Analysis of the Causes of Pharmaceutical Supply Chain Vulnerability and Response Strategies under the Centralised Purchasing Model

With the deepening implementation of the centralized drug procurement policy in China, procurement efficiency has significantly improved, and the economic burden of medication on the public has been alleviated. Meanwhile, the structure and operational environment of the pharmaceutical supply chain have undergone notable changes. This study analyzes the emerging pharmaceutical supply chain structures under the centralized procurement model, summarizes the causes of pharmaceutical supply chain vulnerability based on previous research, and employs a system dynamics causal model to examine the causal relationships and influence pathways among these factors. The study identifies the vulnerability drivers at key nodes, including active pharmaceutical ingredient (API) suppliers, pharmaceutical manufacturers, public healthcare institutions, and retail pharmacies. Finally, it proposes reasonable strategies for enterprises to address pharmaceutical supply chain vulnerability from both preventive and mitigating perspectives.

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Publication Details

Journal
International Journal of Global Economics and Management
Published
2025-04-26
DOI
https://doi.org/10.62051/ijgem.v6n3.06
Primary Topic
Supply Chain Resilience and Risk Management
Type
article
Field-Weighted Citation Impact
0.00
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article

Analysis of the Causes of Pharmaceutical Supply Chain Vulnerability and Response Strategies under the Centralised Purchasing Model

Huaiyong Zhu
International Journal of Global Economics and Management
Supply Chain Resilience and Risk Management
article

Analysis of the Causes of Pharmaceutical Supply Chain Vulnerability and Response Strategies under the Centralised Purchasing Model

Huaiyong Zhu
article en

Abstract

With the deepening implementation of the centralized drug procurement policy in China, procurement efficiency has significantly improved, and the economic burden of medication on the public has been alleviated. Meanwhile, the structure and operational environment of the pharmaceutical supply chain have undergone notable changes. This study analyzes the emerging pharmaceutical supply chain structures under the centralized procurement model, summarizes the causes of pharmaceutical supply chain vulnerability based on previous research, and employs a system dynamics causal model to examine the causal relationships and influence pathways among these factors. The study identifies the vulnerability drivers at key nodes, including active pharmaceutical ingredient (API) suppliers, pharmaceutical manufacturers, public healthcare institutions, and retail pharmacies. Finally, it proposes reasonable strategies for enterprises to address pharmaceutical supply chain vulnerability from both preventive and mitigating perspectives.

International Journal of Global Economics and ManagementVol. 6(3)
Shanghai University (CN)
Openalex Percentile: Top 88%
Supply Chain Resilience and Risk Management
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