Global Supply Chain Management

Assignment Brief

Module Global Supply Chain Management

ASSIGNMENT ONE

“Supply Chains are only of any interest to customers when they go wrong. Therefore, Supply Chain Resilience is considered as a very important factor in modern Supply Chains”

The above statement is shown to be true in numerous occasions in the past. Examples include the “Horsemeat Scandal” in processed meat products, “100’s of garment workers crushed to death” in an arguably avoidable factory collapse in Bangladesh, or other “Supply Chain Scandals” in Asia that have affected McDonald’s, Burger King and Starbucks and more. These scandals (specifically in branded products) have caused significant reputational and financial damage (as well as loss of human life) to different types of industries.

By taking as an example a Supply Chain that you are familiar with, identify and discuss in detail ONLY ONE important Factor (such as Demand Forecasting, Inventory Management, Bullwhip Effect, Traceability, etc.) that is critical to the efficient and effective management of your chosen Supply Chain. In doing so please justify the importance of your chosen Factor to the Supply Chain and address the potential negative effects of mismanaging that Factor (100% of the assignment grade).

Typical examples of Supply Chains may include: production of fresh milk, automobile manufacturing, outpatient appointments or accident and emergency departments in public hospitals, banking services, supermarkets, the garment industry, pharmaceutical products, food supply chains etc.

Some of the data for this assignment may be ‘live’; for instance the horsemeat scandal was reported extensively in the newspapers, on the media and other company accounts. You should use these sources for information on what may go wrong within your chosen Supply Chain. Material for most Supply Chains is easily available and is included in books and articles. Theory of supply chain strategies, relationships and response to breakdown is to be found in textbooks and peer review journal articles.

ASSESSMENT CRITERIA

This assignment represents 50% of your overall module mark. The maximum word count is 3000 words (+/- 10%). You will also need to take the following into account when completing your assignment:

• Quality of executive summary (does it give a brief complete summary of your paper for an executive to read?)
• Establishment of relevant theory (e.g. what do I mean by supply chain resilience or supply chain obstacles?)
• Allocation of credit and sources used (have I included references and citations to the material I have used?)
• Clarity of argument
• Overall report presentation including spelling and grammar
• Adherence to nominated word limit (+/- 10%)
• Word processed (letter size 12, times new roman, 1.5 space), fully referenced (Harvard Referencing System)

The assignment must be submitted via OnlineCampus. Please remember that marks for assignment will also be awarded in relation to presentation and structure, and aspects such as use of examples, figures, tables, illustrations and statistics that indicate wider/independent reading

INDICATIVE READING

Please refer to the reading list issued at the start of the module. Further material in the form of articles from refereed journals and web references are available, with www.emeraldinsight.com and www.sciencedirect.com being two good starting points for refereed publications. RELEVANCE TO LEARNING OUTCOMES:

• Analyse and critically evaluate the ways in which supply chains are adapted in view of specific market dynamics and environments.
• Demonstrate an understanding of the importance of global lead-time management and time-compression.
• Critically analyse the theory, concepts and models of global supply chain management to interpret and understand complex and ambiguous risks in global logistics and supply chain environments.
• Locate, summarise and synthesise a range of information from published literature and electronic sources on GSCM.

ASSESMENT HOUSEKEEPING

You are required to follow the University’s regulations regarding plagiarism and citing sources and references used. Assignments may not be submitted late. Marking penalties for late submission will follow the University regulations for PMC and late submission. Please note that there are changes in the late submission process this year.

Sample Answer

Supply Chain Resilience and the Critical Role of Traceability in the Pharmaceutical Supply Chain

Executive Summary

Supply chain resilience has become a crucial focus in modern global markets, especially as high-profile failures have exposed significant risks and vulnerabilities. This report examines the pharmaceutical supply chain, highlighting the essential role of traceability in ensuring safety, compliance, and consumer trust. It explores how traceability contributes to the effective management of pharmaceutical products by providing visibility across the entire supply chain, from production to end-user. The report also evaluates the negative consequences of mismanaging traceability, such as counterfeit drugs, regulatory breaches, and reputational damage. Real-world examples and theoretical frameworks are used to justify the importance of traceability, and the concept is discussed in the context of supply chain resilience and risk management.

Introduction

Supply chains often go unnoticed by consumers, until they fail. When they do, the consequences can be severe, particularly in sectors like pharmaceuticals where human lives are at stake. Events such as the contamination of heparin (a blood-thinning drug) in 2008, which led to multiple deaths, highlight the need for resilient supply chains that can manage risk effectively (FDA, 2008). This report focuses on traceability as a critical factor in the pharmaceutical supply chain. It argues that traceability not only supports operational efficiency but also underpins safety, compliance, and supply chain resilience.

Overview of the Pharmaceutical Supply Chain

The pharmaceutical supply chain is complex, global, and highly regulated. It includes raw material suppliers, manufacturers, packaging facilities, distributors, pharmacies, hospitals, and ultimately, patients. The need for strict quality control, temperature management (cold chain), and compliance with regulations such as Good Manufacturing Practice (GMP) adds layers of complexity. Pharmaceuticals are especially vulnerable to risks such as counterfeit drugs, theft, quality issues, and regulatory non-compliance, which makes traceability vital.

Traceability Defined and Justified

Traceability refers to the ability to track the history, location, and use of products through recorded identification (ISO 9001:2015). In the pharmaceutical context, this means being able to trace a product batch from production to patient, including details such as manufacturing conditions, storage, transport, and sale.

Importance of Traceability in Pharmaceuticals

1. Safety and Quality Assurance
   Traceability allows pharmaceutical companies to recall defective products quickly and accurately. In the event of contamination or adverse reactions, the ability to trace the affected batches can save lives and reduce harm. For example, the 2012 fungal meningitis outbreak in the USA was worsened due to poor traceability, delaying recalls and increasing fatalities (CDC, 2012).

2. Compliance with Regulations
   Governments and international agencies require traceability for drug approval and post-market surveillance. Regulations such as the EU’s Falsified Medicines Directive (FMD) and the US Drug Supply Chain Security Act (DSCSA) mandate serialisation and track-and-trace systems. Companies without adequate traceability systems risk legal penalties and losing market access.

3. Counterfeit Prevention
   Counterfeit drugs are a global problem, especially in low-income countries. Traceability helps to verify product authenticity, reducing the risk of counterfeit medicines entering the supply chain. Technologies such as barcoding, RFID (Radio Frequency Identification), and blockchain enhance traceability and security.

4. Supply Chain Visibility and Efficiency
   Traceability improves visibility, enabling better forecasting, inventory control, and risk management. It also supports ethical sourcing by verifying the origin of materials, an issue of growing importance in the pharmaceutical industry.

Consequences of Mismanaging Traceability

Failure to manage traceability effectively can have serious consequences:

1. Health Risks and Loss of Life
   Inability to trace defective drugs can lead to prolonged exposure to harmful products, resulting in illness or death. The lack of traceability in the heparin contamination case led to over 80 deaths and widespread panic (FDA, 2008).

2. Reputational Damage
   Brands lose consumer trust when product safety is compromised. Johnson & Johnson’s Tylenol recall in the 1980s, while handled well, highlights how companies must act swiftly and transparently. Mismanaged traceability results in loss of brand reputation and market share.

3. Financial Losses
   Product recalls, legal fines, and compensation claims can lead to significant financial losses. Additionally, poor traceability increases operational costs due to inefficiencies and inventory errors.

4. Regulatory Penalties
   Failure to meet regulatory requirements can result in sanctions, withdrawal of licences, and being barred from markets.

Theoretical Framework: Supply Chain Resilience and Risk Management

Supply chain resilience refers to the ability of a supply chain to anticipate, prepare for, respond to, and recover from disruptions (Christopher & Peck, 2004). Traceability is a resilience enabler because it allows for quick identification and response to risks. The Supply Chain Operations Reference (SCOR) Model identifies visibility and responsiveness as key performance areas, both of which depend heavily on traceability.

Continued...