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Managing logistics risks in pharmaceutical supply chain: a 4PL perspective
Production Planning & Control
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The challenges imposed by the business environment increasingly obligate supply chains to seek lower costs while maintaining high service levels. Healthcare supply chains face additional challenges since their main indicator is to save lives and provide care, nonetheless, keeping the revenue flow to support the activities. The covid-19 pandemic evidenced that a severe rupture in healthcare chains generates rupture in all other supply chains. In this sense, our paper has the objective of presenting a conceptual healthcare supply chain performance framework empirically validated by structural equation modelling. Our survey data were processed through the covariance-based structural equation modelling method, adopted for assessing the causal connection among the constructs. The paper revealed a relationship of supply chain integration, supply chain risk management, and supply chain 4.0 (antecedents) with healthcare supply chain performance (consequent). The literature contributions of this paper are (i) developing and validating a new scale for each construct; (ii) finding evidence of the causal relationships between the factors; (iii) measuring how the constructs influence the healthcare supply chain performance in both public and private healthcare sectors and providing discussion and tools to improve these results; (iv) this work empirically tested a theoretical framework; (v) the study reveals that the sector (public or private) has a moderating effect on all the constructs. Furthermore, the results of this study help to address some literature gaps identified by scholars having the potential to serve as a guide to organisations that are willing to implement these practices. Lastly, we recommend that HC supply chain managers consider the implementation of robust initiatives regarding SCRM, SCI, and SC40.
Supply chain management literature provides several frameworks aiming to identify the constructs of supply chain performance and supply chain resilience. Nevertheless, the literature lacks a framework that encompasses healthcare supply chains and its idiosyncrasies. Therefore, the purpose of this paper is to propose a framework for analysing the relationships between the antecedent factors, mediators, and consequents of healthcare supply chain resilience (HCSCRes). The supply chain risk management (SCRM) literature shows a significant gap concerning a framework that comprises the particularities of SCRM applied to healthcare. In this sense, based on the importance of identifying the determinants of HCSCRes, qualitative, and exploratory research was developed through an extensive literature review. In this sense, we propose two research questions: (i) Which are the antecedents, mediators, consequents of a resilient Healthcare Supply Chain? (ii) Which are the variables that compose the constructs of a resilient healthcare supply chain? The proposed framework of this research was designed to analyse healthcare organisations, including the healthcare supply chain. To use the proposed framework in other industries (e.g. commerce, services), it is necessary to make adaptations and adjustments on the observable variables and constructs. The main contributions of the paper are twofold: (i) Show an essential theoretical value in proposing scales for the HCSCRes factors and can be useful for future quantitative approach and surveys. (ii) The literature review reveals that the set of practices and technologies known as industry 4.0 plays a major role in the theoretical framework proposed by this
In recent years, data analytics in pharmaceutical supply chains has aroused much interest as it has the potential of enabling better supply and management of healthcare products by leveraging data generated by modern systems. This article presents the current state, opportunities, and challenges of data analytics in pharmaceutical supply chains through a systematic literature review surveying the Scopus, ScienceDirect, and Springerlink databases. 85 publications from 2012 to 2021 were reviewed and classified based on the research approach, objective addressed, and data used. The contributions of this paper are threefold: (i) it proposes a framework focused on challenges and data resources to assess the current state of data analytics in pharmaceutical supply chains; (ii) it provides examples of techniques exemplified that will serve as inspiring references; and (iii) it gathers and maps existing literature to identify gaps and research perspectives. Findings outlined that despite promising results from machine learning algorithms to address drug shortages and inventories optimisation, the various data resources have not yet been fully harnessed. Unstructured data have barely been used and combined with other types of information. New challenges related to green practices adoption and medicines supply during crises call for further applications of advanced analytics techniques.
Purpose
Reputation risk onsets in focal firm whenever any entity of its supply chain (SC) faces risk-crisis event. A framework for modeling and predicting holistic SC reputation risk is proposed by integrating operational risk (OR) drivers originating from upstream and downstream partners and focal firm. A fuzzy cognitive map (FCM) is then developed to predict and quantify Pharmaceutical SC reputation risk.
Design/methodology/approach
Using event study methodology, SC reputation risk framework with 13 input OR drivers was developed. Based on pharmaceutical supply chain experts’ opinion, the correlation between reputation risk and its input drivers was estimated. The developed FCM tool was validated using nine real-life instances. A series of “what-if” scenario analyses were performed to demonstrate effectiveness of proactive and reactive mitigation strategies against reputation risk.
Findings
Quality and unethical governance risks significantly impacted reputation in Pharmaceutical SC and a firm should prefer “risk avoidance” against these risks. The upstream risks significantly affect reputation in a Pharmaceutical SC as compared to the downstream risks. Proactive mitigation strategies and assertive crisis communication are suggested for upstream risks while diminishment/ bolstering/rebuilding reactive crisis communication is recommended for downstream risks.
Originality/value
Reputation risk is often overlooked in SC literature. This work develops a model to quantify the reputation risk considering the indirect consequences of the ORs that originates at any point in a SC. The proposed FCM tool aids SC manager to focus on higher attribution risk events and devise an optimal combination of proactive and reactive mitigation strategies to avoid/minimize the economic loss due to reputation crisis.
Purpose
The purpose of this study was to advance the knowledge of pharmaceutical supply chain (PSC) resilience using complex adaptive system theory (CAS).
Design/methodology/approach
An exploratory research design, which adopted a qualitative approach was used to achieve the study’s research objective. Qualitative data were gathered through 23 semi-structured interviews with key supply chain actors across the PSC in the UK.
Findings
The findings demonstrate that CAS, as a theory, provides a systemic approach to understanding PSC resilience by taking into consideration the various elements (environment, PSC characteristics, vulnerabilities and resilience strategies) that make up the entire system. It also provides explanations for key findings, such as the impact of power, conflict and complexity in the PSC, which are influenced by the interactions between supply chain actors and as such increase its susceptibility to the negative impact of disruption. Furthermore, the antecedents for building resilience strategies were the outcome of the decision-making process referred to as co-evolution from a CAS perspective.
Originality/value
Based on the data collected, the study was able to reflect on the relationships, interactions and interfaces between actors in the PSC using the CAS theory, which supports the proposition that resilience strategies can be adopted by supply chain actors to enhance this service supply chain. This is a novel empirical study of resilience across multiple levels of the PSC and as such adds valuable new knowledge about the phenomenon and the use of CAS theory as a vehicle for exploration and knowledge construction in other supply chains.
Our study examines the literature that has been published in important journals on supply chain disruptions, a topic that has emerged the last 20 years, with an emphasis in the latest developments in the field. Based on a review process important studies have been identified and analyzed. The content analysis of these studies synthesized existing information about the types of disruptions, their impact on supply chains, resilience methods in supply chain design and recovery strategies proposed by the studies supported by cost–benefit analysis. Our review also examines the most popular modeling approaches on the topic with indicative examples and the IT tools that enhance resilience and reduce disruption risks. Finally, a detailed future research agenda is formed about SC disruptions, which identifies the research gaps yet to be addressed. The aim of this study is to amalgamate knowledge on supply chain disruptions which constitutes an important and timely as the frequency and impact of disruptions increase. The study summarizes and builds upon the knowledge of other well-cited reviews and surveys in this research area.
The risk associated with Global Supply Chain Management has created a discourse among the practitioners and academicians during the past few years. This is evident by the business uncertainties growing in supply chain management, which pose threats to the entire network flow and economy. This paper aims to review the existing literature on risk factors in supply chain management in an uncertain and competitive business environment. Papers that contained the word “risk” in their titles, keywords, or abstracts were selected for conducting the theoretical analyses. Supply chain risk management is an integral function of the supply network. It faces unpredictable challenges due to nations’ economic policies and globalization, which have raised uncertainty and challenges for supply chain organizations. These significantly affect the financial performance of the organizations and the economy of a nation. Debate on supply chain risk management may help to be competitive in business. Risk mitigation strategies will reduce the impact caused due to natural and human-made disasters.
Purpose-In the recent dynamic market, supply chain disruptions are rapidly increasing with varied customer demand, technological changes, uncertain pandemic events etc. To overcome the unexpected disruptions, supply chain of each business should be resilient and pharmaceutical supply chain (PSC) is no exception. Motivated by the challenges and unexpected pandemic disruptions, this paper aims to examine the performance indicators (PIs) of the resilient PSC and to predict the resilience level for a certain time period in the context of Bangladesh. Design/methodology/approach-The aim of this paper presents a structured framework based on the Delphi method, fuzzy DEMATEL (Decision Making Trial and Evaluation Laboratory) and system dynamics (SD). The proposed methodology was validated using expert's inputs from the relevant field in Bangladesh. This study reveals the influential relationships of indicators and resilience level using fuzzy DEMATEL and SD to improve the resiliency. Findings-Findings revealed that "Supply chain risk orientation", "Visibility", "Flexibility", "Agility in supply chain" and "Collaboration" are the top five influential performance indicators for resilient PSC. The cause and effect relationship found that "IT capability", "Flexibility", "Supply chain network design", "Resource availability", "Supply chain risk orientation" and "Velocity" were in cause category which play a vital role for establishing resilient supply chain. SD approach has developed a model for predicting the resilience level of the supply chain. Originality/value-This work is one of the initial contributions in the literature that has targeted on the identification and analysis of the significant PIs and predicting the resilience level of the PSC.
Purpose: In this paper, a practical framework is presented for the successful integration of buyers and contract organizations based on the Critical Incident Technique (CIT).Methodology: The initial pool of situations was developed inductively according to qualitative data provided by ten experts in the field of outsourcing in pharmaceutical supply chain. Another group of experts evaluated these situations with regard to their degree of realism as well as relevance and allocated them to the five constructs (1) employee competence, (2) management commitment, (3) communication between organizations, (4) organizational culture, and (5) regulatory framework.Findings: The findings of the study show that communication appears to be the most frequent reason while regulatory framework seems to be the last frequent reason for critical incidents during outsourcing. Contract giver and service provide show diverging perceptions about the situations’ degree of realism and relevance. Analysis of the interrater agreement shows that the allocation to a single construct is a challenge due to the critical incidents’ complexity and multidimensionality.Originality: The critical incidents database and the presented framework serve as preventive behavioral-based quality management for the pharmaceutical supply chain.
Purpose
This paper investigates the risks involved in the Indian foodgrain supply chain (FSC) and proposes risk mitigation taxonomy to enable decision making.
Design/methodology/approach
This paper used failure mode and effect analysis (FMEA) for risk estimation. In the traditional FMEA, risk priority number (RPN) is evaluated by multiplying the probability of occurrence, severity and detection. Because of some drawbacks of the traditional FMEA, instead of calculating RPN, this paper prioritizes the FSC risk factors using fuzzy VIKOR. VIKOR is a multiple attribute decision-making technique which aims to rank FSC risk factors with respect to criteria.
Findings
The findings indicate that “technological risk” has a higher impact on the FSC, followed by natural disaster, communication failure, non-availability of procurement centers, malfunctioning in PDS and inadequate storage facility. Sensitivity analysis is performed to check the robustness of the results.
Practical implications
The outcomes of the study can help in deriving detailed risk mitigation strategy and risk mitigation taxonomy for the improved resilience of FSC.
Originality/value
Specifically, this research investigates the risks for foodgrains supply chain system for a developing country such as India, an area which has received limited attention in the present literature.
The ongoing COVID-19 pandemic is shaking the foundations of public health governance
all over the world. Researchers are challenged by informing and supporting authorities on acquired
knowledge and practical implications. This Editorial applies established theories of risk perception
research to COVID-19 pandemic, and reflects on the role of risk perceptions in these unprecedented
times, and specifically in the framework of the International Journal of Environmental Research and Public
Health Special Issue “Research about risk perception in the Environmental Health domain”.
Healthcare Supply Chains (HSCs) have often been considered different from the usual Supply Chains (SCs) due to their high level of complexity, the presence of high-valuable medical materials and, finally, the fact that they deal with human lives. Furthermore, HSCs are not excluded from the increasing competitivity that is typical of the modern environment: International Healthcare systems are under increasing pressure to reduce waste and eliminate unnecessary costs while improving the quality and consistency of the care they provide to patients. The aim of this work is to analyse the impact of severe disruptions on SC performance in a Healthcare Supply Chain. More specifically, the objective of this study is to develop an approach to first analyze the effects of disruptions in terms of financial and operational performances, and successively to test the effectiveness of different proactive and reactive mitigation strategies in order to understand the best actions based on the characteristics of the interruptions. Disruptions can have a crucial impact on HSCs because human lives can possibly be at the stake. Considering that the occurrence of disastrous events is increasing in the last years, it is becoming inevitable to consider this risk in designing and planning HSCs that are more flexible and resilient. This work demonstrates that activating a backup supplier represents the most efficient mitigation strategy in case of long-lasting disruption; on the other hand, in case of small-scale and short-duration disruptions, lateral transshipment can help in mitigating the negative impacts of disruptions against a little increase in costs.
This study explores the downstream Pharmaceutical Supply Chain (PSC) and provides insight to the delivery process of medicines and associated operational inefficiencies.
An exploratory, qualitative approach was adopted to examine PSC inefficiency within two European contexts: 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.
The medicines delivery system needs to be enhanced in terms of quality, visibility, speed and cost in order to perform effectively. The findings demonstrated that although the healthcare supply chains 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.
To our knowledge this is the first study to examine aspects of the medicines supply chain 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.
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.
This research contributes to the academic literature by adding further theoretical insights to supply chain strategy development, especially those that have been characterised as highly complex. The study identifies 4 key areas of intervention needed within this supply chain (in both countries) to promote higher level efficiencies and effectiveness.
The purpose of the conceptual paper is to present a framework for managing pharmaceutical supply chain uncertainty and risk. The supply chain risk management strategy is critical and significant to strategically support the firms to success in the long run. However, very little research has been conducted in the pharmaceutical firms so far. Based on literature review, the supply chain integration capability is considered as effective risk management tools for mitigating the supply chain uncertainty and risk. The authors identified main types of pharmaceutical supply chain uncertainty and risk. The conceptual framework focuses on the relationships among the supply chain integration capability and pharmaceutical supply chain uncertainty and risk. This provides insights into the pharmaceutical supply chain risk management. The study focuses on the pharmaceutical industry. However, the proposed framework can be validated with an empirical work in different sectors. Moreover, this contributes to the pharmaceutical supply chain management literature.
Demand forecasting plays a critical role in logistics and supply chain management. In the paper, state-of-art methods and key challenges in demand forecasting for the pharmaceutical industry are discussed. An integrated procedure for in-market product demand forecasting and purchase order generation in the pharmaceutical supply chain is described. A case study for supply of pharmaceutical products from a wholesaler to a distribution company located in an emerging market is presented. Alternative forecasting scenarios for thebaseline demand calculations using the SMA model, multiple linear regressions and symbolic regression with genetic programming are experimentally investigated, and their practical implicationsare discussed.
Purpose
The purpose of the paper is to present an empirical evidence of the impacts of supply chain uncertainty and risk on the logistics performance in the Australian courier industry. This study examines the impacts of supply chain and risk on the logistics performance in the Australian courier industry.
Design/methodology/approach
The study provides an in-depth analysis of supply chain uncertainty and risk’s impacts on the logistics performance. The structure equation modelling approach is applied to examine the relationship between supply chain uncertainty and risk and logistics performance. Company-side uncertainty and risk, customer-side uncertainty and risk, and environment uncertainty and risk are used to measure the impacts of supply chain uncertainty and risk in the industry. attention to the supply chain uncertainty and risk in the industry.
Findings
The results indicate that supply chain uncertainty and risk have negative impacts on logistics performance. Moreover, the greatest impact of supply chain uncertainty and risk was from outside company in the Australian courier industry.
Research limitations/implications
The study focuses on the Australian courier industry, this may limit the implications of findings in different industries. However, the research models may be examined and validated in the different context.
Practical implications
The results would may provide directions in the implementation of strategies to manage supply chain uncertainty and risk and improve logistics performance. The findings may enlighten both academics and practitioners to understand and pay attention to the supply chain uncertainty and risk in the courier industry.
Originality/value
There is an argument whether the impacts of supply chain uncertainty and risk is positive or negative in previous studies. In addition, there are very few studies on courier industry. The study clarifies the impacts of supply chain uncertainty and risk on the logistics performance in the courier industry.
Operational disruptions can have serious repercussions for firms over extended periods of time. In this work, we develop a multi-period model of operational risk. We define the loss process of operational disruptions as a sum of events triggering single and multiple losses. We empirically validate our approach using an extensive data set of operational disruptions experienced by firms from the financial services and manufacturing industry sectors. The results of our simulations point out that operational risk is significantly underestimated if the events leading to multiple losses are not accounted for in the firms' long-term capital planning.
Supplier development is increasingly important due to the complexity of today's supply chains and the globalization of businesses. Since manufacturers have only limited resources, they need to make an informed decision about which suppliers to develop. Moreover, the returns from investment in supplier development are uncertain, so manufacturers have to take this risk into account when choosing their suppliers for development programs. In this paper, we propose a multi-objective model for capital allocation for supplier development under risk. We apply it to an example of a global car manufacturer and support the decision making process with data downloaded from the Bloomberg database. We use stock market returns and cost of capital of suppliers to assess their performance. Our model supports an informed decision, which is that tradeoffs exist between risk and cost of supplier development program. Depending on the risk aversion of the manufacturer, we demonstrate different allocation schemes for supplier development.
Supply chain managers and scholars recognise the importance of managing supply chain risk, especially in fresh food supply chain due to the perishable nature and short life cycle of products. Supply chain risk management consists of supply chain risk assessment, risk evaluation and formulation and implementation of effective risk response strategies. The commonly adopted qualitative methods such as risk assessment matrix to determine the level of risk have limitations. This paper proposes a hybrid model comprising both fuzzy logic (FL) and hierarchical holographic modelling (HHM) techniques where risk is first identified by the HHM method and then assessed using both qualitative risk assessment model (named risk filtering, ranking and management Framework) and fuzzy-based risk assessment method (named FL approach). The risk assessment results by the two different approaches are compared, and the overall risk level of each risk is calculated using the Root Mean Square calculation before identifying response strategies. This novel approach takes advantage of the benefits of both techniques and offsets their drawbacks in certain aspects. A case study in a fresh food supply chain company has been conducted in order to validate the proposed integrated approach on the feasibility of its functionality in a real environment.
Purpose – The vulnerability issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address the lack of empirical research, this study primarily aims to explore the relationship between vulnerability mitigation strategies and supply chain effectiveness with risk management culture as a moderator.
Design/methodology/approach – Data are gathered via a survey of 209 Indonesian manufacturing firms. The data are analyzed using partial least squares technique.
Findings – Results indicate that supply chain visibility, supply chain flexibility, and supplier development strategies positively affect supply chain effectiveness. Moreover, risk management culture positively moderates the effects of supply chain visibility and supplier development on supply chain effectiveness.
Practical implications – The findings may improve supply chain effectiveness by mitigating the effects of vulnerability causes.
Originality/value – This study contributes to the advancement of knowledge on the relationships between vulnerability mitigation strategies and supply chain effectiveness.
Outsourcing functions such as logistics has become an industry trend towards cost-effectiveness and high service level performance. Many firms have acknowledged the benefits of relying on external experts in a need to empower their abilities. The pharmaceutical industry in particular is challenged by constant evolution of their development and manufacturing processes. Outsourcing logistics becomes then an attractive option for firms to focus on their core competencies. However, alongside the numerous benefits of outsourcing, various risks arise with the implementation of this option. This paper contributes to the literature by presenting a decision model that takes into consideration risks of outsourcing logistics in the pharmaceutical supply chain. Risk identification and a multi-criteria risk assessment model using ELECTRE TRI are described.
Manufacturing firms manage complex supply chain networks which are exposed to a plethora of hazard events. An essential part of the risk management process is the calculation of the stand-alone risk exposures of the product-specific supply chains, but also of the entire multi-product system. In this paper, first, a global sensitivity analysis of the statistical supply chain risk model is conducted. This method helps the decision-makers to understand the risk of the model they are using. Second, a methodology for risk aggregation in multi-product supply chain networks is proposed. The real-world data is used to analyse and validate the model. Supply chain managers equipped with the proposed method will better cope with the risk in supply chains for different product configurations.
How a supply chain (SC) is configured can have a significant impact on the performance of global firms. More specifically, disturbance factors (i.e. those factors associated with uncertainty and risk) are increasingly important considerations. This paper focuses on endogenous, exogenous and environment-related SC disturbance factors and their relative importance when configuring global SCs. Three alternative scenarios of SC configurations for European-based pharmaceutical firms are identified - insource nearshore, outsource nearshore and outsource offshore. Through a multi-phase, mixed-method approach we find that the top five disturbance factors managers should be aware of while configuring their SCs are quality defects, unforeseen and random interruptions in manufacturing processes, order processing difficulties, untimely delivery of products, and a mismatch between market demand and supplier responsiveness. This study is able to provide insights into the impact of disturbance factors on the SC configuration strategy for Big Pharmas. We show that SC disturbances influenced the decision to bring production back home (reshoring) or to a closer location (near-shoring). To mitigate the effects of disturbances many Big Pharmas recalibrated their SC configurations by insourcing core products, outsourcing non-core products offshore and developing offshore insourcing capabilities through ‘captives’.
eprint link: http://www.tandfonline.com/eprint/UeXdQMSrEhc3dF3bnCA7/full
The article proposes complex model of project risks’ management on an industrial enterprise, including interrelation of work stages in risk management, project risks’ evaluation and management methods and instruments; and an integrated index as an element of risks analysis technique. Project risk analysis and evaluation process takes one of the major places in procedural aspect. Risk management begins with the quality risk analysis where risks are identified and grouped. Results of quality risk analysis are used for the subsequent quantitative risk analysis which includes their evaluation in three key parameters: probability of a risk event, level of expected losses, limits of manageability of risks. Integrated index for risks’ analysis and evaluation developed by the author considers risks’ dual nature, probabilities balance, realization consequences and risks’ manageability. The function of this integrated index is identification of the project risks which can be influenced the most. Based on the calculation of integrated indexes of the identified project risks the decision on primary management for the risks with greater integrated indexes is made. The main procedure after the quantitative risk analysis of the risk management stage is to choose the risk management method and its subsequent application. It is necessary to analyze and generalize risk management activity efficiency, risk factors and uncertainty in the project finale. All the integrated information goes to an organization databank for further use.
Purpose
– The purpose of this paper is to present the latest innovations in the drug distribution processes of hospital companies, which are currently dealing with high inventory and storage costs and fragmented organizational responsibilities.
Design/methodology/approach
– The literature review and the in-depth analysis of a case study support the understanding of the unit dose drug distribution system and the subsequent definition of the practical implications for hospital companies.
Findings
– Starting from the insights offered by the case study, the analysis shows that the unit dose system allows hospitals to improve the patient care quality and reduce costs.
Research limitations/implications
– The limitations of the research are those related to the theoretical and exploratory nature of the study, but from a practical point of view, the work provides important indications to the management of healthcare companies, which have to innovate their drug distribution systems.
Originality/value
– This paper analyzes a new and highly topical issue and provides several insights for the competitive development of a fundamental sector.
Processes related to risk assessment and risk response plan are found in all the important and known guidelines. Nonetheless, the gap between these two basic processes is significant. A fundamental question is raised: How does the determination of the importance of risk in the risk assessment process lead to the determination of the risk responses in the risk management process? This study is an attempt to increase the integration between these two basic processes through an integrated approach of the probability, impact and manageability using the chain of risks. The article contributes to previous knowledge by providing a theoretical framework for understanding the complex concept of manageability and thus clarifying ways in which countless risk parameter can be used and having a great effect on better risk management. Therefore, the developed conceptual framework can be considered as a common framework for several studies which are conducted on other risk parameters and their purpose is to promote risk assessment and response plan.
In recent years, governments are increasingly interested in developing public–private partnerships such as outsourcing logistics to service providers to benefit from better performance. A major obstacle to developing such partnerships is the lack of decision-support tools to investigate supply chain and outsourcing decisions, taking into account perceived risk that arises from such partnerships. This paper develops a decision-support tool for policy makers to quantify perceived risk and jointly optimize network design and logistics outsourcing. It is based on a multi-phase approach which quantifies perceived risk as a function of outsourcing decisions using policy makers judgment, solves a multi-objective optimization problem, and constructs efficient frontiers that balance total supply chain cost and perceived risk. The proposed approach is applied to the real case study of the Moroccan supply chain of pharmaceuticals. Several outsourcing strategies are investigated and corresponding efficient frontiers are constructed. Our analysis shows that outsourcing cost-efficiency and the degree of perceived risk have a great impact on the optimal distribution network design and outsourcing strategies.
The severe scarcity of critical medical supplies caused by the COVID-19 pandemic led to considerable procurement challenges in the healthcare supply chain (HCSC). As ensuring the availability of such supplies during disruptions is critical, the debate on how to increase supply chain resilience in healthcare has gained new momentum. We present empirical evidence from a multi-tier case study spanning nine European medical supplies manufacturers and hospital groups. Based on the resource dependence theory, we investigated procurement-related strategies to improve medical supplies availability. We conducted semi-structured interviews with 39 procurement and supply chain management experts and derived seven propositions on buffering and bridging approaches for managing evolving resource dependencies and thereby strengthening supply chain resilience in a pandemic. Overall, we confirm the resource dependency theory's applicability for explaining companies' mitigation measures in a pandemic disruption. We find that bridging measures within the healthcare supply base, such as offering vertical procurement support for suppliers or leveraging long-term buyer-supplier relationships, are more effective for securing medical supplies than buffering measures. Complementing bridging with buffering, such as extended upstream procurement or resource sharing among hospitals, can lead to superior risk mitigation as capacities of the present supplier base may not suffice. Furthermore, we extend the resource dependence theory by showing that the severity of disruptions caused by a pandemic triggers new forms of buffering external to the HCSC. Both traditional and new buffering measures establish novel flows of medical supplies in the HCSC that can enable higher supply security in a pandemic.
Purpose
The study of supply chain disruption (SCD) and supply chain resilience (SCR) remains to be studied deeply in the field of business management. The purpose of this paper is to showcase a framework of SCR strategies to reduce the adverse effects of SCD using systematic literature review and data visualization.
Design/methodology/approach
Using a systematic literature review approach, the paper explores the concepts of supply chain disruption and supply chain resilience. Through rigorous systematic screening, authors studied papers on both the concepts and have proposed a framework for the same. The authors also have used data visualization and network diagram approaches for better understanding of the topic.
Findings
The systematic literature review of both the concepts brings out some exciting results which give a new direction to supply chain field. The outcome of this research also outlines numerous future research direction, which will be useful for the research community.
Practical implications
The numerous strategies of SCR should be implemented by manufacturing as well as a service organization. The framework reported in this research help academician and practitioners to understand SCR and to easily overcome any level of disruption. Supply chain managers must also formulate strategies accordingly and make plans to continually expand the system.
Originality/value
This research is the first such attempt to showcase a formal systematic framework and co-occurrence networks as well as overlay networks of SCR and SCD.
As of March11, 2020 the world Health Organization (WHO) declared Corona virus disease 2019 (COVID-19) as a pandemic. The disastrous outbreak of Covid-19 is described as humanity’s worst crisis since World War II. Effectively, not only has it caused severe disruptions around the world at different levels–social, economic, political-but it has also acutely disrupted supply chains worldwide. Pharmaceutical supply chain is a significant component of the health system as to supplying medicines. Today, pharmaceutical companies face a tremendous array of risks. The purpose of this research is to assess different risks in Tunisian pharmaceutical supply chain during this challenging period due to COVID-19 pandemic by providing quantified empirical results. Based on the review of literature, some major risks affecting the pharmaceutical supply chain are identified as regulatory risk, inventory risk, counterfeit risk and financial risk. The fuzzy AHP method is used, in this work, in order to identify the most important risk. It has to be noted that the top risk identified in pharmaceutical supply chain is that related to the Supply and suppliers.
Purpose
This “impact pathways” paper argues that operations and supply chain management (OSCM) could help address the worsening drug shortage problem in high-income countries. This significant societal problem poses difficult challenges to stakeholders given the complex and dynamic nature of drug supply chains. OSCM scholars are well positioned to provide answers, introducing new research directions for OSCM in the process.
Design/methodology/approach
To substantiate this, the authors carried out a review of stakeholder reports from six European countries and the academic literature.
Findings
There is little academic research and no fundamental agreement among stakeholders about causes of shortages. Stakeholders have suggested many government measures, but little evidence exists on their comparative cost-effectiveness.
Originality/value
The authors discuss three pathways of impactful research on drug shortages to which OSCM could contribute: (1) Developing an evidence-based system view of drug shortages; (2) Studying the comparative cost-effectiveness of key government interventions; (3) Bringing supply chain risk management into the government and economics perspectives and vice versa. Our study provides a baseline for future COVID-19-related research on this topic.
Network design plays an essential role in logistics supply chain management. Under fourth-party logistics (4PL), an industry innovator mode helps to balance the service satisfaction of both suppliers and customers. In this study, this “balancing” advantage is investigated, and a novel network is proposed for 4PL platforms. Specifically, a mixed-integer nonlinear programming model is developed to maximize the service satisfaction of both sides under a limited budget, and to determine the locations for transshipment centers (TCs), third-party logistics (3PL) providers between parties, and transport volumes. The service satisfaction is defined according to prospect theory. Considering the NP-hard characteristic of the problem and its complicated objective function, a particle swarm optimization plus (PSO+) algorithm integrating an average adjustment (AA) strategy is introduced for managing complex budget constraints. A series of numerical experiments are conducted to validate the effectiveness and efficiency of the model and algorithm. The results provide strong evidence for certifying the performance of the model, in which both suppliers and customers can achieve their anticipated service levels.
Purpose
This study develops and tests a model exploring the relationship between supply chain (SC) counterfeit risk management and performance in the healthcare supply chain (HCSC).
Design/methodology/approach
In the proposed theoretical model, HCSC counterfeit risk management is characterized by HCSC counterfeit risk orientation (HCRO), HCSC counterfeit risk mitigation (HCRM) and HCSC risk management integration (HRMI), while performance is represented by healthcare logistics performance (HLP) and healthcare organization overall performance (HOP). Partial least squares structural equation modeling (PLS-SEM) and survey data from 55 HCSC managers are used to test the research hypotheses.
Findings
HCRO has a significant positive effect on HCRM, while HCRM has a positive impact on HRMI. With respect to HLP, HCRM has a nonsignificant effect, while HRMI has a significant impact, thus confirming the important mediating role of HRMI. Finally, HLP has a significant positive effect on the overall performance of healthcare organizations.
Research limitations/implications
All study participants were from the United States, limiting the generalizability of the study findings to different countries or regions. The sample size employed in the study did not allow the authors to distinguish among the different types of healthcare organizations.
Originality/value
This study delineates between a healthcare organization's philosophy toward counterfeiting risks vs actions taken to eliminate or reduce the impact of counterfeiting on the HCSC. By offering firm-level guidance for managers, this study informs healthcare organizations about addressing the challenge of counterfeiting in the HCSC.
The United States government has identified the health care sector as part of the critical infrastructure for homeland security to protect citizens against health risks arising from terrorism, natural disasters, and epidemics. Citizens also have expectations about the role that health care plays in enjoying a good quality of life, by providing response systems to handle emergencies and other illness situations adequately. Among the systems required to support desired performance levels is a robust and resilient pharmaceutical supply chain that is free of disruption. Shortages of drugs place undue pressure on healthcare providers to devise alternative approaches to administer patient care. With climate change expected to result in increasingly severe weather patterns in the future, it is critical that logistics engineers understand the impact that a catastrophic weather event could have on supply chain disruption to facilitate the design of supply systems that are robust and resilient. This study investigates the main causal and intermediate events that led to risk propagation in, and disruption of, the U.S. pharmaceutical supply chain following Hurricane Maria. A causality Bayesian model is developed to depict linkages between risk events and quantify the associated cumulative risk. The quantification is further examined through different advanced techniques such as predictive inference reasoning and sensitivity analysis. The general interpretation of these analyses suggests that port resilience is imperative to pharmaceutical supply chain performance in the case of Puerto Rico.
Service supply chain management is more and more complex and managers find that old-style methods fall short in effectively addressing many associated challenges. Although risk management in supply chains is continuing to obtain momentous attention in the extant literature, investigation on risk aspects connecting to tactical sourcing crossways various industry segments from a transnational viewpoint is scant. The objective of this study is to investigate the effect of social ties, institutional support and inter-agency collaboration in mitigating service supply chain risk in the healthcare sectors. Qualitative and quantitative approaches were used to collect data from 171 respondents from Ethiopia. Partial least square structural equation model is applied to examine the association among these latent variables and the dependent variable. The result of the study indicates inter-agency collaboration plays a critical role in managing service supply chain risk, especially in volatility, uncertainty, complexity, and ambiguity environment. As for practical contributions, results may be helpful to policymakers, managers and organizations to do their jobs better or build competitive advantage by responding the issues and problems related to healthcare individual managers, organizations, and their partners.
Trucking industry plays a major role in the transportation of goods across different geographical locations. The operational complexities of the trucking industry lead to various risks. This study focuses on effective design and implementation of risk-mitigation strategies for the trucking industry with consideration for budget restrictions. In this paper, both subjective and objective attributes are considered in the mathematical modeling and thereby tries to capture realism in the strategic decision-making process. The results of the study provide novel insights that relate the impact of risk on the cost of mitigation. Further, the effect of three characteristics, targeted risk level (TRL), implementation cost (IC) of strategy, and the probability of risk occurrence (PO) is shown in designing and developing risk-mitigation strategies. The experimental analysis not only augments theoretical knowledge related to risk management decision-making processes but also contributes to designing and developing a risk-mitigation strategy under economic constraints. From the managerial perspective, the study demonstrates how decision-makers can benefit from an integrated approach to develop a more holistic understanding of risk-management processes. This study also provides guidelines in policy selection considering higher return on investment (ROI). The paper concludes by highlighting the key findings and discussing opportunities for future research.
Purpose
Risk management is crucial for all organizations, especially those in the global supply chain network. Failure may result in huge economic loses and damage to company reputation. Risk assessment usually involves quantitative and qualitative decisions. The purpose of this paper is to apply fuzzy logic to capture and inference qualitative decisions made in the House of Risk (HOR) assessment method.
Design/methodology/approach
In the existing HOR model, aggregate risk potential (ARP) is calculated by the risk event times the risk agent value and its occurrence. However, these values are usually obtained from interviews, which may involve subjective decisions. To overcome this shortcoming, a fuzzy-based approach is proposed to calculate ARP instead of the current deterministic approach.
Findings
Risk analyses are conducted in five major categories of risk sources: internal, global environment, supplier, customer and third-party logistics provider. Moreover, each category is further divided into different sub-categories. The results indicate that the fuzzy-based HOR successfully inferences the inputs of the risk event, risk agents and its occurrence, and can prioritize the risk agents in order to take proactive decisions.
Practical implications
The proposed fuzzy-based HOR model can be used practically by manufacturers in the global supply chain. It provides a framework for decision makers to systematically analyze the potential risks in different categories.
Originality/value
The proposed fuzzy-based HOR approach improves the traditional approach by more precise modeling of the qualitative decision-making process. It contributes to a more accurate reflection of the real situation that manufacturers are facing.
Supply chain risks are one of the significant hurdles faced by the organisations in achieving operational excellence. The purpose of this study is to assess the supply chain risks in the pharmaceutical industries and their influence on supply chain operational performance (SCOP). Through extent literature review, we have identified 44 items which are classified under five constructs consisting of supplier risk (SR), production risk (PR), demand risk (DR), infrastructure risk (IR) and macro risk (MR). Using these constructs, a structured questionnaire has been developed. An online survey was conducted in the pharmaceutical industries yielding a response rate of 66.20%. To validate the hypotheses between these constructs and SCOP, we used Structural equation modelling (SEM). From the SEM result expect demand risks, all other threats have the negative relationship with SCOP (i.e., the higher the chances, the lower the SCOP).Further, to rank the organisation based on their SCOP, we proposed a supply chain risk assessment index (SCRAI) based on the ratings obtained from the experts using Fuzzy techniques. From these results, it is clear that SCRAI is essential for evaluating the organisation's efficiency on supply chain operations. Keywords: supply chain risks; pharmaceutical industries; supply chain operational performance; SCOP; risk index. 2 V. Raja Sreedharan et al. Reference to this paper should be made as follows: Raja Sreedharan, V., Kamala, V. and Arunprasad, P. (xxxx) 'Supply chain risk assessment in pharmaceutical industries: an empirical approach', Int.
With the expansion of the medical assistance scheme in 2012, the consumption of pharmaceutical products in the Moroccan public sector increased exponentially. Several assessments of the current supply chain of pharmaceutical products indicated the saturation of the logistical system and its inadequacy to the new challenges faced. The purpose of this paper is to elaborate a general approach to distribution network redesign. Based on prioritized criteria, such as supply chain responsiveness and costs, it allows comparing different distribution network designs and selecting the most appropriate one using AHP multi-criteria decision making method. This general approach is applied to the case study of the Moroccan pharmaceutical supply chain in the public sector.
Purpose
The purpose of this paper is to review the extant literature on supply chain risk management (SCRM, including risk identification, assessment, treatment, and monitoring), developing a comprehensive definition and conceptual framework; to evaluate prior theory use; and to identify future research directions.
Design/methodology/approach
A systematic literature review of 354 articles (published 2000-2016) based on descriptive, thematic, and content analysis.
Findings
There has been a considerable focus on identifying risk types and proposing risk mitigation strategies. Research has emphasised organisational responses to supply chain risks and made only limited use of theory. Ten key future research directions are identified.
Research limitations/implications
A broad, contemporary understanding of SCRM is provided; and a new, comprehensive definition is presented covering the process, pathway, and objectives of SCRM, leading to a conceptual framework. The research agenda guides future work towards maturation of the discipline.
Practical implications
Managers are encouraged to adopt a holistic approach to SCRM. Guidance is provided on how to select appropriate risk treatment actions according to the probability and impact of a risk.
Originality/value
The first review to consider theory use in SCRM research and to use four SCRM stages to structure the review.
Purpose
The purpose of this paper is to present a methodology to analyze the risks present in perishable food supply chain and to determine the most effective risk mitigation strategies. It is achieved by understanding the dynamics between various risks in perishable food supply chain and modeling them using interpretive structural modeling (ISM).
Design/methodology/approach
Four categories and 17 types of risk are established from literature and conducting brainstorming sessions with managers/engineers in Indian dairy firms. A methodology is proposed using ISM, risk priority number and risk mitigation number to prioritize risk mitigation strategy decisions for the dairy industry.
Findings
For a perishable food supply chain, risk positioned at lower levels (levels 1 or 2) in the hierarchy should be targeted first, while formulating mitigation strategies. To investigate further, risk- enabling factors which are identified for an Indian dairy firm for these levels 1 and 2 risks and mitigation strategy prioritization show that supplier side risks are more dominant followed by market risks and process risks.
Research limitations/implications
This proposed methodology has not been statistically validated or empirically tested, and factors taken are in the Indian context, but the authors believe that the study is highly relevant to other markets as well because the ISM-based analysis is for generic perishable food supply chain environment.
Practical implications
This study provides a useful approach to managers/decision makers to identify, analyze and prioritize risk in the supply chain. It also provides insights into the mutual relationships of supply chain risks which would help them to focus on the effective risk mitigation strategies formulation. The study provides the insights to benchmark and risk management in the dairy industry environment with priority considerations.
Originality/value
This paper provides an integrated approach to identifying, quantify, analyze, evaluate and mitigate the risks of perishable food (in the dairy environment) in the Indian context.
The purpose of this paper is to determine the main security threats in supply chains, to understand gaps in today’s supply chain management strategies and to make recommendations to enhance security in the context of supply chain management. Previous research lacks comprehensive studies and recommendations about how supply chain managers deal with security issues in line with the business visions and strategies of their companies. The study methodology is based on an exploratory approach. Data were collected from 20 managers from international companies by means of self-administered surveys, one-to-one interviews and group interviews. Study findings point out risk management as an important tool at the disposal of managers for trading off performance and vulnerability. However, some important challenges also need to be considered, such as lack of data, insiders, IT vulnerabilities, regulatory frameworks, criminal behaviour, etc. Hence, recommendations are made for managers to improve their understanding of supply chain security.
Purpose
– From a synthesis of literature, the purpose of this paper is to present a conceptual risk management framework, showing the effect of logistics outsourcing on the supply chain vulnerability (SCV) of shippers. The framework is designed to assist practitioners and academics in better understanding the key research, management as well as operational aspects involved.
Design/methodology/approach
– A literature review is conducted and based on these findings a conceptual framework developed.
Findings
– Logistics outsourcing is increasingly used by shippers, but the specific aspect of supply chain risk management (SCRM) and SCV in this context is rarely covered in research and implementation in practice is limited. Logistics outsourcing can have an ambiguous effect on the SCV of shippers and is influenced by other internal and external factors.
Research limitations/implications
– Literature directly dealing with logistics outsourcing and SCV/SCRM is rare and thus the framework is built on insights, compiled from the distinct research areas. Further research should be performed on this nascent topic.
Practical implications
– Shippers may use the framework to revise their risk management strategy and actively use logistics outsourcing to decrease SCV. Logistics service providers can tailor their services specifically toward clients and thus both can be better prepared for future supply chain disruptions.
Originality/value
– This paper looks specifically at SCV and SRCM of shippers with regards to logistics outsourcing.
This paper analyses the interrelationships between risks faced by third party logistics service providers (3PLs) in relation to one of its customers using DEMATEL. Novel analysis of both within and between risk categories and generation of threshold value to prioritize risks generate useful insights. Results show that arms-length relationship between the customer and the 3PLs has strong influence on other risks and there is a need for collaborative relationships between 3PLs and its customers. Moreover, analysis indicates that the 3PLs need to improve internal processes related to quality management, flexibility of its operations and also geographical coverage of their services.