For companies developing the latest medical technologies and treatments, getting products efficiently delivered to healthcare providers is key. Specialist distributors serve as vital supply chain partners enabling manufacturers’ success. According to a 2022 Fortune Business Insights report, the global healthcare distribution market size was valued at $1.1 trillion in 2021 and is projected to grow 7.2% annually from 2022 to 2029. Established distributors offer extensive industry experience and resources manufacturers struggle to match independently.

Digital Transformation Many distributors are investing heavily in digital transformation initiatives to improve efficiency and better serve their customers. From cloud computing to data analytics to artificial intelligence, new technologies are being deployed to optimize supply chain management. For example, McKesson's Health Mart Atlas pharmacy franchise leverages integrated technology and analytics to help independent pharmacies compete.

Significant Logistics Infrastructure Maintaining reliable distribution requires significant warehouses, vehicles, shipping routes and other infrastructure. Cardinal Health, one of the largest global distributors, operated over 50 distribution centers and hubs worldwide as of their 2022 SEC filings. Building similar logistics systems makes little financial sense for individual manufacturers. Leveraging distributors’ scale offers savings benefits. McKesson's 2021 annual report noted their logistics and operational expenditures were about 1.3% of revenues partly due to distribution efficiency.

Regulatory Process Management Understanding diverse federal, state and local healthcare regulations is extremely challenging for medical product makers. Distributors like AmerisourceBergen and Cardinal Health employ large regulatory staffs helping manufacturers navigate these complex requirements for managing restricted products, licensing, storage, safety reporting and more across markets. This expertise ensures product availability without compliance gaps that risk significant legal penalties.

Robust Data Analysis Capabilities The best distributors are analytics powerhouses. With supply chain data on provider product usage, purchasing trends and real-world clinical performance, they offer manufacturers unparalleled market intelligence to advance offerings and planning. In September 2022, McKesson acquired Rx Savings Solutions, significantly expanding their data analytics capabilities. Insights derived from distributors’ systems can accelerate everything from new product R&D to pricing strategies for manufacturers.

Reliable distribution and go-to-market support enables manufacturers to focus on developing innovations that improve care delivery and health outcomes. Strategic distributor partnerships facilitate reaching more patients efficiently through established provider networks while ensuring fiscal and regulatory responsibilities are fully managed. Distributors’ infrastructure investments and operating expenditures ultimately fuel growth opportunities for healthcare manufacturers’ priorities in advancing quality, access and value across the delivery system.