Wholesale supplies of pharmaceuticals and consumables will be one of your practice’s largest monthly outgoings, alongside salaries. Switching wholesalers can take significant time and effort, so it’s worth taking your time to pick one that works well for you from the outset.
While practices can maintain accounts with multiple wholesalers, the majority pick one main supplier, both for convenience and to benefit from discounts based on annual expenditure. Bear in mind that in more remote areas, you may not be able to choose between multiple wholesalers.
So, what are the main factors to consider when choosing your main wholesaler?
Pricing
Banded discounts – wholesalers usually offer banded discounts based on annual spend. These discounts are generally similar, but it’s worth confirming this.
Average cost comparison – compare the cost of an average basket of products to see how their prices stack up.
Separate wholesaler account for special products – for products with significant price differences or those unavailable from your main wholesaler, it might be worth maintaining a separate account. Don’t forget to check their delivery charges for small orders.
Non-discounted Items – identify products ineligible for discounts such as Controlled Drugs, generic medications, special orders, and ‘own label’ products. These can greatly impact your overall expenses.
Billing
Settling accounts – for new practices, know when accounts must be settled each month as a few days’ difference can impact cash flow.
Interest-free credit – check if the wholesaler offers a one-off period of interest-free to stock your pharmacy when you first open, with payment due 3-6 months later.
Payment Methods – Direct debit is usually the best option as it minimises the risk of late payments and lost discounts.
Ordering
Modification deadlines – understand the deadline for order modifications. While many wholesalers require changes the evening before delivery, some local wholesalers may allow same-day changes.
Online ordering discounts – some wholesalers offer discounts for online orders. Ensure your staff knows that phone or sales rep orders might be more expensive.
Delivery
Timing of deliveries – delivery times can impact stock management. Can you choose a delivery time? Are deliveries set or variable?
Outside hours – if deliveries occur outside practice hours, can drivers keep keys and safely leave orders inside?
Frequency of deliveries – this is especially important in rural areas.
Refrigeration – ensure orders requiring refrigeration aren’t outsourced to non-refrigerated couriers.
Short-dated items – check the process for flagging short-dated items to minimise stock wastage.
Returns
This is another area that can vary hugely between wholesalers, with some offering returns up to 8 weeks after delivery and others requiring returns within 48 hours. It’s also worth checking which items are non-returnable and how easy the returns system is.
Sustainability
Picking a wholesaler that’s committed to sustainability can help to minimise your environmental impact. Wholesalers can demonstrate this commitment by:
- Using reusable delivery boxes
- Offering sustainable products
- Assisting practices with good stock control
- Offering recycling services
Find out more… Take a look at NVS Group’s Delivering a Greener Pawprint initiative as an example – https://nvsgroup.turtl.co/story/sustainability/page/1
Additional considerations
Other factors that can affect your experience of purchasing through your wholesaler include:
Ordering options – how user-friendly is their online system? Are handheld terminals available for use with bar codes? Does the ordering system integrate well with your PMS?
Minimum purchase quantities – particularly relevant for small practices, does the wholesaler split multipacks or are there minimum order quantities for many products?
Other benefits – you may want to consider other factors, including free sample delivery to labs, free publications and your experiences with their customer service.
There’s a lot more to picking a wholesaler than just looking at prices and discounts. If you’re not sure where to start, consider getting in touch with one of our team. As the UK’s largest veterinary wholesaler, NVS is able to offer a comprehensive range of products at competitive prices, with rapid delivery and high-quality service. To find out more, visit our website or find your local representative.
Read more….
For more comprehensive information and to ensure you cover all aspects necessary for a successful launch, we invite you to read our Modern Veterinarian’s Guide to Opening a New Practice. An invaluable tool crafted by industry experts, it provides you with essential insights, best practices, and practical tips to ensure your success.
