Problem: Despite high inventory levels, pharmaceutical companies in India face inconsistent product availability at chemists due to a fragmented distribution network, resulting in lost sales and higher obsolescence costs. Solution: A new model proposes reducing inventory per SKU, enabling frequent (1-3 times/week) replenishment, implementing Automatic Replenishment Systems (ARS), agile manufacturing, and adaptive inventory controls to improve availability across stockists and, by extension, chemists, without increasing stockists’ working capital. Benefits: The approach increases product reach, boosts stockist ROI, reduces obsolescence, improves supply chain responsiveness, and improves overall sales and profitability with minimal additional cost.

Key Takeaways

The white paper explores the challenges and solutions in India's domestic pharmaceutical distribution sector. Despite the industry's strong growth, companies continue to face significant operational gaps.

Beyond the pill: How distribution failures are undermining India's pharmaceutical giants

<h6>Beyond the pill: How distribution failures are undermining India's pharmaceutical giants</h6>

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India's $130B pharma market suffers a 15%-40% chemist availability gap despite high inventory. Discover how a demand-driven system can overcome this.