24 JULY 2017

MEDIA RELEASE

Wholesaler distribution model delivering better outcomes for NDSS patients

Australia’s full-line pharmaceutical wholesalers have again demonstrated the effectiveness of the industry’s supply chain following changes to National Diabetes Services Scheme (NDSS) distribution model that came into effect from July 1, 2016.

The new distribution model, which sees wholesalers responsible for the distribution of around 6 million NDSS products across Australia, provides over 1.2 million diabetics access to the full range of NDSS products via their local community pharmacy and usually within 24 hours, in line with the requirements of the Community Service Obligation (CSO).

The previous model was fragmented due to the nature of the industry supply chain. Resupply into pharmacy was infrequent, not all NDSS products were available in pharmacy, not all pharmacies were NDSS Access Points, and patients were still required to order products such as Insulin Pump Consumables (IPC) via mail order or through a limited number of Diabetes Australia state offices.

“The successful transition of the NDSS to a CSO wholesaler run distribution model over the past 12 months is a great example of the ability of Australia’s pharmaceutical supply chain to work collaboratively with multiple stakeholders to streamline and ultimately deliver enhanced outcomes for patients and the government,” NPSA Chairman Mark Hooper said.

“A significant amount of work went on behind the scenes to make this happen. From a service standard outcome, it means diabetics in Australia now have better, more timely access to a greater number of vital products than ever before because of our commitment to meeting the requirements of the CSO,” Mr Hooper said.

Products available via the NDSS include needles, syringes, blood glucose test strips, urine test strips, insulin pump consumables, and more recently, continuous glucose monitoring patches which were available to patients just three weeks after being approved for use through the scheme in April 2017.

“Symbion had previously only dealt with select NDSS products, and in low volumes, so it was a challenge to manage initial stock levels as we had no metrics available as to where and how many of these products would be needed,” Symbion Commercial Manager Pharmacy Jonathan Wood said.

“We were able to balance these initial challenges and thanks to the efficiency of the supply chain, we are now in a position where the NDSS is far more responsive to new products than under the old arrangements.”

NPSA Chairman Mark Hooper said, “the successful stewardship of the NDSS by wholesalers over the past year reinforces the importance of providing proper remuneration to support efficient patient access.”

The National Pharmaceutical Services Association represents CSO wholesalers Australian Pharmaceutical Industries, National Pharmacies, Sigma Healthcare and Symbion.

Contact: Donna Staunton on 0413 185 724 or Myles Wallace on 0432 866 094