Abstract In today's turbulent economic environment, companies are struggling to find ways to achieve sustainable competitive advantage. One of these methods is supply chain management to reduce costs and improve performance to create a competitive advantage and business success. The purpose of this study is on how to use supply chain management by pharmaceutical distribution companies in Iran and its role in the success and competitiveness of companies. The method used in the research is a mixed method (qualitative and quantitative). Data collection in the qualitative section was done during an in-depth interview with 30 experts from Iran's top pharmaceutical distribution companies, based on which categories were extracted; Then, in the axial coding stage, the link between these categories was made based on the study of causal conditions and its effect on the central phenomenon of "drug distribution chain management strategy development", as well as the effect of contextual conditions and intermediate conditions on strategic factors The format of the coding paradigm was determined; Then, in the selective coding stage, each component of the coding paradigm was described, the storyline was drawn, and the theory was created; Finally, the research propositions of the research were compiled. In the quantitative stage, the questionnaires were distributed among the top 16 drug distribution companies and the model extracted from the quality section was tested with the help of partial least squares software. Finally, the mentioned model and the hypotheses were confirmed.