Distributors and wholesalers are an important part of the distribution channel in the pharmaceutical sector. Both are not in direct contact with consumers, but they have different roles. A distributor deals directly with the company or CNf and buys products directly from them. They store products in their Godown and sell them to retailers in large quantities.
On the other hand, wholesalers purchase products in bulk from manufacturers and sell them in smaller quantities to retailers. They operate in small areas and have fewer sales channels than distributors. The wholesaler is a merchant who buys products in bulk and sells them in smaller quantities. Distributors are resellers of products, who cover a specific area or market.
Wholesale distributors purchase pharmaceuticals from manufacturers for distribution to a variety of different locations, such as pharmacies, hospitals, clinics, doctors' offices, and laboratories. There are different types of distributors and wholesalers in the pharmaceutical sector. Single-party pharmaceutical distributors or wholesalers tend to have few or no channels to make a sale and, mainly, are in direct contact with consumers. Large distributors or wholesalers designate several channels to meet the huge sales objective, such as PCD, owning a franchise or appointing distributors, etc.
Bringing any product from manufacturing to purchase by a consumer involves a supply chain. The distributor is the manufacturer's direct point of contact for potential buyers of certain products. Wholesalers buy a large number of products directly from distributors. Retailer buys small quantities of an item from a distributor or wholesaler.
U. S. Food and Drug Administration Urges All Consumers to Validate Drug Wholesale Distributor Licenses. A pharmaceutical provider offering products such as wholesale medicines and over-the-counter pain relievers saves time and money for independent pharmacists and homecare companies.
On the other hand, the distributor charges service fees for providing services as a percentage of net sales. The two most important links in supply chain management are the wholesaler and the distributor, as they ensure the timely availability of merchandise to the end user. A distributor and a wholesaler may have the same task of increasing sales, but they are different in many ways. Using market research, communication skills and established business relationships, wholesalers, distributors and retailers can create strategies for business success.