Pharmaceutical Supply Chains: Risks, Challenges and Strategic Response
DOI:
https://doi.org/10.33423/jabe.v27i2.7581Keywords:
business, economics, pharmaceutical supply chain, strategic response, strategic mapping, risk managementAbstract
A pharmaceutical supply chain consists of sourcing of ingredients and technology, production, distribution and delivery mechanisms to provide medicines and supplies to patients and healthcare facilities in a cost effective and timely manner. This paper introduces the structure of pharmaceutical supply chains within the larger context of health care supply chains and provides discussion on past work and the emerging trends in pharmaceutical supply chains. The paper further explores the unique operational challenges and strategic issues faced by the pharmaceutical supply chains. The paper further proposes a strategic response framework and a mapping tool to deal with these risks and challenges.
References
Abbas, K., Afaq, M., Khan, T.A. & Song, W.C. (2020). A blockchain and machine learning-based drug supply chain management and recommendation system for smart pharmaceutical industry, Electronics, 9(5). https://doi.org/10.3390/electronics9050852
Aura, J., Eli., V., Toso, C., Tautenhain, P. & Nascimento, M.C. (2022). An integrated location–transportation problem under value-added tax issues in pharmaceutical distribution planning. Expert Systems with Applications, 206(3), https://doi.org/10.1016/j.eswa.2022.117780
Burinskiene, A. (2018). Pharma supply chain: efficiency modelling approach. Journal of System and Management Sciences, 8(2), 65–73.
Clauson, K.A., Breeden, E.A., Davidson, C., & Mackey, T.K. (2018). Leveraging block-chain technology to enhance supply chain management in healthcare: An exploration of challenges and opportunities in the health supply chain. Block-Chain in Healthcare Today, 1(3), 1–12.
De-Aguiar, E.J., Faiçal, B.S., Krishnamachari, B., & Ueyama, J. (2020), A Survey of blockchain-based strategies for healthcare, ACM Computing Surveys, 53(2), 1–27.
Esmaeillou, Y., Asl, I.M., Tabibi, S.J., & Cheraghali, A. (2017). Identifying factors affecting the pharmaceutical supply chain management in Iran. Galen Medical Journal, 6(4), 346–355.
Fernando, E., & Surjandy, M. (2019). Success factor of implementation blockchain technology in pharmaceutical industry: A literature review. Proc. of 2019 6th Int. Conf. on Information Tech., Computer, and Electrical Engineering (ICITACEE). Semarang, Indonesia.
Franco, C. (2020). A simulation model to evaluate pharmaceutical supply chain costs in hospitals: The case of a Colombian hospital. DARU Journal of Pharmaceutical Sciences, 28(1), 1–12.
Galina, M., Valberga, A., & Smirnov, A. (2019). Demand forecasting in pharmaceutical supply chains: A case study. Procedia Computer Science, 149(1), 3–10, https://doi.org/10.1016/j.procs.2019.01.100
Hosseini-Motlagh, S.M., Jazinaninejad, M., & Nami, N. (2023). Recall management in pharmaceutical industry through supply chain coordination. Annals of Operations Research, 324(1), 1183–1221.
Kumar, N., & Jha, A. (2019). Application of principles of supply chain management to the pharmaceutical good transportation practices. International Journal of Pharmaceutical and Healthcare Marketing, 13(3), 306–330.
Kumar, A., Zavadskas, E.K., Mangla, S.K., Agrawal, V., Sharma, K., & Gupta, D. (2019). When risks need attention: Adoption of green supply chain initiatives in the pharmaceutical industry. International Journal of Production Research, 57(11), 3554–3576.
Liu, X., Barenji, A.V., Li, Z., Montreuil, B., & Huang, G.Q. (2021). Blockchain-based smart tracking and tracing platform for drug supply chain. Computers & Industrial Engineering, 161, 107669. https://doi.org/10.1016/j.cie.2021.107669.
Ilgar, O. (2024, October 23). Drug shortages create surprising opportunity for pharma supply chain. Forbes. Retrieved from https:/ /www.forbes.com/sites/sap/2024/10/23/drug-shortages-create-surprising-opportunity-for-pharma-supply-chain/
Moktadir, M.A., Ali, S.M., Mangla, S.K., Sharmy, T.A., Luthra, S., Mishra, N., & Garza-Reyes, J.A. (2018). Decision modeling of risks in pharmaceutical supply chains. Industrial Management & Data Systems, 118(7), 1388–1412.
Narayana, S.A., Pati, R.K., & Vrat, P. (2014). Managerial research on the pharmaceutical supply chain – a critical review and some insights for future directions. Journal of Purchasing and Supply Management, 20(1), 18–40.
Pitta, D.A., & Laric, M.V. (2004). Value chains in health care. Journal of Consumer Marketing, 21(7), 451–464.
Rossetti, C.L., Handfield, R., & Dooley, K.J. (2011). Forces, trends, and decisions in pharmaceutical supply chain management. International Journal of Physical Distribution & Logistics Management, 41(6), 601–622.
Samantray, B.S., & Reddy, K.H. (2025). A novel secure supply chain for smart healthcare systems: An approach to leverage blockchain, Keccak-256, and ZKP for drug safety assurance. Peer-to-Peer Networking & Applications, 18, 1–17. https://doi.org/10.1007/s12083-024-01832-6.
Singh, R.K., Kumar, R., & Kumar, P. (2016). Strategic issues in pharmaceutical supply chains: A review. International Journal of Pharmaceutical and Healthcare Marketing, 10(3). 234–257.
Sinha, K.K., & Kohnke, E.J.(2010). Health care supply chain design: toward linking the development of care globally. Decision Sciences, 40(2), 197–212.
Sriyakul, T., Umam, R., & Jermsittiparsert, K. (2019). Total quality management and logistic performance: Moderating role of reserve supply chain in pharmaceutical industry of Indonesia. International Journal of Innovation, Creativity and Change, 5(2), 228–248.
Uthayakumar, R., & Priyan, S. (2013). Pharmaceutical supply chain and inventory management strategies: Optimization for a pharmaceutical company and a hospital. Operations Research for Health Care, 2(3), 52–64.
