Enhancing competitiveness in pharmacies through digital transformation
- Written by Gavin Upiter Founder and Managing Director, directoau.com
Pharmacies have long needed a way to stay competitive in a fragmented sector, hamstrung by having to deal with a high number of suppliers and the resultant inefficiencies.
By adopting digital transformation of their supply chains, pharmacies can boost their competitiveness and more importantly, provide better health benefits to their customers.
Having spent years observing the challenges in the Australian pharmacy sector, I faced continuous challenges within the sector's supply chain. B2B spend is still occurring primarily through emails, and sales representatives, with no pricing transparency. This has a major knock-on effect, leading to lost sales, reduced sell-through, poor cash flow, and ultimately, a higher cost of doing business.
Six years ago, I started Directo, Australia’s leading independent online B2B marketplace servicing the pharmacy sector to improve the interaction between pharmacies and their suppliers. Today, Directo has completely digitised the supply chain and is used in more than 54% of Australian pharmacies – a huge milestone, and pharmacists now have the opportunity to buy in.
Directo is transforming the supply chain for over 3,000 Australian pharmacy retailers including TerryWhite Chemmart, Direct Chemist Outlet, Chempro, Good Price Pharmacy Group and a host of independent pharmacy operators by streamlining their interaction with Directo’s database of over 180 suppliers – all with B2C price like transparency.
We’ve experienced robust growth over the past two-years, doubling revenue each year to where we are now running at $40 million annualised revenue, onboarded over half the nation’s pharmacies and are now conducting a $3 million capital raise to drive our next stage of growth.
The pharmacy industry in Australia is poised for significant improvement through more effective integration. Digitising the supply chain through platforms such as Directo can drive efficiencies for pharmacies and their suppliers, fostering a more competitive environment where all pharmacies can enhance their service quality, convenience, and health benefits for customers.
We have initiated this capital raise to invite pharmacists and other stakeholders to join us in our next phase of growth, offering a unique opportunity to contribute to and benefit from this transformative phase in the pharmacy industry.
Expressions of interest to become a shareholder in Directo are now open. To find out more, fill in an enquiry form at www.directoau.com
