Jurnal Internasional
International Journal Logistic Management: Reverse logistics in the pharmaceuticals industry: a systemic analysis
Abstract
Purpose – The purpose of this paper is to present a systemic analysis of the complex interaction
of factors affecting the reverse logistics (RL) processes in a pharmaceutical supply chain (PSC).
Design/methodology/approach – This study uses a systems thinking approach. Initial problem
structuring involved the analysis of behavior-over-time of main variables and incorporated stakeholder
analysis. Further, a participative group model building process was used to develop a systems model.
Findings – The model was analysed to identify a set of feedback loops operating in the system
responsible for the complexities of the problem. To address this, the stakeholders identified three
strategic interventions. The first intervention relates to returns avoidance by alleviating market flooding
of medicines, second intervention aims at improving the infrastructure for quality and performance
management and the third targets balanced risk sharing between the main stakeholders involved in the
supply chain. The findings suggest strong linkage between RL network design and key activities in
returns management. The study lays a platform for developing a simulation model.
Research limitations/implications – Data collection was confined to stakeholders belonging to a
PSC based in the South Indian state of Kerala and excluded the participation of doctors due to practical
constraints. The application of systems thinking and modelling was limited to the qualitative phases
of the methodology.
Practical implications – The study illustrates a participative process capable of revealing the
differing viewpoints of multiple stakeholders involved in a PSC.
Originality/value – It provides a holistic approach based on the systems thinking and modelling
methodology for analysing the complexities related to RL in the Indian pharmaceutical industry.
Keywords Systems thinking, Reverse logistics, Indian pharmaceutical industry,
Group model building
Paper type Research paper
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