Journal Press India®
Value Delivery through Supplier Integration in Pharmaceutical Industry
Vol 2 , Issue 1 , January - June 2013 | Pages: 26-35 | Research Paper
Published Online: July 09, 2013
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.
- Armstrong, Business Wire. "BT and Accenture Sign 10-Year Outsourcing Contract to Transform and Expand HR Services; Services to ” 02-2005.
- Brennan, R. and Turnbull, P.W. (1999) Adaptive behaviour in buyer-supplier relationships. Industrial Marketing Management, 28:481.
- Byrne Patrick M., Managing Partner (Supply Chain), Accenture & Consultant (Procurement), Logistics management, February 2006, Pg 24-25.
- Chen Julie, Director (Supply Chain), Novartis Pharmaceuticals (2003), Chemical market Reporter, Section I, June 23.
- Christopher, M., Payne, A. and Ballantyne, D. (1991), Relationship Marketing: Bringing Quality, Customer Service and Marketing Together, Butterworth Heinemann, Oxford
- Christopher, M., Payne, A. and Ballantyne, D. (2002) Relationship Marketing: Creating Stakeholder Value, 2nd edition, Oxford: Butterworth Heinemann
- Cunningham, M.T. (1980) International marketing and purchasing of industrial goods - Features of a European research project. European Journal of Marketing, 14:5/6, 322-338.
- Dahel, N. (2003), “Vendor selection and order quantity allocation in volume discount environments”, Supply Chain Management: An International Journal, Vol. 8 No. 4, pp. 334.
- Hakansson, H. and Snehota, I. (1995) Developing Relationships in Business Networks. Routledge, London.
- Hakansson, H. (Ed.) (1982), International Marketing and Purchasing of Industrial Goods: An Interaction Approach. Chicester: John Wiley & Sons Ltd.
- Hany Salama, Hoffmann-LaRoche, the Importance of Supplier Management: a sponsor’s perspective on achieving operational success, Contract Pharma, Dec 2004.
- Heskett, J.L., Jones, TO., Loveman, G.W., Sasser, W.E. and Schelsinger, L.A. (1994), "Putting the Service- Profit Chain to Work" Harvard Business Review, March-Aprii, pp. 164-174.
- H. L. Lee, "Creating Value through Supply Chain Integration," Supply Chain Management Review, September/October 2000), pp. 30.
- Kalwani, M. and Narayandas, N. (1995), “Long-Term Manufacturer-Supplier Relationships: Do They Pay Off for Supplier Firms?” Journal of Marketing, 59 January, pp. 1-16
- Kanter, R. M. (1994, July -August), “Collaborative advantage”, Harvard Business Review, pp. 96- 108
- Macbeth, D.K. and Ferguson, N. (1994), Partnership Sourcing - An Integrated Supply Chain Approach, Pitman Publishing, London.
- Maloni, M. and Benton, W.C. (2000) Power influences in the supply chain. Journal of Business Logistics, 21:1, 49-75.
- Manohar U. Kalwani and Narakesari Narayandas , Long-Term Manufacturer-Supplier Relationships: Do They Pay off for Supplier Firms?, July, 1995.
- Mentzer, John T. (2001), “Supplier Partnering”, (Sheth and Parvatiyar Ed.), Handbook of Relationship Marketing, SAGE
- Napolitano, Lisa, Customer-Supplier Partnering; A Strategy Whose Time has Come, Journal of Personal Selling and Sales Management, 4 (Fall), (1997).
- Prahinski, C., Benton, W. C. (2004). Supplier Evaluations: Communication Strategies to Improve Supplier Performance. Journal of Operations Management, v. 22, p. 39.
- Ravald, A. and Gronroos, C. (1996), "The Value Concept and Relationship Marketing", European Journal of Marketing, 30, No. 2, pp. 19-30.
- Sheth, Jagdish N., and Arun Sharma, Supplier Relationships: Emerging Issues and Challenges, Industrial Marketing Management, 26 (2), 91-100 (1997).
- Stewart, Ron."Direct Distribution in the Airline Industry."Unlocking the Power of Customer Relationships. 15 2002. Accenture. 12 May. 2005.
- Walters, D. and Lancaster, G. (1999b), “Value-based marketing and its usefulness to customers”, Management Decision, Vol.37, No.9, pp. 697-708
- Wilson, David T., an Integrated Model of Buyer Seller Relationships, Journal of the Academy of Marketing Science, 23, 4, 335-45, (1995).
Abstract Views: 2
PDF Views: 339