Supply Chain Optimisation for Operational Efficiency in Indian Pharmaceutical Industry – A Review

Abstract

Supply Chain Management has become a prominent discipline in all the businesses of the world. Organisations are looking for an edge over the competitors by achieving operational efficiency through optimization techniques. Cost effectiveness and maximisation of productivity are the major focus areas for any organisation to achieve the operational efficiency. Pharmaceutical supply chains are exceptionally complex as there are no second sales for the drugs and medicines. Huge amounts are spent for research and development in supply chain processes of Pharmaceutical industries. The extensive review on pharmaceutical supply chains identified research gaps in various areas such as inventory management, new product and process development, plant design, network design, capacity planning, pipeline and development management, logistics activities in outsourcing, reverse logistics, lean manufacturing, green supply chain management and implementation of e-business processes etc for operational excellence.  Not much research is available in the areas of pharmaceutical supply chains. Thus, it is found necessary to evaluate and describe an optimization-based approach on inventory management for the operational excellence in the Indian pharmaceutical industries.The current study reviews the literature available on supply chain optimization from 2012 to till date. Major studies conclude that supply chain process is complex especially in pharmaceutical companies as there are many challenges in the form of material flow, distribution, logistics and transportation etc.