I agree the reduction in terms and service levels have made...

I agree the reduction in terms and service levels have made things tougher for community pharmacy. This has occurred at a time when we have seen competition between independent, group and corporate pharmacy creating a very different market place than it was a decade ago. Pressure on margins (including dollar margins with the reduced cost of generics) are reducing profitability so absorbing any further reduction in terms (settlement days/discounts, parcel offers etc) is of course not something than can happen indefinitely.

The government must support all our full line wholesalers. Suffice to say the efficient operation of the PBS system is very dependant on them. Any changes to the CSO wholesaler model that would divert funds to distributors like the DHL will not happen without a serious fight.

Can we imagine what could happen if even more manufacturers go direct. Ultimately it just defies common sense in logistics and reverses the evolution of efficient stock management and supply chains. As I mentioned earlier it would not surprise me if DHL (huge multinational logistics company) are backing this to gain a bigger foothold in the distribution of PBS products.