Types of Pharmaceutical Distribution
With increased demand for pharmaceutical products and personal protective equipment (PPE) as a result of the Coronavirus outbreak, more people are interested in learning about pharmaceutical distribution, including the methods available and how they work to bring medical supplies to where they are needed.
As a pharmaceutical distributor, we feel that it is more important than ever to ensure that businesses understand our role in the vital activities that we carry out. As we continue to battle the Coronavirus outbreak, we’re updating our response in order to ensure that our products meet the needs and demand of those working on our frontline.
In this blog post, we will be taking a closer look at the different type of pharmaceutical distribution available.
What Is Pharmaceutical Distribution?
For those who have only recently had to deal with pharmaceutical distribution services, getting to grips with the different types available can seem a little complicated. However, understanding the differences between pharmaceutical distribution methods is straightforward, and will make it much easier to conduct your business efficiently.
Essentially, as a pharmaceutical distributor, we purchase medical-related products from pharmaceutical manufacturers for storage and in distribution centres across the UK and the world. Whilst do not manufacture or prescribe various medicines, we are responsible for the supply of these drugs.
So, what is the difference between a distributor and a wholesaler?
The distributor and wholesaler can share the same task of increasing sales, yet still operate in different ways. At Clarity Global Group, we act as the 'middleman' between the business in question and company to form an efficient supply chain.
Merchant Wholesale Distributors
Merchant wholesale distributors are one of the two basic types of wholesalers within the pharmaceutical distribution industry, selling products such as drugs and medical-related products to various retailers in order to make a profit. Such wholesalers purchase and re-sell two types of products; durable and non-durable. The difference between these two types of products is the length in which they can be used, with durable products lasting for up to three years.
Pharmaceutical Wholesale Distributors
Unlike merchant wholesale distributors, pharmaceutical wholesalers (such as Clarity Global Group) remain in contact with the distributors and almost never with the company. As a wholesale distributor, their purpose is to purchase various medicines and medical-related products, often in bulk, then re-sell these products at a higher price. Representatives then reach out to the desired consumers such as clinics and pharmacists who may be in need of the medicines, drugs or equipment the distributor has to offer.
Agents and Brokers
In many cases, a specific area or region require different things and may have a higher demand for one need compared to another. As a result, pharmaceutical businesses will approach an agent or broker and assign them the role of a 'discount specialist'. Due to this, the agents or brokers commission rate is managed by the company or, in some cases, is agreed as a mutual agreement between the two.
Understanding the world of pharmaceutical distribution can be confusing, but with the right knowledge, understanding the roles each party plays is easy. At Clarity Global Group, our expert consultancy services are available to help you navigate the pharmaceutical and medical markets successfully.
For more information, get in touch with a member of our expert team on 0845 080 5190 or email us at firstname.lastname@example.org today.