IT enabled logistics procedure redesign for high value pharmaceutical shipments

Abstract

PurposeThe purpose of this paper is to introduce a method for (re)designing complex logistics networks, which interact with various governmental bodies (e.g. in FDA and USDA) for regulatory clearance and control purpose. The method (the e3‐control methodology) is demonstrated to be a useful approach to analyzing and redesigning international logistics procedures in reaction to a technological innovation in a government‐business (G2B) network.Design/methodology/approachAn action research method relying on Living Lab study was used in this research. To illustrate and better understand the application of the e3‐control methodology, the authors place the development of e3‐control as a design tool for deploying the pharmaceutical case. The authors collected data with multiple methods including workshops, semi‐structured interviews and document analysis.FindingsThe e3‐control methodology has been successfully applied in this paper to carry out a step‐by‐step redesign for an international pharmaceutical logistics network. It was found that a win‐win situation can be achieved if business and government see each other as partners and share the responsibility of carrying out government regulatory and Customs controls. In this situation, Customs administrations can be relieved from redundant control tasks, and businesses will be rewarded with simplified procedures.Originality/valueThe authors' e3‐control methodology is an innovative redesign methodology for analyzing and redesigning business logistic networks including government agencies. With this approach, one can achieve a clear overview on critical problems within the logistics chains; disclose unclear procedures and in the meanwhile take into consideration the different concerns of the partners within the network.