Journal Press India®
PRASTUTI: Journal of Management & Research
Value Delivery through Supplier Integration in Pharmaceutical Industry
Author Details
( * ) denotes Corresponding author
1.
* Rishi Manrai, Research Scholar, LMT School of Management, Thapar University, Patiala, Punjab, India
The Indian pharmaceutical industry is expanding worldwide, over the last few years, due to high consistent growth, driven by a multitude of factors both as purchasers and producers. Over the long term there is a high scope of growth and opportunities in outsourced research, custom manufacturing of bulk actives, intermediates, and outsourced trials, etc. To sustain this high growth rate, pharmaceutical companies have to be more efficient in their operations specifically, about their supply chain performance. This paper intends to highlight the importance of supplier in creating value to achieve efficient operations.
In particular, this paper surveys the relative importance of factors considered for the selection of suppliers by pharmaceutical companies, factor for measuring the performance of their supplier and also the understanding and creation of value by Pharmaceutical companies. Our survey focuses on Baddi region of Himachal Pradesh (India) and neighbouring regions where the Pharmaceutical industry plays a vital role in consolidated production of drugs in India.
We found that supplier‘s relationship with manufacturer play a very important role in whole supply chain performance. Manufacturing companies are looking for consistent supply of material from their suppliers over the long term. They also prefer suppliers who are experienced, well reputed and technologically qualified. Apart from these, supplier‘s concerns for the external environment and most importantly for quality of material are also critical.
Suppliers are expected to provide a large range of materials at lower cost to manufacturing companies. On time delivery of raw material to manufacturing unit ensures reduced manufacturing cycle time which ultimately enhanced their strategic partnership.
Our findings show that both partner i.e. suppliers and manufacturing units should understand the meaning of value creation and delivery for their customer so that both of them can be sustained profitably for the long term and enhance the performance of their supply chain.
Keywords
Supplier integration, value creation.
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