Helping Healthcare Care for More than 25 Years

FFF ENTERPRISES IS widely touted as the largest and most trusted distributor of plasma products, vaccines and other specialty pharmaceuticals and biopharmaceuticals in the U.S. But, like many great American success stories, the company and its founder, Patrick M. Schmidt, had humble beginnings. In 1988, Schmidt opened his company with a $100 investment in patient examination gloves. Today, FFF boasts more than a billion dollars in annual sales and a company culture that emphasizes putting patient safety first. Thanks to the implementation of several technologies and distribution best practices, FFF has helped secure a once-unstable biopharmaceutical supply chain and, ultimately, minimize the risk of potentially dangerous counterfeits in the pipeline. The company’s website features real-time updates of its impressive counterfeit-free distribution track record — at press time, it was 9,484 days and counting.

“I hope the marketplace is a safer place than when we started 26 years ago, but at the same time, there is a lot of evil in the world, and there are still ways around the system,” says Schmidt. “We launched our Verified Electronic Pedigree [VEP] in 2004 because we noticed all of our competitors had adopted the same language we use as far as promising a secure supply chain experience. We wanted to take it a step further by offering verification through technology — VEP electronically displays the chain of custody for every product we ship.”

A committed Christian, Schmidt uses frequent analogies to biblical principles when explaining the business decisions that have led to the company’s exponential growth and “outpouring of blessings” in recent years: “I believe there is a covenant between the leadership of the company and the rest of the team — we are going to do everything we can to honor you and your service to the company, and we expect the same in return. That is the essence of leading by example.”

Improving Access to Specialty Medications

In April, it was announced that the University HealthSystem Consortium (UHC) selected FFF as its centralized distributor for the UHC Specialty Pharmacy Program. The program, which is designed to improve access to specialty medications for participating hospitals and patients, is by all accounts a game changer for FFF, expanding its reach as a distributor of plasma-based biologics like intravenous immune globulin (IVIG) and clotting factor, and propelling it into the specialty pharmaceutical business, which is projected to grow to approximately $400 billion by 2020. “We cut our teeth in specialty pharmaceuticals with two of the toughest territories,” says Schmidt. “If we can handle the supply challenges that are inherent with plasma products, I think we are in a position to handle other drugs that historically experience less supply volatility. I don’t know how much this changes the game, but I know for sure we’re in the game.”

Another example of FFF’s quality commitment is epitomized by its specialty pharmacy subsidiary, NuFACTOR, which was established to provide immune globulin, clotting factor and vaccines directly to patients. Launched in 1995 to primarily serve the hemophilia community, NuFACTOR has experienced exceptional growth, leaping from $16.6 million in revenue in 2011 to an unprecedented $70 million in 2014. “We had the opportunity to sell NuFACTOR on several occasions, but we never did because we believed then, as we do now, that there are tremendous synergies between wholesale distribution and specialty pharmacy,” explains Schmidt. “It took a while to get all cylinders firing together, but I think the growth we’ve seen to date is just preparation for what’s to come.”

Expanding and Investing in the Future

With headquarters in Temecula, Calif., FFF serves customers across the nation, many on the East Coast. To expand its capacity to serve more customers, FFF is preparing to open a second distribution facility in Kernersville, N.C. Slated to house 164 new team members, the North Carolina location will also feature a NuFACTOR pharmacy, allowing FFF to ship products for same business day delivery anywhere in the country. “It became mandatory for us to expand our center of operation,” says Schmidt. “As we looked to the future, it became apparent that we needed multiple sites that are prepared to handle 100 percent of our business for an extended period of time in the event of a natural disaster. Business continuity is essential for a company, but when you are dealing with critical care products, there are lives hanging in the balance.”

FFF has also been investing in technology as part of the company’s strategic growth plan. In late 2013, the company launched its Verified Inventory Program-Consignment (VIPc). VIPc provides inventory management utilizing advanced RFID technology that eliminates carrying costs, and invoices only when products are used. The system also continuously monitors product inventory and automatically replenishes stock as it is used. Additionally, VIPc preemptively pulls and replaces product well before its beyond-use date, eliminating liability for expired product. Schmidt explains that the key program benefit is that it streamlines inventory management to give providers more time to focus on patient care. “Also, we wanted to be able to give manufacturers real-time visibility into where their drug is, how it is being stored, and the velocity at which it’s being used,” he adds. “With this program widely in use, we can envision the capability of our emergency pager team being able to locate a requested drug within the closest VIPc inventory cabinet and shipping it out in record time, reducing costs and response time, and improving patient care.”

FFF has celebrated a number of milestones in recent years; July 2013 marked its 25th year in business, an achievement that coincided with revenue growth exceeding $150 million. Schmidt says the company’s success can be attributed to prayer, hard work and a willingness to remain flexible while navigating the ever-changing healthcare landscape. “I think the phrase ‘helping healthcare care’ has become even more significant in recent years,” he explains. “Roles have changed, risk has shifted and, in response, we’ve had to come up with better ways of doing business. That’s why we are strategically investing in technology, because in this industry, you can easily get left behind. Technology is like our blood system — we will need it in order to survive.”