Distribution and Logistics Outsourcing in the Pharmaceutical Sector

Author(s):  
George Malindretos

The scope of this chapter is to provide useful insights of the pharmaceutical supply chain and identify the prospects of outsourcing, with special reference to the Greek pharmaceutical sector. This goal is facilitated by a threefold analysis in combination: first, by the development of an integrated interdisciplinary research methodology framework; second, by the identification of the special characteristics of the pharmaceutical supply chain with special attention to the role of outsourcing; and third, by the description of the current pharmaceutical distribution channels in Greece and the identification of the potential opportunities for outsourcing. The findings of this study are outlined in an attempt to contribute in the yet unsettled research methodology issue which has particular importance for the R&D in the pharmaceutical sector. Certain specific suggestions for future research are expected to support the sustainability of the Greek pharmaceutical sector, with potential broader relevance.

Author(s):  
Thanigavelan Jambulingam ◽  
Ravi Kathuria

Purpose The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework. Design/methodology/approach Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses. Findings The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic. Research limitations/implications Future research may investigate additional antecedents using other theoretical lenses. Practical implications Pharmaceutical wholesalers are dependent on pharmaceutical manufacturers for the supply of products and face intense competition that results in lower profit margins. Given that the pharmaceutical industry is strictly regulated, the wholesaler facilitates regulatory compliance of the manufacturers in the distribution process by coordinating with them. But the wholesalers do also face a constant threat from the manufacturers, who could potentially bypass the wholesalers (disintermediation) and go directly to the pharmacies. To counterbalance the dependence, the wholesalers strive to achieve loyalty with the retail pharmacies. Through supply chain coordination, the wholesalers achieve efficiency in procurement for the pharmacies, thus reducing cost and improving their competitive advantage. Social implications Supply chain coordination in the pharmaceutical supply chain improves the safety and security of the pharmaceutical distribution system. Originality/value This paper contributes to the supply chain coordination stream of literature. To the best of the authors’ knowledge, this is the first study to develop the three levels of process coordination in the pharmaceutical supply chain context. This paper shows how process coordination can be achieved between the dyad without vertical integration.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Tayyab ◽  
Muhammad Usman Awan ◽  
Nadeem Irfan Bukhari ◽  
Ehsan Sabet

PurposeEmpirical studies on the supply chain quality management (SCQM) of the pharmaceutical sector are scarce and scattered. This paper investigates a set of key quality determinants in the pharmaceutical sector to offer a holistic quality control framework for its supply chain (SC).Design/methodology/approachA mixed-method design was used. A focused group discussion with seven pharmaceutical SC managers summarized the narratives of the SCQM in this sector and helped to develop a questionnaire. The survey data were collected from the managers of 299 pharmaceutical firms.FindingsThe statistical results show the key determinants are leadership (LS), customer focus (CF), process integration and management (PIM), supplier relations (SR), quality practice (QP), human resource practices (HRP) and safety (SF). Unlike many other sectors, in the pharmaceutical SC, logistics and inventory costs have been proved to be not as important as other measures in the eyes of the SC managers and as part of SCQM performance measures, which can be a result of the priority systems influenced by the World Health Organization standards.Originality/valueThe study is distinctive in its scope as is carried out in a developing country with focus on concept of SCQM with reference to pharmaceutical SC. It shows great potential for further studies and improvements in logistics and warehousing in this sector, for the interest of the pharmaceutical SC managers and regulators who aim to ensure safety and quality in the health-care sector.


Author(s):  
Anirban Ganguly ◽  
Debdeep Chatterjee ◽  
Asim Talukdar

The pharmaceutical supply chain is one of the most complex supply chains in the world. The primary objective of this chapter is to analyze the role of knowledge sharing barriers in supply chain performance. The chapter will explore significant knowledge sharing barriers that might deter the performance of a pharmaceutical supply chain. This chapter is expected to provide the twofold contribution to the academicians and practitioners. Firstly, it will socialize the importance of knowledge sharing barriers and the role they can play in deterring the performance of a pharmaceutical supply chain, and secondly, the prioritized ranking of the identified knowledge sharing barriers is expected to aid the policymakers and managers to understand the relative importance of the knowledge sharing barriers and design their knowledge management strategies accordingly.


Author(s):  
Christine Rutherford ◽  
Christian Konig

Critical to the success of any business is a supply chain capable of serving the end customer more effectively and more efficiently than the competition. Central to this premise is an understanding that in today’s global marketplace it is supply chains that compete, not individual firms. We explore the central role of logistics and the supply chain in gaining competitive advantage in a volatile global market by first defining the key principles of a market-responsive supply chain. Second, we discuss different supply chain strategies to improve the match between supply and demand, before dedicating two sections to the important subjects of logistics outsourcing and global sourcing. But first we begin by defining the supply chain, logistics and supply chain management.


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