Podcast
Questions and Answers
What is the role of the CFA in the pharmaceutical distribution process?
What is the role of the CFA in the pharmaceutical distribution process?
- To directly supply products to retailers
- To regulate pharmaceutical prices
- To act as an intermediary between manufacturers and stockists (correct)
- To manufacture the products directly for consumers
Which of the following accurately describes the distribution flow of pharmaceutical products in India?
Which of the following accurately describes the distribution flow of pharmaceutical products in India?
- Manufacturer → Wholesaler → Retailer → Consumer
- CFA → Stockist → Retailer → Consumer
- Manufacturer → Retailer → Consumer
- Manufacturer → CFA → Stockist → Wholesaler → Retailer → Consumer (correct)
What has contributed to the increase in the number of stockists per pharmaceutical company?
What has contributed to the increase in the number of stockists per pharmaceutical company?
- Government regulations limiting the number of stockists
- Mergers and acquisitions of pharmaceutical companies (correct)
- Higher demand from consumers for direct purchases
- The expansion of retail stores in rural areas
Which group competes with each other to strengthen retailers' bargaining position?
Which group competes with each other to strengthen retailers' bargaining position?
What is the primary function of wholesalers in the pharmaceutical distribution channel?
What is the primary function of wholesalers in the pharmaceutical distribution channel?
Why might a manufacturer directly supply products to medical institutions without going through retailers?
Why might a manufacturer directly supply products to medical institutions without going through retailers?
What are the characteristics of the stockists involved in pharmaceutical distribution?
What are the characteristics of the stockists involved in pharmaceutical distribution?
How does increased competition at the distribution level affect stockists?
How does increased competition at the distribution level affect stockists?
What is the minimum number of days NDPL keeps stock-in-hand?
What is the minimum number of days NDPL keeps stock-in-hand?
How quickly does NDPL usually receive stock after placing an order?
How quickly does NDPL usually receive stock after placing an order?
What process occurs immediately after NDPL receives orders?
What process occurs immediately after NDPL receives orders?
What type of stocks are considered high-value at NDPL?
What type of stocks are considered high-value at NDPL?
Which year saw the highest expenditure on hardware according to the provided figures?
Which year saw the highest expenditure on hardware according to the provided figures?
In how many aisles is the stockroom at NDPL divided?
In how many aisles is the stockroom at NDPL divided?
In which fiscal year did software expenditures first exceed 1,000,000 INR?
In which fiscal year did software expenditures first exceed 1,000,000 INR?
What is the primary purpose of the dedicated person supervising high-value stocks?
What is the primary purpose of the dedicated person supervising high-value stocks?
What best describes the operating procedure for ordering at NDPL?
What best describes the operating procedure for ordering at NDPL?
What was the software expenditure in the fiscal year 2009-10?
What was the software expenditure in the fiscal year 2009-10?
How much did hardware expenditure decrease from 2008-09 to 2009-10?
How much did hardware expenditure decrease from 2008-09 to 2009-10?
What happens to the order list once it has been prepared at NDPL?
What happens to the order list once it has been prepared at NDPL?
What was the total hardware expenditure for the fiscal year 2010-11?
What was the total hardware expenditure for the fiscal year 2010-11?
Which year exhibited a software expenditure figure of 500,000 INR?
Which year exhibited a software expenditure figure of 500,000 INR?
What was the trend in hardware expenses from 2004-05 to 2005-06?
What was the trend in hardware expenses from 2004-05 to 2005-06?
Which fiscal year showed the lowest recorded expenditure in software?
Which fiscal year showed the lowest recorded expenditure in software?
What is the primary reason for keeping inexpensive medicines in open aisles?
What is the primary reason for keeping inexpensive medicines in open aisles?
What happens to medicines that are out of stock during the checking order process?
What happens to medicines that are out of stock during the checking order process?
What is the role of the delivery team in the process?
What is the role of the delivery team in the process?
Which financial year run does NDPL operate in?
Which financial year run does NDPL operate in?
How much was the sales revenue in 2001/02 compared to 2000/01?
How much was the sales revenue in 2001/02 compared to 2000/01?
In what year did NDPL reach a sales revenue of INR 121,900,000?
In what year did NDPL reach a sales revenue of INR 121,900,000?
What method is used for delivering medicines to ensure convenience?
What method is used for delivering medicines to ensure convenience?
What is verified by the guard before deliveries leave the premises?
What is verified by the guard before deliveries leave the premises?
What significant change was made in 2004 to address data redundancy and inconsistency?
What significant change was made in 2004 to address data redundancy and inconsistency?
How much time did the computerized system reduce the purchase order process from?
How much time did the computerized system reduce the purchase order process from?
What was the number of application servers after the introduction of new systems between 2007 and 2009?
What was the number of application servers after the introduction of new systems between 2007 and 2009?
What was the expenditure on software in 2004?
What was the expenditure on software in 2004?
What type of software is EasySol?
What type of software is EasySol?
What was the purpose of separating application servers from data servers?
What was the purpose of separating application servers from data servers?
What new technology was introduced along with the IBM servers?
What new technology was introduced along with the IBM servers?
What was the total hardware expenditure by 2009?
What was the total hardware expenditure by 2009?
Study Notes
NDPL's Distribution Channels
- NDPL acts as a wholesaler in the Indian pharmaceutical industry, supplying products to retailers and medical institutions.
- The company's distribution network involves multiple layers: manufacturers, CFAs/super-stockists, wholesalers, retailers, and end consumers.
- Manufacturers supply products to CFAs/super-stockists or company-owned depots, which then distribute to wholesalers.
- Wholesalers like NDPL then distribute products to retailers, medical institutions, and end consumers.
- Stockists typically market products from 6-8 pharmaceutical companies.
- NDPL's sister company, Dhruv Medicos Pvt.Ltd., owns 47 retail stores and has a tie-in with Apollo Pharmacy Retail outlets for supplies.
NDPL's IT Infrastructure and Implementation
- NDPL began its IT journey with a basic level of computerization in 2000/01.
- By 2004/05, the company had expanded significantly, leading to the integration of modules and centralization of databases with the introduction of servers and EasySol software.
- 2005-2006 saw further IT advancement with the introduction of electronic interaction between NDPL and parent companies, like manufacturers. This resulted in automated bill generation and significant improvement in time management for order processing.
- Between 2007-2009, NDPL introduced new systems, IBM servers, and differentiated data and application servers.
- The company embraced thin clients and wireless local area networks for efficient connectivity.
- By 2009, computerization had been implemented in almost all departments.
- The IT shift resulted in expenditure on software reaching INR 300,000 in 2009, and hardware expenditure reaching INR 482,000 in 2009.
NDPL's Financial Performance
- NDPL's sales revenue grew steadily, reaching INR 154,100,000 (US$2.45 million) in 2004/05.
- This growth was fueled by the expansion of the pharmaceutical market and the increasing number of pharmacy companies.
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Description
Explore the distribution channels and IT infrastructure of NDPL in the Indian pharmaceutical industry. Learn how NDPL operates as a wholesaler, connecting manufacturers, stockists, and retailers, while also delving into its technological advancements since 2000.