Distribution in pharmaceuticals

7/28/2019 Distribution in pharmaceuticals

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DISTRIBUTION:

Ensure product availability as per thedemand in the market.

This is achieved through differentintermediaries which is thedistribution channel or supply chain.


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MANUFACTURER

CENTRAL WARE HOUSE

CONSINGEE AGENT /

SUPER DISTRIBUTOR

STOCKIST

RETAILER/CHEMISTS

CUSTOMER

SUPPLY CHAIN


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CENTRAL WARE HOUSE

Finished products reaches the CWHwhere it is properly stored.

Optimum temperature is maintained

wherever required. Stocks are stored on pellets and

racks free of pests and moisture.

From CWH stocks are distributedthrough out the country through thechannels of distribution.


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STOCKISTS

Appointment of New Stockist:

The party should have strong financialsand good reputation in market.

Stockist Appointment proposal form to befilled and all required documents to besubmitted viz.Drug Licence, VATregistration etc.,

Application from the party to be attached NOC to be obtained from Trade

Association.


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SUPPLIES TO STOCKISTS

STAMPED & SIGNED ORDER IN STOCKIST LETTERHEAD WITH CHEQUE

CHEQUE WILL BE DEPOSITED ON THE 7TH DAY

FROM THE DATE OF SUPPLY FOR LOCALSTOCKISTS AND ON 21ST DAY FOR OUTSTATIONSTOCKISTS.

NO SUPPLIES IF PAYMENTS ARE PENDING FOR

EARLIER SUPPLIES

CHEQUE BOUNCED D.D. SHOULD BE GIVEN

FURTHER SUPPLIES WILL BE ON ADVANCE D.D.

FOR CHEQUE BOUNCED PARTIES


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PRICEThe three important components of the price of a product are:

MRP- Maximum Retail PriceThis is the rate at which the chemists sell the products to the finalcustomer.

MRP is inclusive of All Taxes

PTR Price to RetailerThe price at which stockists sell to retailers / Chemists

PTS Price to Stockist

The price at which stockist buys the products from SD/CA.Also the price at which company sells/transfers the products toSD/CA.


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TRADE MARGINS

MRP (Excl.of VAT)

Less 20%

PTRLess 10%

PTS

As per MOU between trade association &Manufacturers association 20% margin to be given

to retailer and 10% to stockist


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VAT

The rate of VAT for Medicines variesfrom 4% to 5%

And 12.5% to 15% for Dietaryproducts (Food supplements)

The VAT can either be on MRP or onbilling rate based on the notificationby the state sales tax department


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STATE WISE VAT STRUCTURE

State Tax Calculated on

Tax on foodSupplement

Andhra Pradesh 4% Transaction based VAT 14.50%

Assam 5% Transaction based VAT 13.50%

Bihar 5% 13.50%

Chhattisgarh 5% MRP exclusive of tax 14.00%

Delhi 5% Transaction based VAT 12.50%

Gujarat 5% 15.00%

Haryana 5% Transaction based VAT 13.25%

Jharkhand 5% MRP exclusive of tax 14.00%

Karnataka 5% MRP exclusive of tax 14.00%

Kerala 4% MRP exclusive of tax 12.50%

Madhya Pradesh 5% Transaction based VAT 12.50%

Maharashtra 5% Transaction based VAT 12.50%

Orissa 4% MRP exclusive of tax 13.50%

Punjab 5.50% Transaction based VAT + 5% SC 13.50%

Chandigarh 5% Transaction based VAT + 5% SC 12.50%

Rajasthan 5% MRP exclusive of tax 14.00%

Tamilnadu 4% Transaction based VAT 12.50%

Uttar Pradesh 5% 4+1 on transaction based VAT 13.50%

Uttranchal 4.5% Transaction based VAT 13.50%

West Bengal 4% MRP exclusive of tax 13.50%


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FREE OFFER / SPECIALRATE

Request to be given in the prescribedformat.

Free offer /special rate to be parted

only as per the written approval fromDistribution department (H.O.).


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SHORT EXPIRY

IDENTIFY THE PRODUCTS WITHSHELF LIFE LESS THAN 6 MONTHSAT THE RETAILERS AND LIQUIDATE

THEM FIRST.

ELIMINATE EXPIRY RETURNS.

NO EXPIRY RETURNS MOREPROFIT


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PRODUCT COMPLAINTS

COLLECT ALL DETAILS LIKEPRODUCT NAME, BATCH NO,EXPIRY DATE ETC. AND INFORM

YOUR MANAGERS AND HEADOFFICE IMMEDIATELY.

Documents

Distribution in pharmaceuticals