On June 16, the Department of Market Order of the Ministry of Commerce held an on-the-spot demonstration meeting for the extension of pharmaceutical logistics services in Beijing, and officially announced the launch of an extension demonstration project for pharmaceutical logistics services.
The director of the Department of Market Order of the Ministry of Commerce, Chang Xiaocun, said at the meeting: “The development of modern pharmaceutical logistics is an important task for the management of the pharmaceutical distribution industry during the “Twelfth Five-Year Plan†period. We will develop professional services for pharmaceutical logistics and broaden the scope of services upstream and downstream. The establishment of a pharmaceutical supply chain system is an important part of the development of modern pharmaceutical logistics. At present, it is a good time to promote this work.†He also pointed out that the Ministry of Commerce will use the demonstration project to promote the development of modern logistics to achieve a breakthrough.
New model of business cooperation
With the introduction of new policies such as the national centralized bidding and procurement of medicines and the zero-rate rate of essential medicines, the orientation of hospitals for pharmacies has gradually shifted from a “profit center†to a “service center,†and many hospitals have proposed that drug stores gradually become specialized. New ideas for social management to improve efficiency and service quality and reduce human and material costs.
The urgent need for hospitals to change the functions of pharmacies and improve the efficiency and quality of drug circulation is an opportunity for the development of specialized enterprises in pharmaceutical logistics. Beifang Stock Co., Ltd. began to focus on the construction of modern pharmaceutical logistics in 2001, and it should be said that it is at the forefront of the industry in terms of pharmaceutical management automation and informationization. Nowadays, the modern logistics of medicine has become the core competitiveness of Bei Medicine Co., Ltd. During the “Eleventh Five-Year Plan†period, the company continues to develop healthily at an annual growth rate of 25%.
As a demonstration project for the Ministry of Commerce to promote the extension of medical logistics services, the cooperation between Beijing Medical and Tiantan Hospital can be said to be a relatively successful case.
It is understood that the "marriage" between the two parties began in 2009. Chen Jisheng, chairman of Beifang Pharmaceutical Co., Ltd., said that Beibei Pharmaceutical Co., Ltd., under the principle of not participating in drug procurement decisions and pharmacy services of hospital drugstores and ensuring data security of hospitals, learns from the advanced experience of foreign companies in the same industry and gives full play to the advantages of commercial enterprise logistics management. The information link is used as a pathway to provide Tiantan Hospital with related equipment, systems and services for in-hospital pharmaceutical logistics services, and to provide specialized and personalized information management solutions for drug stores.
Xiao Shuping, vice president of the Temple of Heaven Hospital, was very satisfied with the effectiveness of the services provided by Beifang. She said that with the help of Bei Medicine Co., Ltd., Tiantan Hospital's drug store introduced bar code technology, drug store space management technology, and automated facilities RF and electronic tags, which enabled the hospital drug store to realize the flow of various operations such as drug out of storage. Informatization, real-time monitoring of drug logistics status, realizing full monitoring of the validity period of drug batch number, improving the efficiency and accuracy of hospital drug circulation, and further reducing the overall cost.
Xiao Shuping gave several figures that more intuitively reflected the effect of the cooperation between the two sides: the drug store liberated 60% of pharmacists to return to clinical pharmacy services; through scientific layout and stereo storage, the storage capacity increased by 20%, and 30% of storage space was saved. The power consumption is reduced by 50%; due to the reasonable control of inventory, the inventory turnover rate has increased by 20%, which greatly reduces the operating costs of the drugstore.
Chen Jisheng stressed that the cooperation with Tiantan Hospital is neither a trustee nor a contractor, but a service outsourcing under the framework of socialization and division of labor cooperation. It is a comprehensive solution for providing information systems, automation technology and management to hospitals. This kind of cooperation is neither monopolistic nor exclusive. It is not a win-win benefit for hospitals. It is a win-win new cooperation model for medical and business cooperation: Through cooperation, Tiantan Hospital has improved its efficiency, reduced costs, and basically eliminated drugs. Waste, allowing pharmacists to liberate from cumbersome drug store management and return to pharmacy services; Bei Medicine Co., Ltd. obtains service cost benefits by providing quality services to hospitals and gains room for stable development in the future. "This is a new path to get rid of low-level competition. It has improved social benefits and the economic efficiency of enterprises."
New market transformation
It is an indisputable fact that China's pharmaceutical distribution industry has a high cost rate and a low profit margin. There is a big gap between the domestic level of modern logistics and developed countries. Some experts believe that in the face of fierce market competition, enterprises must accelerate the transformation of development methods, from the traditional business to the modern service industry, establish and lead the pharmaceutical industry supply chain, otherwise they will face the danger of being eliminated in the future market competition. Upstream and downstream service extensions will open up a new world for pharmaceutical distribution companies. The Ministry of Commerce hopes that this model can become a breakthrough point for the development of modern logistics in the industry.
The practice of Bei Medicine has proven that close and close cooperation with the hospital enhances the market competitiveness of the company. It is understood that in 2010, Beijing Medical Co., Ltd., in the centralized bidding and procurement of medical institutions in Beijing, won the bid of 16,000 standard varieties and accounted for 65% of all successful bid delivery varieties by virtue of its corporate strength and value-added services. In 2010, sales revenue increased by 36% over the previous year, and operating profit increased by 113% over the previous year. Chen Jisheng said that the implementation of the management of medical logistics extension services will further promote the sustainable development of enterprises.
Chang Xiaocun believes that this new type of customer relationship between Beijing Medical University and Tiantan Hospital greatly enhances the value of pharmaceutical distribution companies and changes the current status of modern pharmaceutical logistics, which is of great value for promotion.
The reporter learned that this extended service is becoming a new business actively explored by pharmaceutical distribution companies. Following the successful cooperation with the Tiantan Hospital, the logistics extension service of Beifang Co., Ltd. is being carried out successively by many hospitals such as Beiyisanyuan and China-Japan Friendship Hospital. In addition, large pharmaceutical logistics companies such as Sinopharm Group and Kyushu Link have all started to extend their efforts in extending logistics services to hospitals. According to reports, Sinopharm has developed a supply chain collaboration service platform for downstream hospital customers and has provided related services to 166 hospitals of different sizes such as Tianjin Anding Hospital. The Jiuzhoutong Group also cooperated with the People's Hospital of Peking University and the Third Hospital of the Beijing Armed Police Corps to provide logistics services through the hospital supply chain management program.
The market potential of logistics extension services is also very impressive. The number of medical and health institutions in China is very large. As of the end of 2010, there were nearly 21,000 hospitals alone, including nearly 14,000 public hospitals, and more primary medical institutions and specialized public health institutions, totaling 937,000. "These are the target markets for the extension of pharmaceutical logistics services," Chang Xiaocun said.
Wen Zaixing, deputy director of the Department of Market Order of the Ministry of Commerce, suggested that pharmaceutical distribution companies around the country should adapt to local conditions and explore different service models based on the hospital's different characteristics and needs.
It is understood that the Ministry of Commerce attaches great importance to the management of the pharmaceutical distribution industry. In the recent institutional reforms, special adjustments have been made to the functions. A pharmaceutical distribution office has been set up to manage this work and enrich the staff. At the on-site meeting on the same day, Chang Xiaocun asked all levels of commercial administrations not only to “develop modern pharmaceutical logistics and improve the efficiency of drug distribution†as an important task for the management of the pharmaceutical distribution industry during the “12th Five-Year Plan†period, but also As an important aspect of the entire domestic trade work, it will consider it as a whole, take effective measures, and actively promote it. Chang Xiaocun expressed that he hopes to extend the demonstration project through the implementation of pharmaceutical logistics services and promote the transformation of the pharmaceutical circulation industry from traditional business to modern service industry.
The director of the Department of Market Order of the Ministry of Commerce, Chang Xiaocun, said at the meeting: “The development of modern pharmaceutical logistics is an important task for the management of the pharmaceutical distribution industry during the “Twelfth Five-Year Plan†period. We will develop professional services for pharmaceutical logistics and broaden the scope of services upstream and downstream. The establishment of a pharmaceutical supply chain system is an important part of the development of modern pharmaceutical logistics. At present, it is a good time to promote this work.†He also pointed out that the Ministry of Commerce will use the demonstration project to promote the development of modern logistics to achieve a breakthrough.
New model of business cooperation
With the introduction of new policies such as the national centralized bidding and procurement of medicines and the zero-rate rate of essential medicines, the orientation of hospitals for pharmacies has gradually shifted from a “profit center†to a “service center,†and many hospitals have proposed that drug stores gradually become specialized. New ideas for social management to improve efficiency and service quality and reduce human and material costs.
The urgent need for hospitals to change the functions of pharmacies and improve the efficiency and quality of drug circulation is an opportunity for the development of specialized enterprises in pharmaceutical logistics. Beifang Stock Co., Ltd. began to focus on the construction of modern pharmaceutical logistics in 2001, and it should be said that it is at the forefront of the industry in terms of pharmaceutical management automation and informationization. Nowadays, the modern logistics of medicine has become the core competitiveness of Bei Medicine Co., Ltd. During the “Eleventh Five-Year Plan†period, the company continues to develop healthily at an annual growth rate of 25%.
As a demonstration project for the Ministry of Commerce to promote the extension of medical logistics services, the cooperation between Beijing Medical and Tiantan Hospital can be said to be a relatively successful case.
It is understood that the "marriage" between the two parties began in 2009. Chen Jisheng, chairman of Beifang Pharmaceutical Co., Ltd., said that Beibei Pharmaceutical Co., Ltd., under the principle of not participating in drug procurement decisions and pharmacy services of hospital drugstores and ensuring data security of hospitals, learns from the advanced experience of foreign companies in the same industry and gives full play to the advantages of commercial enterprise logistics management. The information link is used as a pathway to provide Tiantan Hospital with related equipment, systems and services for in-hospital pharmaceutical logistics services, and to provide specialized and personalized information management solutions for drug stores.
Xiao Shuping, vice president of the Temple of Heaven Hospital, was very satisfied with the effectiveness of the services provided by Beifang. She said that with the help of Bei Medicine Co., Ltd., Tiantan Hospital's drug store introduced bar code technology, drug store space management technology, and automated facilities RF and electronic tags, which enabled the hospital drug store to realize the flow of various operations such as drug out of storage. Informatization, real-time monitoring of drug logistics status, realizing full monitoring of the validity period of drug batch number, improving the efficiency and accuracy of hospital drug circulation, and further reducing the overall cost.
Xiao Shuping gave several figures that more intuitively reflected the effect of the cooperation between the two sides: the drug store liberated 60% of pharmacists to return to clinical pharmacy services; through scientific layout and stereo storage, the storage capacity increased by 20%, and 30% of storage space was saved. The power consumption is reduced by 50%; due to the reasonable control of inventory, the inventory turnover rate has increased by 20%, which greatly reduces the operating costs of the drugstore.
Chen Jisheng stressed that the cooperation with Tiantan Hospital is neither a trustee nor a contractor, but a service outsourcing under the framework of socialization and division of labor cooperation. It is a comprehensive solution for providing information systems, automation technology and management to hospitals. This kind of cooperation is neither monopolistic nor exclusive. It is not a win-win benefit for hospitals. It is a win-win new cooperation model for medical and business cooperation: Through cooperation, Tiantan Hospital has improved its efficiency, reduced costs, and basically eliminated drugs. Waste, allowing pharmacists to liberate from cumbersome drug store management and return to pharmacy services; Bei Medicine Co., Ltd. obtains service cost benefits by providing quality services to hospitals and gains room for stable development in the future. "This is a new path to get rid of low-level competition. It has improved social benefits and the economic efficiency of enterprises."
New market transformation
It is an indisputable fact that China's pharmaceutical distribution industry has a high cost rate and a low profit margin. There is a big gap between the domestic level of modern logistics and developed countries. Some experts believe that in the face of fierce market competition, enterprises must accelerate the transformation of development methods, from the traditional business to the modern service industry, establish and lead the pharmaceutical industry supply chain, otherwise they will face the danger of being eliminated in the future market competition. Upstream and downstream service extensions will open up a new world for pharmaceutical distribution companies. The Ministry of Commerce hopes that this model can become a breakthrough point for the development of modern logistics in the industry.
The practice of Bei Medicine has proven that close and close cooperation with the hospital enhances the market competitiveness of the company. It is understood that in 2010, Beijing Medical Co., Ltd., in the centralized bidding and procurement of medical institutions in Beijing, won the bid of 16,000 standard varieties and accounted for 65% of all successful bid delivery varieties by virtue of its corporate strength and value-added services. In 2010, sales revenue increased by 36% over the previous year, and operating profit increased by 113% over the previous year. Chen Jisheng said that the implementation of the management of medical logistics extension services will further promote the sustainable development of enterprises.
Chang Xiaocun believes that this new type of customer relationship between Beijing Medical University and Tiantan Hospital greatly enhances the value of pharmaceutical distribution companies and changes the current status of modern pharmaceutical logistics, which is of great value for promotion.
The reporter learned that this extended service is becoming a new business actively explored by pharmaceutical distribution companies. Following the successful cooperation with the Tiantan Hospital, the logistics extension service of Beifang Co., Ltd. is being carried out successively by many hospitals such as Beiyisanyuan and China-Japan Friendship Hospital. In addition, large pharmaceutical logistics companies such as Sinopharm Group and Kyushu Link have all started to extend their efforts in extending logistics services to hospitals. According to reports, Sinopharm has developed a supply chain collaboration service platform for downstream hospital customers and has provided related services to 166 hospitals of different sizes such as Tianjin Anding Hospital. The Jiuzhoutong Group also cooperated with the People's Hospital of Peking University and the Third Hospital of the Beijing Armed Police Corps to provide logistics services through the hospital supply chain management program.
The market potential of logistics extension services is also very impressive. The number of medical and health institutions in China is very large. As of the end of 2010, there were nearly 21,000 hospitals alone, including nearly 14,000 public hospitals, and more primary medical institutions and specialized public health institutions, totaling 937,000. "These are the target markets for the extension of pharmaceutical logistics services," Chang Xiaocun said.
Wen Zaixing, deputy director of the Department of Market Order of the Ministry of Commerce, suggested that pharmaceutical distribution companies around the country should adapt to local conditions and explore different service models based on the hospital's different characteristics and needs.
It is understood that the Ministry of Commerce attaches great importance to the management of the pharmaceutical distribution industry. In the recent institutional reforms, special adjustments have been made to the functions. A pharmaceutical distribution office has been set up to manage this work and enrich the staff. At the on-site meeting on the same day, Chang Xiaocun asked all levels of commercial administrations not only to “develop modern pharmaceutical logistics and improve the efficiency of drug distribution†as an important task for the management of the pharmaceutical distribution industry during the “12th Five-Year Plan†period, but also As an important aspect of the entire domestic trade work, it will consider it as a whole, take effective measures, and actively promote it. Chang Xiaocun expressed that he hopes to extend the demonstration project through the implementation of pharmaceutical logistics services and promote the transformation of the pharmaceutical circulation industry from traditional business to modern service industry.
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