Insights

Innovative routes to market

Rethinking the life sciences distribution model

Within the complex healthcare landscape, pharmaceutical companies need to find new and innovative routes to market to enhance cost effectiveness and differentiate services. Value can be created for Life Science companies that currently experience high distribution costs within overly complex and fragmented distribution networks.

This paper discusses ideas for innovative routes to market in Life Sciences, including:

  • Incorporating innovative services
    Distribution partners can contribute significant added value across the technology, commercial and operational parts of the value chain. Technology offers patients greater convenience and enhanced experience, while benefits sharing and team collaboration offer commercial advantages due to the alignment of objectives with their Life Science counterparts. Within operations, postponement strategies and analytic studies on network configuration provide key differentiators.
  • Targeting of direct delivery models
    Delivering directly to hospitals, pharmacies and customers provides pharma companies with valuable customer data to develop insight and tailor services accordingly. The move away from wholesalers through the adoption of “fee for service” models also allows companies to avoid unnecessary margins.
  • Consolidation of distribution partners
    Many regions use complex networks featuring multiple tiers of distributors before a product reaches its end user but companies can make savings and increase revenue and visibility by consolidating distribution partners in terms of breadth and depth of distributors.
  • Achieving end-to-end visibility
    Achieving supply chain visibility from orders through to shipments and inventory levels is valuable albeit challenging to manage. ‘Control towers’ provide powerful solutions by acting as a single command centre, offering a spectrum of benefits such as improved forecasting accuracy, more effective decision making and greater control.
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