Thursday, 9 February 2012

Intermediaries in Pharma Distribution Channel


There are five intermediaries in distribution of pharmaceutical goods from company to the end consumer
Super distributor
Usually super distributors are appointed by manufacturers to look after the entire function of distribution of their products. They cover relatively large geographical provinces like a complete state or part of state. The coverage area depends on certain factors like volume of business, the product mix, the size of the state, the degree of market penetration. Super distributor sells the product to stockiest or accredited wholesale dealers appointed by respective companies under mutually acceptable terms.
C&F agent
C&F agent functions more or less like a super distributor but ownership of goods does not change in case of C&F agent.  He operates virtually like a company’s own depot or distribution office. C&F agent is appointed under mutually accepted term and commission paid to C&F agent varies and depends on total sales turnover of the company. Commission can be fixed as percentage of sales turnover or as a fixed amount per month irrespective of sales.
Stockist
Super distributor buys the goods directly from the company and supplies to a larger sales territory. Stockiest purchases the company’s goods from a super distributor and not directly from the company, supplies to a small territory. He is appointed or authorized by the company mainly to supply to retailers, dispensing doctors and nursing homes. He usually does not supply to wholesalers
Retailers
Retailers are the establishments primarily associated in selling goods for personal and household consumption. Retailer by definition does not sell goods to another business. A retail chemist or druggist is an outlet providing drugs and healthcare services directly to the patient.

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