Abstract: Chain pharmacies are one of the most important components of China’s pharmaceutical retail industry today. The operation and management models of chain pharmacies include direct operation, franchise, trusteeship, alliance and other models. Different from other pharmacies, chain pharmacies can choose suppliers from a wider range and have more bargaining chips with suppliers. Therefore, they can obtain lower purchase prices and reduce purchase costs, giving them a cost advantage. Let’s take a look with the editor next. What are the operation and management models of chain pharmacies
1. Classification based on chain control models
1. Direct-operated chain pharmacies
Direct-operated chain pharmacies refer to those operated by the head office A chain of drugstores developed and managed by direct investment (wholly owned or controlled).
2. Franchise chain pharmacies
A franchise chain, also known as a franchise chain, refers to the trademarks, trade names, products, patents and proprietary rights owned by the chain pharmacy headquarters with technical and management experience. The franchise of the technology, business model and products developed by the sales headquarters is granted to the franchised stores in the form of a franchise contract, and the franchise stores are guided and taught various operating techniques and experiences, and a certain percentage of royalties and guidance fees are charged.
3. Voluntary chain pharmacies
Voluntary chain is also called free chain, that is, pharmacies that voluntarily join the chain system. In the voluntary franchise system, product ownership belongs to the voluntary chain store owners, while system operation technology and proprietary information about drugstore brands are held by the headquarters.
4. Trusteeship
The trusteeship of a medical institution to a pharmacy means that the medical institution hands over the pharmacy to a pharmacy with strong management capabilities through a contract without changing the ownership. A business activity that is operated and managed for a fee by a legal person that can bear corresponding risks.
5. Pharmacy alliance
Pharmacy alliance refers to an organizational form in which chain drugstores gather alliance members to form an alliance, and help each alliance member achieve economies of scale such as purchasing and sales through the alliance platform.
2. Classification based on business scale
In terms of business scale, it can be divided into prefecture-level chain pharmacies, cross-regional chain pharmacies and national chain pharmacies.
3. Classification based on business profit model
In terms of profit model, it can be divided into diversified affordable drug supermarkets, health pharmacies, medical clinics, drugstores, and community convenience stores , standard drug supermarkets, supermarket stores-in-stores, specialized pharmacies, prescription pharmacies, OTC Class B counters, online pharmacies and other profit models.
4. Classification based on the nature of capital
From the nature of capital, there are stock market capital (Neptune), venture capital (Happy People), private capital (common people, Chengda Fangyuan) , state-owned capital (too large, consistent) go hand in hand with the stage.
5. Classification based on the operation model of chain companies
From the perspective of the operation model of chain companies, there are three types: investment management type, strategic control type, and business control type.
Advantages and Disadvantages of Chain Drug Stores
1. Advantages of Drug Chain Operations
1. Cost Advantages
Due to the same purchase, With large purchase quantities, chain pharmacies can choose suppliers from a wider range, and they also have more bargaining chips with suppliers. Therefore, they can obtain lower purchase prices and reduce purchase costs, giving them a cost advantage.
2. Logistics management advantages
Pharmaceutical chain operations have at least one distribution center, which is only responsible for the centralized purchase and unified distribution of the chain drugstores. Logistics rationalization can not only reduce the logistics costs of the enterprise, but also reduce The cost of goods sold, and more importantly, improve the management level of pharmacies by improving logistics.
3. Network and information advantages
Drugstore chains have controlled drug sales terminals in many cities with their strong network radiation and brand appeal. At the same time, due to its large number of outlets, it has strong information collection and information processing capabilities.
2. Disadvantages of pharmaceutical chain operations
1. Cross-regional chain expansion is restricted
Currently, cross-regional operations of chain pharmacies are subject to national policies and local protectionism. , corporate operation and management capabilities and other aspects of restrictions, the company's cross-regional operations are relatively slow. In addition, government support is insufficient and the focus is on the implementation of specific policies.
2. Lack of effective control over chain franchise stores
Chain pharmaceutical companies often regard franchising as a shortcut to expand chain operations, paying more attention to scale, quantity, and regional territory. Scale only focuses on the unification of external forms and ignores the construction and control of internal foundations, resulting in franchise chains being "continuous but not locked".
3. Backward corporate management
Although most chain pharmacies have achieved professional management, due to poor management foundation and incomplete management systems and mechanisms, corporate decision-making and production are highly arbitrary. The instability of enterprise business ideas makes it difficult to guarantee the long-term development of enterprises; at the same time, problems such as short-sightedness of operators, lack of professional talents, high staff mobility, and low operation and management efficiency are not conducive to the sustainable and healthy development of chain drugstores.
4. The diversification strategy of chain pharmacies is blocked
The diversification strategy is an effective way for enterprises to change their operating conditions. However, chain pharmacies, which specialize in pharmaceuticals, face many problems and are difficult to develop in order to achieve business diversification.