Journal of Statistics Applications & Probability

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The Indian Pharmaceutical Industry incurs almost one third of its total cost from supply chain management systems. The SCM costs are relatively higher in India than other countries of the world amounting to 13 % of India’s GDP (Adhikari & Bora ,2014). For having an effective supply chain management system, it is required to have procurement of raw materials, raw materials turned into finished good and then further moved out in market for distribution. The major aspect in relation to SCM is the lack of knowledge on the various SCM related issues and strategies, most of the industries spend a lot of amount on the SCM issues and high resentment is on one specific problem i.e. of reduction in operational cost. However, the effectiveness also depends on SCM to be indispensable in maintaining expenses and seek ways to reduce cost thereby increasing the sales of the company. The purpose of the study is to explore various strategies and best practices involved which are used by the Indian business leaders of Pharma industries and finding out ways to maximize sourcing, distribution, inventory and its management. The methodology used is a single case study on various aspects with the semi- structured interview to collect data. The research design used on data sources identified were: observations, semi-structured Interview and documents of the industry. For the Identification of the challenges and their solutions in SCM strategies the proposed theory of Goldratt’s (1990), Theory of constraints was used as conceptual framework. The results of the study is a significant contribution to the business practices in the industries, increase in supply chain effectiveness, their strength and weakness, reducing organizational operational cost and socially finding the reputation of industries in ensuring the on time availability of their medicines in market. The study also relates, aims in identifying and implementing the best practices in various processes of Supply chain management by facilitating the increased availability, distribution of medicine, profitability and reduced operation cost.

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