It seems that everywhere you turn, there’s a new story about Amazon getting involved in a different industry. They recently announced that, in addition to their drone delivery techniques, they would try to deliver packages to your car. They also announced that they would be working with Best Buy to sell smart TVs programmed to operate with their Alexa platform. There’s no denying that Amazon is a giant that continues to take over the world.
There is one industry where they have said they will no longer seek to do business. The company initially had intentions to become a significant pharmaceutical supplier for United States’ outpatient clinics and hospitals. However, news outlets recently reported that company no longer seeks to do so.
If they had done so, they would have immediately become a major player in the industry, forever altering the shape of the landscape. Even though they no longer wish to be a key pharmaceutical distributor, the fact that Amazon was interested in pharmaceuticals in the first place should put other players in the industry on guard. Here are some things you should know.
Amazon Will Still Very Much Be Involved With Pharmaceuticals
Just because Amazon decided that they did not want to become a significant distributor at this time does not mean they won’t be involved in the pharmaceutical industry. The company has not ruled out entering the pharmaceutical distribution industry in some other capacity, or perhaps joining as a distributor but at a smaller scale. The company has already decided that it will focus on supplying smaller hospitals and clinics.
There have already been rumors that Amazon could be the middleman for a direct-to-consumer prescription drug business. Patients could have medication delivered to their door directly, without having to pick it up at a drug store. Amazon already sells many medical supplies on its website, and will likely continue to expand its operations in the future.
The Choice Wasn’t Necessarily Amazon’s
Amazon felt that they had the resources necessary to become a major pharmaceutical distributor, but it would have required a change from large hospitals and health systems. These players did not wish to change their purchasing process, which would have been a requirement when working with Amazon.
If Amazon’s play had been successful, it’s doubtful that hospitals would have two types of purchasing processes that were so drastically different. Meaning, the hospitals would have to buy all of their goods from Amazon, or all of them from another source. Hospitals did not budge this time around, but it certainly lends credibility to the fact that Amazon is a sleeping giant.
Amazon Needs To Improve Its Temperature Control Processes
The more substantial hospitals also told Amazon that they would need to improve their logistics network to handle pharmaceutical products. The company’s current shipping processes would have proven to be inadequate for handling cold-chain shipments. Not only will the company have to improve their warehouse and shipping infrastructure, but they will also need to invest in products like the SureTemp Thermal Pallet Cover to help minimize temperature excursions.
