Download - Distribution in pharmaceuticals
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DISTRIBUTION:
Ensure product availability as per thedemand in the market.
This is achieved through differentintermediaries which is thedistribution channel or supply chain.
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MANUFACTURER
CENTRAL WARE HOUSE
CONSINGEE AGENT /
SUPER DISTRIBUTOR
STOCKIST
RETAILER/CHEMISTS
CUSTOMER
SUPPLY CHAIN
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CENTRAL WARE HOUSE
Finished products reaches the CWHwhere it is properly stored.
Optimum temperature is maintained
wherever required. Stocks are stored on pellets and
racks free of pests and moisture.
From CWH stocks are distributedthrough out the country through thechannels of distribution.
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STOCKISTS
Appointment of New Stockist:
The party should have strong financialsand good reputation in market.
Stockist Appointment proposal form to befilled and all required documents to besubmitted viz.Drug Licence, VATregistration etc.,
Application from the party to be attached NOC to be obtained from Trade
Association.
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SUPPLIES TO STOCKISTS
STAMPED & SIGNED ORDER IN STOCKIST LETTERHEAD WITH CHEQUE
CHEQUE WILL BE DEPOSITED ON THE 7TH DAY
FROM THE DATE OF SUPPLY FOR LOCALSTOCKISTS AND ON 21ST DAY FOR OUTSTATIONSTOCKISTS.
NO SUPPLIES IF PAYMENTS ARE PENDING FOR
EARLIER SUPPLIES
CHEQUE BOUNCED D.D. SHOULD BE GIVEN
FURTHER SUPPLIES WILL BE ON ADVANCE D.D.
FOR CHEQUE BOUNCED PARTIES
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PRICEThe three important components of the price of a product are:
MRP- Maximum Retail PriceThis is the rate at which the chemists sell the products to the finalcustomer.
MRP is inclusive of All Taxes
PTR Price to RetailerThe price at which stockists sell to retailers / Chemists
PTS Price to Stockist
The price at which stockist buys the products from SD/CA.Also the price at which company sells/transfers the products toSD/CA.
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TRADE MARGINS
MRP (Excl.of VAT)
Less 20%
PTRLess 10%
PTS
As per MOU between trade association &Manufacturers association 20% margin to be given
to retailer and 10% to stockist
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VAT
The rate of VAT for Medicines variesfrom 4% to 5%
And 12.5% to 15% for Dietaryproducts (Food supplements)
The VAT can either be on MRP or onbilling rate based on the notificationby the state sales tax department
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STATE WISE VAT STRUCTURE
State Tax Calculated on
Tax on foodSupplement
Andhra Pradesh 4% Transaction based VAT 14.50%
Assam 5% Transaction based VAT 13.50%
Bihar 5% 13.50%
Chhattisgarh 5% MRP exclusive of tax 14.00%
Delhi 5% Transaction based VAT 12.50%
Gujarat 5% 15.00%
Haryana 5% Transaction based VAT 13.25%
Jharkhand 5% MRP exclusive of tax 14.00%
Karnataka 5% MRP exclusive of tax 14.00%
Kerala 4% MRP exclusive of tax 12.50%
Madhya Pradesh 5% Transaction based VAT 12.50%
Maharashtra 5% Transaction based VAT 12.50%
Orissa 4% MRP exclusive of tax 13.50%
Punjab 5.50% Transaction based VAT + 5% SC 13.50%
Chandigarh 5% Transaction based VAT + 5% SC 12.50%
Rajasthan 5% MRP exclusive of tax 14.00%
Tamilnadu 4% Transaction based VAT 12.50%
Uttar Pradesh 5% 4+1 on transaction based VAT 13.50%
Uttranchal 4.5% Transaction based VAT 13.50%
West Bengal 4% MRP exclusive of tax 13.50%
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FREE OFFER / SPECIALRATE
Request to be given in the prescribedformat.
Free offer /special rate to be parted
only as per the written approval fromDistribution department (H.O.).
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SHORT EXPIRY
IDENTIFY THE PRODUCTS WITHSHELF LIFE LESS THAN 6 MONTHSAT THE RETAILERS AND LIQUIDATE
THEM FIRST.
ELIMINATE EXPIRY RETURNS.
NO EXPIRY RETURNS MOREPROFIT
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PRODUCT COMPLAINTS
COLLECT ALL DETAILS LIKEPRODUCT NAME, BATCH NO,EXPIRY DATE ETC. AND INFORM
YOUR MANAGERS AND HEADOFFICE IMMEDIATELY.