NAIROBI, Kenya, Jan 30 — Global pharmaceutical firm, Bayer, has announced plans to engage a third-party for the distribution of its consumer health products in East and Anglo-West Africa in a move dubbed as a go-to-market approach.
The new model set to take effect on May 1, [was] informed by the need for the firm to adopt a more sustainable business approach, Bayer stated on Tuesday.
“The continuous evaluation of our business strategy remains the foundation for our future success,” the firm noted in a statement.
Bayer said the approach on Kenya, Ethiopia, Ghana, and Nigeria will “simplify our value chain, reduce the lead time between production and distribution and hence reach more patients and customers, ultimately increasing our footprint in Africa by extending access to medicines across the two regions.”
“We have ambitious goals to reach more people as we strive to deliver on our Mission of Health for
All, Hunger for None,” Jorge Levinson, Cluster Lead for the Pharmaceuticals Division in South East
and West Central Africa stated.
“We are calling this initiative ‘Smart Serve’, as it is intended to help reach and serve more people in Africa in a more sustainable manner,” Levinson explained.
The business executive said Bayer will leverage the expertise and networks of a third-party distributor to ensure sustained availability and access of its products.
“Through this approach, we strongly believe that Bayer will be better positioned to accelerate access to our health solutions especially in the family planning, cardiovascular, ophthalmology, selfcare as well as OTC (over the counter) therapeutic areas,” Levinson explained.
Outsourced functions
Through the new model, Bayer will outsource transportation, local warehousing, distribution, and customer support to a third party.
As the third-party distributor will handle the distribution aspect of the value chain, the Bayer legal entities in the East and Anglo West Central Africa countries will continue to handle business-related corporate affairs including medical affairs, media relations as well as stakeholder management such as government and partner relations.
The firm noted that the simplification of its value chain aligns to the overall objective to reach more patients and customers, ultimately increasing Bayer’s footprint in Africa and extending access to medicines.
“While the opportunities and possibilities to serve our customers more sustainably are exciting, we
fully recognize the potential impact this will have on the current model, including our people,” Michael
Meewes, Cluster Lead for the Consumer Health in South East West Africa, said.
“We do not underestimate the possible disruption, and we aim to minimize its effects where possible,
remaining committed to always treat everyone with respect, dignity, and care,” Meewes added.
