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Enhancing Pharmaceutical Supply Chain Performance

Author(s) Girish Gupta
Country United States
Abstract The pharmaceutical supply chain (PSC) is one of the most complex and vital systems in global industry, functioning under strict regulations and, meanwhile, struggling to bring products to the market fast, efficiently, and at the lowest cost. This paper also examines how pharmaceutical companies can improve the performance of their supply chains by leveraging integrated planning tools, adopting digital technologies, and implementing operational models based on industry-standard frameworks. The paper begins by recognizing and reviewing the essential elements of supply chain management in a pharmaceutical setting, including demand forecasting, procurement plans, production plans, inventory management, warehouses, and logistics. All these factors influence the level of agility, rapidness, and reliability of the supply chain.
Leveraging industry benchmarks and expert interviews, this paper examines how key metrics such as forecast accuracy, inventory turnover, On-Time-In-Full (OTIF) delivery rates, and order-to-delivery lead times impact supply chain performance throughout the entire process. It provides comparative information between average and leading pharmaceutical companies to show performance gaps and potential for improvement. The study also includes a case of a medium-sized pharmaceutical company that experienced a decline in sales and high product obsolescence due to inefficient manual planning processes and a lack of cross-functional coordination. “The transition was not without challenges, but the introduction of ERP systems and collaborative planning resulted in a significant increase in inventory turns (to 5 vs less than one previously) and low or very low obsolescence, the former was zero,” Annalou concluded, so there is your real-life digital transformation story right there.
The paper also examines the suitability of the SCOR (Supply Chain Operations Reference) model as a comprehensive framework for evaluating and improving supply chain operations. The pharmaceutical industry is mapped onto the six dimensions of the SCOR model: Plan, Make, Source, Deliver, Return, and Enable, and against a set of performance measures, including cost per order, lead time, and service level attainment. The paper emphasizes the significance of agile and flexible supply chain architecture and systems in facilitating cross-functional coordination, real-time analytics, decision support, and risk management.
Based on literature study, data analysis, and industry feedback, this report provides actionable insights for pharmaceutical industry executives, supply chain professionals, and policy-makers. These teams conduct regular forecast reviews with ABC classification, utilize technology for end-to-end visibility, and foster cross-functional teams to help resolve operational challenges. The authors maintain that achieving supply chain excellence in the pharmaceutical industry is no longer just a competitive advantage, but rather a fundamental prerequisite for compliance, cost control, and patient benefit. Finally, a digitalized, agile, and performance-monitored pharmaceutical supply chain can not only enable business sustainability but also support public health security in an age when complexity and volatility are key characteristics.
Keywords Pharmaceutical supply chain management, forecasting accuracy, inventory turnover, ERP systems, SCOR model, OTIF delivery, demand planning, digital transformation, regulatory compliance, collaborative planning.
Field Engineering
Published In Volume 6, Issue 7, July 2025
Published On 2025-07-25
Cite This Enhancing Pharmaceutical Supply Chain Performance - Girish Gupta - IJLRP Volume 6, Issue 7, July 2025. DOI 10.70528/IJLRP.v6.i7.1681
DOI https://doi.org/10.70528/IJLRP.v6.i7.1681
Short DOI https://doi.org/g9t8fq
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