Research on Risk Identification and Control of Medicine Supply Chain
With the deepening of medical and health system reform in China, it is necessary to strengthen risk management of medicine supply chain so as to improve the medicine distribution level and cut down the medicine price, and increasingly great concern has be
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Research on Risk Identification and Control of Medicine Supply Chain Hong-qi Wang, Xiang Gao, and Shan-shan Wang
Abstract With the deepening of medical and health system reform in China, it is necessary to strengthen risk management of medicine supply chain so as to improve the medicine distribution level and cut down the medicine price, and increasingly great concern has been aroused by government, pharmaceutical industry and society. In light of the complexity and uncertainty of medicine market, this paper makes analysis on the composition of medicine supply chain and its risks, constructs a risk identification hierarchy structure of medicine supply chain, and then designs the risk control model. This paper aims at providing support for medicine supply chain to reduce the risks and increase the operational level. Keywords Medicine supply chain • Risk identification • Risk control
Introduction In the tangled warfare of Chinese medical market, there are intensified competitions among pharmaceutical companies which lead to the abnormal competitive costs shifting to the consumers, therefore, how to optimize the medicine circulation and further reduce medicine price have become the focus both for government and for pharmaceutical industry. In the pharmaceutical industrial competition which has transformed from the single company or group competition to the alliance
Sponsors: National Natural Science Fund (71173062), Humanity and Social Science Project of Ministry of Education (10YJC630246), Natural Science Fund of Heilongjiang Province (QC2011C063), Scientific and Technological Project of Heilongjiang Province (GZ11D209), Postdoctoral Science-research Developmental Fund of Heilongjiang Province (LBH-Q10063) H.-q. Wang (*) • X. Gao • S.-s. Wang School of Management, Harbin University of Science &Technology, Harbin, People’s Republic of China e-mail: [email protected]; [email protected] R. Dou (ed.), Proceedings of 2012 3rd International Asia Conference on Industrial Engineering and Management Innovation(IEMI2012), DOI 10.1007/978-3-642-33012-4_37, # Springer-Verlag Berlin Heidelberg 2013
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Raw material suppliers
R&D enterprises Manufacturers
Retailers Wholesalers
Medical institutions
End users
Logistics Information flow
Fig. 37.1 The composition of medicine supply chain
competition, a medicine supply chain of high efficiency and low cost is playing an increasingly important role. Due to the special function of medicine compared with other commodities which is featured by curing the sickness and saving the lives, there are higher demands for the supply of medical raw materials as well as the medicine preservation and timely medicine supply; meanwhile, the great complexity and uncertainty of medical market bring high risks to the medicine supply chain. Therefore, to quickly identify the risks of medicine supply chain and effectively control the risks to the lowest level are beneficial to accelerating the medicine circulation, reducing the medicine price and solving the contradict
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