Medical Distribution
Functioning as the logistics backbone, these companies purchase drugs and supplies in bulk to handle inventory management and delivery for hospitals and pharmacies.
Why it exists
Medical distribution exists to move drugs, devices, and supplies from manufacturers to providers.
Why it’s necessary
Healthcare depends on just-in-time logistics at massive scale.
Key components
National warehousing networks
Cold-chain logistics
Hospital supply contracts
Inventory optimization platforms
How to evaluate businesses
Throughput efficiency, margin per unit, customer concentration, and IT system reliability are core drivers.
How the industry could be improved
Predictive demand routing, automated picking, real-time hospital inventory integration, and AI-driven shortage forecasting.