A Research Paper on Difference Between Drugstore Supply Channel of Bangladesh and Other Countries of the World; and the Probable Trend of Channel in Pharmaceutical Industry of Bangladesh

Topics: Pharmacy, Pharmacology, Retailing Pages: 7 (1975 words) Published: July 10, 2013


B M Javed Bin Gofran
ID 0910829030

Prepared for
Md. Shahedur Rahman
Lecturer, North South University
It was a great challenge to conduct this research paper on the supply channel of pharmaceutical industry. To be informed about the supply channels of Bangladesh, I took help from Mr. Jamalur Rahman, a senior employee of Square Pharmaceuticals Ltd. I would like to thank him for his generous help. And throughout the semester I gained knowledge about different things regarding the course “Marketing Channels” which also helped me to conduct this research paper. Hence, I would also want to thank my instructor Md. Shahedur Rahman for the guidance.

This paper includes the topics related with supply channel of drug stores both of Bangladesh and few other countries. This paper majorly focuses on the total supply channel of pharmaceutical industry of Bangladesh that evolved from a very ordinary and under-developed shape. In here, the process of supplying medicines to the consumers is discussed along with the details of every intermediary of the channel. In addition, the recent trends in the supply channel development of few other countries are also discussed to make a comparison with Bangladesh.

Topic| Page|
Introduction| 5|
Supply Channel of Pharmaceutical Industry in Bangladesh| 5-8| Recent Trends in the Drugstore Channels of Other Countries| 9-11| Comparison of Bangladesh with Other Countries| 11-12|
Conclusion| 12|

The pharmaceutical industry of Bangladesh is at a matured stage with strong companies like Square, Beximco, Incepta etc. Drug stores have emerged in a good amount as well. Lazz Pharma once was the only good place to buy medicines which is not the current condition of the market. This is mostly because of the new technological additions to maintain an effective supply chain in the business. As the market got developed, competition rose as well. Hence, companies tried to adapt new technologies and advancement to hold a stronger position than their competitors. In addition, most of the intermediaries in the channel are owned by the companies. Therefore, the control is more on their side which helps them to maintain such good flow. However, the system is still unsuitable for further development as most of the supply is done by the manufacturers. It does not encourage the different levels in the supply chain to get enhanced than their current condition.

Supply Channel of Pharmaceutical Industry in Bangladesh
As mentioned earlier in the introduction, most of the level of supply chain is owned by the manufacturers. Most of the pharmaceutical companies have their own distributors. Unlike the most, few companies like Novo Nordisk uses Transcom, the only distributing company in this sector, to deliver their product to the next level of supply chain.

The figure 1 shows the supply channel of the industry. Each level of the channel is discussed below. Production: This is the level where the drugs are manufactured. At this level, drugs are kept open and ready to handover to the next level. Quarantined Warehouse: This is the level where product-quality is got checked. Also, to get the permission of market the product governmental approval is acquired here as well. After being tested here, taxes are paid and the products move to the next level. Central DPG & Duty Paid Warehouse: After being tested the products are moved to Central DPG where they call it the “Finished Goods”. Then the goods are moved to Duty Paid Warehouse. Deports: Deports are very important level in the channel. These deports are established in different places in the country to meet the demands of a specific region. Depending on the sales average of recent past and the reports...
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