Successfully Implementing a Direct to Pharmacy (DTP) Distribution Model
The last few years have seen an increase in the focus of Pharmaceutical Manufacturers on their supply market arrangements. The Direct to Pharmacy model (DTP) has been a radical move in the UK, breaking away from the traditional model where manufacturers would sell to wholesalers.
DTP has created a new market in the provision of fee for service activity. Over a few short years in the UK, the DTP model has become established as the chosen route to market for most of the top 10 manufacturers. Each new model however has different features, using a different mix of suppliers, highlighting that there remains scope for greater harmonisation in the market, as well as room to innovate further.
Within the sponsoring company, DTP models require the re-design of many processes, and coordinated cross-business functional effort to implement. The overall strategic rationale for DTP goes much further than just changing supply routes. At its centre is the re-design of the business model, creating a new relationship and value propositions between innovative manufacturers and pharmacists as direct customers. The new model puts manufacturers in greater control of supply of medicines as well as impacting pharmacy margins, all of which comes with a greater obligation on the manufacturer to engage many external stakeholders through the implementation phase and beyond.
This Webinar will explore the rationale from an industry perspective for DTP, highlighting the challenges involved and lessons learned in managing the complex transition to a new operating model.
The Webinar will cover:
- Establishing the rationale and business case for change
- Developing a road-map to move from ‘as-is’ to ‘to-be’
- Considering the changing wholesaler responsiveness and competition in fee for service models.
- Assessing the organisational impact of moving to DTP
- Where can the industry innovate beyond DTP
Presenters:
David Watson
Commercial Operations Director PV BU Europe
Pfizer
