From manufacturing pharmaceutical and medical products to distributing them to the patients who need them, the healthcare supply chain is extensive, complex and constantly evolving. From regulatory shifts to changing provider needs, it’s more important than ever that providers forge strong partnerships with their distributors.
When choosing the right distribution partner for your organization, it’s important to consider the foundation of what that relationship should look like. The distributor’s mission and values should align with your institution’s to create a solid basis for a lasting partnership.
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Particularly important for the healthcare field, the right distribution partner should be collaborative, transparent and adaptable, with the ability to align their services to meet the needs of you and your patients. Ultimately, the right partner will work collaboratively towards your organization’s goals together.
Bridging the gap between manufacturer and customer
Navigating the relationship between manufacturer and customer depends heavily on supply and demand signals, requiring a robust distribution network. Data and analytics models drive this part of a distributor’s network, allowing them to identify customer needs while managing inventory proactively and efficiently.
To operate a model that maximizes that need for efficiency, the best distribution partners have successful business models. For example, a hub and spoke model centralizes a product for manufacturers, while driving channel-to-market logistics that efficiently deliver those products to the customer.
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In addition to business models, the regulatory landscape affects how products ultimately arrive to the patients who need them. Understanding federal and global regulations is critical to move products through channels in a secure and efficient way. The right distribution partner not only monitors supply and demand, but keeps abreast of regulatory developments and acts quickly to minimize impact to your organization.
Understanding the patient-product mix
The best distribution partner for your organization should have a deep understanding of how the products they deliver serve your patients. Whether a distributor services retail pharmacies, hospitals or acute, long-term care facilities, it’s critical that they understand the ways in which each product should be handled to give patients the best outcomes.
For example, some products require cold-chain capabilities or other special handling instructions, while others have ambient storage needs. The right partner will align their distribution model to meet those requirements while working with you to understand your patient-product mix and how best they can facilitate ordering and delivering processes.
Mitigating costs and managing risks
While a streamlined logistics model is important, a good economic model is equally critical. Providers try to alleviate unnecessary costs to prioritize things such as the expenses associated with the risks a distributor takes on to manage a product through the healthcare system.
The right distributor will also do their part – they will invest in their supply chain to ensure it delivers on the needs of providers and manufacturers, maintaining product safety and adhering to regulatory requirements. Cost is also important to the patient, and a good distributor strives to align the costs and services of their work to benefit patients, providers and manufacturers, while eliminating extraneous costs when possible.
Keeping an open line of communication
The relationship between distribution partner and each stakeholder in the healthcare system should be collaborative, communicative and mutually beneficial. By understanding the interconnectedness of the healthcare industry, aligning goals and maintaining an open line of communication, distributors and healthcare organizations can cultivate lasting, dependable partnerships, while working together to develop innovative ideas and solutions.
Photo: marchmeena29, Getty Images
Marc DeLorenzo currently serves as Senior Vice President of Strategic Sourcing at Cardinal Health, where he oversees the negotiation and management of service agreements for pharmaceutical, generic, specialty and consumer health products. Throughout his 20 years with Cardinal Health, he has held roles in investor relations, finance, marketing and sales. Prior to Cardinal Health, he held positions in financial consulting, accounting and financial services in both the healthcare and supply chain sectors.
