Distribution consolidating products
The trend toward amalgamation of companies making and distributing animal health products continues with Lextron Inc.’s plans to buy rival Animal Health International (AHI) while Elanco makes a bid for Janssen Pharmaceutica NV.While the two deals are different by nature, each of the companies involved have tentacles that reach deep inside the business of animal health and veterinary medicine.Eventually, the company will merge the two distribution ERP suites to a single product with a common code base.Infor chief strategy officer Bruce Richardson discussed the future of the company’s ERP development strategy in a recent posting on his blog, The View From Inside.
“Lextron currently distributes 35,000 animal health products,” said Vice President and Chief Financial Officer Dave Wagley.Cross-docking favors the timely distribution of freight, a better synchronization with the demand and a more efficient use of transportation assets.The distribution center essentially acts as a high throughput sorting facility for several suppliers and customers.If product is sold as a service, and services are available everywhere, what role does distribution play in the facilitation of channels and sales? First, the Westcon-Comstor sale shouldn’t come as a surprise.
Many people in the know have been aware that Datatec, Westcon’s South Africa parent company, was seeking a buyer for a while.
“This is a merger of two companies who have experience in the animal health business for over 44 years.” Meanwhile, Elanco, the animal health arm of U.