Factors of Efficient Distribution Channel and its Impact on Channel Superior Performance: Evidence from the Indian Pharmaceutical Industry
Keywords:
Distribution, Pharmaceutical Industry, Retail, Supply chain, Channels, BrandAbstract
Due to increasing focus on health-care in India, Pharmacy industry has been provided an impetus for a faster growth trajectory. Crucial to success for any industry is the seamless integration of its supply chain. Pharma is no exception. While there are many empirical studies on different aspects of distribution, Marketing channels, supply chain and consumers and that too predominantly conducted outside India, there are no integrated supply chain model frame work to drive optimisations at all levels and improve channel superior performance. Main objective is to garner insights from supply chain perspective by understanding different aspects and drivers of the pharmaceutical value chain which will include Distributors & wholesalers, pharmacies (Hospital pharmacy, Retail chains, and standalone).
Study seeks to establish association criteria and satisfaction of the distributors/wholesalers with respect to their suppliers in order to facilitate the development of an end to end framework for the pharmaceutical supply chain.
Research was of an exploratory nature and a total of 15 pharmaceutical distributors and pharmaceutical wholesalers representative of the population ,5 hospital pharmacy managers,4 retail chain stores and 15 stand-alone pharmacy managers representing the population were considered as respondents for channel dynamics.
Data was collected through questionnaire and in-depth interviews using convenience sampling and the data so gathered was analysed using tools like SPSS/excel. Study revealed that inventory turnover, margins, and exclusivity was vital for supplier association criterion for pharmaceutical distributors and collaborative behaviour and absence of supply chain interruptions for their satisfaction respectively.
This study is of high significance in the modern market scenario in light of increasing spend on health care and focus on affordable health care facilities driven by Government policies and regulations in India.
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