MANAGING RISK IN PHARMACEUTICAL GLOBAL SUPPLY CHAIN OUTSOURCING APPLYING ANALYTIC .pdf

Proceedings of ASBBS Volume 16 Number 1 MANAGING RISK IN PHARMACEUTICAL GLOBAL SUPPLY CHAIN OUTSOURCING: APPLYING ANALYTIC HIERARCHY PROCESS MODEL Enyinda, I. Chris Alabama A M University Chris.enyinda@ Charles Briggs North Dakota State University Charles.briggs@ Khalid Bachkar North Dakota State University Khalid.bachkar@ ABSTRACT Because of the intense pressure to contain RD costs, pharmaceuticals firms are increasingly outsourcing their supply chain operations. Global supply chain outsourcing can be viewed as a strategic competitive weapon rather than cost savings initiative because it can offer flexibility in production, satisfy ultimate c onsumers’ growing demands, reduce fixed costs, and enhance positional advantage. Thus, for the pharmaceutical firms, global supply chain outsourcing has become a competitive requirement for ameliorating performance and profit margin. It allows allow firms to leverage their core skills and resources well beyond levels available with other strategies. Well executed global supply chain ou tsourcing strategies can enhance returns on capital, reduce risk, improve flexibility, and make fi rms more responsive to their customers and shareholders’ requirements. Although the attractive benefits associated with global outsourcing have been acknowledged widely, much of the inherent risks tend to be overlooked. Acknowledged pharmaceutical supply c hain outso