A Proposed Framework for Improving Operational Performance through Supply Chain Inventory Management (SCIM) A Field Study in the Pharmaceutical Sector in Egypt”

Abstract

A remarkable growth in some industrialized countries was recognized lately in the pharmaceutical industry field, which serves as national security of the state. This was due to some changes that have been occurred in national and multinational pharmaceutical sector as a whole, that consequently resulted in a significant technological development. The core of our research is to stabilize processes done inside the supply chain of the pharmaceutical sector, beginning from customers’ demands, with information shared till distributors, to reach an improved operational performance. The main objective of the research is to point on the vital difficulties that faced the Egyptian pharmaceutical sector during the stabilization process to improve performance. The heart of our research is the inventory management IM which is the key to improve operational performance. The problem is analyzed, strengths and weaknesses of the sector is identified to measure the effect of inventory management control systems in the supply chain, follows by a set of solutions and recommendations to guarantee the stability of the supply chain to improve operational performance (which is the aim of the research study). The problem exists in the supply chain stability, to complete its processes smoothly and effectively from the beginning of the chain till the end, the way that can impact on the operational performance positively. By examining variables of the study, errors can be depicted, to minimize distortion problems of the supply chain that result in a phenomenon of “Amplification Effect”, in which it stops the activities inside the chain completely from doing its work properly. All this, in order to keep prevent the chain for better work, and to ensure its stability to improve operational performance.