Full-service wholesalers

According to the Healthcare Distribution Management Association (HDMA—formerly the National Wholesale Druggists Association), there are thousands of wholesalers. Fewer than a half dozen are responsible for a majority of sales. These full-line or full-service wholesalers obtain medications directly from the manufacturers and distribute the medications to pharmacies (both independent and chains), institutions, and other wholesalers. Some chain pharmacies have regional or local distribution centers that receive medications from the wholesaler in large quantities and repackage the medications into package sizes that are more feasible at the store level. 

In addition to assembling various product lines, full-service wholesalers render other valuable programs and services that may be offered complementary or for a fee. The account representative may provide information on marketing and merchandising techniques, assist with pharmacy layout and design, and provide customized inventory management reports and information on the availability of new products. 

The next step of the business planning process is to explore the prospects for various types of value-added services. At this point it is helpful to have several ideas for value-added services that could be implemented. One of the best ways to do this is to observe and speak with pharmacy department customers. This is essential to learn more about their needs and can help business planners learn more about their environments (which will be important later in the process). Other sources for ideas about value-added pharmacy services include colleagues, professional organizations, pharmacy magazines and journals, professional meetings and seminars, the Internet, consultants, books, and full-service wholesalers. 

Some large pharmacy chains perform many of the wholesaler s service functions within their own organizations. These chains must assume wholesaler functions, such as purchasing, storing, financing, and delivering products to each of their units. While these chains serve as their own primary vendor, they often still use full-line wholesalers as secondary vendors to obtain selected products or in special circumstances. 

Even the manufacturer of a full line of products who has geographically concentrated customers may find direct channels less profitable than indirect channels for some of the products and customers. For example, many pharmaceutical companies have increased their use of wholesalers, even in concentrated market areas, because of the high customer service levels required. 

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