Reverse logistic process control measures for the pharmaceutical industry supply chain

Abstract

PurposeThe aim of this paper is to analyze the pharmaceutical supply chain using the DMAIC process for improvement of the reverse logistics in a recall to avert the possibility of harm to a consumer.Design/methodology/approachA framework is used for guiding one towards the responsibilities of the different organizations concerning reverse logistics. This is further developed into a Cause and Effect analysis, performed on the supply chain and the hypothesized problem areas. Improvement concepts were then considered in the use of RFID, consistent information systems and transportation carriers to streamline the supply chain and reducing the risk of counterfeit drugs entering the forward supply chain. FMEA is used to understand the failure modes and the severity of the respective failures in the reverse logistics supply chain.FindingsThe study yielded interesting and innovative solutions being tested and conceived at the present time, but specific information on the pharmaceutical supply chain was limited. The majority of the reverse logistics for pharmaceuticals is handled through third‐party providers, and therefore this specific knowledge is well guarded, being a core competency.Practical implicationsThe improvement concepts were found to have managerial impacts such as improved communication flow, and dedicated group(s) to focus on the reverse logistics to remove miscommunication and perception errors. The ability to make improvements, as well as sustain the improvements, will also require significant and consistent management support.Originality/valueThe study is a first look at the forward and reverse logistics processes for the pharmaceutical industry supply chain and analysis of potential improvements utilizing DMAIC process. It helps in understanding gaps, suggests measures to reduce them and provides direction for improvements related to the quality of service existing between logistics users, logistics service provider, pharmaceutical firm and customers. The methods of analysis used can also be utilized as a diagnostic tool to understand the weaknesses in the existing supply chain and thus help in identifying the key areas for improvements within the organization.