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Proposing a classification of supply chain risks in pharmaceutical industries

Document Type : Research Paper

Authors

1 PhD student in Industrial Management, Faculty of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Assistant Professor, Department of Industrial Management, Faculty of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

3 Associate Professor, Department of Industrial Management, Faculty of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

4 Professor, Department of Medical Education, Faculty of Medical Education, Shahid Beheshti University of Medical Sciences, Tehran, Iran

Abstract

In this study, a comprehensive classification for supply chain risks in the pharmaceutical industry is presented using the Bailey’s classical strategy method and the four-stage Collier method. Initially, through the examination of texts related to the main hazard groups, supply chain elements, considering resources and functions, and categorizing upstream supply chain organizations, primary industry, and downstream supply chain organizations within the industrial and market environment, infrastructural environment, and external macro environment were modeled. In the next stage, criteria related to the security and safety of the supply chain were identified. In the final stage, a two-dimensional matrix classification for the identification of supply chain risk factors was proposed through the cross-tabulation of supply chain elements with security and safety criteria. Based on this classification and utilizing the exemplification method through a synthetic framework, a detailed list of risk factors was compiled. The aim of this study is to propose a comprehensive risk classification for pharmaceutical industries.
Method
Bailey’s classical strategy method has been used to develop a comprehensive classification of supply chain risks in pharmaceutical industries. In order to review the existing knowledge about supply chain risk groups, a systematic review of literature was performed. In the first stage, to find articles related to supply chain risks in the pharmaceutical industry, different combinations of related keywords have been used to search for articles in relevant databases. The selected articles were examined in three stages: extracting and classifying the main risk groups of the supply chain (the first dimension of the conceptual framework of classification), extracting and classifying criteria for a low-risk supply chain (the second dimension of the conceptual framework of classification), and applying the two-dimensional framework of classification to identify and classify risk factors of the supply chain.
Results
A total of 77 articles were selected for review. Based on the analysis of these articles, 83 risk groups were identified. These risk groups were arranged into a model including upstream supply organizations, the main industry, and downstream supply organizations, considering the relationships between supply chain’s resources, functions, and outcomes in the industry and market environment, infrastructural environment, and external macro environment. In the next step, 30 criteria for a safe and secure supply chain were identified. These criteria are divided into two general categories: criteria for the security of the internal supply chain environment (criteria of resistant supply chain resources and criteria of resilient supply chain functions) and criteria for the safety of the external supply chain environment (criteria of safety of market and industry, criteria of safety of infrastructural environment, and criteria of safety of external macro environment). In the last stage, through cross-tabulation of resource groups with resource resistance criteria, function groups with function resilience criteria, and peripheral environment elements with peripheral environment safety criteria, a model for identifying risk factors in the industrial environment was proposed. Based on this model, 372 risk factors of the supply chain of the pharmaceutical industry were identified.
Conclusion
In this study, a new classification for supply chain risks of the pharmaceutical industry has been presented. The proposed classification is highly comprehensive, and the number of risk groups counted in this study is more than all the studies that have been done in this field so far. Most existing risk taxonomies are incomplete and do not follow a specific theoretical model. The classification of risk groups identified in this study has been done based on a model that considers the relationship between assets, functions, and outcomes of the supply chain. The risk groups identified in this study cover from the upstream of the supply chain to the main industry and the downstream of the supply chain. Many risk taxonomies focus on the pharmaceutical industry and do not cover the entire supply chain from raw material production to customers. In this study, cross-tabulation of resource groups with resource resistance criteria, function groups with function resilience criteria, and peripheral environment elements with peripheral safety criteria create an ideal model for identifying risk factors in the industrial environment. The classification proposed in this study can be used to evaluate the resistance and resilience of the supply chain. This model can also provide a suitable basis for identifying and evaluating risks in the supply chain environment. In addition, results of this study provide a very practical guide for choosing supply chain risk management strategies.

Keywords

Main Subjects

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Industrial Management Studies
Volume 21, Issue 71
January 2024
Pages 79-121
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