Distribution channel

Distribution channel for pharmaceutical or healthcare not only by distributor, one step behind that’s it sub distributor. Sub distributor doesn’t have exact area. So sub distributor has large coverage- all Indonesia. Actually price from distributor cheaper than distributor. Pharmacy or hospital sometime use sub distributor to get more profit or to help the patient.

We knows that if channel distribution product’s more length it’s make price more expensive. But how could sub distributor get cheaper price? Where they get the drug’s ?

Sub distributor get a drug’s from distributor. But they get more discount from principal to reach their sales target. For example distributor gift 5% discount for their outlet/pharmacy include sub distributor and then a principal gift 5% discount for sub distributor so totally sub distributor get 10%. Sub distributor gift 7% to outlet or pharmacy. Here we knows that if outlet/pharmacy want cheaper price, they order by sub distributor.