Framework for Managing an Efficient and Effective Pharmaceutical Supply Chain in Malaysia

The pressure in pharmaceutical sectors in Malaysia is increasing as the country new policy, in regards to medical care, is to standardise the existing Good Manufacturing Practise (GMP) and Good Distribution Practise (GDP) guidelines, disseminate the medical information and evaluate the pharmaceutical products, implement knowledge transfer when it comes to public service. In line with this effort, Ministry of Health (MOH) Malaysia is investing into efficient implementation of GMP and GDP to assure the impact of drug quality are contemplated. However, it is unclear if all the partners/stakeholders within this process are aware about the appropriate indications and possible limitations. In addition, many organisations uses a wide variety of metrics to measure their performance, typically in two broad categories efficiency and effectiveness to improve its customer service which is crucial in the pharmaceutical industry. Efficiency metrics such as inventory costs, operations cost, and utilisation of resources are broader in scope but not linked to the strategic objectives of the organisations. Effectiveness metrics such as customer satisfaction and total supply chain costs represent significant leap in integration, visibility and alignment with overall supply chain performance. Therefore, main aim of this research are to design and develop an integrated framework involving efficiency, effectiveness, optimisation, and GDP dimensions to support the design of pharmaceutical cold supply chain in Malaysia. In addition, the philosophical approach used in this study and process of developing a supply chain management framework will be justified. Then the potential supply chain frameworks and models available and are widely implemented in the industry will be evaluated. This framework has been developed by integrating six models that are widely implemented by companies in various industry namely, Strategic Fit model to explain the strategic role and objective of the framework, Good Distribution Practise (GDP) model to clarify the supply chain specifications and requirements, Total Quality Management (TQM) and Quality Risk Management to establish all processes that are designed encompass quality assurance and continuous improvements, Supply Chain Network Optimisation model to ensure the optimal distribution pattern has been achieved, and lastly performance indicator model to measure efficiency and effectiveness. The framework has been validated and refined through the feedback received from industry. To conclude, effective GDP implementation in its operations may improve their efficiency, effectiveness and optimisation, and may experience reduction in costs and increase in customer and employee satisfaction.