Daewoong Pharmaceutical to Implement 'Block-Based Hub Wholesale'... "Real-Time Delivery Tracking, Resolving Out-of-Stock Issues"

Streamlining Distribution Networks
Enhancing Supply Stability

Daewoong Pharmaceutical announced on December 11 that it will become the first company in the pharmaceutical industry to implement a 'block-based hub wholesale' system, aiming to address the issue of drug supply shortages.

Exterior view of Daewoong Pharmaceutical headquarters in Gangnam-gu, Seoul. Daewoong Pharmaceutical

On December 5, Daewoong Pharmaceutical posted a bid announcement for the 'selection of block-based hub wholesalers' on its website. The block-based hub wholesale system is designed to reduce the number of distributors in each region to one per area, instead of having multiple distributors in a single region. The company plans to work with a select group of wholesalers to introduce: ▲ smooth supply of out-of-stock medications, ▲ a real-time delivery and inventory tracking system (TMS), ▲ secure storage and distribution of pharmaceuticals, and ▲ an efficient return system for pharmacies.

The company aims to streamline supply routes by reducing the number of distributors, minimize redundant inventory held by each company, and ensure a smooth supply of pharmaceuticals to patients and pharmacies. By partially resolving the ongoing issue of drug supply shortages and establishing a system that enables real-time tracking of pharmaceutical inventory and deliveries, Daewoong Pharmaceutical expects to enhance transparency in the distribution process.

The company is also working to improve its return system. By collaborating with hub wholesalers in each region, it plans to standardize policies to facilitate easier returns.

A representative from Daewoong Pharmaceutical stated, "By closely collaborating with a select group of elite partners, we expect to significantly improve the quality of pharmaceutical storage and delivery services. Our goal is to build a distribution system that can quickly respond to the needs of pharmacies and consumers."

A representative from a pharmaceutical wholesaler also commented, "As the industry environment is changing rapidly, it is becoming increasingly necessary for the pharmaceutical distribution sector to maximize competitiveness by strengthening customer service. Continuous investment in essential pharmaceutical distribution capabilities is crucial for survival."

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