Supply Chain in the Pharmaceutical Industry by Whewell Rob;

Author:Whewell, Rob;
Language: eng
Format: epub
Publisher: Taylor & Francis Group
Published: 2016-02-28T16:00:00+00:00

Figure 8.2 Parallel trade arises through price differences in neighbouring markets

Source: PA Consulting Group.

Figure 8.3 Is parallel trade a problem, to whom?

The major problem this situation presents to the company is that customers, large hospitals, buy the items from traders as they are available at much lower prices. As the nurses attempt to assemble the items they find that they either do not fit together or are loose. This results in a poor company image among the users of the products, and therefore has a negative impact on the company brand. I am uncertain whether the company has analysed the benefits in revenues and profits from maintaining the different specifications and supply matrix against lost future sales associated with poor image in the minds of end users, but suspect that such an analysis has not been undertaken.

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