Digital transformation in supply chain, challenges and opportunities in SMEs: a case study of Al-Rumman Pharma

Abstract

Learning outcomes

Digital skills change management skills problem solving skills.

Case overview/synopsis

Al-Rumman Pharma is headquartered in Dubai, is an integrated international pharmaceutical company providing a wide range of pharmaceutical solutions to manufacture high quality and affordable generic medicines. It holds credibility amongst healthcare professionals and patients, across the Middle East and North African (MENA) markets. Their quality assurance is fostered by high levels of reliability and order fulfillment, which differentiates them from their competitors. Recently, they have been facing technology fatigue meant as an organization suffering from overwhelming options and choices in technology, this contributes to turbulent and confused states of mind when considering technology adaptation. This case evolves specifically from a procurement perspective, the pressure of high expectation and severe compliance clauses from key suppliers, particularly large corporations with monopolies in supplies who have the tendency to dominate and dictate terms to the small and medium enterprises (SMEs). For example, forcing SME’s to adopt specific technological frameworks to be trade partners. Another conflict is that while the SME’s do value the contribution of the procurement function, the shift from tactical to strategic mindset is not robust enough. Is this a dilemma? Ms Mary buyer at Al-Rumman Pharma, which is SME in operation, is facing challenges from key suppliers because of her tactical buying approach and adoption of multiple technological frameworks from various key suppliers, which are neither integrated nor compatible with each other. Her transition from traditional buying to a more strategic sourcing approach is what the need of the hour is. Prior information technology role was more as support at Al-Rumman Pharma and Chief Executive Officer Dr Mubeen Ahmad Khan did technology adopted decisions in isolation but today the company needs an integrative approach with forward thinking and also kept the legacy intact. Resistance to change was very inevitable once it was integrated.

Complexity academic level

This case has been particularly focused on undergraduates in the final semester of management courses, as well as masters level students specializing in supply chain and operation management courses. It is also for practitioner procurement and supply chain managers going for various supply chain management related certification courses. Students who have studied procurement management are most suitable to accomplish this case study. Executives pursuing a business program are also recommended to study this case.

Supplementary materials

Teaching Notes are available for educators only.

Subject code

CSS 9: Operations and logistics.

Citation

Faridi, M.R. and Malik, A. (2020), "Digital transformation in supply chain, challenges and opportunities in SMEs: a case study of Al-Rumman Pharma", , Vol. 10 No. 1. https://doi.org/10.1108/EEMCS-05-2019-0122