Health adapting its strategy to address the specific needs of the Mexican market?

A: We strive to be fully prepared to supply both the public and private markets. However, building accurate forecasts can be challenging. The most critical factor is ensuring consistent product availability while also planning the appropriate level of human resources to support implementation. In this market, supplying a product is not sufficient. Successful adoption requires training, clear communication, and close collaboration with hospitals, whether public or private. For that reason, we do not see ourselves solely as a supplier. We position ourselves as a partner that supports healthcare institutions through education and ongoing engagement.

Our supply chain is fundamental, as every process begins with product availability. But the strength of our team is equally important. Our professionals are responsible for training clinical staff, supporting implementation, and ensuring that our solutions are used effectively. We are allocating significant resources to strengthen our supply chain and to enhance operational efficiency. We are also evaluating the future integration of AI tools to optimize supply chain management. In parallel, we maintain a strong commitment to continuous training. Our teams participate not only in local programs but also in regional initiatives, as we now operate as an integrated organization in Latin America. In many cases, Mexico takes a leadership role in these regional training efforts, contributing expertise and best practices to the broader Latin American team.

Q: Digital transformation is reshaping healthcare delivery and operations. What specific digital tools is Cardinal Health deploying in Mexico to enhance efficiency, data-driven decision making, and integration with provider systems?

A: We are integrating comprehensive dashboards across our product and logistics operations to strengthen visibility and decision-making. These tools allow us to monitor service levels, improve forecasting accuracy, and enhance connectivity within our ERP systems. The objective is to create a more data-driven organization with greater operational control. We are also progressively incorporating AI into both information management and training processes. 

Training remains a critical pillar of our strategy. Traditional in-person sessions, whether for our internal teams or for physicians and healthcare professionals, continue to play an important role. However, we are also expanding digital learning platforms. Instead of relying solely on a single trainer visiting multiple hospitals, we can now offer structured online courses that provide standardized, accessible, and scalable education. We sometimes collaborate with medical societies to enhance the value of these programs. Through these partnerships, physicians may receive certifications, reinforcing professional development while promoting the adoption of new technologies. We aim to broaden access to high-quality training and support the integration of innovative solutions in the healthcare system. 

Q: What role do partnerships with manufacturers and healthcare institutions play in your strategy for expanding access to specialty drugs and complex therapies in Mexico?

A: We deliver highly specialized solutions and place strong emphasis on training our distributors, who act as our commercial partners. Their role is essential in extending our reach across the country and enabling access to hospitals nationwide. In the private sector, we estimate that we are present in over 70% of private hospitals, largely through the strength of these partnerships. Given their importance, our commercial partners must adhere strictly to Cardinal Health’s compliance standards and ethical principles. We invest in continuous training to ensure alignment with our policies and to guarantee that these standards are consistently upheld in every hospital where our teams operate.

Our objective is not merely to offer a product or to replace one solution with another based solely on price. Our responsibility is to communicate the full clinical and operational value of our products. The ultimate focus is to contribute to a stronger healthcare system in Mexico.

We approach this with a long-term perspective. The goal is to ensure that patients have access to the highest-quality products available, so every link in the chain must be properly trained and aligned to deliver the best possible solutions to the market.

Q: What lessons from recent global health crises should Mexico apply to strengthen its healthcare supply infrastructure going forward?

A: Resilience begins with diversification. It is essential to have multiple sourcing options and to determine which supply sources are best suited for our market. Cardinal Health operates with a broad and diversified supplier base, which strengthens our ability to respond to disruptions and maintain continuity. Transparency is equally critical. Clear visibility across sourcing, inventory and distribution enables more effective decision-making. We also maintain strategic buffer stock for critical items to ensure stability in periods of volatility. These structured frameworks allow us to respond more quickly to market changes and to act with clarity and accountability.

Digital visibility and data sharing across the entire supply chain are fundamental components of this strategy. By integrating information across processes, we enhance coordination, reduce risk, and improve services. This end-to-end visibility supports our ability to deliver consistent availability, operational reliability, and high-quality solutions to the Mexican healthcare market.

Q: Which areas should Mexico’s healthcare system prioritize to enhance its capabilities?

A: Prevention is central to our strategy at Cardinal Health. DVT prophylaxis is fundamentally about preventing complications. Proper enteral nutrition supports patient recovery and helps reduce the risk of infection. Powder-free surgical gloves contribute to safer clinical environments. 

Healthcare systems often focus on solving problems once they arise rather than preventing them. However, prevention should be a priority for all stakeholders. Beyond the clinical benefits, prevention is also more cost-effective than treating complications. A preventive approach reduces risk, improves outcomes, and strengthens the sustainability of the system.

For us, prevention is a guiding principle that shapes how we design and position our solutions in the Mexican market.

Q: What are Cardinal Health’s main goals in Mexico for 2026? What would success look like for the company five years from now?

A: This is a highly significant year for our organization in Mexico. Since establishing operations in the country, we have delivered consistent year-over-year growth. Despite challenges such as the COVID-19 pandemic, tariff pressures, and broader market disruptions, our operations in Mexico have continued to expand. In addition, we have a well-defined pipeline of upcoming product launches. Our portfolio planning is structured, with clear timelines for the introduction of each product into the Mexican market. This forward-looking strategy provides visibility and supports continued growth.

Equally important is our people. Our team is deeply committed and aligned with the organization’s values. We are proud of the strong alignment and commitment of our teams, which has been central to our success.That mutual trust is a key driver of performance.

We are confident that we will achieve our objectives this fiscal year, which spans from July to June, not only from a financial perspective but also across human resources, regulatory, legal, and compliance goals. Last year was particularly meaningful as we marked our 10th anniversary in Mexico. Reaching our targets while celebrating a decade of operations represents a significant milestone and reflects the strength of our long-term commitment to the country.

Cardinal Health distributes pharmaceuticals, specialty, home-health, and direct-to-patient products. It also operates nuclear pharmacies and manufacturing facilities, provides performance and data solutions, and globally manufactures and distributes medical and laboratory products.