The 2020 Mid-Year Economic Update_long

Pharmaceutical Sector ‘Leading Indicator’ for Wholesale Distribution

Fein: VMI, vending were pioneered in the sector.
Angela

The pharmaceutical distribution sector can be a leading indicator of future changes in the wholesale distribution environment, says Adam Fein, CEO of the Drug Channels Institute. "I've always felt they were 10-15 years ahead of everyone else in terms of business development, and I think they remain that way."

"(Pharmaceutical) wholesalers have broadened the scope of services and activities they provide in the health care system," Fein says, "ranging from third-party logistics for manufacturers, fee-based services for pharmacies, business consulting services for manufacturers, and in some cases, fee-based patient assistance programs for manufacturers." Pharmaceutical wholesalers, he says, offer great case studies for how to develop new sources of revenue from existing suppliers and customers.

Some distribution services today, such as warehouse automation and vendor-managed inventory, were pioneered in the pharmaceutical industry before spilling over into other industries, Fein says. This also seems to be the case with vending. According to a 2013 industrial vending report from Wunderlich Securities: "The hospital industry is seemingly vending friendly already, as the industry has rapidly adopted medication dispensing systems/cabinets in their facilities." (Read more about vending in the MDM Special Report: The Industrial Vending Boom.)

 

Although the pharmaceutical industry is quite different than other industries, Fein says, distributors in general can look to the sector for inspiration. "It's useful to look at these kinds of industries and think, 'How could I apply the strategies and tactics being used by very forward-thinking distributors in the pharmaceutical industry and apply them to my business?'"

For current trends and new developments in the pharmaceutical industry, see the Drug Channels Institute’s 2013–14 Economic Report on Pharmaceutical Wholesalers and Specialty Distributors. For corporate access to the report, click here. For team access, click here. And to purchase a single-user report, click here.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.