Divisions - UPD Wholesale

UPD Wholesale Division

WITH its roots in wholesaling* and approximately 40% share of this market, New UPD is South Africa’s foremost specialist wholesaler of pharmaceutical, medical and healthcare products.

As such, the company purchases, warehouses and re-sells branded, generic and over-the-counter pharmaceutical products of the highest quality and standards to an active customer base that accounts for almost 80% of the country’s retail and private hospital pharmacy market. The company’s extensive experience and expertise in wholesaling in the Southern African pharmaceutical industry ensure that it offers a fast, reliable, predictable and consistent supply of medications and medical supplies for customers in an often unpredictable marketplace.

New UPD’s wholesale division is committed to:

  • retaining its reputation as one of South Africa’s most dependable and professional suppliers of pharmaceutical products;
  • meeting its customers’ product needs promptly and efficiently;
  • providing top quality customer service, products and information; and
  • developing and nurturing worthwhile relationships with suppliers and customers.
“Our focus is not just pharmaceutical transactions, but also customer service and added value.”

New UPD provides two deliveries per day in local areas, and services South African customers within a maximum of 18 hours of order cut-off and customers in Southern African Development Community (SADC) countries within 24 hours of order cut-off. In recent years, the company has continued to successfully adapt to a high-volume, low-margin business model, in light of the country’s single exit pricing environment, by attracting increased sales, including two large private hospital supply agreements in 2005 and 2006. With the opening of more than 200 dispensaries countrywide, sales to Clicks Pharmacies have also increased significantly, demonstrating the benefit of operating an end-to-end distribution supply chain within the group.In addition, independent pharmacy business has been attracted away from the traditional distribution agents, as pharmacies opt for the ‘one stop shop’ option.

New UPD’s philosophy extends beyond sales: ‘Our focus is not just pharmaceutical transactions, but also customer service and added value. That, after all, is how we set ourselves apart from competitors. To better serve our wholesale customers, we maintain our ability to procure and sell large volumes of front shop products at competitive prices, by keeping abreast of pharmaceutical supply trends and conditions, and by responding continuously. We work closely with suppliers and customers to initiate and grow new markets, and to ensure that we can benefit – mutually – from new opportunities.’ Accuracy and reliability of service is fundamental to New UPD’s wholesaling success. The company’s expert team and highly sophisticated systems ensure that the exacting standards of pharmaceutical supply are met at all times.

Wholesaling, fine distribution and bulk distribution

* Wholesaling is also known as 'fine distribution', which is unlike 'bulk distribution' (that is carried out by New UPD’s distribution division) in that wholesaling involves the purchase of products from manufacturers by the wholesaler, which thus takes ownership of its inventory. Fine distribution of the product is largely undertaken in single units. Wholesalers’ clients include independent pharmacies, pharmacy groups, doctors, hospitals, clinics and 24-hour emergency facilities, which require smaller quantities of products to be delivered frequently on a just-in-time basis. Bulk distribution, on the other hand, is carried out on behalf of third-party clients. In this instance, the distributor does not purchase the product from the manufacturer, but operates on behalf of and on instruction from its clients, distributing products in bulk and on a less frequent basis primarily to wholesalers, buying groups and large retail chains.

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