Research On The Chinese Distribution Channel Management For Medicines Based On Supply Chain

With the reform of national medical system and the acceleration of world wide unification, the market situation that Chinese pharmaceutical enterprise faces is experiencing radical changes. Traditional pharmaceutical distribution channel is facing serious challenges, while the distribution module is keeping dramatically changing as well. Therefore, distribution channel management becomes more and more strategically important. Given distribution makes of the core of enterprise operation, distribution channel constitutes the most important part of distribution strategy, being the bridge between enterprise and market, the liaison between product and customer. Distribution building-up has become the driven factor for pharmaceutical enterprise to survive and develop. The design and selection of distribution channel plays a decisive role in distribution channel building-up.Based upon distribution management, supply chain management and game theory, this article analyzes the related issues in pharmaceutical distribution channel by placing distribution channel in the environment of whole supply chain with manufacturer in center. In addition, in consideration of uniqueness of pharmaceutical industry and specialty of pharmaceutical market, this article divides the pharmaceutical distribution building-up process into two stages, namely design and implementation, by providing relevant procedure for each stage. Markov theory is applied in implementation process to analyze supply chain availability. Meanwhile, upon supply chain consolidation theory, distribution channel management is separated into three parts, namely distributor management, channel management and logistics module management. At last, this article provides distribution channel management strategy, upon analysis of distributor management and channel management in game theory and assessment on distributor performance in DEA module.On the top of the academic analysis, this article takes M pharmaceutical company as the example to analyze the problems in distribution channel module, and comes out with the multi-distribution channel module, taking into account of the product characteristics. Furthermore, this article does research on the potential problems that may occur in new distribution channel implementation and management, and provides preventive suggestion and solution.The purpose of this article is to help pharmaceutical enterprise to set up distribution channel module, and to take control in the channel management, as well as to provide reference to small size pharmaceutical company in the sense of distribution channel design, selection, and implementation.