Key sources of operational inefficiency in the pharmaceutical supply chain

Abstract

Purpose This study aims to explore the downstream pharmaceutical supply chain (PSC) and provides insight to the delivery process of medicines and associated operational inefficiencies. Design/methodology/approach An exploratory, qualitative approach was adopted to examine PSC inefficiency within two European contexts, namely, the UK and Greece. Data was gathered through interviews and a thematic analysis conducted to analyse the data and identify challenges faced by both supply chains(SCs). Findings The medicines delivery system needs to be enhanced in terms of quality, visibility, speed and cost to perform effectively. The findings demonstrated that although the healthcare SCs in the two European contexts have different operational structures, the results are in concordance with each other. Financial, communication, waste and complexity issues were the major concerns. Research limitations/implications To the knowledge this is the first study to examine aspects of the medicines SC via a cross-case analysis in the UK and Greece and extends the body of knowledge. A broader sample of responses is warranted to further validate these findings. Practical implications The study outputs can inform pharmacies’ strategic to instigate targeted improvement interventions. The implications of which may be extrapolated further to other European healthcare organisations. Originality/value This research contributes to the academic literature by adding further theoretical insights to SC strategy development, especially those that have been characterised as highly complex. The study identifies four key areas of intervention needed within this SC (in both countries) to promote higher level efficiencies and effectiveness.

Eco-innovation in the upstream supply chain: re-thinking the involvement of purchasing managers

“…The aim of a qualitative and exploratory approach is to better understand and contextualise a phenomenon (Papalexi et al, 2020). A call for more qualitative research has been made by several authors (Mangan et al, 2004;Näslund, 2002), as well as for more exploratory-based knowledge methodologies (Towers et al, 2020), in order not to reduce SCM studies to a single research paradigm (Wagner and Fearne, 2015).…”

“…A semi-structured interview guide allows researchers to enhance the reliability of results (Yin, 2003) and to gather information about the experiences, views, beliefs or motivations of individuals (Papalexi et al, 2020). We drew up an interview guide comprising 14 questions, divided into 5 parts, namely, introduction, context, process, contributions of actors and key factors of success and difficulties.…”

Covid-19 response of an additive manufacturing cluster in Australia

“…Covid-19 exposed the vulnerability of the global supply chain of personal protective equipment (PPE) such as masks and the lack of supply chain resilience developed by the Australian health-care sector (Corsini et al, 2021;Handfield et al, 2020). The substantial increase in demand for PPE exhausted many countries' national stockpiles used to cope with extreme healthcare epidemics (Papalexi et al, 2020). In the case of Australia, Covid-19 health-care supply disruptions resulted in the introduction of rapid assessment procedures by the government for a range of medical devices including PPE (Clay- Williams et al, 2020).…”

Pharmaceutical supply chains and management innovation?

“…Considering healthcare organisations' crucial role in supporting patient care, investments and constant improvement are required for the healthcare system to operate efficiently and satisfy the increased demand for high quality services (Sayed et al, 2018). However, they face the challenge of minimising the cost of healthcare services while sustaining or enhancing the level of quality they provide (Narayanamurthy et al, 2018;Papalexi et al, 2020). Data presented by Statista (Mikulic, 2019) suggests that worldwide drug expenditure will continue to grow and as of 2018 approximately $1.2 trillion will have been spent on medicines with an expected increase to $1.52 trillion by 2023.…”

“…In addition to this research focussed particularly on the PSC has been inspiring (Kumar et al , 2009; Xie and Breen, 2014; Chen et al , 2019). Specifically, the identified gap in the literature, where academics and practitioners question and argue whether innovative initiatives can be adopted and implemented within the highly complex pharmaceutical delivery system, has been recognised (Westrick and Mount, 2009; Bhakoo et al , 2012; Narayana et al , 2014; Bravo and Carvalho, 2015; Campos et al , 2017; Lima et al , 2018; Papalexi et al , 2020). Innovation is understood from the definition of Freeman et al (2006) who indicates that for an intervention to be innovative, it must change the systems of production and characteristics of an organisation, in other words, the operationalisation.…”