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Pharmaceutical Supply Chain Strategies: Reassessing Product Distribution to Cut Costs and Improve Supply Chain Management
Datamonitor, March 2008, Pages: 64
Ideally drug supply should be a simple and transparent chain that connects the manufacturer and patient in as few steps as possible, however in practice it can be a highly circuitous one that includes several intermediaries before reaching a pharmacy. This increases the risk of counterfeit drugs and facilitates parallel trade, both leading to lost sales for the manufacturer.
Scope
- An overview of the drug supply chain in Europe and the US.
- Identification of the key players in the drug supply chain.
- Coverage of recent trends and key events in the distribution industry.
- Analysis of the impact of new events on the key stakeholders.
Highlights of this title
With the trend towards market expansion, higher drug volumes must be transported further, necessitating the use of logistics coordination on a global scale. As distribution needs increase, the knock-on effect of state-enforced cost-containment strategies are reducing already tight margins, forcing many stakeholders to change their strategy.
Manufacturers are looking to gain greater control over the drug supply chain, to safeguard it against counterfeit entry, but also to regulate drug supply and therefore limit diversion. The most progressive events have occurred in the UK, where Pfizer has implemented direct to pharmacy distribution, with other companies likely to follow suit.
Competitive pressures have and will continue to drive consolidation along the supply chain, with vertical integration providing a means of extending control and limiting margin loss. A relaxation in pharmacy laws in Europe will lead to an increase of chains, while wholesaler-pharmacy and manufacturer-pharmacy combinations are becoming common.
Key reasons to purchase this title
- Gain an understanding of the pharmaceutical supply chain in the US and Europe, and who the key players are.
- Become aware of new issues in the distribution industry, and how they influence the major stakeholders.
- Gain an insight into current trends in distribution, and how they are likely to change going forward.
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