Building a Social Foundation of Compliance

Q: What new policies would you like to see implemented to create a more sophisticated market?

A: The changes that have been made so far have been good for the industry but maybe the time frame should be expanded. It is difficult and somewhat unrealistic to ask an industry to change the way it has been doing things in six months. Only the committed companies that have a longterm plan and are determined to invest will prevail and the public will be sure that whatever product they get will be top quality.

Q: How do you select what products you will distribute and what are your quality control processes?

A: COFEPRIS’ new regulations allow us to access information about new suppliers from that same institution. If we comply with them, we can then move on to the next step. Since last year, we have been sampling products and analyzing them in our warehouse, requiring us to implement a whole new quality control system in-house. We know and work with the top companies in Mexico and do not expect this order to be disrupted any time soon. Previously, there used to be a defined line between patent and generic medicine. Now there is a grey area in between. Many of the Big Pharma companies are approaching us and starting to work with us.

Q: Are there any risks that could impact your supply chain ?

A: The biggest risk was financial and we passed that hump about five years ago when companies that could not keep up started closing, leaving distributors unpaid and also leaving us unpaid. Now the biggest risk is compliance. There are many pharmacies that do not want to or cannot comply with COFEPRIS. We have to shift from these small independent pharmacies that were set up from one day to the next to small local or regional chains. These have infrastructure set up and have an interest in growing and doing things the right way. Our challenge is helping these independent pharmacies comply with all the new requirements.

Q: How are you looking to increase your profit margins despite the drop in commodity prices?

A: For Brudifarma, the name of the game in 2016 and 2017 is regulation, not profit. We are looking to set up all kinds of workshops and information booths to help our clients and theirs. We sell to many small distributors that then sell to their own clients. We have to be ready for COFEPRIS’ new rules in July-August.

Q: What new technologies are you integrating into your processes?

A: We have been working with SAP to transfer our clients from an email-based order system to a CRM one. Once they are registered with us and we have certainty when it comes to their files being in order and up to date, then they can start using a sort of online ordering process.

Q: What allows you to be positioned within the top three main distributors of generics in Mexico?

A: Our first approach is to keep our customers happy, which allows us to help them grow. Lately, we have also been focusing on keeping COFEPRIS and the Ministry of Finance happy. We want to comply with the rules and be one step ahead. If a new regulation is to come into effect in July, we will be compliant six months prior. This means that our customers also have to comply with the rules early on. We have workshops every Friday during which we explain to customers what we are doing, why and how we are complying, allowing them to comply.

Q: How does Brudifarma wish to impact the pharmaceutical and generic industry and what are your goals for the coming years?

A: We want to be the best option for customers. We do not see ourselves as only a supplier but rather as a partner. We want to provide our clients with the best products and best prices as well as workshops to help them comply with COFEPRIS and the Ministry of Finance.