What does the term 'drop shipment' refer to in a pharmacy setting?

The term 'drop shipment' in a pharmacy setting refers specifically to the direct shipment of new products from the manufacturer to the pharmacy without passing through a wholesaler or distributor first. This method streamlines the supply chain, allowing pharmacies to receive products more quickly and efficiently, as it eliminates the need for inventory holding at the traditional distribution points.

Drop shipments can also help pharmacies manage their inventory levels better, reduce storage costs, and ensure that they have the newest products available for their patients as soon as they are released. This method is particularly useful for specialty drugs or limited-availability items that may not be easily stocked in bulk by wholesalers.