Procurement Process/Cycle of Pharma Industry & what are the major challenges faced in it?

Pharmaceutical Cycle is as below. Go down to see cycle:

  • Chemical/Compound/Ingredients Supplier supply to raw material manufacturer
  • Then Raw Material Manufacturing ( Pharma Raw material Manufacturer)
  • then pharma finished good manufacturing ( Pharma Finished Goods Manufacturer)
  • Then C&F or Marketing Company
  • Then Distributor/Wholesaler/Stockist
  • Then Chemist/retailer/pharmacies
  • Doctors Prescription ( Through Marketing and Sales )
  • At last Patient ( Through Doctor’s Prescription )

We can’t say any single process is easy in this process. From raw material procurement to consumption by patient is challenging work.

There is very limited companies of Raw material manufacturing in India, So most of raw material is imported in India from China or other countries. Small or medium size raw material suppliers/marketers are available in Mumbai and other cities throughout India who import or purchase raw material from raw material manufacturers. They are major source of supplying raw material to Pharma MSME’s. Big Pharma companies directly import or procure raw material from manufacturers.

India is Pharmacy of world and there is number of manufacturing units available in all parts of India Specially Himachal & Uttarakhand. Pharmaceutical manufacturing of finished goods is not an easy process. There is certain type of specifications, regulations, rules, laws applicable throughout process. Other then this manufacturing companies most common challenge is running their factory for eight hours. For proper running they need sale and for sale they need marketing and sales strategy. They can sell there products as from below methods:

If you think appointing c&f and distributors is easy work then think again. Its just not to appoint anyone for handling and distribution. You need responsible persons who can take care of all your network set-up. C&F should have good reputation and team to handle proper supply & distribution of your products. Distributor/Wholesaler should also have good repu in market and should have strong network and timely delivery to chemist & retailers. Retailer/Chemist/Pharmacies are directly connected to patients but in between Patients and Pharmacies, one person is there and he is DOCTOR.

Most challenging and difficult work in pharmaceutical sector is Prescription generation from Doctor. All pharmaceutical companies prime motive is to generate prescription from Doctor’s pen. Whether you are marketing company or manufacturing company, you should have strong sales and marketing team to generate prescription and sale.

If you want to read in detail, check our article: What is the requirements and Challenges one has to face to start Pharmaceutical Manufacturing Unit?

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