Adithya D. Shetty, Ankitha Shetty, Jyothi Shetty, Sandeep Shenoy, D. Sreedhar, Santosh Nayak
Mr. Adithya D. Shetty1, Dr. Ankitha Shetty1, Mrs. Jyothi Shetty1, Dr. Sandeep Shenoy1, Dr. D. Sreedhar2, Mr. Santosh Nayak1*
1Department of Commerce, Manipal Academy of Higher Education, Manipal - 576104 Dist. - Udupi (Karnataka) India.
2Department of Pharmacy Management, Manipal College of Pharmaceutical Sciences,
Manipal Academy of Higher Education, Manipal - 576104, Dist. - Udupi (Karnataka) India.
Volume - 14,
Issue - 5,
Year - 2021
Insurance plays a vital role in risk mitigation of pharma supply chain. It’s a mechanism where losses sustained by few are stretched among many those are exposed to kind of similar risk. Unfortunately, insurance is not availed by the intermediaries in pharma supply chain which eventually leads to heavy losses in the regular supplies of the drugs. The pharmaceutical industry in India has secured the third position globally in terms of its volume and adds approximately 10% to the global pharmaceutical production. According to the reports published by the Department of Pharmaceuticals, the Indian Pharma Industry is pegged at INR 810 Bn which is inclusive of domestic sales and exports. India is an international hub for high-quality medicines at an affordable price with a rich vendor base. As logistics and supply chain plays an important role and contributes immensely to the overall growth of pharma sector, risk mitigation becomes inevitable. Poor supply chain in pharma leads to various fatalities due to mishandling of the product, pilferage, poor packing, damage during transit, accidents and other nature hazards leading towards expiry of drugs. Low level of supply chain integrity, absence of contingency planning, inadequacy in resources and infrastructure, lack of support in terms of regulation, adoption of sub-optimal standards in technology are included in it. Currently, there are myriad inefficiencies spotted in both assets i.e., physical requirement like storage and transport as well as enablers i.e., efficiency improving system, technology and process all along the pharmaceutical supply chain. Inspite of all this, the pharma companies opine that there is no adequate insurance taken by the wholesalers and the distributors in the front end distribution of critical drugs. Thus, the study is intended to analyze the product liability exposure arising during pharma supply chain and the quantum of insurance required to mitigate the same.
Cite this article:
Adithya D. Shetty, Ankitha Shetty, Jyothi Shetty, Sandeep Shenoy, D. Sreedhar, Santosh Nayak. Pharma Insurance: A Mechanism for Risk Mitigation.Research Journal of Pharmacy and Technology. 2021; 14(5): 2659-4. doi: 10.52711/0974-360X.2021.00469
Adithya D. Shetty, Ankitha Shetty, Jyothi Shetty, Sandeep Shenoy, D. Sreedhar, Santosh Nayak. Pharma Insurance: A Mechanism for Risk Mitigation.Research Journal of Pharmacy and Technology. 2021; 14(5): 2659-4. doi: 10.52711/0974-360X.2021.00469 Available on: https://www.rjptonline.org/AbstractView.aspx?PID=2021-14-5-53
1. Enyinda CI and Tolliver D. Taking counterfeits out of the pharmaceutical supply chain in Nigeria: Leveraging multilayer mitigation approach. Journal of African Business. 2009 Sep 30;10(2): 218-34.
2. Enyinda CI, Ogbuehi A and Briggs C. Global supply chain risks management: A new battleground for gaining competitive advantage. Proceedings of ASBBS. 2008 Feb; 15(1): 278-92.
3. Srividhya VS and Jayaraman R. Management of supplier risks in global supply chains. Supply Chains and Firm Performance. 2007 Jul: 93.
4. Kuhn M. Building predictive models in R using the caret package. Journal of statistical software. 2008 Nov 10; 28(5):1-26.
5. March JG, Shapira Z. Managerial perspectives on risk and risk taking. Management science. 1987 Nov; 33(11):1404-18.
6. Buehler, K. S., and Pritsch, G. (2003). Running with risk. McKinsey Quarterly, (4), 40-49.
7. Chan, K.C., Seow, G.S. and Tam, K. Foreign exchange risk and firm value: an analysis of US Pharmaceutical firms. Managerial Finance. 2002; 28(3): 57-72.
8. Enyinda CI, Tolliver D and Szmerekovsky J. Mitigating and managing global supply chain risks and security: leveraging RFID technology. Proceeding of the Society for Advancement of Management. 2007.
9. Enyinda, C. I. Modeling risk management in the pharmaceutical industry global supply chain logistics using analytic hierarchy process model. Unpublished doctoral dissertation, North Dakota State University, Fargo, ND. (2008).
10. Enyinda C, Briggs C, Bachkar K. Managing risk in pharmaceutical global supply chain outsourcing: applying analytic hierarchy process model. In ASBBS Annual Conference: Lasvegas. 2009 Feb; 16(1).
11. Enyinda CI, Anaza NA and Hamouri S. Model for Risk Management in Food Logistics and Supply Chain. Annals of the Society for Marketing Advances. 2013 Nov; Volume 2:276-279.
12. Hillman M, Keltz H. Managing risk in the supply chain: a quantitative study. AMR Research. 2007 Jan 3(January): 1-24.
13. Kolk A, Extercatte C. KPMG international survey of corporate responsibility reporting 2005. KPMG Global Sustainability Services; 2005.
14. Handfield RB, Dhinagaravel V. Future trends in pharmaceutical and biotech distribution. Supply Chain Resource Consortium. 2005 Nov 4.
15. Bishara RH. Cold chain management–an essential component of the global pharmaceutical supply chain. American Pharmaceutical Review. 2006 Jan; 9(1): 105-9.
16. Breen, L. A Preliminary examination of risk in the pharmaceutical supply chain (PSC) in the National Health Service (NHS). Journal of Service Science and Management. (2008); 1(02): 193.
17. Langer ES, Kelkar A. India Today-Pharmaceutical Distribution in India. BioPharm International. 2008: 24.
18. Kagashe GA and Massawe T. Medicine stock out and inventory management problems in public hospitals in Tanzania: A case of Dar Es Salaam region hospitals. International Journal of Pharmacy. 2012; 2(2): 252-9.
19. Ganesh L, Zoher HG. Optimization of supply chain management in pharmaceutical industry. Prestige International Journal of Management and IT-Sanchayan. 2013; 2(2): 31.
20. Kabir MI. Reverse logistics in pharmaceutical industry. International Journal of Supply Chain Management. 2013 Mar 31; 2(1).
21. Romero A. Managing medicines in the hospital pharmacy: logistics inefficiencies. In Proceedings of the World Congress on Engineering and Computer Science. 2013; Vol. 2: 1-6.
22. Aigbogun O, Ghazali Z and Razali R. A framework to enhance supply chain resilience the case of Malaysian pharmaceutical industry. Global Business and Management Research. 2014 Jul 1; 6(3): 219.
23. Creswell JW and Miller DL. Determining validity in qualitative inquiry. Theory Into Practice. 2000 Aug 1; 39(3): 124-30.