Centralized procurement means centralized procurement, which purchases goods, projects and services in the centralized procurement catalogue. For the purchaser, whoever offers the lowest price will win the bid. After winning the bid, the enterprise can become a supplier for this period of time. Previously, centralized purchasing had a great impact on pharmaceutical enterprises. Let's take a look at the main aspects.
what is the impact of centralized purchasing on pharmaceutical enterprises?
1 Reduce profits: For the winning enterprise, although the sales volume of the drug has increased, the price has been extremely low, and the profit margin of this company is very small for some time to come.
2 sales volume: if the successful bidder goes to the enterprise, it will take small profits but quick turnover, then for the unsuccessful enterprise, it will lose the order, and its sales volume will be greatly hindered. Moreover, if the enterprise fails to win the bid, it often means that the production cost of this product is higher than that of the winning enterprise.
3 research and development: innovative drugs generally have a patent period, so to some extent, this can avoid centralized collection. However, the difficulty in developing new drugs can be imagined, and after a large amount of investment, there may not be a higher investment.
in any case, centralized purchasing has squeezed out the gray profit space of pharmaceutical enterprises before. Although it will have an impact on the profits of the pharmaceutical industry in the short term, it will be beneficial to the healthy development of the industry in the long run. Because all the drugs appearing on the list of centralized purchasing are generic drugs, the emergence of centralized purchasing will also force enterprises to develop innovative drugs.
centralized pharmaceutical purchasing has an impact on the pharmaceutical industry, but it should also be divided into sub-industries. Moreover, the impact of centralized purchasing depends on the competitive pattern of the industry and the bargaining power of enterprises. The higher the concentration of the industry, the stronger the monopoly, the higher the bargaining power, and the limited influence of centralized purchasing.