OPTIMIZE THE DISTRIBUTION CHANNEL OF THE PHARMACEUTICAL INDUSTRY

State of the pharmaceutical industry

Currently, Vietnam has about 3,000 different large and small pharmaceutical companies. According to the general assessment, the pharmaceutical distribution system is still complicated and scattered, in the main form is wholesale (manufacturer – distributor, or distributor – distributor).

It can be said that the pharmaceutical market has depended largely on distributors and distribution chains. Amidst the competitive landscape and specific changes in the pharmaceutical industry, the pressure on suppliers also increases competition among manufacturers, as they have many options for the same product from many other units.

Moreover, the manufacturer’s customer approach is almost zero. They can’t see and hear directly the consumer’s evaluation of the product as well as the actual usage needs of the customer. The point of direct contact with the end user is the retail pharmacy. Since then, it has led to manufacturers having difficulty in collecting customer comments and feedback to change and refresh products to meet the needs of users. At the same time, it is also difficult for manufacturers to accurately update information such as quantity sold, inventory, and actual demand,… to build appropriate programs to promote product sales.

To be more effective in managing the pharmaceutical distribution process, the information should be managed closely and accurately. Therefore, these enterprises need a comprehensive distribution management solution to solve the above challenges, from customer access to distribution management, customer care, as well as promotions management, … to be able to grow well in the era of technology ascending the throne.

Challenges in the pharmaceutical distribution management process:

• Not strictly controlling the team of pharmacists: Expanding the business market is extremely important in the pharmaceutical industry. However, how do managers know the location, working time, and effectiveness of pharmacists’ customer visits? 
• Difficulties in sales management: Sales management includes order/return management, price policy management for each channel, implementation of promotions, displays, and industry ranks industry has made it more difficult for a pharmaceutical company to manage sales. In addition, it will also be more difficult to manage sales manually.
• The situation of “Data Cooking”: managing a large number of distributors on a large scale makes it difficult for enterprises, the application of monthly/quarterly KPIs creates pressure for market staff, which cannot avoid the situation of employees going up. Virtual orders make it difficult for managers to grasp the market and make appropriate business strategies.
• Unable to manage the display image: Difficult to manage the image of the product in the store as well as the change in display activities. This makes enterprises lose the opportunity to sell at the point of sale.
• Difficulty in inventory management leads to a backlog of capital and expired goods. Especially for the preservation of medicinal products and medical devices, professional equipment is required. Therefore, strict warehouse management leads to many times higher maintenance costs
• Delayed & error-prone order processing: Applying manual methods in the order creation process easily causes errors and takes a long time, affecting revenue and profit.

Highlights that DMS software brings to the pharmaceutical distribution channel

• Management of supply planning and distribution of goods​: Strict approval process. Automatically alert according to the conditions set up when reviewing​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​. Manage Lot and usage limits of products.
• Warehouse management​: The product is specially installed with a variety of hierarchies and information required by the pharmaceutical industry. Products are distributed according to the sales route and automatically summarize the transactions of import from purchase, and export from sell row.
• Customer management: Diversified and complete classification of information to manage customer data in the pharmaceutical industry.​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​
• OTC channel management: Manage sales routes and track KPIs for each pharmacist. Digitize the process of visiting and taking care of customers, recording order information and customer information.​ Automatically calculating sales support programs to promptly provide full information to the pharmacist.
• ETC channel management: The pharmacist can easily manage the list of customers to schedule customer visits based on the assigned bidding contract.​ Install and calculate sales for the Pharmacist in charge of each product above the contract.
• Contract management​: Fully manage the contract execution process and monitor the implementation progress. Manage detailed product information, quantity, and winning unit price.​ Manage contract sales specialists. ​​Integrate with the sales process to check according to the contract, and the corresponding appendix.

Benefits of enterprises when applying pharmaceutical distribution management solutions: 

For enterprises/manufacturers

• Optimizing the working efficiency of the pharmacy team: Manage and control the presentation of pharmacists, helping to improve the ability to move, sell and open new points of sale of the pharmacy team.
• Market control & expansion: Provide and update real-time information and market coverage, the ability to cover goods in each region
• Manage sales activities: Track revenue, sales, and orders updated by the team of pharmacists on the system via eSales SFA application or nRetail to deploy promotions, display, and reward programs.
• Standardize workflow in the distribution chain of pharmaceutical products.

For pharmacists

• Easily manage and track work plans: Based on reports on work results, pharmacists are easy to manage and track, thereby easily building plans to complete work and KPIs.
• Easily look up all information on mobile: All information about products, promotions, sales routes, or inventory quantities are updated in real-time for easy lookup.
• Market development: thanks to the software, the pharmacist can save time taking care of old customers, which time the pharmacist will find new customers to cover the market.
• Complete daily tasks: thanks to the software, every day, the pharmacist will know the park items that need to be done during the day. In addition, the 5-step or 7-step visit program is also fully implemented based on the pre-divided schedule.

For the point of sale, agent, and pharmacy: Manage easily retail points, agents, and pharmacies; when enterprises register to add nRetail solution – New retail platform for pharmacies to be supported:

• Order directly with manufacturers: Actively search & order directly with manufacturers without having to go through a pharmacist.
• Update Trade Marketing program: Easily track details of promotions that enterprises are applying to be proactive when importing goods
• Update continuously product information that manufacturers provide: product information, images, price lists, and new products …
• Order Tracking: Track the status of the order and exchange it on the order if there are any problems.

The reality shows that distribution management software brings a lot of benefits and value to enterprises. Typically, there have been many successful enterprises pioneering the use of software to manage the distribution chain of the pharmaceutical industry such as Phanam, Eco Pharma, and Ampharco USA,… The application of distribution management software helps to optimize business operations and is also an inevitable trend for development in the era of smart technology.

With experience in deploying eSales Cloud DMS products for many pharmaceutical companies and corporations, HQSOFT is confident and ready to bring customers optimal and comprehensive solutions to fully meet the needs of optimizing business. distribution management system optimization. If you have any questions or need advice on distributor management solutions. Please contact the hotline: 0792 342 278 to receive the best support.