Reverse logistics in the pharmaceuticals industry: a systemic analysis
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 5 August 2014
Abstract
Purpose
The purpose of this paper is to present a systemic analysis of the complex interaction of factors affecting the reverse logistics (RL) processes in a pharmaceutical supply chain (PSC).
Design/methodology/approach
This study uses a systems thinking approach. Initial problem structuring involved the analysis of behavior-over-time of main variables and incorporated stakeholder analysis. Further, a participative group model building process was used to develop a systems model.
Findings
The model was analysed to identify a set of feedback loops operating in the system responsible for the complexities of the problem. To address this, the stakeholders identified three strategic interventions. The first intervention relates to returns avoidance by alleviating market flooding of medicines, second intervention aims at improving the infrastructure for quality and performance management and the third targets balanced risk sharing between the main stakeholders involved in the supply chain. The findings suggest strong linkage between RL network design and key activities in returns management. The study lays a platform for developing a simulation model.
Research limitations/implications
Data collection was confined to stakeholders belonging to a PSC based in the South Indian state of Kerala and excluded the participation of doctors due to practical constraints. The application of systems thinking and modelling was limited to the qualitative phases of the methodology.
Practical implications
The study illustrates a participative process capable of revealing the differing viewpoints of multiple stakeholders involved in a PSC.
Originality/value
It provides a holistic approach based on the systems thinking and modelling methodology for analysing the complexities related to RL in the Indian pharmaceutical industry.
Keywords
Acknowledgements
This journal paper is a longer and substantially revised version of a paper presented by the authors at the 26th Annual Australian and New Zealand Academy of Management conference 2012, held in Perth, Australia.
Citation
A. Narayana, S., A. Elias, A. and K. Pati, R. (2014), "Reverse logistics in the pharmaceuticals industry: a systemic analysis", The International Journal of Logistics Management, Vol. 25 No. 2, pp. 379-398. https://doi.org/10.1108/IJLM-08-2012-0073
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited