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Article
Publication date: 14 August 2017

Sineenart Krichanchai and Bart L. MacCarthy

The purpose of this paper is to investigate vendor managed inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may affect VMI…

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Abstract

Purpose

The purpose of this paper is to investigate vendor managed inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may affect VMI adoption.

Design/methodology/approach

Two contrasting VMI initiatives involving five organizations (three hospitals, one distributor and one manufacturer/supplier) are studied. A case study method with semi-structured interviews is used with triangulation in data collection, site visits and document analysis to enhance reliability and validity. The cases are analyzed and compared with respect to hospital, supplier, product and supply chain integration characteristics.

Findings

A successful public sector VMI initiative and an unsuccessful private sector VMI initiative are identified. The public sector supplier focuses on improving service level while the private sector supplier seeks to strengthen relationships with a key customer. Hospital characteristics, including type of hospital, top management perspectives and the hospital’s willingness to share information, are critical in decisions on VMI initiation or termination. Relatively stable demand products are preferred for a VMI approach. Hospitals may perceive risks in VMI adoption for medicines as it involves relinquishing control of critical supplies and may result in “lock-in” with a particular supplier.

Research limitations/implications

The cases have been conducted in one country, which may affect generalization of the findings. Wider empirical evidence from other countries in both developed and less developed regions will be beneficial.

Practical implications

VMI is advocated as being beneficial in many supply contexts. However, it is challenging to implement. The study identifies factors that affect the adoption of VMI for hospital pharmaceuticals and provides guidance on initiating VMI in a hospital context.

Social implications

The potential for VMI in public health projects to enable greater access to critical medicines is highlighted.

Originality/value

The paper provides supply side and demand side perspectives on VMI adoption in an important sector. It highlights the need for greater understanding of the perceived and actual risks in VMI from the perspective of both the hospital and the supplier and for much clearer advice on which pharmaceutical products are appropriate for VMI control in a hospital context.

Details

The International Journal of Logistics Management, vol. 28 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 13 January 2022

Umar Muhammad Modibbo, Musa Hassan, Aquil Ahmed and Irfan Ali

Supplier selection in the supply chain network (SCN) has strategic importance and involves multiple factors. The multi-criteria nature of the problem coupled with environmental…

Abstract

Purpose

Supplier selection in the supply chain network (SCN) has strategic importance and involves multiple factors. The multi-criteria nature of the problem coupled with environmental uncertainty requires several procedures and considerations. The issue of decision-making in selecting the best among various qualified suppliers remains the major challenge in the pharmaceutical industry. This study investigated the multi-criteria multi-supplier decision-making process and proposed a model for supplier selection problems based on mixed-integer linear programming.

Design/methodology/approach

The concept of principal component analysis (PCA) was used to reduce data dimensionality, and the four best criteria have been considered and selected. The result is subjected to decision-makers’ (DMs’) reliability test using the concept of a triangular fuzzy number (TFN). The importance of each supplier to each measure is established using fuzzy technique for order preference by similarity to an ideal solution approach, and the suppliers have ranked accordingly.

Findings

This study proposes a mixed integer linear programming model for supplier selection in a pharmaceutical company. The effectiveness of the proposed model has been demonstrated using a numerical example. The solution shows the model's applicability in making a sound decision in pharmaceutical companies in the space of reality. The model proposed is simple. Readily commercial packages such as LINDO/LINGO and GAMS can solve the model.

Research limitations/implications

This research contributed to the systematic manner of supplier selection considering DMs’ value judgement under a fuzzy environment and is limited to the case study area. However, interested researchers can apply the study in other related manufacturing industries. However, the criteria have to be revisited to suit that system and might require varying ratings based on the experts' opinions in that field.

Practical implications

This work suggests more insights practically by considering a realistic and precise investigation based on a real-life case study of pharmaceutical companies with six primary criteria and twenty-four sub-criteria. The study outcome will assist organizations and managers in conducting the best decision objectively by selecting the best suppliers with their various standards and terms among many available contenders in the manufacturing industry.

Originality/value

In this paper, the authors attempted to identify the most critical attributes to be preserved by the top managers (DMs) while selecting suppliers in pharmaceutical companies. The study proposed an MILP model for supplier selection in the pharmaceutical company using fuzzy TOPSIS.

Article
Publication date: 6 March 2017

Francois Pilon and Elias Hadjielias

This study aims to explore the dynamics enabling strategic account management (SAM) to function as a value co-creation selling model in the pharmaceutical industry.

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Abstract

Purpose

This study aims to explore the dynamics enabling strategic account management (SAM) to function as a value co-creation selling model in the pharmaceutical industry.

Design/methodology/approach

Using an inductive qualitative research design, data are collected within 11 industry customers in Canada. This work focuses on hospitals as strategic accounts of pharmaceutical companies, exploring SAM value co-creation in the “hospital-pharmaceutical company” relationship.

Findings

The findings suggest the presence of two key dimensions that can enable a value co-creation SAM model in the hospital-pharmaceutical relationship: “customer-tailored value-added initiatives” and “relationship enhancers”. Customer-tailored value-added initiatives explain the activities that are central to the hospital-pharmaceutical company relationship and can lead to the provision of value added that is unique to the hospital. Relationship enhancers explain the activities that can help strengthen hospital-pharmaceutical company relations in the pursuit of enhanced value-added interactions between the two parties. The research demonstrates a cyclical relationship between “customer-tailored value-added initiatives” and “relationship enhancers”, leading to value co-creation through a SAM model.

Practical implications

The study informs pharmaceutical industry practitioners on how to improve their value proposition through new, more sustainable selling practices. It offers information on implementing a value co-creation SAM model, which can enable pharmaceutical companies to sustain long-lasting value-added relationships with key accounts such as hospitals.

Originality/value

The study contributes to the field of SAM by conceptualizing SAM as a value co-creation system. It introduces new knowledge in pharmaceutical marketing by offering empirical insight on the applicability and use of SAM in the hospital-pharmaceutical company dyad.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 11 February 2022

Ankur Chauhan, Suresh Kumar Jakhar and Sachin Kumar Mangla

During pre-vaccine era, pharmaceutical supplies [self-care essentials (SCEs)] have been proved to be a major deflector, protector and safety guard against novel coronavirus…

Abstract

Purpose

During pre-vaccine era, pharmaceutical supplies [self-care essentials (SCEs)] have been proved to be a major deflector, protector and safety guard against novel coronavirus disease (COVID-19). Hence, the objective of the study is to provide a comprehensive socio-technological decision-making framework based on multiple criteria for selecting the suppliers of pharmaceuticals, such as SCEs, by multi-brand enterprises (distributors) in the pandemic environment.

Design/methodology/approach

A hybrid methodology of Bayesian best worst method (BWM) and multi-attributive border approximation area comparison (MABAC) method has been applied for carrying out the study. Bayesian BWM has been applied for computing the importance of criteria identified for the selection of SCEs' suppliers during pandemic environment and MABAC method evaluated the suppliers of the SCEs.

Findings

In the study, the authors have identified eight criteria such as disinfection and sanitization of vehicles, social conscience of suppliers, brand (Technological recognition) of SCEs and logistics and distribution network, among others, which are critical to the selection of a supplier for the supply of SCEs. The application of the proposed hybrid model revealed that lead time and quality of SCEs are of utmost concern for pharmacies in a pandemic environment. Among the ten suppliers, results showed that Suppliers 2, 4 and 5 have been ranked first for supplying hand wash, hand sanitizer and face mask, respectively.

Practical implications

The proposed model has helped the multi-brand distributors of pharmaceuticals in selecting suppliers during the ongoing crisis of COVID-19. In addition to that, in future the outcomes of the study would be helpful for multi-brand distributors as well as pharmacies and hospitals in selecting the best suppliers. Policy makers will be able to make and revise the policies immediately with the help of the proposed decision-making framework.

Originality/value

The paper makes a novel contribution towards theory with the criteria identified for selecting best suppliers during the pandemic COVID-19. Additionally, the proposed hybrid model helps multi-brand distributors of pharmaceuticals in making decisions that lead to a huge social and economic success in pandemic time.

Details

Journal of Enterprise Information Management, vol. 35 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 12 December 2023

Santonab Chakraborty, Rakesh D. Raut, T.M. Rofin and Shankar Chakraborty

Supplier selection along with continuous evaluation of their performance is a crucial activity in healthcare supply chain management for effective utilization of scarce resources…

Abstract

Purpose

Supplier selection along with continuous evaluation of their performance is a crucial activity in healthcare supply chain management for effective utilization of scarce resources while providing quality service at an affordable price, and minimizing chances of stock-out, avoiding serious consequences on the illness or fatality of the patients. Presence of both qualitative and quantitative evaluation criteria, set of potential suppliers and participation of different stakeholders with varying interest make healthcare supplier selection a challenging task which can be effectively solved using any of the multi-criteria decision making (MCDM) methods.

Design/methodology/approach

To deal with various qualitative criteria, like cost, quality, delivery performance, reliability, responsiveness and flexibility, this paper proposes integration of grey system theory with a newly developed MCDM tool, i.e. mixed aggregation by comprehensive normalization technique (MACONT) to identify the best performing supplier for pharmaceutical items in a healthcare unit from a pool of six competing alternatives based on the opinions of three healthcare professionals.

Findings

While assessing importance of the six evaluation criteria and performance of the alternative healthcare suppliers against those criteria using grey numbers, and exploring use of three normalization procedures and two aggregation operations of MACONT method, this integrated approach singles out S5 as the most compromised healthcare supplier for the considered problem. A sensitivity analysis of its ranking performance against varying values of both balance parameters and preference parameters also validates its solution accuracy and robustness.

Originality/value

This integrated approach can thus efficiently solve healthcare supplier selection problems based on qualitative evaluation criteria in uncertain group decision making environment. It can also be deployed to deal with other decision making problems in the healthcare sector, like supplier selection for healthcare devices, performance evaluation of healthcare units, ranking of physicians etc.

Details

Grey Systems: Theory and Application, vol. 14 no. 2
Type: Research Article
ISSN: 2043-9377

Keywords

Article
Publication date: 1 October 2002

Elizabeth More and Michael McGrath

Australia’s health industry is grasping the need to use IT and telecommunications with e‐commerce strategies for improved cost‐effective services to its key stakeholders…

2903

Abstract

Australia’s health industry is grasping the need to use IT and telecommunications with e‐commerce strategies for improved cost‐effective services to its key stakeholders. Addresses the changes occurring in Australia’s healthcare industry influenced by experiments in e‐commerce and focussed on the Project Electronic Commerce and Communication for Healthcare (PeCC). Initiated in 1997, as a joint activity of both government and industry, PeCC was developed to introduce e‐commerce practices into the health sector with almost 700 suppliers, automating pharmaceutical and other supplies to hospitals. Supply chain communication will be facilitated by an Internet‐based platform, allowing more efficient interaction between the pharmaceutical industry’s outlets (retail and hospital pharmacies), wholesalers, suppliers and manufacturers. Promoting and demonstrating e‐commerce for the pharmaceutical industry supply chain, the project connects manufacturers, wholesalers, suppliers and hospitals. Examines lessons in change management and communication that emanate from this health sector case, emphasising the issue of improving communication with key stakeholders about e‐commerce and changes to the health system, and ensuring appropriate communication practices (including media selection) through the different phases of the project over time.

Details

Journal of Management Development, vol. 21 no. 8
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 8 August 2022

Ahmet Aytekin, Ömer Faruk Görçün, Fatih Ecer, Dragan Pamucar and Çağlar Karamaşa

Pharmaceutical supply chains (PSCs) need a well-operating and faultless logistics system to successfully store and distribute their medicines. Hospitals, health institutes, and…

Abstract

Purpose

Pharmaceutical supply chains (PSCs) need a well-operating and faultless logistics system to successfully store and distribute their medicines. Hospitals, health institutes, and pharmacies must maintain extra stock to respond requirements of the patients. Nevertheless, there is an inverse correlation between the level of medicine stock and logistics service level. The high stock level held by health institutions indicates that we have not sufficiently excellent logistics systems presently. As such, selecting appropriate logistics service providers (drug distributors) is crucial and strategic for PSCs. However, this is difficult for decision-makers, as highly complex situations and conflicting criteria influence such evaluation processes. So, a robust, applicable, and strong methodological frame is required to solve these decision-making problems.

Design/methodology/approach

To achieve this challenging issue, the authors develop and apply an integrated entropy-WASPAS methodology with Fermatean fuzzy sets for the first time in the literature. The evaluation process takes place in two stages, as in traditional multi-criteria problems. In the first stage, the importance levels of the criteria are determined by the FF-entropy method. Afterwards, the FF-WASPAS approach ranks the alternatives.

Findings

The feasibility of the proposed model is also supported by a case study where six companies are evaluated comprehensively regarding ten criteria. Herewith, total warehouse capacity, number of refrigerated vehicles, and personnel are the top three criteria that significantly influence the evaluation of pharmaceutical distribution and warehousing companies. Further, a comprehensive sensitivity analysis proves the robustness and effectiveness of the proposed approach.

Practical implications

The proposed multi-attribute decision model quantitatively aids managers in selecting logistics service providers considering imprecisions in the multi-criteria decision-making process.

Originality/value

A new model has been developed to present a sound mathematical model for selecting logistics service providers consisting of Fermatean fuzzy entropy and WASPAS methods. The paper's main contribution is presenting a comprehensive and more robust model for the ex ante evaluation and ranking of providers.

Article
Publication date: 6 May 2014

Judith A. Singleton, Lisa M. Nissen, Nick Barter and Malcolm McIntosh

Pharmaceuticals have played an important role in improving the quality of life of the human population in modern times. However, it must also be acknowledged that both the…

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Abstract

Purpose

Pharmaceuticals have played an important role in improving the quality of life of the human population in modern times. However, it must also be acknowledged that both the production and use of pharmaceuticals have a significant, negative impact on the environment and consequently, a negative impact on the health of humans and wildlife. This negative impact is due to the embedded carbon in pharmaceuticals' manufacture and distribution and the waste generated in their manufacture, consumption and disposal. Pharmaceutical waste is comprised of contaminated waste (unwanted pharmaceuticals and their original containers) and non-contaminated waste (non-hazardous packaging waste). The paper aims to discuss these issues.

Design/methodology/approach

The article is a literature review.

Findings

The article identified a gap in the literature around pharmacist attitudes and behaviour toward the environmentally responsible handling of pharmaceutical waste.

Originality/value

Pharmacists, with their professional commitment to the quality use of medicines and their active participation in the medicines management pathway, already play an important role in the more sustainable use of pharmaceuticals. Even so, they have the potential to play an even greater role with the environmentally responsible disposal of pharmaceutical waste (including packaging waste) and the education of other health professionals and the general public on this topic.

Details

Journal of Global Responsibility, vol. 5 no. 1
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 6 January 2021

Bjørn Jæger, Mesay Moges Menebo and Arvind Upadhyay

The increasing rate of environmental concern and awareness by society has attracted attention from researchers and organisations to consider how to proceed towards green supply…

Abstract

Purpose

The increasing rate of environmental concern and awareness by society has attracted attention from researchers and organisations to consider how to proceed towards green supply chains. The purpose of this paper is to identify operational bottlenecks in the multi-tier supply chain to guide organisations towards where to concentrate their efforts to address their supply chain environmental challenges.

Design/methodology/approach

This paper presents a literature review identifying green supply chain challenges of multi-tier supply chains. Following the literature review is a case study of the Ethiopian health supply chain with 11 interviews, 11 international and 6 national surveys and data from public health information systems. An analysis based on multi-tier supply chain modelling is used to identify environmental supply chain bottlenecks.

Findings

This research found that the supply chain actors face severe challenges towards enhanced green supply chain performance mainly because of poor inventory management (IN), inefficient tracking and tracing (TR) and fake or sub-standard products in the supply chain, especially counterfeit medicines (CO). Specific environmental bottlenecks within each of the challenge areas IN, TR and CO where identified serving as recommendations for where supply chain actors should focus their work towards greener supply chains.

Research limitations/implications

The data come from participants in a single country, Ethiopia; although the supply chain challenges are common for developing countries in general.

Practical implications

This research presents a modelling approach to identify supply chain activities considered as environmental bottlenecks in multi-tier supply chains. The environmental bottlenecks pinpoint supply chain activities to focus on for a transition towards green supply chains for manufacturers, public and private health organisations, hospitals and health care units.

Originality/value

This paper contributes to the literature on GSCM by developing a multi-tier modelling approach for identifying environmental supply chain bottlenecks. The applicability of the model is demonstrated by the identification of environmental bottlenecks in a healthcare supply chain supporting decisions on what challenges a green supply chain strategy should address. It serves as a basis for future research on where to implement GSCM practices in supply chains (SCs).

Details

Management of Environmental Quality: An International Journal, vol. 32 no. 6
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 12 March 2019

Qiwen Jiang, Xiaojing Luo, Sibo Wang and Shi-Jie (Gary) Chen

Public hospitals in China usually rely on revenues from medical services and medications to compensate for major costs given their nonprofit nature. The lack of government…

Abstract

Purpose

Public hospitals in China usually rely on revenues from medical services and medications to compensate for major costs given their nonprofit nature. The lack of government subsidies and unreasonable prices of medical services have led to high medical costs and unbalanced reimbursement system for public hospitals. There is a critical need of research on improvement of reimbursement system that will create positive effect on China’s health-care system. This paper aims to focus on four dimensions of stakeholders (government, patients, medical insurance agencies and social organization) and six major expenditures to explore reimbursement scheme for public hospitals in China with the purpose of relieving unbalanced income and expenditure of hospitals, avoiding medication markups and reducing medical expenses from patients.

Design/methodology/approach

In this paper, the authors study reimbursement scheme for public hospitals from the perspective of four dimensions of stakeholders and how stakeholders reimburse six major expenditures of hospitals. A total of 128 effective samples were collected from financial data of 32 public hospitals through 2009-2012. This paper analyzes the econometric models of the selected revenue and expenditure. This paper analyzes the econometric models of the selected revenue and expenditure using linear regression. The linear relationship between each cost and different types of incomes (i.e. reimbursements from government, patients, insurance agencies and social organization) is analyzed before and after cancelling the medication markups.

Findings

Results from empirical research verify that government reimbursement is insufficient, and using medication markups to compensate for medical service costs has become a serious problem for China’s public hospitals. To avoid the medication markups and improve the reimbursement scheme, government should reimburse labor cost, fixed assets cost and research cost; patients and medical insurance agencies should reimburse the costs of medical service, medication and administration/operations; and social organization should supplement the fixed assets cost.

Originality/value

In this study, the authors defined and classified stakeholders of reimbursement scheme for public hospitals in China, which help understand the roles and effects that different stakeholders can play in compensation. Along with the proposed reimbursement scheme framework, this study will help make effective implementation of new health-care reform program in China.

Details

Chinese Management Studies, vol. 13 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

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