Lecture 1.2 (distribution) Flashcards
What is the biopharma supply chain?
means through which drugs are manufactured and finally delivered to the patients.
Name some stakeholders in biopharma supply chain
suppliers
manufacturers
agents
distributors
hospitals and healthcare institutions pharmacies
users (patients)
What is meant by ‘distribution channels’?
route or path through which the products from the manufacturers are transferred to the users.
What is direct distribution?
Manufacturers supply goods directly to end users. E.g. gucci
What is indirect distribution?
Goods supplied to agents /retailers, through them the goods finally reach the end users .
–>A common practice for Pharma companies
How many levels are there for distribution channels in Hong Kong?
3
namely first, second and third
What is the first, second and third level of distribution channels in Hong Kong?
1st level: manufacturers to agents and distributors
2nd level: Agent/distributor to hospitals/clinics/pharmacies/wholesalers
(wholesalers supply to small drug stores)
3rd level: patients/users get product from above outlets
What are the core responsibilites of agents/distributors?
Warehousing, inventory, invoicing, distribution
What is the difference between agents and distributors?
Agents: marketing and selling function, warehousing, invoicing, delivery of goods to retailers
Distributors: No marketing and selling function. ONLY OFFERS SUPPORTS
What is the selection criteria of agencies/distribuors?
- good service to customers
- timely delivery
- good warehousing facilities, cold chain
management - good marketing and sales team
- IT support for principals
(manufacturers) - competitie distribution margin
What are the costs involved with distribution?
- personnel and logistics cost
- inventory and warehousing costs
- IT costs
- damaged goods and goods return
- credit cost
