Supply chain complexity in plasma-derived medicine : A case study of a biopharmaceutical company

Abstract

plasma-derived medicine supply chain represents a complex and dynamic system. The complexity is growing invisibly; small incidents and issues are multiplied and cause chaos in a whole system. The Global Supply Chain (SC) Department of Plasma Fractionation Company faces an increased and complex workload which affects the SC performance of a Company. The main objective of the research is to explore and investigate what causes supply chain complexity (SCC) in the operations of the Global SC Team and how complexity can be managed effectively at tactical and operational levels. To understand the SCC phenomenon in-depth, exploratory qualitative research is performed. An interview with members of the Global SC Team was conducted to understand the complexities faced by the Team. The data was collected from individual face-to-face interviews, academic and professional literature.The data were analyzed through content analysis and thematic review. The key findings are that many Industries and Companies face SCC; however, the characteristics and degree of complexity depend on the type of industry, supply chain operations model, global or local scale, and kind of produced products. Plasma-derived medicine SC represents an exceptional complexity due to the sophisticated manufacturing process, biological raw material as plasma, variety of customers, high demand fluctuation, supply variability, long and uncertain lead time, regulatory and quality restrictions. The findings show that the Global SC Team at the operational and tactical levels faces a combination of dynamic and detail (static) complexity. The SCC is mainly due to internal and external down stream factors, which are interdependent.The SCC impacts operational and financial performance, customers, and decision making;however, complexity also affects employees of the organization, causing workplace stress and burnout. Increasing costs of raw materials affect the gross profit margin of Plasma Fractionation Companies. Therefore, Companies must focus on cost optimization to maintain profitability and growth. SC leaders need to understand the complexity and its impact on business and take action to manage SCC effectively.Many researchers highlighted that SCC is hard to eliminate. However, SCC can be managed effectively by reducing, avoiding, and eliminating through integration of supply chain processes, digitalization, standardization and harmonization,collaboration and cooperation, and redesigning SC structure and operations.Focusing on short-term planning and resource allocation rather than long-term planning is essential to manage SCC.