A case study of kanban implementation within the pharmaceutical supply chain

Abstract

The paper explores the implementation of the kanban system, which is a Lean technique, within the Pharmaceutical Supply Chain (PSC). The case study provides insight to the benefits and challenges arising from the application of this technique, within a group of cooperative pharmacists, in Greece. The research questions developed from the review of the literature were tested using evidence from field-based, action research within a pharmaceutical organisation. The reported case study contributes to the longer term debate on assessing the Lean maturity level within the healthcare sector. There are two primary findings: i) that the adoption of kanban system provides a strategic benefit and improves the quality of services. ii) it also provides a basis for a strategy of operational change; it gives the opportunity to the organisation to move away from the current push delivery and logistics systems toward improved logistics strategy models.

Pharmaceutical supply chain transformation through application of the Lean principle: A literature review

“…The compliance protocol requiring numerous written procedures, inspections and testing was time-consuming and caused delays in the production process (Khlat, Harb & Kassem, 2014). As a consequence, applying a Just in Time system within this sector is challenging, since when maintaining service levels, a sizable buffer stock often compensates for a long lead time (Papalexi et al, 2016).…”

“…Since industry is subject to increasing competition Elbermawy, Al Manhawy and Ibrahim (2014) argued that the PSC must adapt its conventional practices in order to carry out the process. However, these do not constitute easily achievable objectives due to the high level of interdependency, uncertainty, and unpredictability inherent in PSC processes (Papalexi, Bamford & Dehe, 2016). Alicke and Lösch (2016) argued that the lean principle represents one of the most effective systems for eliminating waste within the supply chain since up to half the cost of PSC was hidden and unmanaged.…”

“…Alicke and Lösch (2016) argued that the lean principle represents one of the most effective systems for eliminating waste within the supply chain since up to half the cost of PSC was hidden and unmanaged. In this regard, Papalexi et al (2016) recommended that the pharmaceutical industry adopt the lean principle in its supply chain practices because its application to the PSC could be seen as a potential solution for improving the efficiency of existing processes (Mouaky et al, 2016). The literature revealed that many organizations have benefited from the application of lean supply chains to improve responsiveness at lower cost (Jasti & Kodali, 2015).…”

Benchmarking healthcare logistics processes – a comparative case study of Danish and US hospitals

“…Al-Shaqha and Zairi provide case study examples of how re-engineering pharmaceutical processes can provide more patient-focused care by de-centralizing pharmacists to be part of the clinical care teams (Al-Shaqha & Zairi, 2000). Papalexi and colleagues analyze the applicability of lean tools and suggest that implementing a kanban system in the pharmaceutical supply chain will significantly reduce inventory levels and inventory costs whilst improving quality of services through waste elimination and a more reliable product flow (Papalexi, Bamford, & Dehe, 2016). Finally, Narayana and colleagues analyze the return of pharmaceuticals from a systemic point of view and identify factors impacting the reverse supply chain (Narayana, Elias, & Pati, 2014).…”

Quality Management Techniques

“…To support and develop a process of continuous improvement, an organization will need to use a selection of tools and techniques within a problem-solving approach (Papalexi et al 2015). These should be used to facilitate improvement and be integrated into the routine operation of the business.…”