Although Tier 1 metropolitan markets benefit from sophisticated logistics frameworks, the deployment of B2B pharmaceutical distribution in Tier 2 and Tier 3 cities is wrought with operational problems. Retail pharmacies located outside urban areas face issues such as delayed deliveries, lack of product availability, and unpredictable delivery schedules.
To overcome this challenge in regional healthcare, B2B marketplaces need to move beyond simple SOPs and employ concrete, metric-based SLAs.
Read on to find out how modern healthcare delivery networks enhance last-mile delivery, develop micro-fulfillment centers, and provide guaranteed same-day delivery to retail pharmacies.
The Non-Metro Logistics Dilemma in B2B Pharma
When expanding pharmaceutical supply chains into new regional hubs, there are major challenges to execution that should be considered:
1. Fragmented last-mile delivery: Small towns and rural areas often do not have a consolidated third-party logistics company working in the region, making delivery timely and reliable.
2. Inaccurate inventory counts: Lack of synchronization of inventory data leads to unwarranted out-of-stock and canceled orders of key medicines.
3. Uneven warehouse execution: The absence of standardized workflows results in slower picking and dispatch processes at regional hubs.
- **4. Inefficiencies in capital : ** Establishing traditional distribution warehouses in smaller markets limits flexibility in geography and increases expenses due to high capital costs.
B2B pharmaceutical networks try to overcome these roadblocks by collaborating with technology-based fulfillment orchestration companies such as Edgistify
Blueprint for Scaling Regional Healthcare Supply Chains
Step One: From Operational Standard Operating Procedures to Strict Service Level Agreements
Essentially, SOPs indicate the method of completing work while the SLAs specify the level of performance. Regional fulfillment centers need to determine:
- Inwarding SLA : Accomplishing the operations of receiving, verifying and binning stock within two hours since the arrival to the dock.
- Dispatch SLA : Making a processing of the order within 90 minutes from receiving it in the system to delivery to the courier.
- Accuracy SLA : Achieving over 99.9% accuracy in picking with the help of the barcode- based system verification.
StepTwo: Setting Up Modular Micro-Fulfillment Dark Stores
Pharma platforms resort to using dark stores not located in the hundreds of kilometers central hub but set one up at a local/regional based center. They support high-velocity catalogs that are selected according to local regional needs (in terms of categories, such as Allopathy, Generics, Ayurvedic, Surgical).
Step Three: Structure Planning of Last-Mile Route Networks
Last-mile delivery is different in non-metro cities; thus the route planning should also be very specific. Regional chemists can be grouped into the zones for the deliveries since a local courier could do several deliveries a day.