A hybrid multi-criteria decision-making approach to evaluate interrelationships and impacts of supply chain performance factors on pharmaceutical industry

Abstract

Pharmaceutical Supply Chain (PSC) plays a critical role in the healthcare sector. This study identifies, validates, and prioritises the factors that play a crucial role in PSC performance, adopting a threefold approach. In the first stage performance, indicators were identified through an extensive review of the literature. With the help of expert opinion, the identified factors were validated and then categorised based on technological—organisational—environmental (TOE) and supply chain (SC) theories to propose a framework. The Pakistani Pharmaceutical sector firms were selected to investigate the cause and effect relationship among the factors, their interdependencies, and impact on overall PSC performance. This investigation was supported by a novel integrated analytic model composed of best worst method (BWM), decision-making trial and evaluation laboratory (DEMATEL), and analytical network process (ANP) methods. The results indicate that ‘human resource skills, competencies, and involvement’, ‘process improvement and healthcare reform, and manufacturing’, and ‘distribution and inventory management’ are the top three factors that have a high impact on the overall PSC performance. This study outcome help inform decision-makers and managers in the healthcare sector in formulating strategies to improve their SC performance.