Supply chain disruptions during COVID-19 pandemic: Key lessons from the pharmaceutical industry

Abstract

Purpose: This study extends previous research by exploring the key lessons learned by the pharmaceutical industry in South Africa from the COVID-19 pandemic supply chain disruptions.Design/methodology/approach: Having embraced the interpretivist paradigm, 25 supply chain professionals were purposively selected on the basis of their experience and deep knowledge of the industry and interviewed using the semi-structured approach of interviews. A qualitative data analysis programme, ATLAS.ti (version 9.1), was used to analyse the transcripts.Findings/results: Following thematic analysis, the following themes emerged from the primary data: supply networks, demand planning and management, supply chain coordination, inventory management, logistics management and local production.Practical implications: It is crucial to build resilience in the design of pharmaceutical supply chains. A comprehensive demand management strategy and use of data analytics need to be adopted by pharmaceutical companies to improve demand visibility, responsiveness and supply chain resilience. The study also revealed the need for local production, as local skills and enterprises are being developed.Originality/value: This study has extended the body of knowledge on the supply chain disruptions, particularly in the pharmaceutical industry by building on the studies that were conducted during COVID-19, many of which were not based on empirical data. It also points supply chain professionals in a direction which enables them to develop a disruption strategy while providing justification for policymakers to support investment in the development of the requite skills for the pharmaceutical industry and the development of local production facilities.

Analysis of Supply Chain Response Frameworks: A Literature Review

“…For example, the frameworks proposed in [3,7] were designed to address response only to changes in demand. Therefore, they could not be used in response to other stimuli, such as those arising from disasters [66], changes in public policy initiatives based on prices and incentives [67], delays in product delivery [2], changes in work scheduling in a warehouse [68], changes in warehouse planning [69], or internal disruptions [70]. Similarly, the frameworks proposed in [2,[66][67][68][69][70] cannot be used to respond to demand changes.…”

“…Therefore, they could not be used in response to other stimuli, such as those arising from disasters [66], changes in public policy initiatives based on prices and incentives [67], delays in product delivery [2], changes in work scheduling in a warehouse [68], changes in warehouse planning [69], or internal disruptions [70]. Similarly, the frameworks proposed in [2,[66][67][68][69][70] cannot be used to respond to demand changes. Therefore, all the previously mentioned frameworks have the weakness of being applicable only in response to a specific stimulus.…”

Reshoring Fine Chemical and Pharmaceutical Productions

“…In summary, the prolonged shortage of numerous critically relevant pharmaceutical ingredients in Europe, North America, Australia and many other countries that no longer produce them requires urgent reshoring of said fine chemical productions. Disruption of the global pharmaceutical supply chains during the COVID-19 crisis, 71 and more recently the ongoing geopolitical crisis that forces large container ships to avoid navigating the Red Sea and cross the Suez channel, 72 makes the situation even worse (at least in Europe).…”