Which statement best describes why a pharmacy would enter into a contract with a primary wholesaler?

Which statement best describes why a pharmacy would enter into a contract with a primary wholesaler?

• A. To ensure all orders are fulfilled within 24 hours
• B. To receive a rebate regardless of purchasing pattern
• C. To gain partnerships with multiple wholesalers
• D. To obtain a discount if most products are purchased from that wholesaler

Answer: (D)

The main idea is that pharmacies use a primary wholesaler to secure pricing through high-volume purchases. When most of a pharmacy’s inventory is bought from a single supplier, the wholesaler can offer discounts tied to that volume. These discounts reduce the cost per unit and improve profit margins, while also simplifying ordering since most items come from one source. That’s why the best description is the option about obtaining a discount when most products are purchased from that wholesaler—the incentive is directly tied to concentration of purchases with that supplier. The other statements don’t fit because fast-only fulfillment isn’t guaranteed by such contracts, rebates aren’t typically offered irrespective of purchasing patterns, and having multiple wholesalers wouldn’t leverage the single, volume-based discount that a primary supplier provides.

The main idea is that pharmacies use a primary wholesaler to secure pricing through high-volume purchases. When most of a pharmacy’s inventory is bought from a single supplier, the wholesaler can offer discounts tied to that volume. These discounts reduce the cost per unit and improve profit margins, while also simplifying ordering since most items come from one source.

That’s why the best description is the option about obtaining a discount when most products are purchased from that wholesaler—the incentive is directly tied to concentration of purchases with that supplier. The other statements don’t fit because fast-only fulfillment isn’t guaranteed by such contracts, rebates aren’t typically offered irrespective of purchasing patterns, and having multiple wholesalers wouldn’t leverage the single, volume-based discount that a primary supplier provides.