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Info DetailsPricing and distribution

Time: Aug 11, 2016

Proportion of Distribution

It is established that the main players in the distribution cycle include hospitals, clinics, distributors/wholesalers, retail pharmacies and license chemical sellers. However, the focus in terms of proportion of business on these channel members varies. For instance, a General Manager of a Manufacturing company noted that “the company mainly supplies to wholesalers and retail outlets…we do not do hospitals and clinics”. They attributed about 80% of their suppliers to distributors/wholesalers, whereas the remaining 20% is supplied directly to the retail outlets.

 

Most of the companies however, supply their products to hospitals, clinics, wholesalers, and retail pharmacies. For instance, a company noted, “about 40% of our stocks are supplied to the hospitals and clinics, 35% to wholesale pharmacies, and

25% to retail pharmacies and license chemical sellers”. Another company reported

 

50% of their supplies go to the wholesale pharmacies, 30% to hospitals and clinics, and 10% to the retail pharmacies. Others also reported varying percentages; hence, much depends on the firm’s coverage, type of drug (product), and relationship with the healthcare facilities as well as the other players in the distribution cycle. Effectively, most of the players make it an effort to register with the hospitals and clinics to participate in the tender process.