Assignment Sample on M25294 Operations Management
Introduction
Supply Chain Management (SCM) is the backbone of the organization which proactively supports the business structure of the organization where in modern times the refurbished model of supply chain is quite evident in the market operation through digital transformation. Digitization significantly makes opportunities to promote resiliency, sustainability, and legalization to accommodate the market requirement and profit generation. The reconfigurable supply chain or X-network also developed to integrate the supply chain for focusing upon the vast market opportunity in business projection. In this report, the details of GlaxoSmithkline‘s (GSK) Supply Chain Operation (SCO) will be discussed through market competitiveness and innovative approach.
Literature Review
Sustainability in Supply Chain Management of GSK
The supply chain of GSK has been in the process of innovation due to the several aspects in the pharmaceutical business line, where the company has been active in building a resilient supply chain management in the global business. There have been several investments pertaining to the logistics department of GSK, where the supply chain of the company has been in the usual line of operation, several of such elements are the measures of sturdy innovation. Moreover, the SCM may be disrupted in the reference to the poor allotment of the elements that pertain to the logistics section which may create issues in the SCM severely (Dolgui, Ivanov & Sokolov, 2020). The SCM creates a natural challenge to the pharmaceutical company, where the selection of the appropriate supplier in regards to the process of transportation of the drugs from the company to the end consumers involves considerable importance (Forghani, Sadjadi, & Farhang, 2018). The SCM of GSK has created new lines of supply by introducing the new products of Rukobia, Duvroq in the modern pharmaceutical market, where the company has been investing more in the research and developmental activities to have sustainability upheld (Refer to Appendix 1).
The stability in the supply chain of GSK has been remarkable in the line of having a better alliance with Samsung Biologics where the scope of improving on the product has been improved by the company to a greater degree (Gsk.com 2022). The sustainability in tube supply chain depends on the competitive advantage that a pharmaceutical company usually enjoys in the market, where diversification and entering foreign markets have remained as a significant task for the company of GSK. The foreign establishment of several branches and reaction of more foreign portfolio assets in the supply chain have been in the different nations of Canada, Italy, Poland, India and several more giant economy nations. The further investment of GSK in the field of innovation and developing products that suit the specific needs of several people have gained the company a considerably better share of the market in different nations, where GSK have invested £88 million in the recent times in Pennsylvania (Refer to Appendix 2).
The supply chain of GSK has been in the dimension of growth, where a record of more than 5% have been recorded in the recent times, and the pandemic situation of Covid-19 have caused the company to build a better stronghold on the market supply portions and have in demand deliveries of the medicines in hours of crisis. Moreover, it may be stated that different pharmaceutical companies usually employ the method of creating models to forecast the growth of sales in recent times, visualizing the essential data of consumer demand scattering in the market and gradually making the labels of supply chain more agile in the terms of sustainability (Merkuryeva, Valberga & Smirnov, 2019).
Product innovation in Supply Chain Management
GSK have emphasised on the aligning of the consumer demand with the product innovation of the different pharmaceuticals, and the understanding of the different ailments in the consumer field have made the company have a better sustainability strategy in the market. GSK have created the innovation to boost the SCM demand in terms of medicines, where the company have introduced the product of Advil Dual Action in the United States of America (USA) in the recent times, where the different drugs such as acetaminophen have been considered to have a better sales margin in the market of the US and increase the sustainability (Refer to Appendix 3). The supply chain factor of a pharmaceutical firm may be measured against the different factors that are usually in the side of creating an issue, where the release of medicines without specialised authorisation and the non-checking of the expiry dates if the medicines before the assimilation in the inventory makes up for a larger share in the risk factor of the supply chain (Kumar et al., 2019).
Consumer demand management process in Supply Chain Management
GSK have collaborated and created joint ventures with several firms, where the strategy for sustainability have been in the framework of the global developmental market-based solutions. The collaboration with Pfizer and having the overall sales in the pharmaceutical market being closer to 97% have been one of the most successful strategic ranks gained by GSK (Refer to Appendix 4). Most of the products that have been demanded in the market of product development of GSK have been possible due to the coalition with several pharmaceutical firms, where GSK usually does not allow the customer to make purchase decisions which is most unlikely not driven by the market measurement of the general perceived demand (Kaburu, 2021).
Company Application
Background and policies of GSK in Supply Chain Management
The SCM process of GSK lies in the terms of collaborating and creating a definitive process for the supply chain to be more sustainable in the future. The purpose of GSK has been in terms of creating a better scope of medical supply to the general mass with effective means of innovation and collaboration with the different foreign companies. The company of GSK to improve the SCM, have remained more focused on the innovations of the existing drugs, where the sector of pharmaceuticals has undergone a wider range in the recent years of development with different laboratory-based operations undertaken by GSK. The innovation by GSK have been efficient and there have been a greater proportion of investment in the company’s research and developmental activities, with an amount of £5.1 billion which have grown from £4.6 billion in a period of one year, signifying the impressive record of research and development undertaken by GSK for innovation in several areas, including human immune system and cell technology (Refer to Appendix 4). The SCM process of GSK have been in the course of taking the supply of mre than 2.2 billion medicinal facilities in various corners of the world, where after the emergence of the Covid-19 situation, the vaccination have been to 580 million worldwide which have been possible due to the excellent performance of the logistics department (Refer to Appendix 5).
Global threats and opportunities of GSK in the sustainability of Supply Chain Management
The situation of the Covid-19 pandemic has created a strong challenging situation for GSK in the marketing grid of different nations, where the demands of the customers have remained quite high due to the crisis. GSK has gained a better opportunity in the market as compared to other pharmaceutical brands, where the digitalization influences the sustainability factor in the SCM (Dolgui, Ivanov & Sokolov, 2020). GSK has had the higher agility to bring sustainable growth in the SCM of the company by expanding the business in various nations such as Mexico, South Africa, and many others (Refer to Appendix 6). The opportunity of GSK Lies in the fact of developing an environment of inclusiveness among the different workers and collaborating with CARE International project and with Amref Health located in the regions of Africa for creating an awareness program in the employees and thus strengthening the SCM, having the training of more than 1,00,000 employees to combat various strong supply related issues (Refer to Appendix 6). The major risks that have been in line with the SCM of GSK in recent times have been the excessive pricing strategy which the company follows, thus creating a negative impact on the SCM and hence inviting consumer criticism have been against the company due to no based restrictions on the pricing structure.
The threat in SCM has been identified as the poor collaboration in several nations with the market based local suppliers of the pharmaceutical drugs, as is the case with Japan, where the company of GSK have been failing to create a better strategic network. It has been of natural phenomena of the greatest disruption in the SCM of different companies in the phase of Covid-19, where the shortage of workers and several other extremities have been observed to occur (Sodhi & Tang, 2021). The company of GSK have adopted the creation of a centralized body for mitigating the different threats arising in the network of the SCM, where the body of centralized Risk Management Framework has been divided by GSK and considers the accountability of the different threats of SCM sustainability (Sadik, 2020).
References
Dolgui, A., Ivanov, D., & Sokolov, B. (2020). Reconfigurable supply chain: The X-network. International Journal of Production Research, 58(13), 4138-4163.
Forghani, A., Sadjadi, S. J., & Farhang Moghadam, B. (2018). A supplier selection model in pharmaceutical supply chain using PCA, Z-TOPSIS and MILP: A case study. PloS one, 13(8), e0201604.
Gsk.com 2022. Retrieved 27 January 2022, from https://www.gsk.com/en-gb/home/.
Kaburu, P. W. (2021). Total Quality Management Strategies and Customer Loyalty in Nairobi: A case of GlaxoSmithKline Pharmaceuticals Limited (Doctoral dissertation, United States International University-Africa).
Kumar, A., Zavadskas, E. K., Mangla, S. K., Agrawal, V., Sharma, K., & Gupta, D. (2019). When risks need attention: adoption of green supply chain initiatives in the pharmaceutical industry. International Journal of Production Research, 57(11), 3554-3576.
Merkuryeva, G., Valberga, A., & Smirnov, A. (2019). Demand forecasting in pharmaceutical supply chains: A case study. Procedia Computer Science, 149, 3-10.
Sadik, K. Y. (2020). Enterprise risk management analysis of GlaxoSmithKline Bangladesh Limited.
Sodhi, M. S., & Tang, C. S. (2021). Supply chain management for extreme conditions: Research opportunities. Journal of Supply Chain Management, 57(1), 7-16.
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