No. of Recommendations: 1
When I was in the IT business, I wrote a software tool which sucked in the entire price lists and inventory status of about a dozen major distributors on a daily basis to allow my procurement people to split orders and purchase each item from the lowest priced source. I also looked for "channel conflict" pricing where the manufacturer would, for instance sell a product cheaper to OEM.s than to re-sellers (call me whatever you want as long as I get the best price), or export at cheaper prices (which I could then re-import), or have the same item sold under a different part number for less.

While doing that took considerable work (and sometimes even required using a separate corporation to accomplish without violating contracts), it accrued significantly higher profit margins. I understand that the guys I sold the business to have ceased using these techniques because they were too much work for the employees (they are not as "hands-on" as managers than I was) and are now buying primarily from a single distributor for simplicity.

I suspect this reflects what's going on with the drug dealers as the major pharmacies have their own captive PBM.

Different strokes for different folks, I guess.

Jeff
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