Applying distribution management system software for pharmaceuticals: New form, new substance

According to Assoc Prof/ Dr. Le Van Truyen – former Deputy Minister of Health, Vietnam’s pharmaceutical industry is currently experiencing the highest growth rate throughout Asia, with forecasted growth for 2017 exceeding 17%. Besides, global market research firm Business Monitor International (BMI) commented that pharmaceuticals always maintained double-digit growth rates in the face of economic fluctuations. An older population, rising per capita income, greater concern for healthcare, etc. have paved the way for increased medicine consumption, with consumption levels expected to reach 10 billion USD in 2020 (Source: IMS Health). This demonstrates ample opportunities in the local market for manufacturers, distributors and retailers of pharmaceutical products.

Revenue and growth rates of pharmaceutical sector. Source: BMI 

Based on statistics, the pharmaceutical industry has 3 major distribution channels, namely hospitals, pharmacy stores, and private clinics; in which the private clinic channel alone comprises roughly 57.000 outlets, accounting for 65 – 70% of the distribution system. With a vast distribution network and a huge number of salesmen, many pharmaceutical enterprises’ ultimate goal is seamless sales and distribution management, so that goods are readily available to end consumers in an effective, stable, and consistent manner.

As shared by market-leading companies, pharmaceutical distribution management poses enormous challenges: Appraising staff performance correctly and standardizing salesmen’s sales processes; Managing trade marketing programs and point-of-sale materials (POSM) at the outlets; Gathering market information, revenue, and product coverage figures accurately and in time for business decisions. In fact, manual sales and distribution management with overly basic tools like Excel files or paper reports has revealed several inefficiencies, causing waste of time, additional expenses, difficulty in controlling sales activities as well as results of promotion schemes, display, accumulation programs and POSM etc. For that reason, more and more enterprises have switched to applying information technology, especially pharmaceutical distribution management software such as DMS (Distribution Management System) solutions.

Distribution management software: New driving force for pharmaceuticals

On Monday 10 April 2017, DMSpro Joint Stock Company and Binh Dinh Pharmaceutical & Medical Equipment Joint Stock Company (Bidiphar) formally organized a kick-off ceremony for the DMS (Distribution Management System) project in Quy Nhon, Binh Dinh Province. Present at the ceremony were Mr. Peter Pham – Chairman of DMSpro, Mr. Nguyen Van Qua – CEO of Bidiphar, together with management personnel and other project members.

Mr. Peter Pham – Chairman of DMSpro and Mr. Nguyen Van Qua – CEO of Bidiphar signed the agreement to the witness of key delegates

According to the agreement, DMSpro will support Bidiphar in “technologizing” the management of outlets / distributors and pharmaceutical salesmen. Inheriting from the world-class ERP standards, the DMS solutions designed by DMSpro will help Bidiphar automate daily activities of salesmen, supervise sales routes on digital maps, capture visual aspects of display programs, POSM and product coverage on a real-time basis, and simultaneously manage all working calendars, administer market surveys and other strategic business reports for the company’s management.

Beside this so-called “technological transformation”, Bidiphar’s entire sales and distribution management processes will be significantly streamlined, which helps limit manual errors as much as possible, minimize human resources necessary to operate the system, enhance tighter working relationships between sales management, distributors’ accountants, sales representatives, and customers (retail outlets). These factors will serve to boost operational efficiency and make a positive impact on the bottom line.

Mr. Peter Pham – Chairman of DMSpro presented the project direction and commitment to a successful outcome

Speaking at the ceremony, Mr. Nguyen Van Qua – CEO of Bidiphar eagerly shared his objectives and expectations for the project. Most importantly, he mentioned Bidiphar chose to join forces with DMSpro because of the company’s creditability as the pioneer to provide cloud-based DMS (Cloud DMS) solutions, having a specialist team with over 15 years of experience in carrying out DMS projects in Vietnam and Southeast Asia for large companies and multinational corporations.

Mr. Nguyen Van Qua – CEO of Bidiphar expressed the investment decision for the project

Key delegates and project team members took a picture after the kick-off

With the aforementioned project, once again DMSpro has implemented the world-renowned DMS solution with customizations based on specific management models and culture of Vietnam’s pharmaceutical industry, for a Top-3 enterprise in this field. Amidst the current economic integration era, a success formula for the corporate community in general, and pharmaceutical companies in particular to secure their position and expand overseas is the ability to capitalize on profit-maximization potential. And the DMS solution has steadily proved to be one such “golden”, much sought-after opportunity.