Risk Management Approaches for Addressing Procurement Challenges in Pharmaceutical Supply Networks
Author(s): Olatunde Taiwo Akin-Oluyomi, Michael Efetobore Atima, Oluwafunmilayo Kehinde Akinleye
DOI: 10.54660/STMJRD.2019.2.5.01-18
Abstract:
The pharmaceutical supply network is one of the most critical and complex global supply chains, characterized by stringent regulatory requirements, high-value products, extensive quality assurance procedures, and sensitivity to disruptions. Procurement within this sector is particularly vulnerable to risks associated with supplier unreliability, counterfeiting, pricing volatility, geopolitical instability, regulatory compliance, and logistical bottlenecks. These challenges compromise not only financial performance but also patient safety and public health. Risk management has therefore become indispensable to pharmaceutical procurement, demanding structured frameworks that balance cost efficiency, supply assurance, and compliance with global standards. This paper provides a comprehensive review of risk management approaches applied to procurement in pharmaceutical supply chains up to 2019. The study synthesizes contributions from operations management, supply chain resilience, and pharmaceutical logistics research to map out traditional, quantitative, and data-driven methodologies used for risk identification, assessment, and mitigation. The review highlights how multi-criteria decision-making (MCDM), game theory, stochastic modelling, scenario analysis, and collaborative risk-sharing contracts have been applied to mitigate procurement uncertainties. Furthermore, it underscores the emerging role of digitalization, predictive analytics, and blockchain technologies in reshaping pharmaceutical procurement risk frameworks. While significant advancements have been made, gaps persist in balancing efficiency with resilience, integrating sustainability into procurement risk management, and standardizing frameworks across global networks. The paper concludes by identifying future research opportunities that combine quantitative rigor with practical applicability to safeguard pharmaceutical procurement against rising complexity and uncertainty.
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How to cite this article:
Akin-Oluyomi, O. T., Atima, M. E., & Akinleye, O. K (2019). Risk Management Approaches for Addressing Procurement Challenges in Pharmaceutical Supply Networks. The Scholars Time: A Multidisciplinary Journal of Research and Development. 02 (05). 1-18.