Pharma Industry

In the last decade, the pharma and healthcare industry has been experiencing intense merger and acquisition activity. The rationale behind such concentration process is not merely financial. Every market is reaching a new maturity that stems from the continuous adoption of advanced technologies, both on the business and consumer side. Strange as it may sound, the pandemic has accelerated Industry 4.0’s implementation, making continuous adaptation of business models a must, even for industry leaders.

In such a scenario, a win-win approach to the pharmacy retail channel, which is changing as well, is everybody’s priority, along with the overall optimization of commercial and logistic operations.

Pharma Retail

Pharmacies are a basic service. As such, they remain a solid business despite the economic downturn. Nevertheless, increased competitive pressure within the channel and from outside, as well as budget constraints on public reimbursement policies, call for innovative business responses. Pharmacies, both independent and chain-owned, must grow revenues and maximize profit margins while they preserve the social healthcare profile that makes them unique and popular.

Customer fidelity improvement and average receipt increase require strategic commercial planning, fast category management, and out-of-stock prevention. Inventory is the heaviest investment item for a pharmacy. Revenue and inventory turnover maximization shall never trigger a price run-down, though. Margin must be preserved in all scenarios, even in the categories most prone to price competition.