Applicable product ranges: Veterinary
Why don’t vet clinics buy directly from AdvaCare?
Vet clinics are a major distribution channel for AdvaCare Pharma’s veterinary products. However, vet clinics are not the direct buyer of AdvaCare Pharma products, instead having to purchase our products from our distributors, for the following reasons:
● A single vet clinic usually does not have the demand to order large quantities of each product, meaning a single vet clinic cannot meet our MOQ (Minimum Order Quantity) per product. Vet clinics are almost always much smaller than hospitals (for humans), and therefore consume far less medicines and supplies.
● Vet clinics do not have the capacity or interest in dealing with product registration or importation, both of which are further up the supply chain, the role which our distributors fill.
● Vet clinic procurement relies on on-demand fulfillment, meaning smaller quantities are ordered and delivered quickly because vet clinics generally require a very wide range of products in smaller quantities.
Animal Care in Clinics vs On-site
A vet clinic is to the veterinary product range what a hospital is to the pharmaceutical product range. However, vet clinics for large animals operate much differently than a hospital because the veterinarians have to rely more on on-site visits to farms and ranches given livestock are very large and not easily transported. This means that vet clinics will often be much smaller as the volume of animal patients is far lower than a hospital or clinic would be for humans.
It is important to understand this dynamic that is specific to vet clinics. Therefore, see:
Veterinary: Veterinary Clinics >
Overview
Vet Clinics as a Clinic and Pharmacy in One
Unlike hospitals which only provide healthcare services, and then sell pharmaceuticals for out-patient separately through their in-house pharmacy channel, vet clinics are much smaller and therefore provide both the animal healthcare service and sell the veterinary medicine. In this way, vet clinics also act as a veterinary pharmacy.
Large Animal vs Pet Clinics
It is important to distinguish between clinics that are for large animals (livestock) and clinics that are for pets. Large animal clinics rely on its veterinarians doing on-site visits, whereas a pet clinic will function more similar to a clinic for humans where pet owners bring in their dogs, cats, birds and other small companion animals for diagnosis and treatment. As our core business and product range is for livestock, most of the vet clinics that will use our products are large animal clinics. However, our product segment for pets is growing and it is a sector that we will increasingly focus on.
Veterinary hospitals do exist, but are less common in developing countries compared to developed countries. Vet clinics are much more common. The capabilities of vet clinics will vary greatly, some having capable mobile units with specialized equipment such as ultrasound machines, X-ray equipment, surgical room, etc. But again, this is less common in developing countries.
Some common types of vet clinics that our distributors supply our products to include:
TYPES OF VET CLINICS
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Large Animal Clinics
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- These are the most common type of vet clinics for our products.
- These clinics provide veterinary care for cows, goats, pigs, sheep, goats, horses and other large animals. They may also provide ambulatory services to farms and ranches.
- Majority of services and medicines are administered on-site on the farm or ranch.
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General Practice Clinics
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- Pet clinics for small companion animals providing most services inside the clinic.
- A small channel for our products, but still relevant for our dog and cat indicated products.
- Generally, the most common types of veterinary clinics in most countries, which provide routine wellness exams, vaccinations, and preventive care for pets.
- They may also offer diagnostic services, such as blood work and x-rays, and can perform surgeries and dental procedures.
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Specialty Clinics
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- Pet clinics for small companion animals providing most services inside the clinic.
- This type of clinic not common in developing countries.
- These clinics provide specialized care for specific health conditions or diseases. Some examples include oncology clinics for pets with cancer, ophthalmology clinics for pets with eye problems, and dermatology clinics for pets with skin conditions.
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Mobile Clinics
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- Mobile services can be provided by Large Animal Clinics as well, but if a veterinarian or team of veterinarians don’t have a facility, they would be in this category.
- These clinics can also be pet clinics, and are designed to bring veterinary care directly to the pet owner's location. They often provide basic preventive care and vaccinations, as well as spay/neuter procedures and other minor surgeries.
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Emergency Clinics
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- Pet clinics for small companion animals providing most services inside the clinic.
- These clinics provide emergency veterinary care 24/7, usually outside of regular business hours. They are equipped to handle critical situations and injuries that require immediate attention.
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Shelter Clinics
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- Clinics inside shelters that cater to unowned pets and companion animals.
- These clinics provide veterinary care for animals in shelters, including spay/neuter surgeries, vaccinations, and treatment of medical conditions.
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Challenges facing Vet Clinics in Developing Countries
In estimated order of priority from most impactful challenge to least that our distributors face:
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CHALLENGES OF VET CLINICS
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Market Competition
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- The veterinary market in developing countries can be highly competitive, with multiple distributors vying for market share.
- Distributors need to differentiate themselves, offer value-added services, and build strong relationships with veterinary clinics to gain a competitive edge.
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Limited Access to Veterinary Clinics
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- Veterinary clinics in developing countries may be located in remote or underserved areas, making access challenging for distributors.
- Limited infrastructure, poor road networks, and geographical barriers can hinder the timely and efficient delivery of veterinary products to clinics.
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Fragmented Market
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- The veterinary market in developing countries can be fragmented, with a large number of small and independent clinics.
- Managing relationships with numerous clinics, each with unique demands and requirements, can be a challenge for distributors.
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Financial Constraints
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- Veterinary clinics in developing countries often face financial constraints, which can impact their purchasing capacity and payment practices.
- Distributors may need to navigate these challenges, including delayed or irregular payments, which can affect cash flow and inventory management.
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Product Quality and Authenticity
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- Ensuring the quality, authenticity, and integrity of veterinary products is essential.
- Distributors must implement quality control measures and collaborate with regulatory authorities to mitigate the risk of counterfeit or substandard products in the supply chain.
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Product Availability and Range
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- Veterinary clinics may require a diverse range of products, including pharmaceuticals, vaccines, medical devices, and nutritional supplements.
- Ensuring the availability of a wide range of products, especially in remote areas, can be a challenge for distributors.
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Technical Support and Training
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- Veterinary clinics may require technical support and training for the proper use of veterinary products and medical devices.
- Distributors may need to provide training resources, product demonstrations, and technical assistance to veterinary professionals to ensure optimal use of the products.
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