Disruptions and Delays: Investigating the factors determining complexity and challenges of Supply Chain in Pharmaceutical Industry: An Empirical Investigation

Abstract

Pharmaceutical supply chains experience delays and disruptions affecting access to essential medicines across regions. These challenges are caused by weak forecasting, long procurement cycles, fragmented distribution, poor quality data and shortage of skilled workers. These factors are managed with both forward looking and response-based approaches. Regular stock review, good communication, fast purchasing and close supervision help limit shortages. Response-based strategies like keeping extra stock may instead prove unsustainable over time. Supply chain structure can be adapted to product risk and working with suppliers can improve the ability to manage uncertainty. Flexible systems, real time information and robust internal processes allow quick responses and prevent major supply failures. Similar risks are faced by pharmaceutical firms worldwide when setting up supply networks. Other common problems are product faults, sudden halts in production, slow order handling, late shipments and poor matching of supply and demand. Rather than taking these risks, firms plan to do production in-house near key markets, work with local partners or outsource non-core work to distant locations. Some have gone away from far-off suppliers and are using nearshore or in-house models. Moving production closer reduces delay/improves control. For non-core products, outsourcing to offshore locations is still common but some companies set up offshore centres to manage operations directly. Changing supply chains to cope with delays and risks requires better forecasting tools, better data systems and trained people. Firms work with partners, rely on digital systems and have the right setup for various products. Global medicine supply chains must respond quickly to changes while reducing costs and maintaining product flow constant. Global health needs require clear strategy, simple design and fast action. Study survey was conducted among 218 people from supply chain department of pharmaceutical industry to know the factors that show the complexity and challenges of supply chain in pharmaceutical industry and found that Regulatory Compliance, Cold chain, Long Supply Chains, and Product shelf life are the factors that show the complexity and challenges of supply chain in pharmaceutical industry.