I recently read a blog post talking about doing what you say you’re going to do as it relates to sales (http://vergestartups.com/the-most-important-skill-in-business/). As simple as it sounds, many folks just simply do not follow through on their commitments. When we sign new customers, here are the most common issues they describe with their former supplier:
- Responsiveness. Believe it or not, one of the most common complaints is that their prepackaged medication supplier is unresponsive. Requests for pricing, service, information or other support are not handled quickly. Though there are many potential reasons your supplier is unresponsive, do they really matter? Quality service is really a cultural issue and some organizations simply make it more of a priority.
- Long waits for orders. Most clinics do not have large spaces to store pharmaceuticals so timeliness in the receipt of orders is critical to having what you need for your patients. Because there are many factors applying pressure on the pharmaceutical supply-chain, it isn’t always your suppliers fault. However, persistent issues across multiple products might indicate an internal issue with your supplier. Some repackagers package pharmaceuticals to order and some package to inventory. If your supplier is waiting until you order to package your medications, it will take longer to ship.
- Inflexibility. This is one of the soft items that falls into the “eye of the beholder” category. Labeling, shipping, pill count and a host of other options fall under the “flexibility” banner. As more repackagers consolidate and become bigger, flexibility tends to decrease. Large business models are dependent on static processes and have more difficulty maintaining profit margins when trying to be flexible. Flexibility can also be an issue when you are dealing with a middleman – an agent who is representing a supplier and often unable to affect change up the chain. Smaller, more nimble suppliers can often provide an edge in the “flexibility” category.
- Product Availability. Successful physician dispensing is based on having the right product at the right price to give to the patient at the right time. Many suppliers are having trouble maintaining stock of certain medications. Pharmaceuticals for pain management are a challenge right now because of DEA pressure in the market and many suppliers are choosing not to distribute weight management products. Add quotas imposed by large wholesalers and manufacturers plus the cost of maintaining a large inventory of prepackaged products and you end up with a more limited availability of certain products. Be sure to ask your supplier about their approach to inventory management and product mix.
Though the points above are slanted toward my industry, prepackaged pharmaceuticals for point-of-care dispensing, they apply to all industries. Good relationships are built and even the best suppliers will run into occasional bumps. However, time will reveal the patterns.
The issues above can be difficult to assess when evaluating a new supplier – they are intangibles that are typically only identified after you’re working with a vendor. Fortunately, vendors will normally show signs one way or the other during the review process. I will discuss the signs in a future post.
