Challenges Of Global Pharmaceuticals Supply Chain Management: The Case Of Zaf Pharmaceuticals Plc
No Thumbnail Available
Date
2018-06-03
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Global supply chain management integrates supply and demand management within and across
companies belonging to different countries. The planning of activities involving sourcing,
outsourcing and supplying are subject to environmental conditions that compose the global
market. However, the global dimension has introduced complexity in the supply chain. The
management of global supply chains poses more challenges than the management of domestic
supply chains. The case of global Pharmaceuticals supply chain management is one of the most
difficult supply chain management operations as it is conducted in a highly governmentregulated
environment to protect human lives from adverse effects of medicines. The identified
challenges faced during global SCM practice of Zaf Pharmaceuticals PLC collecting data from
concerned departments’ respondents. The data for study was collected from 57employees of Zaf
Pharmaceuticals PLC and its global suppliers’ representative offices based on purposive
sampling technique through self-administered questionnaires. In addition, 5 managers were
interviewed. The data collected through self-administered questionnaires was analyzed using
descriptive statistics like percentage, mean and standard deviation. The qualitative data
collected through interview was used during discussion of stated points. The result of the
analysis indicated that shortage of foreign exchange and fluctuation of exchange rates, supply
uncertainty, regulatory standard to get market authorization to distribute pharmaceuticals,
longer and variable lead-times, supplier selection complexity and to some extent lingual and
cultural differences and economical and political instability are found to be major challenges in
global supply chain management practice of Zaf pharmaceuticals PLC respectively.
Based on the findings of the study it was recommended that working on supplier selection
criteria, conducting periodic audit of suppliers, sourcing from high quality profile
pharmaceuticals suppliers, reduction of suppliers’ base and shifting to domestic sourcing to
minimize foreign exchange scarcity challenges are found to be important.
Description
Keywords
Pharmaceuticals, global supply chain management, challenges, and suppliers