| Supply chain risk management (SCRM) is observing and analyzing the behaviors and outcomes of the supply chain. SCRM is intended to minimize risk to the lowest probability. The pharmaceutical industry has been faced with the threatening issue of counterfeited prescription medication. Because of the high probability risk in counterfeiting medicines, supply chain risk management in the pharmaceutical industry is a necessity. Advanced product design and packaging along with inventory tracking could be used to eliminate counterfeiting in the pharmaceutical industry. The purpose of this research is to determine the impact counterfeit medications has on the respectable firm's overall performance; and how to manage the associated risks of cost increments, the lack of security, non-technological advancements, the non-efficient supply chain issues, and monitoring hand-offs throughout the supply chain. Factor Analysis and Multiple Regression analysis will be used to analyze the data collected via survey. Additionally all hypotheses proposed will be tested for its validity. Specific hypothesis will be designed and tested through empirical analysis by collecting information from surveys of pharmaceutical industries executives. The goal is to discover the influences cost of medication, security precautions, technology, supply chain efficiency, number of hands-offs, risks of counterfeit drugs, and supply chain risk has on the performance in the pharmaceutical industry. The expected outcome is to show the negative impact counterfeit medications have on the pharmaceutical industries' supply chain efficiency and effectiveness. This analysis will assist in strategic planning of pharmaceutical companies pertaining to research, future forecasting measures, new drug development, security/safety of product, minimizing counterfeited medication levels, and maintaining a satisfactory performance level. |
Updated 02/23/2014