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How does the Pharma Supply Chain Function?

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The pharmaceutical manufacturing industry in India consists of three major components: research and development, manufacturing, and the distribution and supply chain. All the three have to work in unison to maximize profits and grow together as an industry. Generally, research and manufacturing is a controlled process, but the supply chain is distributed all over the country and sometimes across borders and needs proper management to function efficiently. The supply chain is divided into storage, transportation, retail distribution, and marketing.

This article is prepared to illuminate the functioning of the pharmaceutical supply chain in India.

Stages in Supply System

The supply system is a four-step process.

  • Demand and supply management
  • Storage and transportation
  • marketing
  • Wholesale and retail distribution

Demand and Supply Management

The demand and supply data across various channels is vast, with numerous drugs, different zones, and cities. It must be collected, recorded, and organized under a single folder and then analyzed for inventory management with older files and stocks. Therefore, data analyzing software must be installed, and proper training for staff to maintain the data must be given.

Storage and Transportation

When demand arises, the drugs cannot be transported from the manufacturing unit, as it is time and fuel-consuming. Therefore, based on future needs and with the help of inventory management, local warehouses and storage units must be erected to store the drugs locally. Storing drugs is not like storing other everyday products; the environment needs to be clean and sterilized. It should be free of moisture, the products shouldn’t be exposed to direct sunlight, and the place should be free of pests. Also, several drugs need to be stored at room temperature and in freezer units to store drugs.


This is a vital stage in any industry. Marketing is the key to sustainability in any industry as it is the essential tool for the growth and development of any pharma supply company. The marketing channels are handled by both the supply chains and the manufacturing company. Investing in the latest and most effective marketing practices help reaches a wide range of people and increases the demand for the products.

Whole Sale and Retail Sales

Wholesalers are the key to extending and establishing a business in any particular area. These people have an established business of distributing medicines to local pharmacies. A pharma supplier company approaches them, signs contracts, and deals with them to store and distribute their drugs to the local retail business and from them to the patients. They also have medical representatives whom we can hire to demonstrate and market our drugs to doctors.


The supply chain is a significant component of the pharma manufacturing industry. The proper function of the distribution channels is crucial for the growth of pharmaceutical manufacturing in India. Proper inventory management, demand and supply data analysis, and storage solutions ensure the smooth functioning of the distribution channels or pharma supply chains.

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