By Paul Hu

Now, in the pharmaceutical industry, hot on the topic, can be considered a pharmacy purchasing alliance. I do not know since when, pharmacy purchasing alliances are springing have been established, because no more than one, this model can make money, but also access to a large number of commercial and retail resource. But the good thing is often more grinding, to find a way to make money, we rush into the sky, naturally individualist tradition, that of course would be quite a mixed bag, but a mercenary.

Closer look, pharmacy purchasing alliance profit point is simply include the following: purchase and sale of generic drugs Maori, an exclusive purchase and sale of drugs or new drugs margins, downstream clients initial fee, store, or managed hosting fees, regular meetings or training fees, union publications advertising rates and information integration charges and so on.

Pharmacy purchasing alliance looked good money, but in fact very difficult. Such as purchase and sale of generic drugs, to do much turnover, gross margin is also guaranteed, it must have a management and information systems to support management and information systems but not a million or a turnover of 5 billion can be paid onwards. Further downstream customers such as initial fee and hosting fees, if alliance in retail management and retail sales on the top three can not do, you can bring any brand, managed and how to ensure profitability, programs, how convincing? By holding regular meetings and training, the Alliance in the short term profit, but revenue also depends on aspects of the brand, if only in terms of pulling the two so-called experts, lectures, rather than providing solutions to real combat, how can long-term survive?

For pharmacy purchasing alliance, I have the following view:

View 1: pharmacy purchasing alliance can profit in two ways: exclusive purchasing drugs or new drugs and the Union publications gross advertising charges.

Exclusive drug profits is positive, as long as the Union upstream resources, a very good bargaining power, many downstream customers and close sales service good. The Alliance publications advertising rates reach solved the problem of upstream manufacturers more attractive, it is important issue of magnitude, to 5 million or more, is immune to non-profit.

Now we can see such a phenomenon: pharmacy purchasing coalition are often the initiator of the retail pharmacy industry, the “little man”, “big man” to stand up very little, while entrants are also “little man.” Such as Guizhou, a tree from the PTO and other eight regional chain drugstore business was launched, and Taeger from Chi Lin, the chain will not be a large retailer in the country, at the most dominant side only. The PTO and Taeger recruit downstream customers are mostly small, and in secondary and tertiary markets. Why the formation of such a situation? Are large retailers are “myopic”? I thought, “little man” is a reason to initiate and join the. “Little man” was launched in order to obtain the right to speak, took the opportunity to rapidly grow and profit; “little man” to join because of intense competition, low-margin trends as well as access to new development ideas. The reason is the absence of large retailers, Competition generic drugs distributor, purchasing alliances, but certainly more than the traditional large distributors and fast approval business; Competition exclusive drug distribution, the Union needs at least a high level of implementation and planning professionals, but also have a very wide range of distribution channels, drug addition exclusive limited resources, while at this stage, large retailers integrate their business networks have not yet completed, and can not engage in procurement Union ceded a lot of energy.

Second point: The last leader of the pharmacy purchasing alliance must launched by the very strong retailers.

Why not be the most powerful it? Such as Neptune, in Neptune’s strategic layout, the distribution of drugs have Neptune Galaxy, retail has Nepstar. If Nepstar pharmacy purchasing alliance to develop, must be capricious and, unless the Galaxy are not doing Neptune; of course, build their own pharmacy purchasing Union Sea King is also a development opportunity, not only can output management, brand and distribute its products in large quantities The key lies in how options Neptune, how trade-offs. So, why is it must be very strong retailers do? Retailers because it is strong and mature management information systems, there are all over the country’s logistics system, a large number of commercial outlets, a strong retail brand and business model. For these enterprises, the overall procurement advantage, buying and selling a lower marginal costs, while providing real combat experience in commercial retail.

In fact, the Union are often loose, and as the lower reaches of the large number of management difficult. Union plus a service organization, if the low quality of services provided, the Alliance development potential should play a big question mark. Also, the core of purchasing alliance buy and sell. Purchase, must have strong upstream bargaining power; sales require product marketable. The cost of buying and selling is the largest logistics costs, information costs and management costs. At present, the purchase and sale has been a “virtual drug distribution hall,” “shopping in the mall,” “integrated online auction” e-commerce tools such as intervention, I personally think that B2B is the trend.

Point three: best pharmacy purchasing alliance should be based on e-commerce for the information communication means, based on the purchase of medicine for the business to provide information integration and management of export, logistics solution to maximize the value of a cooperative customer satisfaction and profitability goals ratio .

Pharmacy purchasing alliance, after all, is a new thing, its really suitable choice of what kind of business model and profit model, is still hard to say. The emergence of pharmacy purchasing alliance, in fact there is a new distribution . To be blessed words: like pharmacy purchasing alliance well all the way!

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