Pharmaceutical distributors and wholesalers form an essential link between drug manufacturers and hospitals, pharmacies and other healthcare institutions. The relationships between the drug manufacturers (usually known as Principals), the distributors and the end customers are complex and taken with some of the physical characteristics of the pharmaceutical value chain introduce a number of challenges for ERP systems. Some of these challenges include: 

 In addition to the points above, the pharmaceutical distribution value chain is characterised by a need for system flexibility which results from the requirement to meet ever-changing Principal requirements.

In summary, the pharmaceutical distribution sector creates some significant challenges for ERP systems, many of which will struggle to support key business requirements without extensive customisation. For those the do provide a good level of functional fit, given the level of change in the sector, careful assessment of the overall Total Cost of Ownership (TCO) of the system is vital prior to selection.

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