Sales Structure

In: Business and Management

Submitted By muskansoni12
Words 716
Pages 3
Indian Pharma industry : Example
Entities Involved
CFA: most companies’ keep 1- 3 CFAs in each target Indian state and total CFAs are 25-35. Ranbaxy has 28 CFAs across India
Stockist: 5-15 depending on city area
Retail Pharmacy

Basic Distribution structure

Distribution chain of ABC company in Andhra Pradesh

Typical Supply chain

Distribution Structure
Normally two types of supply chain models are followed: 1. Replenishment based model: This is most suited in a dynamic environment where demand, features, quality required, change very often. In such scenario there should not be any excess or shortage of inventory at stockist/sub stockist or retailers end.
Manufacturer need to bear higher cost of transportation in this model at the cost of greater responsive at stockist and retailers end.

Teva Pharma, a major generic pharma company based out of Israel follows replenishment based system.

2. Forecast based model: suited in an environment where upcoming demand will be similar to the forecasted one i.e. demand, features required are not changing very often. Manufacturer’s transportation cost goes down. This model fails when product specifications or demand change rapidly resulting in excess/shortage of inventory

Typical sales force structure in Pharma industry
A large pharmaceutical company in India is usually divided into strategic business units (SBUs) based on therapeutic areas like cardiology, urology etc. Sales force is structured under each therapeutic area and managed by a national sales manager.

Each NSM then handles sales force as depicted below.

some companies doesn’t have Regional sales manager and zonal sales manger only deals with ASMs. Since sales force required will be very high (sales force required for each SBU) to have pan India access, therefore some companies hire independent sales territory executives.

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