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The prescription for pharmaceutical success: distribution, sales and marketing services from DKSH

DKSH creates value and reduces risk by developing a sub-regional partnership in pharmaceutical distribution.

Business Units

Healthcare, Pharmaceuticals

Countries

Malaysia, Taiwan, Thailand

Challenge
A global top five pharmaceutical company looked to reduce reliance on a single distributor in Asia by diversifying its customer base. With the pharmaceutical industry’s margins under constant pressure, the client’s challenge consisted in increasing cost-effectiveness while at the same time maintaining the level of their sales and marketing services. DKSH‘s Business Segment Pharmaceuticals saw this as an opportunity to expand services with the client and create a long-term partnership.

Approach
Both parties approached the proposal with a high level of openness and an understanding of each other’s needs. Early in the discussion process, cross-functional teams were formed to interact with each other on regional and local levels in Malaysia, Thailand and Taiwan. While the process was regionally and globally driven, buy-ins from both parties at a local level were required to achieve a successful implementation and operation.

Result
Throughout 2008 numerous meetings were held to define costings, activities involved, and the best way to transfer the business from the existing distributor. Once the terms were agreed, local implementation teams met and started the implementation planning process for the go-live at the beginning of 2009. The local teams worked in a coordinated way across the three countries to ensure the client’s needs were uncovered, analyzed, and incorporated into the operations. This required a high level of co-operation with IT, sales, finance and supply chain. The result was a successful start on the due date. The client since continues to express satisfaction with DKSH service levels in regular reviews, and the partnership is successful for both parties.

Market Expansion Services at work: full-service excellence
Our integrated sales and marketing services now provide increased support to the client in Thailand and Taiwan, enhancing their cost-effectiveness while allowing them to focus on core brands. For DKSH, meeting the client’s specific needs has resulted in enhanced scale of business and opened up the opportunity to expand our service offering to the client.