Approach to Mitigating Multi-Product-Multi-Plant Pharmaceutical Procurement

Topics: Pharmaceutical industry, Pharmacology, Product life cycle management Pages: 23 (8118 words) Published: August 20, 2014

Approach to Mitigating Multi-Product-Multi-Plant Pharmaceutical Procurement

Abstract
This paper seeks to provide a prospective on the pharmaceutical industry concerning the coordination of production planning among multi-product and multi plant procurement using multiple published articles that report on results from research conducted on online (Internet) concerning the topic. Important issues that managers and researchers must address do that production and inventory decisions can be determined for all plants in a manner optimal for the organization as a whole.

Introduction
The pharmaceutical industry can be defined as a complex of processes, operations and organizations involved in the discovery, development and manufacture of drugs, medications and multiple medical devices. The World Health Organization (WHO) defines a drug or pharmaceutical preparation as: Any substance or mixture of substances manufactured, sold, offered for sale or represented for use in the diagnosis, treatment, mitigation or prevention of disease, abnormal physical state or the symptoms thereof in man or animal; [and for use in] restoring, correcting or modifying organic functions in man or animal. Organizations are increasingly confronting the stringent balancing of organizational income and disbursement. Procurement is a difficult and quite complex process that involves several steps, vendors, agencies, wholesalers, R&D, manufactures and the government. Existing government policies, rules and regulations for procurement as well as institutional structures are frequently inadequate and sometimes hinder overall efficiency in responding to the modern pharmaceutical market. In an increasingly competitive global market, organizations have considered ways of improving manufacturing practices. Attempts in this direction have focused, on improvements on performance measures, levels of inventory and work-in-process (WIP); and responsiveness of the production process through reduced manufacturing lead times, we also learn of the priorities of the pharmaceutical industry, problems with effective cost for research and development, procuring the most cost-effective drug cost in right quantities, managing excessive stock, and problems with drug shortages on the industry. Severe competition forces shorter life cycles but in the pharmaceutical industry regulation and safety will not allow this. In the future, organizations will continue to devote considerable resources and time towards choosing strategies which provide good performance.

Multi-plant coordination and priorities of the pharmaceutical industry
The intense global competition and rapid development of new pharmaceuticals today increase the difficulty of production planning coordination for multi-pant companies. The multi-plant organizations need to take appropriate actions so they could remain competitive in the global market situation. Multi-plant organizations are a type of those supply chain, which behaves like a single toward a mutual goal. The production planning coordination of activities across a network of plants becomes critical to quickly respond to dynamic market conditions, reduce costs, faster response times more rapidly and effectively. To address multi-plant coordination problems many rely on the strengths of third parties in each location. The challenge is meeting the respective objectives of each plant. ERP initiatives are put in place within these organizations to maintain both local business and corporate management that helps link together critical business needs. From a corporate perspective, tracking and managing financial and operational activities for the entire organization is a much needed asset to any company. Modern science has been able to research and develop cures for most illness and disease, yet, politics and corporate greed affect who can benefit from this, resulting in what a French newspaper, Le Monde,...

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Lee, Hau
NEC-Thomas Telford Ltd. (2009). Retrieved from, http://www.neccontract.com/documents/Procure_press.pdf
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Health Affairs-Project Hope. (2013). Priorities in the Pharmaceutical Industry. Retrieved from, http://content.healthaffairs.org/content/23/1/9.full
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Association of State and Territorial Health Officials
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Workd Health Organization
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