Leveraging the advantages of comprehensive inventory control systems can help companies manage the logistics of their products in the event of a recall, regardless of its magnitude. However, not every company manages the manufacturing and distribution of their own goods, and in the case of a recall, quickly adjusting to newly stunted supply lines and opening up new shipping channels may be the difference between being in the black and being in the red.
Medicine in the U.S. is huge. The industry includes an expansive network of not just hospitals and healthcare providers, but also pharmacies, health plans, payers and a diverse array of specialized stakeholders. And while medical professionals are sought out for their physical services, providing patients with drugs is a crucial aspect of administering quality healthcare.
At the moment, U.S. physicians and pharmacists are largely dependent on medicines produced outside of the country. In fact, 85 percent of drugs in the U.S. come from generic manufacturers, and of those, 45 percent are provided by India, Bustle reported.
Over the past few months, the Federal Drug Administration, the agency tasked with policing the quality of all new medicines, has announced a number of recalls and import bans on India-produced medicines, according to Reuters. FDA investigators attribute the pause in supply to several quality control problems, including data manipulation and sanitation.
Representatives of India's $14-billion drug manufacturing industry reject all criticisms of their products, claiming medicines are of a competitive quality, the news source reported.
Without control over production, managing supply chains can be difficult. Changes can be abrupt and utterly unexpected, which leaves companies struggling to satisfy customer demand. By investing in supply chain management software, businesses from every industry can place themselves in the best position to react to increasingly volatile distribution lines.