Due to increasing pharmaceutical regulation, competitive drug prices and the proliferation of off brand pharmaceuticals the industry as a whole is going through significant change. The pharma supply chain has encountered added pressure and has made many adaptations to processes, prices and technology.

Since 2012 pharmaceutical manufacturers have begun to cut out wholesalers and distributors and focus on a more direct-to-consumer (D2C) approach. Currently, more than 30% of pharmaceuticals are distributed directly to hospitals and pharmacies. This shift towards cross channel sales is due to the increasing prices of pharmaceuticals. In 2014 the estimated cost of handling pharmaceutical inventory throughout the supply chain was $250 billion globally. Eliminating the middle men have helped to reduce these costs and have made these items more affordable for the people that need them.

Pharmaceutical companies have also begun to focus more on “emerging markets”, identifying areas that were previously under served. This provides areas where competition is low or non-existent and allows for business growth. In 2014 pharmaceutical sales reached $660 billion by addressing these markets.
To aid in managing the changes encountered in these complex pharmaceutical supply chains, businesses are investing more in warehouse management solutions to help increase profits, manage omni-channel and cross channel sales and streamline overall operations.

Featured Content

The Friday Report: October 11, 2019

The Friday Report: October 11, 2019

Bipartisan Effort by Senators to Share Info on Supply Chain Threats Out of concern for risks to national security, a bipartisan group of senators want all branches of government to share information on technology supply chain threats.  Leading members of the Senate...

The Friday Report: October 4, 2019

The Friday Report: October 4, 2019

U.S. Announces Tariffs on $7.5 Billion of EU Goods Following the recent decision by the World Trade Organization (WTO), the U.S. Trade Representative announced changes to tariff rates for EU goods.  Beginning on October 18th, the United States will begin charging a...

The Friday Report: September 27th, 2019

The Friday Report: September 27th, 2019

Another Reason to Eat at McDonald’s in Canada McDonald’s has announced a 12-week test of the Beyond Meat burger in 28 of its restaurant locations in Southwestern Ontario, including the largest city in Canada, Toronto.  Calling it a P.L.T. (plant, lettuce and tomato)...

© Copyright 2019 - Datex Corporation. All rights reserved.

Pin It on Pinterest

Share This
X