Medicine sees "essence" through "phenomenon"

Reversing the Circulation in the "Dilemma" from the "Event"

In the field of pharmaceutical distribution, there was an incident last year: Some pharmaceutical distribution companies such as Sinopharm, Jiuzhoutong, etc., have not reached the 50% standard for the distribution rate of basic drugs in Xinjiang, and are subject to different warnings, serious warnings, and clearances by the Xinjiang Health Department. Degree of Disposition: Sinopharm Holding's subsidiaries were warned and seriously warned in areas such as Tacheng, Aksu, Altay, Kezhou, and Kashgar, and were cleared in Hetian; Jiuzhou Tongzi Company was severely warned in Yili. The state, Aksu, Kezhou, and Hotan were retired. This incident once again pushed the pharmaceutical distribution industry to the forefront and attracted much attention.

Although the new edition of the base drug catalog has a certain significance for the distribution standard, the specific implementation standards and specifications still need to be determined according to the specific conditions of each province and city. As a result, there is a regional difference in the distribution of base medicines. Insiders pointed out that although the problem occurred in pharmaceutical distribution companies, the realities may not be due to the distribution companies themselves, and are related to the disorderly development of the entire pharmaceutical distribution industry. Such as the demand of hospitals, the supply of manufacturers, the matching degree of delivery time, etc., will all result in the delivery rate of distribution companies failing to meet local standards.

We say that whether it is the distribution of pharmaceuticals or the distribution, distribution, or retail of pharmaceuticals, it belongs to the field of pharmaceutical circulation. As the “giant” of domestic pharmaceutical distribution companies, both Sinopharm Co., Ltd. and Jiuzhou Tongdu have appeared in the circulation of medicines. The problem, then for a large number of pharmaceutical distribution companies is even more an "unprecedented challenge." Pharmaceutical distribution companies are an important part of undertaking pharmaceutical industry companies and pharmaceutical retail companies. According to different marketing models of industrial enterprises, pharmaceutical distribution companies are broadly classified into: hospital distribution, sales distribution, distribution distribution, and professional agency promotion. Currently in many pharmaceutical distribution companies, these forms are combined, but the business structure and proportion are different. It is precisely because of the phenomenon of “multiple, small, scattered, and chaotic” in the current pharmaceutical circulation field that there is an industry that has been widely criticized for disorderly competition.

Many: There are too many pharmaceutical and commercial circulation enterprises in China, and the competitive situation is complex and the competition is fierce, resulting in low profit margins and the existence of commercial rebates in place of quality and service competition. The data shows that there are currently 13,000 drug wholesalers across the country, and there are as many as 423,000 pharmacies. Excessive and overly dense, resulting in low industry concentration and irregular business operations are becoming obstacles to the further development of the pharmaceutical distribution industry. Take “cold chain management” as an example, there is still a lack of unified industry standards, lack of real-time monitoring system, lack of a perfect traceability mechanism, and vicious competition in the industry. Due to the implementation of this work, it has taken place in recent years. A number of incidents of phytotoxicity were reported, and many incidents exposed the weak status quo of the Chinese pharmaceutical cold chain.

Xiao Xiao: Although there are a large number of domestic pharmaceutical wholesale companies and pharmacies, far higher than the world average, the sales of the top three companies in the country only account for about 20% of the total sales volume of the pharmaceutical commercial market during the same period. Judging from the current competitive landscape, national pharmaceutical commercial enterprises include Sinopharm, China Resources Pharmaceutical Group, Shanghai Pharmaceutical Group, and Kyushu Express. Although these distribution companies have exceeded 100 billion or 10 billion annual turnover, but a large number of distribution companies are still a certain distance from the requirements of 10 billion. Therefore, the problems in the field of pharmaceutical circulation do not lie in the large number of companies, but in the fact that the management of enterprises, especially small and medium-sized enterprises, is not in place or scientific; it is not planning, but planning is not well implemented—this is the root of the problem.

San: As medicine does not divide the business, there are three links in the pharmaceutical circulation field in China: drug wholesale, pharmaceutical retail, and hospital outpatient pharmacy. Among them, the hospital outpatient pharmacy, as a special, monopolistic retail link, accounts for more than 80% of the pharmaceutical retail market share. At the same time, each distribution company is fighting each other and most of the businesses are scattered. These conditions have greatly affected the pharmaceutical industry. The development of circulation channels. At the same time, although the pharmaceutical distribution industry is the sub-industry with the fastest concentration in the pharmaceutical industry, the nationwide competitive landscape has basically taken shape, while the concentration of regional pharmaceutical distribution is still very low, and many regional leading companies are selling locally. Revenue and market share are still low.

Disorder: At present, China's base drug procurement method is a province-wide bid for pharmaceutical manufacturers. The winning pharmaceutical manufacturers independently choose the regional distribution companies. It is precisely because the current tendering system is not perfect, coupled with the chaotic competition in the industry's internal disorderly enterprise, which has caused the problem of difficulty in reaching the target of basic drug distribution. At the same time, the new version of the new GSP specification will also raise the threshold for pharmaceutical commerce. The pharmaceutical commerce will cost 7 billion yuan for the new drug GSP to reform funds, and the Food and Drug Administration has publicly estimated that only 20% of retail pharmacies and 30% of wholesale companies can Meet the new regulatory requirements. In addition, “take tickets” and “attachments”, which have been banned for many times in recent years in the purchase and sale of medicines, have also provided opportunities for counterfeit and inferior drugs to enter the circulation field. All this will prompt the pharmaceutical circulation industry to reshuffle, but it also means that the survival of small and medium-sized pharmaceutical distribution companies will face greater challenges.

Seeing the "essence" of circulation through "phenomenon"

Despite the phenomenon of “multiple, small, scattered, and chaotic” in the field of pharmaceutical circulation, the pharmaceutical circulation industry and companies need to “see the world through the phenomenon”. The nature of details that should be focused on in circulation should be systematically sorted out. As we all know, logistics and information are an integrated and common direction for pharmaceutical manufacturers, wholesalers, and retailers. Their purpose is to make the movement of inventory and the transformation from raw materials to finished products that occur based on supply and demand information. Value-added logistics and information flow. As many pharmaceutical distribution companies, they are unable to complete the appreciation of value in the process of drug circulation. Therefore, the “Red Sea Competition” that is still circulated in circulation does not capture the essential characteristics of the circulation enterprises to complete the value transformation and achieve sustained profitability. Pharmaceutical circulation companies just need to see the charm of these essential truths.

1. Achieve exchanges and cooperation in circulation: Pharmaceutical wholesalers in the intermediate links are responsible for ensuring inventory, integrating transportation, and conveying information, so as to realize fast-forward and fast-out of circulation, and a pattern of large-intake and large-output. One spit to complete the alliance between pharmaceutical production and sales. Turn loose, independent pharmaceutical manufacturers and retailers into a cooperative force dedicated to improving labor rates and increasing productivity. Small and medium-sized pharmaceutical distribution companies must step out of the cycle of disorderly competition and win vitality in the challenge. They should choose to cooperate with large companies or meet the guiding intent of current national policies. Cooperation with strong players can increase the bargaining power of small and medium-sized enterprises, directly offset the competitive pressure brought by large enterprises, and at the same time win time to develop their own core development goals and build core competitiveness.

It can be seen that the cooperative behavior of pharmaceutical wholesalers, producers and retailers will reduce and reduce the risk of channel system circulation, increase the efficiency of the entire logistics process, and eliminate the waste of redundant construction. This superiority of the channel structure formed by communicating and collaborating with customers at high speed and low cost is precisely the advantage of drug price competition.

2. Improve the reserve capacity of “software and hardware”: Pharmaceutical distribution companies must assess the situation according to market conditions, look for opportunities, and avoid weaknesses. The focus is on the positioning of features, professional promotion, logistics services, and the improvement of the strength of hardware and software. The competition in the future is better than the features of hardware and software and the degree of specialization. If there is no unique feature in the competition, it is very difficult for the pharmaceutical circulation enterprises to survive and develop.

At the same time, the biggest change in the new drug regulations requires not only hardware reserves, but also software excellence, and clearly requires pharmaceutical distribution companies to set up quality management departments or to equip quality management personnel. Therefore, in the future, medical fluid energy companies will need to continuously train professional technicians who have a technical secondary school or above in Chinese pharmacy or who have a Chinese medicine intermediate or higher professional level. Personnel in wholesale, retail, procurement, acceptance, and storage also need to be stocked, and must also have a professional title in Chinese medicine or above. Pharmaceutical distribution companies also need to strengthen the construction of drug purchase and sales channels, warehousing environment including temperature and humidity control, and the transformation or purchase of warehousing, transportation facilities, and equipment that meet the cold chain requirements for cold chain pharmaceuticals.

3. Maintaining three factors to maintain customer relationship: Although the cooperation among pharmaceutical distribution companies completes the logistics control from the manufacturer to the retailer and the information flow control from the retailer to the manufacturer, a channel integration is achieved. In order to achieve high-speed, low-cost communication and collaboration among the three links of circulation, pharmaceutical distribution companies should proceed to maintain the three key elements of good product conditions, strong team capabilities, and unobstructed channel network marketing, and can adopt small terminals, small academics, and large companies. The marketing strategy of the market, as well as the management principles of channel sinking, moving sales assessment, and expense lump sum.

Do not rely solely on customer relations to sell drugs. Customer sentiment is the maintenance of sales. Competence is the basis for winning long-term cooperation with customers. Through bidding and price cuts, profit margins converge, and homogenous competition leads customers to choose marketing capabilities when selecting products. Strong and service-added companies can provide customers with value-added services is the main performance of the company's competitiveness, is to build the company's core marketing capabilities is the fundamental business development.

4. Deepen multi-species radiation in channels: The depth, breadth, and radiation of existing channel networks by pharmaceutical agents, wholesalers, or retailers can effectively avoid the repeated construction of marketing teams and direct sales organizations by pharmaceutical manufacturers; they can substitute or supplement medicines. Manufacturers of various large-scale media advertising campaigns, thereby greatly reducing the corresponding investment in production companies, which is to reduce the cost of drugs. The powerful purchasing, storage, allocation, and radiation functions of pharmaceutical wholesalers have enabled the contractual combination between manufacturers, wholesalers, and retailers, that is, the contractual form in which distributors distribute their products, replacing manufacturers and retailers. National salesmen and purchasers have realized the vertical integration of drug distribution and have established strategic alliances among producers, wholesalers and retailers for production, storage and sales.

In order to satisfy the retailer's demand for purchases to the utmost extent, it must do its best to reduce the gaps in the structure of its operating products. This requires wholesalers to change the status quo of what the manufacturers “selve” what they “buy.” Multi-category operation can effectively meet the demand of agents for the pursuit of profits, can effectively expand the profit space, and effectively support and share the basic operating costs of agents. Therefore, multi-category operation is an effective use of the existing customer resources of the agents and an effective way to increase the profit margin and sales of the agents. More than one comparison, one more choice, seize the initiative to purchase, closely integrate the retailer's demand information, achieve a kind of safety inventory that “what does the retailer buy, since it already exists”, and strive to achieve “excellent and excellent” "Integrity," and recently occupy the "time, place and people" in the circulation of medicine.