Using a kanban system for multi-echelon inventory management: the case of pharmaceutical supply chains

Abstract

This paper explores the implementation of a kanban system within a multi-echelon pharmaceutical supply chain (MEPSC). The article tackles the multi-echelon supply chain problem and the role of collaboration to enhance its performance specifically while using a pull system. The study provides also insights on the different existing Kanban systems that were created to overcome the difficulties and challenges faced by the original kanban system. This paper presents how a kanban system could manage pharmaceuticals inventory and enhance the information sharing through a multi-echelon supply chain. There are two primary findings: a) that the implementation of Kanban system provides a strategic benefit and improves the quality of services and information sharing through a multi-echelon supply chain; b) It also provides a foundation to leverage innovation in pharmaceutical supply chains; it gives the opportunity to the organisation to move away from the current push delivery and logistics systems towards improved logistics strategy models to empower front-line caregivers.