Access to good health is not only about the price of medicines, but making sure to get them out of factories and into the hands of patients. It’s not always easy – geography, logistics, cost and time make it difficult for channel partners to deliver without any issues. A critical part of the healthcare system, retailers are often overlooked and unsupported.
This is especially true in Russia where the terrain and weather make distribution to rural and remote locations very difficult. It can take up to 30 days for medicines to reach their destination from Moscow. This often leaves retailers struggling to manage their stock effectively and ensure availability of vital medicines on store shelves at all times.
To address this issue, we’ve worked closely with Russian distributors to empower them with information and capabilities to get drugs to patients always and on time. We’ve created deep collaborative relationships with our channel partners to give them what they need to be effective distributors in their localities. In line with this approach, we’ve tied up with a technical partner to set up a replenishment tool. Using innovative technology, we assess distributors’ inventory and sales data on a daily basis, so that we can react instantly to shortages in the system. We also have pinpoint accuracy in supply requirements – to bring our partners the right product, in the right volume, at the right time to match patient needs and avoid waste.
By establishing a synchronised supply chain and integrating our systems – sales, supply chain and IT – we became true partners to distributors, understanding their stock needs, refilling their warehouse and seldom leaving patients wanting. This proactive approach has helped halve drug shortages and doubled inventory turns for our partners in Russia. As the effort gains momentum, we have no doubt these figures will improve. Not only does this model enable our partners to increase their efficiency and profitability, but it also helps them to mirror and respond to the exact need-profile of patients in their area in a way that was not possible before.