The Importance of Secondary Wholesalers in Managing Drug Shortages and Omissions in the Drug Supply Chain

In recent years, drug shortages have become a growing concern within the healthcare system, posing significant risks to patient outcomes and creating logistical challenges for pharmacies. These shortages are often the result of manufacturing disruptions, regulatory issues, and supply chain vulnerabilities. As a result, pharmacies must adopt strategies to ensure consistent access to essential medications. One critical approach is the utilization of secondary wholesalers to manage omits from primary suppliers.

Understanding the Role of Secondary Wholesalers

Secondary wholesalers are key players in the pharmaceutical supply chain. Unlike primary wholesalers, who often have exclusive agreements with manufacturers, secondary wholesalers operate independently and provide an alternative source of medications. This allows them to serve as a safety net when primary suppliers face disruptions, ensuring that pharmacies can still procure the drugs they need to serve their patients.  Patient adherence plays a vital role in controlling healthcare costs and often impacts pharmacy reimbursement models.

Secondary wholesalers specialize in sourcing medications from a variety of sources, often participating in group purchasing organizations to negotiate lower prices to remain reasonably competitive with primary wholesalers. This flexibility allows them to fill gaps in the supply chain and respond quickly to market fluctuations.  This diversification strategy offsets the risk of larger manufacturers having issues that impact full-line wholesalers fulfillment rates.

Why Drug Shortages Are a Growing Concern

The increasing impact of drug shortages has drawn the attention of policymakers and healthcare leaders alike. A recent congressional hearing highlighted the dire consequences of these shortages, including delayed treatments, compromised patient care, and increased costs for healthcare providers. The hearing underscored the need for robust solutions to strengthen the drug supply chain and mitigate risks to patient safety.

The U.S. Pharmacopeia (USP) has also emphasized the importance of addressing supply chain vulnerabilities. Their research identifies several contributing factors to drug shortages, such as limited production capacity, quality issues, and market consolidation. These challenges make it imperative for pharmacies to diversify their sourcing strategies to ensure consistent access to medications.

How Pharmacy Marketplace Identifies the Right Secondary Suppliers

Pharmacy Marketplace recognizes the critical role that secondary wholesalers play in mitigating drug shortages. By leveraging advanced technology and industry expertise, Pharmacy Marketplace helps pharmacies identify reliable secondary suppliers that meet their specific needs.

1. Comprehensive Supplier Database: Pharmacy Marketplace maintains a network of vetted secondary wholesalers, ensuring that pharmacies have access to trusted and reputable sources. We only work with a select few NABP-accredited suppliers.
2. Real-Time Inventory Insights: Advanced analytics provide real-time data on medication availability, helping pharmacies quickly locate and procure drugs during shortages.  The Athena A.I. module displays what items are necessary for the pharmacy to operate based on its customer needs.
3. Regulatory Compliance: Pharmacy Marketplace’s secondary suppliers are thoroughly evaluated and adhere to DSCSA compliance standards when shipping all orders.
4. Customized Solutions: Pharmacy Marketplace works closely with pharmacies to understand their unique challenges and develop tailored sourcing strategies to access the right inventory, at the right time, for the right price. We can even work with pharmacies to source hard-to-find specialty items. 

Learn more about our suppliers by reaching out and scheduling a demo today!