Type of Distributor and Wholesaler In Pharmaceutical Sector. How They work?

Query:  

I want to start medicine wholesale distribution in my location.
I m working in sales and market in 15 year but in industrial sales.
could you map me how to start market for medicine and want kind of medicine side good for sale. ( cardiac/diabetics /general etc) 

Response:

For opening wholesale distribution firm requirements and procedure you can read in our article- Documents required and procedure to start wholesale stockist pharma firm? Few requirements may vary state to state.

Sir, you didn’t disclose in which sector, you have 15 years of industrial sales experience. If you have industrial sales experience in pharmaceutical sector, then you can start your entrepreneur journey from industrial sales. Or if you are from any other sector, you may also search for business opportunities there.

First we want to explain you how whole selling works in pharmaceutical sector:
As we have discussed in our previous articles about marketing types in pharmaceutical sector.

Pharmaceutical wholesale distribution can also be divided in many types:

• Ethical/Branded Pharma products distributors
• Generic pharma products distributors
• Pcd/franchise pharma products distributors
• OTC/Institutional supply pharma distributors

Ethical/Branded Pharma products distributors:
These distributors works at a fixed percentage. Companies appoint distributors or whole sales who distributes their products to retailers or chemists. For marketing and sales company appoint directly their medical representatives or sales representatives. Company representatives convince doctors to prescribe their products. As demand of products create, chemist/pharmacy/retailer give order to company representative/MR. MR forward this order to stockist or distributor and distributor supply to chemist. Most of companies set a specific period of time for clearing payment or work at advance payment. Payment collection from chemist is responsibility of both – MR and Distributors.

Generic pharma products distributors:
Generic products are similar products as of branded but there cost is very much less as compare to ethical/branded products. Efficacy, result, appearance, dosage form etc all are same. Only difference these products doesn’t have any marketing/promotional expenses. In generic distribution, stockist has to approach directly to chemist/retailers to get orders. Some companies also appoint their sale representative but wholesaler direct approach and his good will make strong impact at sale. In generic marketing, there is not fixed margin, you can manipulate according to purchaser. Generally 45-70 days credit is provided by generic companies. Payment collection from chemist may be responsibility of both – sales representative and Distributor or may be of distributor alone.

Pcd/Franchise pharma products Distributors:
Pcd pharma franchise is term used for appointing distributors cum marketing/promotional partner. Companies don’t involve itself into direct marketing and appoint distributors who also do marketing and promotion of company along with distributorship and wholesaling. These distributors could sale their products as generics or branded/ethical. Appointing sales or medical representative is fully responsibility of distributor. All marketing, sales and promotional expenses have to bear by distributors. Companies don’t interfere in distributors area and doesn’t involve or participate in any activity. Companies know only one person in that territory and that is its distributor. Payment term and conditions is vary company to company but most of times its advance in starting and is on credit of 30-45 days after few dealing. Payment collection from chemists/retailers is purely responsibility of distributor.

Read related- How to become pcd pharma franchise distributors?

OTC (Over the counter) or Institutional supply pharma distributors:
OTC wholesaler/distributors mainly deals in over the counter products only. Over the counter (OTC) products in pharmaceutical market is the products which can be sell out with out any prescription of medical practitioner. These are the products that doesn’t come under schedule H and narcotic drugs. Institutional suppliers are the distributors who supply to government hospitals, private hospitals, nursing home or other medical institutions. They supply directly to these institutions without involvement of any third party. Payment term vary according to companies. Same in case of payment collection.

Above we described types of pharmaceutical distributors. You can choose which type of distribution you want to start. One of your question is what kind of medicine side is good for sale. For this we don’t see any difference in choosing a category. Every section has same challenges and same procedure of marketing, and every section is correlated to each other. Every section products has its own demand. You just need to research which products are moving in market in which section. you can start with general range along with running products of other sections..

How to start Pharma distributionship/Stockistship?

• Choose what type of distribution ship you want
• Search for company
• Ask for distribution ship
• Finalized term and conditions
• Prepare list of all doctors and chemists in your location
• Research about moving products in pharma market
• Start marketing/Promotion

read complete about how to start pcd marketing?

How to take distribution of MNC pharma Companies?

Hope above information is useful to you.

For any suggestion and query, mail us at pharmafranchiseehelp@gmail.com