The distribution of medical and hospital supplies in India is something that is still fraught with issues at different levels. Manufacturers of healthcare products are faced with a variety of problems in reaching the end users. They have to deal with entrenched information asymmetry and lack of streamlining of the purchase process. Similarly, they are expected to add value to those categories where conventional models have failed so far. To top it all, hospitals and clinics want manufacturers to deliver their quality products at lowest possible prices. So, their strategy has to be unique to impact every stakeholder in the demand chain.
Here are some of reasons for manufacturers to trust online stores –
1# Pan-India reach and penetration
For manufacturers, the biggest target is to enhance their reach and penetration to all parts of the country. They have to establish a pan-India presence to give boost to their sales and revenue targets. All this is not possible with the traditional model where the networks of distributors and suppliers come into play. They can list their products on web portals or stores so that more people can access them and benefit from. This is how they can make inroads even into those areas and geographies removed from the city and metro limits.
2# Deliver cost benefits to healthcare providers
Manufacturers of healthcare products are not able to realize their true potential due to barriers of distance and geography. The supply chain is convoluted and does not ensure easy access and convenience to end users. So, brands can look to benefit from online stores and ensure that hospitals and clinics get cost benefits with their medical supplies. They can stop the reliance on suppliers and rather decide to take their products to healthcare providers in a direct manner. This is how distribution costs are brought down to a great level and its benefits reach the end users in the true sense.
3# Control over the end prices of products
Presently, manufacturers are not in a position to have any kind of control over the end prices of their products. Even if they manage to bring down the costs of manufacturing medical products, they are not able to take those benefits to market in a desired manner. After all, a lot of layers are involved in the entire supply chain and this takes the distribution costs up to a considerable level. So, unless they associate with a direct sales channel, they won’t be able to control the prices of very products they intend to sell cheaper.
4# Superior visibility of products to end users
The only way manufacturers can benefit is when their products are visible to more users across the country. This is not possible when they rely on medical equipment suppliers as it fails to benefits beyond a point. On the other hand, they can associate with online stores and list their products on one or more popular portals to help more end users find them. This is how visibility can go up andmanufacturers can benefit a lot.