Developing a model for an agile supply chain in pharmaceutical industry

Author(s):  
Gholamhossein Mehralian ◽  
Forouzandeh Zarenezhad ◽  
Ali Rajabzadeh Ghatari

Purpose – The purpose of this study is to develop a model for an agile supply chain in the pharmaceutical industry. In a continuous changing global competitive environment, an organization’s supply chain agility directly impacts its ability to produce and deliver novel products to its customers in a timely and cost-effective manner. While the beneficial effect of supply chain agility is generally appreciated, the literature addressing how a pharmaceutical company can achieve supply chain agility is limited. Design/methodology/approach – This paper analyzes the three parts of pharmaceutical supply chain including supply of active pharmaceutical ingredient, manufacturing and distribution based on the supply chain operations reference model to assess agile supply chains by using three diverse questionnaires. In addition, to prioritize critical factors, TOPSIS (technique for order preference by similarity to ideal solution) algorithm as a common technique of multiple attribute decision-making (MADM) model has been used. Findings – Achieving supply chain agility is dependent on other capabilities; including flexibility, responsibility, competency and quickness. Findings reveal several factors identified as critical factors to being agile in each part of pharmaceutical supply chain. Research limitations/implications – This research was challenged with some limitations such as novelty of the subject in this environment, and the lake of data in this area is also another constraint. Originality/value – This is an initial and pioneering study to highlight the importance of agility concept in the pharmaceutical industry. The present study also provides a new aspect of supply chain management for such industry, and would be a good topic for further research. Finally, this study contributes to highlight and prioritize factors involved in this area.

2019 ◽  
Vol 15 (2) ◽  
pp. 661-684 ◽  
Author(s):  
Akbar Rahimi ◽  
Abbas Raad ◽  
Akbar Alem Tabriz ◽  
Alireza Motameni

Purpose Nowadays, the defense industry is considered a significant part of the manufacturing industries. Military products in the world have a high level of diversity, delivery speed and appropriative operational functionality. Therefore, various producing, high quality and high-speed delivery of military products are of great importance in enhancing Iran’s defensive power. Defense industries’ supply chain agility is a response to how to produce military products with these features. Therefore, the purpose of this paper is to provide a model for the agile supply chain of defense industries to show the relationship between agile practices and their hierarchy. Design/methodology/approach First, the authors identify the most important supply chain agility practices by expert’s questionnaire. Then, using factor analysis, practices are categorized and validated based on structural equation modeling (SEM). SEM showed a meaningful relationship between agile supply chain practices. Finally, using interpretative structural modeling, a model is presented to show the logical relationships and hierarchy between these practices. Findings The results show that out of a total of 62 practices introduced in the previous research for the agile supply chain, 37 practices in the agility of the supply chain of defense industries are effective. The 4 new agility practices were identified in this research. These 41 practices were classified into 8 categories including supplier relationship, workshop level management, organizational structure improvement, human resource management, product designing, improve and integrate the process, application of information technology and customer relationship. Improvement of organizational structure was at the highest level of the model. Therefore, managers first should focus on it. Research limitations/implications Given the confidentiality of information in the defense industry, the distribution of questionnaires and their collection was one of the most important limitations. A variety of defense products in land, air and sea areas, and a large number of industries in each sector, forced the authors to select the only land area. Although the results of this research can be used in the air and sea areas, but cannot be said that the implementation of this study presented model will fully lead to the defense industries’ supply chain agility in air and sea sectors. Originality/value This is the first research on the supply chain agility of Iran’s defense industry that bridges the gap between theory and practice. The classification of 41 practices in the form of 8 measures and examining the relationship between them is a new and practical approach for understanding the relationships between different variables that affect supply chain agility. This study introduces four new agility practices including the use of new technology and equipment, human resource balance, the use of expert human resources, training and employee empowerment, which can be considered in many industries of developing or less developed countries. Considering the specific situation of defense industry supply chain in comparison with other industries, the results of this research can be used by other defense industries of similar countries.


Author(s):  
Saswati Tripathi ◽  
Krishnamachari Rangarajan ◽  
Bijoy Talukder

Purpose Pharmaceutical industry involves highly specialized business processes where strong research and development focus along with market differentiation and localization are the deciders of success. This has led to evolution of segments and complexities in supply chain. This paper aims to focus on segmental differences in supply chain performance of Indian Pharmaceutical firms. Design/methodology/approach This paper measures supply chain performance of select segmental players of the pharmaceutical industry using financial metrics and supply chain operations reference (SCOR) key performance indicators through a five-year timeline. The best performance results are compared across the segments to identify unique performance features, if any. The sample results are validated through hypothesis testing methodology. Findings This paper has evidenced that the innovators segment is performing better in cash-to-cash cycle time and supply chain working capital productivity, whereas generics segment is doing better in distribution cost efficiency and total cost to serve aspects. Research limitations/implications The paper is based on historical financial data of firms and measures the firm focused supply chain performance. The results may not be generalized in a global context but serve as a motivator for other researchers to take similar studies. The paper may further be analyzed with primary data of the firms to understand the segmental difference in customer focus supply chain performance measures. Practical implications This paper has brought out important segmental supply chain performance features of the Indian pharmaceutical firms and identified segment-specific problems by integrating SCOR KPIs and financial metrics. Originality/value This paper has integrated both SCOR KPIs and financial metrics to provide unique insights on segmental differences in the performance behavior of pharmaceutical supply chain.


2019 ◽  
Vol 26 (7) ◽  
pp. 2081-2104
Author(s):  
Masoud Rahiminezhad Galankashi ◽  
Syed Ahmad Helmi ◽  
Abd. Rahman Abdul Rahim ◽  
Farimah Mokhatab Rafiei

Purpose The purpose of this paper is to propose a framework to assess the agility of manufacturing companies. Design/methodology/approach Particularly, three supply chain logistic drivers (facility, transportation and inventory) along with three cross-functional drivers (information, sourcing and pricing) are selected as the main sets to classify all required activities of agility. In addition, supply chain contracts, as an important indicator of supply chain agility, is also considered to categorize the activities. These activities are ranked using an (AHP) and then categorized based on the major perspectives of agility. Finally, using a cycle view of supply chain, the developed activities are categorized as the major policies of supply chain’s echelons. Findings This study developed a framework to evaluate the agility of manufacturing companies. Operational activities of agile supply chain strategy (ASCS) in addition to supply chain contracts are determined and categorized with regard to supply chain drivers. Originality/value This study contributes to recognizing, ranking and classifying the operational activities of ASCS with regard to logistics and cross-functional drivers of supply chain. In addition, this study considers the supply chain contracts in conjunction with supply chain drivers. From the theoretic and methodological features, to the best of authors’ knowledge, this study contributes to offer new insights to this area as no similar research has been conducted before.


2014 ◽  
Vol 25 (1) ◽  
pp. 160-179 ◽  
Author(s):  
David M. Gligor ◽  
Mary Holcomb

Purpose – The concept of supply chain agility (SCA) has been identified as one of the most important issues in supply chain management literature. However, despite the popularity of the concept, many attributes of SCA are largely unexplored. One area that is deficient in research is the antecedents of SCA. This paper aims to seek further theory development by addressing these gaps in the SCA literature. Design/methodology/approach – Data for this study were obtained from a field survey. A mail questionnaire was constructed that contained items measuring the constructs of interest. The theoretical model was evaluated using structural equation modeling. Findings – The findings indicate that logistics capabilities positively impact SCA. The results provide empirical evidence for logistics’ unique and critical role in helping firms respond in a timely and effective manner to market volatility and other uncertainties. Research limitations/implications – As is the case with most supply chain survey research, the constructs of interest were evaluated based on the perception of a single party involved in a specific relationship. Future research using multiple dyads or triads within various supply chains could address this limitation. Practical implications – If limited resources are available for investment (as is often the case), a more balanced distribution of resources toward the development of multiple logistics capabilities (e.g. demand-management interface, information-management interface) is preferred to pooling all the resources toward the development of a single capability (e.g. information-management interface). Originality/value – Considering logistics’ boundary-spanning nature, prior research suggest that logistics capabilities perform a key role in achieving SCA. However, the relationship between firm-specific logistics capabilities and SCA has not been empirically tested. This paper address that gap in the research.


2019 ◽  
Vol 14 (2) ◽  
pp. 476-491 ◽  
Author(s):  
Waqar Ahmed ◽  
Arsalan Najmi ◽  
Yusra Mustafa ◽  
Asif Khan

PurposeThe purpose of this study was to investigate and explain the factors contributing to supply chain agility in service-oriented firms and therein to enhance competitive capabilities of the organization. The study has identified various variables from past studies that support firms in developing agile supply chain operations. Factors identified from prior studies are supply chain flexibility, supply chain visibility, supply chain responsiveness, supply chain speed and learning orientation, which were then empirically tested for further understanding.Design/methodology/approachUsing purposive sampling, a sample of 217 valid responses was gathered through structured questionnaire from supply chain practitioners working in various service industries of Pakistan. Partial least square-structural equation modeling was used for data analysis.FindingsThe results of the study show that learning orientation and flexibility of the service firm highly complement the goal of achieving agility in their operations. Speed and visibility also have a major impact on developing agile supply chain. Moreover, supply chain agility has a significantly positive impact on competitive capabilities.Originality/valueThis research is about investigating the operational agility of services sector, which is a one-off study especially in the context of developing and competitive market. This research will provide important insights into the context of dynamic capabilities view for policymakers and decision-makers who aim to develop their competitive strategies based on their operational agility.


2014 ◽  
Vol 9 (2) ◽  
pp. 200-214 ◽  
Author(s):  
Satyendra Kumar Sharma ◽  
Anil Bhat

Purpose – The purpose of this paper is to present an approach to effective supply chain management by understanding the dynamics between various enablers of agile supply chain. Today’s business environment is characterized as a highly competitive, dynamic and volatile market. Agile supply chain is seen as the winning strategy to be adopted by manufacturers bracing themselves for dramatic performance enhancements to become national and international leaders. Design/methodology/approach – Using interpretive structural modeling the research presents a hierarchy-based model and the mutual relationships among the enablers of agile supply chain. Findings – The research shows that there exists a group of enablers having a high driving power and low dependence requiring maximum attention and of strategic importance, whereas another group consists of those variables which have high dependence and are the resultant actions. Practical implications – This classification provides a useful tool to supply chain managers to differentiate between independent and dependent variables and their mutual relationships which would help them to focus on those key variables that are most important for building cost-effective and agile supply chains. Originality/value – Presentation of enablers in a hierarchy and the classification into driver and dependent categories is unique effort in the area of agile supply chain management.


2017 ◽  
Vol 40 (3) ◽  
pp. 254-269 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple ◽  
Thomas Goldsby

Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.


2014 ◽  
Vol 19 (5/6) ◽  
pp. 577-591 ◽  
Author(s):  
David M. Gligor

Purpose – The purpose of this paper is to explore the role of demand management in achieving supply chain agility (SCA) through a multi-disciplinary review of the relevant research. The systematic literature review provides the basis for formulating a conceptual framework of the relationship. Design/methodology/approach – A systematic, comprehensive review of the literature on manufacturing, marketing organizational and SCA from 1991 through 2013 was conducted. The literature on demand management is also examined to identify the various elements that contribute to SCA. Findings – Most agility frameworks take a supply-side perspective and assume that demand is known. Those that do acknowledge the role of demand fall short of offering a holistic framework that acknowledges the role of both. This paper suggests that it is simply not enough to have flexible manufacturing, distribution and procurement systems to achieve SCA. Flexibility in managing demand is also needed. Furthermore, it is the premise of this paper that demand and supply integration (DSI) inside the firm is critical to achieving SCA. Research limitations/implications – This research is a systematic, integrative review of the existing literature on the concept of agility. As such, the next phase of research needed for theory building will be the operationalization of constructs and testing of the hypothesized relationships proposed by the conceptual framework. Practical implications – The paper has several managerial implications as well. It illustrates how firms can create and sustain competitive advantages in turbulent environments. Managers can use the framework developed here to assess what structures and decision-making processes they can use to increase the firm’s SCA. Practitioners can use this model as a checklist to identify candidate areas for improving agility. The section illustrating the use of knowledge management to increase DSI should be of particular interest to managers, considering that a great deal of firms experience a disconnect between demand creation and supply fulfillment. Originality/value – Through a systematic, comprehensive review of multi-disciplinary literature, the paper explores the role of demand management in achieving SCA.


2019 ◽  
Vol 57 (7) ◽  
pp. 1511-1534 ◽  
Author(s):  
Chih-Jou Chen

Purpose Developing agility and innovativeness as dynamic capabilities are important for firms to sustain their competitive advantage in today’s global economy. The purpose of this paper is to develop and empirically test a framework to investigate how the supply chain agility and innovativeness are achieved through IT integration and trust in members of supply chain and how these, in turn, can enhance firms’ competitive advantage. Design/methodology/approach This research employs a survey method and data are collected from senior managers working in the supply chain or IT area. The model and hypotheses are tested utilizing data from 204 usable Taiwan manufacturing firms via structural equations modeling methodology. Findings The study demonstrates that both IT integration and trust in supply chain members significantly enhance supply chain agility and innovativeness, which in turn positively affect firm’s competitive advantage. The results indicate that IT integration and trust are antecedents and major joint partnership resources for improving supply chain agility and innovativeness. Research limitations/implications Data are collected from manufacturing industry in Taiwan and single respondent from each firm, the generalizability of current findings to other industries or countries should require additional investigation. Practical implications The study suggests that a firm should focus on IT integration and trust in supply chain members to achieve supply chain agility and innovativeness. To take advantage of supply chain agility and innovativeness, through maximizing firm’s competitive advantage, firms should continually adapt to the fast changing business environment and search for creative ways to satisfy new market needs. Originality/value Given the attention paid to supply chain agility and innovativeness in terms of importance to responding to business uncertainty and competitiveness, and more recently, as important capabilities in managing supply chain management, this paper investigates how IT integration and trust can contribute to supply chain agility and innovativeness. Provide evidence regarding the impact of IT integration and trust on agility of supply chains, innovativeness and competitive advantage.


Author(s):  
Mehdi Karimimalayer ◽  
Nizaroyani Saibani

In our age of perennial changing environment, supply chain agility is a crucial factor having a great impact on the company's competitiveness. For transforming supply chain into an agile supply chain, first it is necessary to comprehend the meaning of agile supply chain, since agility has wide range of meanings and various dimensions which covers different aspects of an organization. Generally, however, there have been many researches on agility, proportionally; the concept of agility in supply chain has not been much surveyed. The circumstance unveils the necessity of a technique to measure the supply chain agility. The purpose of the article is to propose a technique, using fuzzy logic which supply chain agility be measured.


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