VIEW FROM THE TOP |
INVESTING IN TECHNOLOGY FOR BETTER, FASTER LOGISTICS VÍCTOR SOTO Director General of Distribuidora Levic
Q: How has Distribuidora Levic’s online sales division
Mexico and competes with international companies, which
grown? What short-term impact will this have on
is unusual in the country. It is important to strengthen
the company?
Mexico’s pharmaceutical industry by consolidating local
A: By May 2018, our online sales division represented 20
research projects and providing medicine manufacturers
percent of our sales. Clients like the new platform because it
with fiscal incentives. It is also necessary for regulators to
is easy to use and they have slowly migrated to it. Some are
work alongside manufacturers to guarantee accessibility
reluctant to try the new technology but most are adopting
to medications.
it. I would like to see this area grow to 70 percent of our sales within five years.
Q: How does Distribuidora Levic support independent pharmacies?
Q: How is Distribuidora Levic incorporating new
A: There is no real data on the market share of independent
technologies to offer better logistics solutions?
pharmacies. The goal is to support independent pharmacies
A: Our distribution center in Vallejo, Mexico City, which
and make them more competitive against larger pharmacy
will be finished by December 2018, will have a surface
chains. Independent pharmacies can compete by providing
of approximately 8,000m2 and a total construction of
better customer services and by developing differentiated
80,000m . It will be one of the most technologically-
products for their captive market. Independent pharmacies
advanced warehouses in Mexico as it will automatically sort
must also take advantage of the trust they have generated
2,460 daily products without human input. This will allow us
among their customer base, as they are often more widely
to provide better and faster logistics solutions. The center
accepted in communities than pharmacy chains. Our role is
will also use a 100 percent automated robot.
to provide these pharmacies with products at competitive
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prices. There are many independent pharmacies in Mexico Q: What market trends has Distribuidora Levic identified
City and State of Mexico, but they are also common in small
in the pharmaceutical sector?
regions where chains are unwilling to invest.
A: Generics continue to grow, since patented medicines remain inaccessible for a large percentage of the population.
Q: What are Distribuidora Levic’s growth plans in Mexico
However, some laboratories are introducing brands at
and abroad?
more accessible prices. In 2017, we sold mainly generics
A: In 2017, we began operations in Belize and although
but we have made an effort to increase our percentage
we will continue developing this region, we will focus
of patented medicines, which now represent between 18
more on Mexico, where demand is rising significantly.
and 20 percent of our sales. We have also introduced new
We are planning to expand into distribution for hospitals,
brands of patented drugs. The new plant in Vallejo will be
clinics and pharmacy chains and will continue investing
key to increase our patented medicines market.
in technology and R&D for better logistics. Our goal is to continue growing and providing excellent services to the
Q: How has the growing demand for generics affected
market. Some of our projects are already incorporating
local manufacturers?
Industry 4.0 principles. Distribuidora Levic is committed
A: In Mexico, the demand for generic medications is higher
to the healthcare of Mexicans.
than their production; regulators have sometimes acted as barriers for local manufacturers, causing a lack of complete coverage for about 40 percent of the medicines
Distribuidora Levic is a Mexican company that specializes in
that Mexicans need. For that reason, 2017 was a complex
the distribution of medicines, including bioequivalents, brand
year for the Mexican pharmaceutical sector. The local
medications and generics and medical supplies. The company
pharmaceutical industry is among the strongest sectors in
has 18 years of experience in the Mexican market
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