Effect of COVID 19 pandemic on Pharmaceutical Industry in terms of Inventory and Logistics Management
Description
The World Health Organization (WHO) declared COVID-19 a pandemic on 11th March 2020, after the outbreak that was first reported in Wuhan, China in December 2019. The COVID-19 pandemic affected world economy including the pharmaceutical sector. The health crisis unleashed in the world because of this pandemic and the attempts of various countries and organizations in the world to contain it have also fuelled the greatest economic crisis in modern history. This significant fall in world trade in goods and services have been triggered by the interruption and break down of local and global supply chains, generating high levels of unemployment worldwide, exacerbating social inequalities and dramatically increasing extreme poverty in the world by more than 90 million. The pharma industry plays a pivotal role in the provision of quality healthcare services, especially during pandemics, when supply chain can be overwhelmed or shut down due to the various reasons. The Indian domestic pharma industry is highly dependent on imports, with more than 60% of its API requirements being imported. The study is focused on this pandemic’s effect on normal manufacturing activity in terms of inventory and logistics management in pharmaceutical industries restricted to West Bengal, India more precisely in M/s EIPWL, which has been selected as a model for this study. Five specific products of M/s EIPWL have been selected for this study. To manufacture of these products, 2 basic raw materials along with 3 excipients are imported and other raw and packaging materials are being procured form different states of India. Capturing yearly data of marketing department requirements’ visa-vis production of respective products for the last 5 years has been started. The study is trying to find Time Series data analysis of demand and production of the respective products and production loss owing to shortage of supply and input materials. So far it has been observed that shortage of manpower and inventory due to disruption of supply chain in pandemic situation is responsible for antagonistic effect of normal activity in production and inventory management.
Effect of COVID 19 pandemic on Pharmaceutical Industry in terms of Inventory and Logistics Management
The World Health Organization (WHO) declared COVID-19 a pandemic on 11th March 2020, after the outbreak that was first reported in Wuhan, China in December 2019. The COVID-19 pandemic affected world economy including the pharmaceutical sector. The health crisis unleashed in the world because of this pandemic and the attempts of various countries and organizations in the world to contain it have also fuelled the greatest economic crisis in modern history. This significant fall in world trade in goods and services have been triggered by the interruption and break down of local and global supply chains, generating high levels of unemployment worldwide, exacerbating social inequalities and dramatically increasing extreme poverty in the world by more than 90 million. The pharma industry plays a pivotal role in the provision of quality healthcare services, especially during pandemics, when supply chain can be overwhelmed or shut down due to the various reasons. The Indian domestic pharma industry is highly dependent on imports, with more than 60% of its API requirements being imported. The study is focused on this pandemic’s effect on normal manufacturing activity in terms of inventory and logistics management in pharmaceutical industries restricted to West Bengal, India more precisely in M/s EIPWL, which has been selected as a model for this study. Five specific products of M/s EIPWL have been selected for this study. To manufacture of these products, 2 basic raw materials along with 3 excipients are imported and other raw and packaging materials are being procured form different states of India. Capturing yearly data of marketing department requirements’ visa-vis production of respective products for the last 5 years has been started. The study is trying to find Time Series data analysis of demand and production of the respective products and production loss owing to shortage of supply and input materials. So far it has been observed that shortage of manpower and inventory due to disruption of supply chain in pandemic situation is responsible for antagonistic effect of normal activity in production and inventory management.