The role of healthcare distributors in the United States cannot be overstated. Without distribution companies like yours, the healthcare system would likely collapse. Distributors have various critical roles within the medical supply chain in the United States.
According to a 2019 study from Deloitte, healthcare distributors handle 92% of pharmaceutical sales that connect over 1,300 manufacturers to more than 180,000 points of dispensation. In addition, the worldwide distribution market was estimated at $810 billion in 2020 and is expected to surpass $1,380 billion by 2030.
Key Takeaways
- Healthcare distributors help streamline the medical supply process between manufacturers and healthcare providers.
- Distributors use their logical expertise to properly manage the shelf life and track the data of their medical supplies.
- Healthcare distributors can use long-term contracts to help manage the costs of medical supplies.
- Healthcare distributors become even more important during a health crisis.
Healthcare Distributors Are the Missing Link in the Supply Chain
The main goal of any healthcare distributor is to make sure medications and supplies arrive securely at healthcare facilities when medical professionals need them.
There are over 300,000 hospitals and healthcare providers in the United States. Without distributors, medical manufacturers would have to manage deliveries to each provider creating a complicated, cumbersome delivery network.
For those unfamiliar with the medical supply chain, they may assume that hospitals and pharmacies get their supplies directly from the manufacturer. However, medical distributors are like grocery stores. Instead of having to visit a butcher, a dairy farmer, and a baker to get your groceries, you can get everything you need at the same place. The same applies to healthcare distributors. Hospitals can get all the medical supplies and medications they need from just a few distributors instead of thousands of manufacturers.
Distributors are a critical link in the supply chain that helps streamline the supply process. Healthcare facilities rely on distributors to keep costs down and make the supply chain more efficient. Distributors can order supplies in bulk from manufacturers and store these supplies until healthcare facilities need them.
5 Things Healthcare Distributors Do to Deliver Logistical Expertise
As a healthcare distributor, you offer logistical expertise that most medical facilities are not equipped to deal with on their own. Distributors have five key benefits that make them invaluable to the healthcare industry.
1. Provide Space to Store Medical Supplies
Healthcare systems require a lot of medical supplies. While hospitals and other facilities may have storage rooms, most do not have the space necessary to store large quantities of long-term supplies. They need to use their space to focus on patient care instead of storing supplies. As a medical distributor, you have the space needed to store bulk supplies and quickly fulfill new orders.
2. Manage Quality and Recalls
As a distributor, you take pride in ensuring your medical supplies comply with FDA regulations and are vetted for quality. This is a time-intensive process that health providers cannot do. They need to spend their time focused on patients.
When product recalls occur, your company has the expertise required to precisely track and manage these events. You work closely with your customers, so they know what to expect during the recall process including whether or not a replacement product is available.
3. Monitor Product Shelf Life
Most medical supplies have a limited shelf life and need to be stored in a specific way. Your distribution company is an expert in managing product rotations and expirations. You have the staff required to monitor your supplies on a full-time basis. Most healthcare providers would need to invest in more staff if they wanted to do this themselves.
4. Track Data
While healthcare providers are experts in taking care of health needs, your company is an expert in tracking and analyzing data. As you track your medical supplies, you know when it is time to order more to eliminate any possible bottlenecks in the supply chain. Data analytics can also help keep costs under control as you plan certain purchases for certain times of the year.
5. Keep Pricing Stable
By giving healthcare providers multi-year contract options that lock in prices, distributors can form longer-lasting relationships with providers. This can help keep costs under control and keep services and supplies more predictable. Distributors should also be up-front with their customers about any price changes due to shipping difficulties or other circumstances.
Role of Healthcare Distributors During Health Emergencies
The COVID-19 pandemic highlighted some of the problems within the medical supply chain and showed how important medical distributors really are to the overall healthcare industry. Distributors are a key part in helping governments and other organizations manage a health crisis.
Here are some of the ways healthcare distributors can offer services and safeguards during disasters:
- Sourcing alternative products in the event of shortages.
- Vetting new suppliers and products for quality.
- Faster delivery to critical zones.
- Alternate delivery routes during natural disasters or weather-related incidents.
- Sequestering specific supplies for customer use during a pandemic.
A recent example of distributors filling this crucial role is during the early rollout of the COVID-19 vaccine. The vaccines and the necessary supplies to deliver them were in high demand. Distributors worked with government agencies to deliver these lifesaving supplies as efficiently as possible to where they were needed the most.
To learn even more about the details of how medical distributors responded to the pandemic, watch this interview with Matt DiLoreto, Vice President of State Government Affairs for the Healthcare Distributor Alliance.
Share Moving Media Can Help You Emphasize Your Irreplaceable Role
You know how important your role as a healthcare distributor is. To broaden your customer base, you need to share your successes. Share Moving Media can help with that.
We are experts in helping medical manufacturers and distributors like you with custom omnichannel marketing materials. Not only can we help you reach your customers through digital outlets, but through print publications as well.
Want to learn more about our marketing process? Give us a call or email us today to get started.