The pharmaceutical industry is a colossal sector, with the global market valued at $1.6 trillion according to statistics. To ensure that medications reach end users, a complex multi-step process involving numerous players is required. Among these players, pharmaceutical wholesalers play a critical role, acting as the link between manufacturers and retailers. In this blog post, we will explore what this role entails and highlight key considerations when choosing a pharmaceutical wholesaler partner.
Who are the pharmaceutical wholesalers?
Pharmaceutical wholesalers serve as a bridge between drug manufacturers and retailers. They ensure that the right medications reach the desired locations in the correct quantities and quality.
These wholesalers buy medications directly from manufacturers and then distribute them to retailers, such as pharmacies. There are primarily two models of wholesalers: full-line wholesalers, who deal with a wide range of products, and specialty wholesalers, who focus on specific areas or types of medications. The former is more common, dealing with entire product lines and supplying them to retailers.
Specialty wholesalers cover a wide range of areas. Some companies focus on a particular group of medicines, developing partnerships and collaborations that allow them to operate effectively within these specialized fields. Inthera is also a specialty wholesaler. However, we do not supply medicines to pharmacies and other retailers; instead, we focus exclusively on clinical trials and addressing medicine shortages. Within this specialized area, we efficiently fulfill orders with precision and expertise.
Pharmaceutical wholesalers earn revenue by purchasing drugs at lower prices from manufacturers and selling them at market prices to pharmacies and hospitals. However, the price at which consumers buy the medications also includes the pharmacy's profit margin.
Why collaborate with pharmaceutical wholesalers?
Partnering with pharmaceutical wholesalers offers numerous advantages. Let’s explore these benefits:
Cost savings
Since wholesalers buy directly from manufacturers in large quantities, they obtain medications at lower prices. This means that retailers, hospitals, and healthcare companies can access these drugs for less money. Additionally, wholesalers often run promotions, further building customer loyalty and trust. These could be occasional discounts or incentives for purchasing certain quantities, leading to greater profits for healthcare providers and lower prices for consumers.
Wide selection
Pharmaceutical wholesalers typically carry a diverse inventory, offering everything from vitamins and medical supplies to prescription medications. This variety allows retailers to stock a broad range of products, catering to the diverse needs of their customers.
Simplification
Maintaining direct relationships with numerous manufacturers and tracking products can be an enormous challenge for retailers. By relying on wholesalers, retailers can streamline their operations, improving the overall customer experience and simplifying the entire process.
What to consider when choosing a pharmaceutical wholesaler?
Selecting the right pharmaceutical wholesaler requires careful consideration. This decision is crucial, as an unreliable partner can have significant consequences. Here are the key factors to keep in mind:
Costs
It is essential to understand the costs involved, considering the specific products, shipping expenses, and payment terms.
Quality
Quality should be assessed in multiple dimensions. Evaluate the company’s ability to meet quality standards, indicated by the number of defective products, packaging errors, labeling mistakes, quality assurance systems, and investment in research and innovation.
Services
Pharmaceutical wholesalers offer various services that can enhance the partnership, such as customer relationship management (CRM) and post-sales support. These services aim to make the collaboration more convenient and efficient.
Location
The geographic location of the wholesaler is vital, particularly regarding how efficiently and cost-effectively shipments can be scheduled.
Organization
Examine the organization’s overall functioning and financial stability. Assess your overall impression of the company to determine if it is suitable for the partnership.
Processes
A good partner has well-developed processes. It is crucial that the entire supply chain is well-managed, ensuring seamless integration between the manufacturer and the retailer.
With three decades of experience, Inthera offers a wide range of pharmaceutical services. As a specialty wholesaler, we have extensive experience in the well-defined areas of clinical trial supply, medicine shortage management, regulatory affairs and EU GMP services.
Thanks to our long history, we are perfectly familiar with these areas, allowing us to work seamlessly with our partners and deliver tailored, efficient solutions.
Contact us to find the most effective solution for your needs!