Research on Operating Management of Japanese Wholesale Drug Industry
Toward the development of Japanese version of NWDA
1997 Volume 7 Issue 3 Pages 25-52
Details
1997 Volume 7 Issue 3 Pages 25-52
The Japanese wholesale drug industry faces a harsh environment. In the search for methods to overcome the present environment, this study examined the possibility of developing a Japanese version of the NWDA (National Wholesale Druggist's Association) OS (Operating Survey). The study found the following four points.
1) The only available data source open to public,“Annual Report”, does not provide enough information for applying the U. S. 's NWDA.
2) Comparative financial analysis between the U. S. and Japan showed that the Japanese wholesale drug industry on the whole is lower in capital efficiency, and in labor productivity.
3) The comparative financial analysis between the industry and its“customer”, the hospital industry, showed that the wholesale drug industry (beyond the substantial difference among firms) has a larger amount of sales than the hospital industry. However, in terms of operating profit, the order was reversed.
4) The largest controllable cost of the industry is selling cost. The efficiency of cost was examined by looking at the relationship between MS (Marketing Specialist) workload and the amount of sales, as well as the relationship with the total profit. Since this study was based only on 6 firms and 9 branch offices, there was significant variation. However it should be useful in the start of developing a Japanese version of the NWDA.
