Quick commerce has changed delivery expectations. What has it changed deeper in the pharma supply chain?
Quick commerce didn’t just make pharma delivery faster—it shifted the supply chain from distributor-led, forecast-based systems to hyperlocal, data-driven platforms focused on immediate patient needs rather than operational efficiency alone.
Where do medicine stock-outs usually begin? At the factory, the distributor or the pharmacy?
For end consumers, most stock-outs happen between distributors and pharmacies. Factory-level stock-outs for high-demand products are rare, except during API shortages caused by geopolitical or regulatory issues.
These distributor-to-pharmacy stock-outs are usually due to poor demand forecasting, credit limits that restrict reordering, priority given to high-volume pharmacies, sudden seasonal or outbreak-driven demand spikes, limited shelf space at pharmacies, and pharmacists avoiding expiry risk.
Is faster last-mile delivery enough, or is better inventory planning the real need?
It’s a mixed picture. Quick-commerce players are rapidly gaining share in acute, event-based medicines, where consumers prefer fast delivery and don’t buy repeatedly.
However, chronic medicines need careful inventory planning. For these planned, repeat purchases, consumers are more price-sensitive and tend to prefer better value over faster last-mile delivery.
Which parts of pharma distribution still rely too much on manual processes?
Many small and mid-sized distributors still manage inventory manually or through basic spreadsheets instead of modern WMS systems. This results in manual stock counts, poor tracking of batches and expiry dates, frequent stock errors, and higher losses due to overstocking, stockouts, and expired products—driving up operating costs.
Returned stock handling is also largely manual. Returns due to expiry, damage, or recalls are sorted and recorded by hand, with ad-hoc decisions on resale versus disposal and little system integration. This increases errors, slows reverse logistics, and erodes margins.
How does real-time inventory visibility help distributors and pharmacies work better every day?
At Ascent, our proprietary WMS gives us real-time visibility into inventory across all warehouses, helping us make better ordering decisions and prevent stock losses proactively rather than relying on periodic audits.
For pharmacists, our Retailio platform shows real-time inventory availability, allowing them to place orders with confidence. With an industry-leading line cut of under 0.1 per cent, our integrated WMS and OMS ensure predictable, stress-free replenishment for pharmacies.
What makes expanding pharma distribution in tier-2 and tier-3 cities more complex?
Distributors focus on capital efficiency, and expanding into Tier-2 and Tier-3 cities requires much tighter control over the product assortment. Slower sales of long-tail medicines can reduce returns and increase inventory carrying costs.
Expansion into these markets also brings higher credit risk, weaker recovery rates, and lower operating leverage, as average revenue per pharmacy is lower—making profitability and scale harder to achieve.
Where is working capital getting stuck in the pharma trade today?
Credit and slow-moving inventory are the two biggest working-capital challenges in the market. Pharmacists typically receive interest-free credit from multiple distributors. In Tier-1 cities, where no single distributor has a dominant share, pharmacies rotate between these credit lines, which increases receivable days for all distributors.
Distributors often have to accommodate this until they reach sufficient scale and operating leverage, stabilise EBITDA, and can then tighten credit terms by selectively deciding who to extend credit to and for how long.
Slow-moving inventory is another major issue affecting both pharmacies and distributors. With the right systems, slow-moving stock can be identified early to reduce its impact. At Ascent, our WMS provides real-time visibility into such inventory, allowing us to proactively liquidate stock at discounts or use permitted sales returns to manage working capital more efficiently.
How is Ascent helping pharmacies improve availability while managing credit and cash flow?
Ascent distributes medicines to over 100,000 pharmacies across 20 states in India. Through our pharmacist-facing platform, Retailio, we deliver a best-in-class experience built on transparency, attractive deals, and consistent service.
Retailio digitises critical workflows across the business cycle, helping pharmacists operate with confidence and trust. Pharmacies benefit from real-time expiry settlements, complete order tracking, transparent pass-through of schemes, and full visibility into payments.
Our cloud-based proprietary WMS connects all Ascent warehouses, enabling pharmacies in any cluster to order from two to three warehouses on average. This India-first capability gives pharmacies access to a much wider assortment while allowing Ascent to maintain industry-leading inventory efficiency.