e-distribution network and e-retailing of pharmaceuticals in india

8/2/2019 E-Distribution Network and E-Retailing of Pharmaceuticals in India

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E-distribution network and E-

retailing of pharmaceuticals in India

Presented by

Tariq Ahmed Khan

Roll no.49MBA pharm tech 4th yr Div A



Current scenario of the Distribution

Network

• The pharmaceutical industry is growing at the

rate of 13% which is currently amongst the

highest growth rate.

• The pharmaceuticals has tremendously in the

past three decades.



Problems with the current distribution

network



Problems with the current distribution

network• Over production of drugs

• Actual Demand of the drug remains unknown.

• Additional cost due to infrastructure.

• Addition of middle components which is unnecessary.

• No transparency in data generated.

•

Addition of Spurious drugs in the network.• Sales pipeline flooding and over pushing of product.

• Credit risk

• Returns

• Damaged goods

• Losses on counterfeit and/or gray market goods that are discovered in the channel.

•

Distribution costs.• Saleable returns

• time



E-distribution model

• Adoption of model to curb issue of unwanted

expenses in terms of infrastructure.

• Efficient management of supply chain

management.

• The component in the system will be linked to

each other electronically instead of manual

linkage.



Advantages of E-distribution model

• Reduction in time is achieved

• Reduction in counterfeit drug products

• Better inventory management

• PUSH and PULL STRATEGY through earlydiscounts.

• Standardized and transparent system

•Savings on tax due to implementation of IT

• Saving on infrastructure.

• Reduction in middle components



Retailing of pharmaceutical in india

• Exists in two forms: organized and

unorganized retailing.

• Pharma accounts to 15% of total retail in

India.

• Retailers reap benefits on all the products.

Enjoy a profit margin of 50-300%.

• Availability of prescription drugs easily to

public for abuse.



E-retailing buisness model 1



E-retailing buisess model 1

• Advantages

• 1. The major advantage that E-retailing has is that of the competitiveprices which are offered.

• 2. The drugs are genuine and offered at a much discounted rate thanwhat we get in a retail shop.

•

3. Drugs which are usually not available in retails are also available to thecustomer.

• 4. Biopharmaceuticals which require critical attention are provided tocustomers keeping the storage conditions in mind not allowing it todeteriorate.

• Disadvantages:

•The disadvantage of this model is that it is applicable in India only to theurban population.

• The rural India is not applicable as it is still in the developing phase.

• There is a mindset of people about online transactions being fraudulent



E-retailing buiness model 2



• ADVANTAGES OF THE MODEL

• Transparency which will be achieved in the number of prescription and sales of the drugs.

• The patient or customer will have the benefit of placing order on a centralised website andreceiving the order on time.

• This model will be designed nationally but will serve locally.

• The benefit would be of the person owning the network and servers and website through which onevery prescription the person shall earn 10-15% of the amount as well as earn royalties and

subscription charges from manufacturers, stockist and retailers.• The company owning the network may also charge the manufacturers for the real time reports and

daily sales report that is generated by their products and competitor’s product.

• The track of physician and drugs he prescribe will also be taken care off.

•

• DISADVANTAGES OF THE MODEL

• Though advantages are many the major disadvantages is that being radical in nature it won’t havemuch of acceptance. The model has chances to fail in the Indian scenario.

• There wouldn’t be much support generated from the retailers and the physicians to implementsuch a radical change.



Conclusion

• The models presented are radical innovation andhypothesized ideas.

• The solutions given in the paper are hypotheticaland if implemented will lead to greater savings incosts employed by the components indistribution network.

• Implementation of Electronic models is possiblebut the implementation should be phased.

• The models will have low acceptance but onceimplemented, will change the retailing anddistribution in India.

e-distribution network and e-retailing of pharmaceuticals in india

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