Different industries have unique factors that affect how their markets behave; some are shared between multiple sectors. Recalls and returns usually shift with shifting factors in an industry. This paper will dive into the opportunities and trends in recalls and returns within the pharmaceutical industry.
Challenges faced by the pharmaceutical industry concerning product recalls and returns go hand in hand with the responsibilities entailed. New drugs introduced as dosage often react differently with different patients (Ghadge et al., 2023). Now, manufacturers act swiftly to pull the products off the market. Also, drugs may be recalled due to contamination during manufacturing, which would pose a risk to consumer safety, which is the main priority. Flawed manufacturing systems are often the cause in this case, which warrants regular standard mechanical check-ups.
The digital era has offered a solution to the challenge of delayed detection of faultiness in the system faced by pharmaceutical companies. With the availability of advanced analytics based on real-world medication usage, companies can detect issues earlier and avoid unnecessary casualties in the quest to improve medications. Digitalized return notifications and return coordination with pharmacies and patients have significantly reduced the time taken to enact a response. For instance, direct responses to consumers by mail have eliminated the need for pharmacy intermediaries who were previously relied on to relay information between the parties. To maintain a large, ready, and loyal customer population, pharmaceutical brands have taken up transparent communication and offer coupons for drug replacement, sometimes even refunding them.
Several trends and opportunities in recall and returns stand out within the pharmaceutical industry. Quality assurance enhancement has been embraced in multiple pharmaceuticals, proving effective in the race to tone down recalls and returns. Patient safety concerns prompting increased regulatory inspections have forced pharmaceutical companies to invest in potent quality assurance systems (Rejeb et al., 2020). They have achieved this by closely monitoring the manufacturing process and implementing rigorous testing protocols to detect potential issues early on.
Pharmaceutical companies prefer to avoid disruptions even when recalling defective products. To achieve this, they have improved traceability throughout the supply chain by serializing and tagging batches with unique identifiers. Tracking products according to the batches in which they are sent out is very useful when recalling them (Hosseini-Motlagh et al., 2020). An instance of such a case is when a particular batch has been linked to an issue, and the products in the batch are supposed to be recalled. The companies would target to avoid pulling out all their products from the market since it would pose an opportunity for their competitors to seize the moment and dominate the market. It would take a lot of work to recover from this, even after the issue is resolved. So instead, companies have opted to invest in optimizing efficient reverse logistics processes to create a smooth flow of pharmaceutical products in and out of the factories.
Essentially, the helpfulness that is an outcome of observing trends is evident and self-revealing. Assessing identified patterns has revealed to companies that automation and digital transformation are investments worth making when it comes to managing recalls and returns. Recalls pose the risk of eroding customer trust incase quick action in addition to taking needed responsibility by companies is not practiced. The companies try their best to maintain their reputation by working with stakeholders closely in ensuring the calamity is avoided.
References
Ghadge, A., Bourlakis, M., Kamble, S., & Seuring, S. (2023). Blockchain implementation in pharmaceutical supply chains: A review and conceptual framework. International Journal of Production Research, 61(19), 6633-6651.https://www.tandfonline.com/doi/full/10.1080/00207543.2022.2125595
Hosseini-Motlagh, S. M., Jazinaninejad, M., & Nami, N. (2020). Recall management in pharmaceutical industry through supply chain coordination. Annals of Operations Research, 1-39. https://link.springer.com/article/10.1007/s10479-020-03720-7
Rejeb, A., Simske, S., Rejeb, K., Treiblmaier, H., & Zailani, S. (2020). Internet of Things research in supply chain management and logistics: A bibliometric analysis. Internet of Things, 12, 100318. https://www.sciencedirect.com/science/article/abs/pii/S0148296323008111
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