Abstract
Since the 1990's, pharmaceutical distribution in Japan has been changing dramatically.
Consolidating into four dominant wholesale groups through M&A, Mediceo Paltac HD., the largest one, is now achieving annual revenue of 200 billion dollars. But it does not mean that the management bases of drug wholesalers have been strengthened. On the contrary, the profitability of drug wholesalers is falling to zero because of severe competitive pressure and the increasing bargaining power of drug buyers. Drug wholesalers are now facing various problems caused by deregulation and health care reform. Particularly, trade conflicts between drug wholesalers and their buyers (large hospitals, chain pharmacies, and drugstore chains) are adversely affecting drug wholesalers ' business. Finding the way to improve distorted trade practices is one of the most critical issues of the pharmaceutical distribution policy.
We are studying issues such as the public pricing policy, improving trade practices, wholesalers' business strategy, empowering sales people, IT and logistics management.
We are also focusing on the possibility of collaboration and partnership between wholesalers and their customers from the viewpoint of supply chain management.
Recently, another new issue has emerged. When a disaster, such as a pandemic, major earthquake or terrorism, occurs, drug wholesalers are expected to supply medicines quickly and accurately. So, in 2006, we decided to study the necessity of crisis management and contingent supply chain management for drug wholesalers. In this context, pharmaceutical distribution could work as a part of the social system.
