The circulation traceability system of traditional Chinese medicine will improve the circulation problem.

Traditional Chinese medicine from origin to consumption terminal mainly includes several links: planting, circulation, production and use, and the circulation link (professional market and place of origin) will directly affect the quality and management of traditional Chinese medicinal materials. Because of its long chain, many participants and loose management, the quality of Chinese medicinal materials is uneven, as the quality problems of medicinal materials become increasingly prominent. The state began to standardize through the traceability system of the circulation of traditional Chinese medicine, and in the process of promoting the circulation of this system, it will standardize and renovate the current situation of the market and origin.

Analysis on the advantages and disadvantages of Professional Market and Origin Trading of traditional Chinese Medicine at present

Advantages of professional market trading of traditional Chinese medicine

Since the establishment of the professional traditional Chinese medicine market, the transaction form has basically been the direct face-to-face transaction between customers and drug dealers. Such face-to-face transactions not only provide a platform for communication between buyers and sellers, but also directly facilitate large-scale transactions between buyers and sellers in a relatively concentrated place. This advantage is that it can not only balance the supply and demand of medicinal materials. It also makes the price of medicine trading relatively transparent, which makes sense for the healthy development of the overall transaction.

The Dilemma of transaction in the Professional Market of traditional Chinese Medicine

In recent years, the state has strengthened the GSP (Pharmaceutical Business quality Management Standard) management of medicinal materials distribution enterprises, which has higher requirements for medicinal materials distribution enterprises and individuals. However, there has always been poor quality management in the traditional Chinese medicine professional market, and many medicinal materials have the phenomenon of fake adulteration and inferior quality. In the face of the strict supervision of the state, traditional Chinese medicine distribution enterprises began to gradually weaken the purchase quantity in the traditional market. In addition, with the increasing convenience of information, logistics and transportation, many Chinese herbal medicine enterprises begin to bypass the traditional market and go directly to the producing area to purchase medicinal materials. Powerful pharmaceutical companies even carry out vertical integration to directly participate in the process of planting and processing of Chinese medicinal materials, which will directly lead to the decline of the traditional market share of traditional Chinese medicinal materials, and the market will also face the risk of shrinking gradually.

Advantages of trading in the origin of medicinal materials

Because the origin of medicinal materials is located in the upper reaches of the whole industry chain, it can get first-hand supply, which will effectively reduce the procurement cost and the risk of buying fake drugs, which is also the main reason why pharmaceutical distribution enterprises have gradually turned to the origin to purchase raw materials in recent years.

Problems existing in the transaction of the origin of medicinal materials

Although skipping the professional market of traditional Chinese medicine can save some costs and reduce the risk of buying fake drugs, there are also many problems in the whole transaction process. First, at present, the cultivation of medicinal materials in our producing areas is mainly retail investors, and the distribution of producing areas is relatively scattered, while pharmaceutical enterprises are not clear about the topography, distribution and concentration of medicinal materials in the producing areas. in the process of organizing medicinal materials, it is inevitable to take some detours or even spend more search fees. Second, transactions in the place of origin mostly involve a single buyer and seller, so due to the lack of competition, it is easy to have information asymmetry or unfair transactions caused by differences in bargaining power between buyers and sellers. In addition, due to the lack of market regulation of the price, it is easy to lead to large price fluctuations. And for individual merchants, if the demand situation can not be judged from the market, the future planting arrangements may blindly follow the trend, which will greatly affect the stability of supply and is not conducive to the healthy and sustainable development of the whole traditional Chinese medicine industry.

Summary: from the advantages and existing problems of the respective transactions in the medicinal material market and producing area, we can see that the cultivation or breeding of Chinese medicinal materials in China is mostly carried out by small and retail investors, and the circulation of traditional Chinese medicinal materials is basically in a state of "small, scattered and poor". In contrast, most of the participants in the circulation chain after the professional market are enterprises, hospitals and other institutions, the degree of standardization is relatively high, and the process is relatively easy to control. In the face of the current reality of traditional Chinese medicine trading, the state solves the problem by establishing a circulation traceability system of traditional Chinese medicinal materials, which is equipped with intelligent traceability scales in the professional market. the information of the circulation link of the traded Chinese medicinal materials from the origin to the market can be recorded and uploaded immediately through the front machine, which is convenient for real-time inquiry. This provides a basis for "positive traceability, reverse traceability". The circulation link has achieved a considerable degree of scientific management, and accountability is obviously easier to operate than before. In addition, through the use of online unified platform, we can also record and evaluate the trading history of merchants, so as to achieve honest management and facilitate the supervision of relevant departments. Through the construction of the circulation traceability system of traditional Chinese medicine, we can standardize the management system of the professional market of traditional Chinese medicine, optimize the channels of information release, and ensure the smooth flow of liability, so as to realize the real value of the market. to better promote the continuous progress of China's traditional Chinese medicine industry.