Understanding the Prescription Drug Supply Chain


The prescription drug supply chain paves the way for patients to receive medicines that are manufactured and delivered in a prescribed way. It may seem to be an easy process. But in reality, the prescription drug supply chain network is very complex. It involves several factors that must be taken into account to ensure that the right medications are available and accessible to the patients at the right time.

What Does Prescription Drug Supply Chain Include?

There are four components of prescription drug supply chains: manufacturing, distribution, payment, and drug demand. The particular processes in the supply chains for prescription drugs vary depending on the kind of substance, the distribution methods, and the patient’s source of prescription drug coverage. Prescription drug channels involve:

Stakeholders: The primary stakeholders usually involve drug manufacturers, pharmacies and patients. These channels collaboratively work with the brand drug manufacturers and pharmacies to achieve the final fulfillment of prescriptions.

Secondary Stakeholders: The prescribers work with an organized and systematic network with little engagement of office resources.

Who can Benefit from the Prescription Drug Supply Chain?

  • Manufacturers
  • Clinicians
  • Pharmacists
  • Patients

Some Key Facts About Prescription Drug Supply Chain  

  • Obtaining active pharmaceutical ingredients, packaging, and formulation are all parts of the prescription medicine supply chain.
  • Financial incentives are the main motivating element between the prescription drug supply chain and the actions of stakeholders.
  • Only 10% of prescriptions are for brand-name medications, despite the fact that about 80% of spending is available. 90% of prescriptions and the remaining 20 % of expenses are mostly for generic medications.

Given the pace of change in the prescription drug industry, with new adaptations and arrangements, a rise in prescription drug channels is expected. FourSquare provides the platform where all the stakeholders including manufacturers can leverage the benefits of an efficient drug supply chain. Contact today to partner with us.