Reverse Logistic Process Control Measures Business Essay

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Traditionally, businesses have concentrated on improving the forward supply chain for their products, manufacturer-wholesaler-retailer. However, as the business environment becomes more competitive, it becomes increasingly important for them to concentrate on optimizing the backward loop, as well. Until a few years ago, the reverse supply chain was deployed with a view to minimize costs by allowing the materials to accumulate over time and eventually be disposed of in an environmentally friendly manner. But now with proper reverse supply chain management, the scrap material and other products which were earlier disposed off, have now become a new source of income and revenue for the production companies.

To collect the expired formulations and drugs for environment friendly disposal, the reverse supply chain is essential for Pharmaceutical industry .Also to fulfil the Environmental obligations & to maintain the Brand image & corporate citizenship, the reverse supply chain getting the prime importance in the Pharmaceutical industry.

The Problem Statement

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Identifying the key issues involved in the Reverse Supply Chain of Pharmaceuticals products

Suggesting ways for effective use of reverse supply chain in Pharmaceuticals Industry.

Objectives of this Research

The specific objectives are as follows:-

To investigate current reverse supply chain practices in Pharmaceutical manufacturers in India

To assess the various problems faced in Reverse Supply Chain Management of the Pharmaceuticals products

To find solutions for the problems faced in Reverse Supply Chain Management in Pharmaceutical industry.

Significance of the study

According to the Healthcare Distribution Management Association, through the process of reverse supply chain logistics, roughly 4 percent of products leaving pharmaceutical warehouses are returned for proper disposal or redistribution. This study helps us to understand the process and key issue involved in the reverse supply chain in Pharmaceuticals Industry.

Scope of the study

The project will covers the different practices implemented in reverse supply chain of Pharmaceuticals Industry. The project helps to find out best and benchmark ways in order to make reverse supply chain efficient & effective.

The Methodology

The methodology which will be used for carrying out the report will be used as follows:

Types of Data Source

For present research work, primary as well as secondary data will be used. Research will be broadly classified into two sections. Various statistical tools will be used to suggest and analyse the primary and secondary data.

Tools For Data collection

Primary Data:

The information will be collected directly from the stakeholders (manufactures, retailers & TPL ) of Pharmaceuticals Industry present in India.

Interview: This will include people to interview, Develop the interview questions including open-ended questions and close ended questions.

Secondary Data:

The information will be collected from Internet, White papers & Industry Journals -Magazines.

LITERATURE REVIEW

As a part of research process, it is necessary for researcher to undertake a literature review which represents the previous researches in related to reverse supply chain system in Pharmaceuticals industry.

Comparing to the forward supply chain within which material flow from the supplier to the end customers, there is a limited number of studies regarding the reverse supply chain and the large amount of reverse supply chain management are discuss on the basis of traditional supply chain management.

Literature review stared with the reverse logistics & supply chain process in pharmaceutical industry. Proceeding with the price & benefits of reverse supply chain in literature review, the research narrow down to the technology used for present & future purpose in reverse supply chain.

Sources of literature being review in this paper involves book, journals and conference proceedings, which is access through library, electronics database such as Business source premium,Emerald etc ,together with internet search engine .

Article No.1:

Title:

Reverse logistic process control measures for the pharmaceutical industry supply chain

Authors:

Sameer Kumar, (Opus College of Business, University of St Thomas, Minneapolis, Minnesota,USA), Erin Dieveney, (Opus College of Business, University of St Thomas, Minneapolis,Minnesota, USA), Aaron Dieveney, (Opus College of Business, University of St Thomas, Minneapolis, Minnesota, USA)

Citation:

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Sameer Kumar, Erin Dieveney, Aaron Dieveney, (2009) "Reverse logistic process control measures for the pharmaceutical industry supply chain", International Journal of Productivity and Performance Management, Vol. 58 Iss: 2, pp.188 - 204

Purpose:

The 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.

Findings:

The 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 implications:

The 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.

Article No .2:

Title:

Designing the reverse supply chain: the impact of the product residual value

Authors:

Chiara Gobbi, (Department of Operations Management, Copenhagen Business School, Frederiksberg, Denmark)

Citation:

Chiara Gobbi, (2011) "Designing the reverse supply chain: the impact of the product residual value", International Journal of Physical Distribution & Logistics Management, Vol. 41 Iss: 8, pp.768 - 796

Purpose:

The purpose of this paper is to explore the impact of the product residual value (PRV) and the loss of value over time of returned products in the reverse supply chain configuration.

Findings:

The findings show that low PRV is associated with second-class recovery options (recycling and energy recovery) and that high PRV is associated with first-class recovery options (reconditioning and remarketing). When the recovery option is recycling, time is not relevant, the primary objective is cost reduction (efficiency), the chain is centralized, and actors and phases of the reverse chain are determined by the specificity of the recycling process. When the recovery option is reconditioning, time is primarily relevant, tradeoffs between costs and time efficiency are necessary, the chain presents a centralized structure and the presence of other types of actors and phases influences the structure of the reverse supply chain

Practical implications:

Based on the outcome of the study, managers are able to determine the basic prerequisites for the design of their reverse supply chains.

Article No .3:

Title:

Pricing decisions for reverse supply chains

Authors:

Gu Qiaolun, Ji Jianhua, Gao Tiegang

Source:

Kybernetes Volume: 40 Issue: 5/6 2011

Purpose:

The purpose of this paper is to present the collecting price decisions of used products in reverse supply chains based on the following cases: manufacturer for collecting and processing, third party for collecting and manufacturer for processing, retailer for collecting and manufacture for processing, and third party for collecting and processing.

Findings:

By investigating the pricing decisions for different cases, the manufacturer prefers to collect the used products rather than delegate to others if manufacturer for processing, and a third party joining the reverse supply chains hopes to collaborate more deeply, not only collecting but also processing the used products.

Practical implications:

The paper describes a very useful method for managers to make collecting price decisions for reverse supply chains.

Article No.4:

Title:

Assessing the impact of RFID and sensor technologies on the returns management of time-sensitive products

Authors:

Cosmin Condea, (SAP Research CEC St Gallen, SAP (Switzerland) Inc., St Gallen, Switzerland and Institute of Technology Management, University of St Gallen, St Gallen, Switzerland), Frédéric Thiesse, (Institute of Technology Management, University of St Gallen, St Gallen, Switzerland), Elgar Fleisch, (Institute of Technology Management, University of St Gallen, St Gallen, Switzerland and Department of Management, Technology and Economics, ETH Zurich, Zurich, Switzerland)

Citation:

Cosmin Condea, Frédéric Thiesse, Elgar Fleisch, (2010) "Assessing the impact of RFID and sensor technologies on the returns management of time-sensitive products", Business Process Management Journal, Vol. 16 Iss: 6, pp.954 - 971

Purpose:

The purpose of this paper is to assess the value of radio-frequency identification (RFID) and sensor technologies to reverse logistics processes. The research is motivated by the question of to what extent the accuracy of information on product quality delivered by such technologies impacts the total recovered value that companies obtain from returned goods in an industry with time-sensitive products.

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Findings:

The results show that RFID allows for a redesign of the return process that performs more efficiently regarding the total recovered value depending on technology costs (i.e. tag costs) and capabilities (i.e. sufficient sensor-delivered parameters to rightly infer product quality). Second, the results indicate that maximum benefits can be drawn with lower accuracy but early decision on the disposition option.

Article No .5:

Title:

The benefits of reverse logistics: the case of the Manchester Royal Infirmary Pharmacy

Authors:

Liz Ritchie, (Liz Ritchie is Teaching Company Associate, at the Manchester School of Management, UMIST, Manchester, UK.), Bernard Burnes, (Bernard Burnes is Senior Lecturer at the Manchester School of Management, UMIST, Manchester, UK.), Paul Whittle, (Paul Whittle is Project Officer, all at the Manchester School of Management, UMIST, Manchester, UK.), Richard Hey, (Richard Hey is Pharmacy Director at Manchester Royal Infirmary, Manchester, UK.)

Citation:

Liz Ritchie, Bernard Burnes, Paul Whittle, Richard Hey, (2000) "The benefits of reverse logistics: the case of the Manchester Royal Infirmary Pharmacy", Supply Chain Management: An International Journal, Vol. 5 Iss: 5, pp.226 - 234

Abstract:

Describes a research project carried out within the Manchester Royal Infirmary (MRI) to evaluate and improve the recycling and disposal of pharmaceutical products. Discusses supply chain management practices in the National Health Service and, in particular, focuses on the concept of reverse logistics (the recycling of pharmaceutical stock for later re-use). The research involved the analysis of returned stock from 28 hospital units and, from this data, the development and implementation of a revised recycling process within MRI Pharmacy. Conclude by arguing that there are significant financial and operational advantages to the NHS, and other organizations, in developing effective reverse logistics processes.

Article No.6:

Title:

Implications of outsourcing on operations planning: findings from the pharmaceutical industry

Authors:

Youssef Boulaksil, (School of Industrial Engineering, Eindhoven University of Technology, Eindhoven, The Netherlands and School of Business Administration, Al Akhawayn University, Ifrane, Morocco), Jan C. Fransoo, (School of Industrial Engineering, Eindhoven University of Technology, Eindhoven, The Netherlands)

Citation:

Youssef Boulaksil, Jan C. Fransoo, (2010) "Implications of outsourcing on operations planning: findings from the pharmaceutical industry", International Journal of Operations & Production Management, Vol. 30 Iss: 10, pp.1059 - 1079

Purpose:

The purpose of this paper is to understand the implications of outsourcing at the operational planning level, i.e. how the operational planning function is complicated owing to the strategic outsourcing decisions that have been made in the past.

Findings:

The paper finds that nothing has been documented in the literature on outsourcing at the operational planning level. Moreover, a number of implications of outsourcing at the operational planning level are discussed. One of the main insights is that in an outsourcing relationship, the order process consists of different, hierarchically connected, decisions in time, hence requiring a richer and more developed communication and ordering pattern than is commonly assumed.

Research limitations/implications:

The results seem to be generalizable to the pharmaceutical industry. However, future research should determine whether these results replicate in other industries.

Article No.7:

Title:

Sequences of improvement in supply networks: case studies from the pharmaceutical industry

Authors:

Pamela Danese, (Department of Management and Engineering, University of Padova, Vicenza, Italy), Pietro Romano, (Department of Electrical, Managerial and Mechanical Engineering, University of Udine, Udine, Italy), Andrea Vinelli, (Department of Management and Engineering, University of Padova, Vicenza, Italy)

Citation:

Pamela Danese, Pietro Romano, Andrea Vinelli, (2006) "Sequences of improvement in supply networks: case studies from the pharmaceutical industry", International Journal of Operations & Production Management, Vol. 26 Iss: 11, pp.1199 - 1222

Purpose:

The aim of the current study is to develop an understanding of the decisional process that leads a company, at a given point in time, to choose the subsequent supply chain management (SCM) initiative to be implemented.

Findings:

At a given time when deciding the SCM initiative(s) to be implemented, external fit and the state of supply network configuration and integration are both important, but for different reasons. In particular, lack of external fit triggers the implementation of SCM initiatives. Sequences of SCM initiatives are the result of a series of successive decisional situations, where the external fit and state of supply network configuration and integration vary each time a new SCM initiative is implemented.

Practical implications:

Managers contemplating the implementation of SCM interventions should consider the current performance conditions for competitiveness and compare them with the measured supply network performances, decide what SCM initiatives should be implemented after considering the current state of the supply network configuration and integration and performance dimensions to be improved, and measure the impact (positive and negative) of the implemented initiatives on supply network performance to evaluate whether or not to implement further initiatives. Moreover, if managers are able to forecast the potential performance trade-off associated with the implementation of the selected SCM interventions, long-term improvement programs encompassing further SCM initiatives over time can be planned to counteract the trade-off penalty.