NDPL Distribution and IT Infrastructure

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Questions and Answers

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?

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?

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?

Stockists of the same company’s products Signup and view all the answers

What is the primary function of wholesalers in the pharmaceutical distribution channel?

To aggregate products from various manufacturers Signup and view all the answers

Why might a manufacturer directly supply products to medical institutions without going through retailers?

To reduce overall costs in distribution Signup and view all the answers

What are the characteristics of the stockists involved in pharmaceutical distribution?

They generally market products from six to eight pharmaceutical companies Signup and view all the answers

How does increased competition at the distribution level affect stockists?

It enhances their bargaining position with retailers Signup and view all the answers

What is the minimum number of days NDPL keeps stock-in-hand?

21 days Signup and view all the answers

How quickly does NDPL usually receive stock after placing an order?

By the third day Signup and view all the answers

What process occurs immediately after NDPL receives orders?

Assessment and rechecking Signup and view all the answers

What type of stocks are considered high-value at NDPL?

Stocks priced over INR 500 Signup and view all the answers

Which year saw the highest expenditure on hardware according to the provided figures?

2011-12 Signup and view all the answers

In how many aisles is the stockroom at NDPL divided?

Seven aisles Signup and view all the answers

In which fiscal year did software expenditures first exceed 1,000,000 INR?

2007-08 Signup and view all the answers

What is the primary purpose of the dedicated person supervising high-value stocks?

To prevent thefts Signup and view all the answers

What best describes the operating procedure for ordering at NDPL?

Orders are booked on a weekly basis Signup and view all the answers

What was the software expenditure in the fiscal year 2009-10?

643,000 INR Signup and view all the answers

How much did hardware expenditure decrease from 2008-09 to 2009-10?

400,000 INR Signup and view all the answers

What happens to the order list once it has been prepared at NDPL?

It is printed and handed to a stockroom employee Signup and view all the answers

What was the total hardware expenditure for the fiscal year 2010-11?

1,483,000 INR Signup and view all the answers

Which year exhibited a software expenditure figure of 500,000 INR?

2005-06 Signup and view all the answers

What was the trend in hardware expenses from 2004-05 to 2005-06?

Increased Signup and view all the answers

Which fiscal year showed the lowest recorded expenditure in software?

2003-04 Signup and view all the answers

What is the primary reason for keeping inexpensive medicines in open aisles?

To ensure easy access Signup and view all the answers

What happens to medicines that are out of stock during the checking order process?

The order list is modified Signup and view all the answers

What is the role of the delivery team in the process?

To ensure efficient distribution Signup and view all the answers

Which financial year run does NDPL operate in?

April 1 to March 31 Signup and view all the answers

How much was the sales revenue in 2001/02 compared to 2000/01?

31.8 percent higher Signup and view all the answers

In what year did NDPL reach a sales revenue of INR 121,900,000?

2002/03 Signup and view all the answers

What method is used for delivering medicines to ensure convenience?

Environmentally friendly bags Signup and view all the answers

What is verified by the guard before deliveries leave the premises?

That no theft has occurred Signup and view all the answers

What significant change was made in 2004 to address data redundancy and inconsistency?

Integration of modules and centralization of databases Signup and view all the answers

How much time did the computerized system reduce the purchase order process from?

From 8 hours to 30 minutes Signup and view all the answers

What was the number of application servers after the introduction of new systems between 2007 and 2009?

Three application servers Signup and view all the answers

What was the expenditure on software in 2004?

INR 200,000 Signup and view all the answers

What type of software is EasySol?

Pharmaceutical sales force automation software Signup and view all the answers

What was the purpose of separating application servers from data servers?

To improve system performance Signup and view all the answers

What new technology was introduced along with the IBM servers?

Thin clients Signup and view all the answers

What was the total hardware expenditure by 2009?

INR 482,000 Signup and view all the answers

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.