Pharmaceutical distribution is the wholesaler/middleman link in the drug distribution chain. These companies buy drugs directly from the big suppliers, warehouse them, and then distribute them to the tens of thousands of pharmacies throughout the United States.

Drugs are in many cases non-discretionary for those that need them, and the distributors are not subject to the price and patent risk that branded drug developers are. Profit margins are meager, typically only a few percentage points. At the same time the industry is highly regulated with very rigorous and complex packaging, documentation, logistical requirements. Thus, optimizing business process, eliminating any wasted steps and handling inventory efficiently is critical.