Abstract
Within the pharmaceutical industry, several recent environmental changes have led companies to put into practice SCM initiatives. This article investigates the implementation of improvement initiatives that pharmaceutical companies undertake to obtain better supply network performance. It reports on four networks whose central firms are leading pharmaceutical companies. The SCM improvement initiatives implemented in the analysed pharmaceutical cases mainly concern redesign of the supply network configuration, with the intent of exploiting production scale economies, and the adoption of supplier and demand integration initiatives. Using the theory of trade-offs in strategic management, the article seeks to explore the reasons why leading pharmaceutical companies select particular mixes of SCM initiatives.
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