Abstract:

Global trade has become increasingly complex and competitive, with businesses facing pressure
to reduce costs while maintaining quality and efficiency. Supply chain management (SCM) plays
a critical role in achieving these goals, particularly in the export sector. Effective SCM can help
businesses optimize their operations, streamline processes, and reduce waste, leading to
significant cost savings. This study assesses several cost-cutting tactics for export-related supply
chain management. It emphasizes the significance of risk management, collaborative planning,
standardization, lean manufacturing, outsourcing, supply chain automation, inventory
optimization, and supplier management. The impact of these tactics on export competitiveness is
also covered in the paper, along with suggestions for companies looking to enhance their supply
chain management procedures.

Keywords.
Supply chain management (SCM), Cost reduction, Exports, Supplier management,
Transportation optimization, Lean manufacturing, Outsourcing, Supply Chain automation,
Inventory, optimization, Collaborative planning, Standardization, Sustainable SCM, Risk
management, Export Competitiveness.
 Evaluating Strategies for Cost Reduction in SCM Relating to Exports

Introduction:

Cost reduction is one of the most crucial components of effective supply chain management,
which is necessary for businesses engaged in international trade to succeed in today's global
marketplace. In order to sustain profitability and remain competitive in a highly competitive
market, organizations need to constantly evaluate and enhance their supply chain management
cost reduction strategies. SCM is arguably the most crucial operations management tactic for
businesses looking to acquire and hold onto a competitive edge in the current global
marketplace. SCM is crucial because businesses now understand that maintaining a competitive
edge depends as much on looking outside of their organization for channel partners as it does on
utilizing internal resources. Channel partners assist businesses in producing the creative ideas
and assets required to put together the ideal combination of competencies that mesh well with
both their own organizations and the demands and desires of their markets.
Planning, designing, implementing, and controlling every business process associated with an
organization's sourcing, production, distribution, and customer service activities is all included in
supply chain management. It includes supply and demand management, acquiring components
and raw materials, manufacturing and assembly, inventory control and storage, order entry and
processing, distribution to all retail locations, and customer delivery.

Gap in SCM related to exports

The deficiency lies in the scarce application of cutting-edge data analysis, predictive modeling,
and AI technologies designed to optimize cost reduction measures with regards to export-related
supply chain management. Multiple institutions still depend on archaic methodologies and do not
possess the infrastructure, expertise, or cognizance necessary for utilizing the total capacity of
data-fueled insights. Implications: Inadequate Decision-Making. Without comprehensive data
analytics, organizations may base decisions on incomplete or outdated information, resulting in
suboptimal choices concerning procurement, transportation, inventory management, and other
essential aspects of the supply chain. Failure to utilize advanced analytics may result in higher
operational costs, and valuable opportunities for cost reductions could be missed. Advanced
analytics can uncover hidden cost-saving opportunities within the supply chain, which can
translate into significant savings. Predictive analytics aid organizations in optimizing inventory
levels, which in turn reduces carrying costs while upholding consistent product availability.
Without the accessibility of such analytical tools, businesses may find themselves grappling with
excessive inventory or unfulfillment of demand, both of which incur significant expenses.

Global perspective
In a worldwide setting, supply chains frequently extend across numerous nations and continents,
engaging various stakeholders, including suppliers, manufacturers, logistics providers, and
distributors. Such intricacies give rise to difficulties regarding transportation, customs, currency
exchange, and international regulations. Large multinational corporations can profit from scale
economies in global supply chains. By centralizing operations and leveraging their global reach,
organizations could achieve substantial cost reductions in procurement, production, and
distribution. The management of diverse customs regulations and compliance requirements in
various countries can significantly drive-up costs.

Effective strategies for navigating these challenges are crucial in the context of global SCM.
Fluctuations in currency exchange rates can affect global SCM costs. Managing currency risk
and finding ways to hedge against unfavorable exchange rate movements is imperative. Supplier
relationships are crucial in a global supply chain context. Developing strong partnerships,
negotiating advantageous terms, and ensuring reliable supply can contribute to cost reduction.
The integration of advanced technologies such as blockchain, IoT, and AI can be more complex
and costly in the global supply chain management context. However, these technologies can
provide significant cost-saving opportunities. Thus, it is essential to have strong risk
management strategies to alleviate these risks and minimize potential expenses. Risk
management is crucial for global supply chains as they confront various risks, such as
geopolitical conflicts, natural disasters, and global health emergencies.

Local Perspective
In a local environment, the supply chain tends to be shorter and there are fewer intermediaries
involved. This simplicity can result in decreased transportation costs and reduced complexity in
procurement and distribution. Operating within a single country or region means that
organizations tend to be more familiar with local regulations, resulting in fewer compliance-
related issues compared to operating globally. The conduct of business within a single currency
zone has a greater degree of currency stability. Local companies reduce their exposure to
exchange rate fluctuations and associated costs by transacting in their local currency.
Proximity to suppliers may result in faster lead times, decreased shipping expenses, and better
control over the supply chain. Negotiating with local suppliers may also be more convenient. It is
generally less challenging and less expensive to integrate technology into a local supply chain.
Smaller-scale operations may not require such extensive technology integration. Although local
supply chains are not immune to risks, they may encounter fewer geopolitical and global
economic uncertainties, resulting in a more stable risk profile. Local supply chains may have a
sustainability advantage, as shorter transport distances and reduced emissions may meet
environmental objectives.

Why it is problem in Cost Reduction in SCM Relating to Exports in pharmaceutical

companies.

The pharmaceutical industry operates in a highly regulated environment with strict quality
control and compliance requirements. Essential are accurate record-keeping, traceability and
timely reporting. Advanced analytics can assist in streamlining compliance efforts to ensure that
products meet regulatory standards whilst minimizing compliance-related costs. Many
pharmaceutical products are sensitive to temperature, and it is crucial to maintain the cold chain
to ensure their efficacy and safety. Predictive analytics can optimize temperature-controlled
logistics and ensure that products are transported and stored correctly. Neglecting this can cause
expensive product spoilage and compliance violations. The pharmaceutical supply chain may
face vulnerabilities such as raw material shortages, transportation delays, and geopolitical
challenges. By means of predictive modelling, potential disruptions can be identified, and
proactive risk mitigation strategies can be implemented, consequently decreasing the financial
impact of supply chain disruptions.

The pharmaceutical industry allocates substantial investments towards research and

development. Advanced analytics can enhance R&D spending efficiency by identifying cost-
effective suppliers, streamlining clinical trial logistics, and predicting the potential success of
drug candidates. Minimizing R&D expenditures is vital to ensuring profitability of
pharmaceutical corporations.

Global Operations: Pharmaceutical companies typically have operations across the globe, with
involvement of multiple suppliers, manufacturing sites, distribution centers, and regulatory
authorities. Efficiently managing a global supply chain necessitates the use of advanced analytics
to optimize logistics, monitor supplier performance, and decrease expenses associated with
global operations. Advanced data analytics can aid in tracing and preventing the spread of
counterfeit drugs. The pharmaceutical industry encounters challenges with counterfeit drugs,
which pose significant health and safety risks.

Problems in Pakistan pharmaceuticals companies

Transport delays: The company regularly experiences difficulties transporting its products from
its manufacturing facility to ports for export. These obstacles stem from factors such as traffic
congestion, poor road conditions, and unpredictable weather.

Unanticipated customs inspections: At international ports of entry, the pharmaceutical products

undergo rigorous customs inspections and regulatory checks. Occasional product holds due to
unexpected inspections can result in further delays and potential spoilage risks.

Inefficient inventory management is a consequence of the company's struggle to accurately

anticipate transportation delays and customs inspections without predictive analytics. Either
overstocking to avoid stockouts, which incurs high carrying costs, or understocking, which risks
shortages in international markets, are both options available to the company. There is a concern
for increased operational costs regarding the frequent transportation delays that result in
increased transportation costs, including demurrage charges for containers held at ports for
extended periods. The company regularly incurs these costs without effective strategies to
mitigate delays, which poses a risk to the integrity of their products.

Since numerous pharmaceutical products are temperature and environment-sensitive, extended

delays and unexpected customs inspections could endanger the integrity of the medications. This
risk results in possible medication spoilage and quality control problems.

Missed Export Opportunities: The company's capability to meet global demand, leading to
forfeited sales and market share, is influenced by product delivery setbacks.

Justification of the research

The researcher investigating cost minimization in supply chain management (SCM) for
pharmaceutical companies exporting from Pakistan is led by distinct objectives and goals. The
study has several purposes, including cost optimization for.
1.The Pakistani pharmaceutical sector.

Pharmaceutical firms in Pakistan stand to benefit from this research as it provides valuable
insights into cost reduction strategies designed for their export-driven supply chains. This
knowledge can ultimately lead to lower operational costs, greater profitability, and sustained
competitiveness in the global marketplace. Operational Efficiency is crucial in achieving these
goals. The research can offer pragmatic suggestions and optimal practices to enhance the efficacy
of supply chain operations, leading to smoother export processes and a decrease in operational
bottlenecks. Regarding risk management in global SCM, research findings can prove
advantageous to pharmaceutical companies. This comprises methods for mitigating disruptions,
complying with international regulations, and ensuring product quality and safety.

2. Healthcare Consumers and Patients:

With the optimization of export supply chains and cost reduction strategies by pharmaceutical
companies in Pakistan, there is potential for the savings to be transferred to consumers and
patients, resulting in more affordable medications. Improved supply chain efficiency can
guarantee a steady and trustworthy supply of medication, thus mitigating the risk of drug
shortages and ensuring that patients have access to essential medicines.

3. Government and Regulatory Authorities:

An efficient pharmaceutical supply chain management (SCM) system can back to the economic
development of Pakistan. Objective research can assist governmental bodies in making informed
policy decisions targeted at supporting the industry. Research findings can assist regulatory
bodies in enhancing their understanding of the difficulties encountered by pharmaceutical firms
in complying with worldwide regulations. This understanding can inform regulatory protocols
and benchmarks.

4. Healthcare Providers:

More cost-effective medicines resulting from reduced costs in the pharmaceutical supply chain
can take a positive effect on healthcare providers, such as hospitals and clinics, by decreasing
their procurement expenses.
5. Research and Academic Community:

Researchers and academics in the field of supply chain management, pharmaceuticals, and
related subjects are poised to gain novel insights and contribute to the existing body of
knowledge in these fields as a result of this research.

6. Export Industry Stakeholders:

This research has the potential to bolster export competitiveness for stakeholders involved with
the export industry. Research findings can provide significant value to stakeholders in the export
industry, such as trade associations and export promotion agencies. They can assist and advise
pharmaceutical companies on enhancing their export supply chain management practices.

7. Society at Large:

It is noteworthy to consider the public health impact on society at large. Cost-effective

pharmaceutical supply chains can have a wider societal impact by enhancing public access to
healthcare and essential medication.

General Objective
To identify, analyze, and implement cost-effective strategies and practices in supply chain
management that result in significant reductions in export-related expenses, while maintaining or
enhancing the efficiency and effectiveness of the export supply chain.

Research Questions

1. Do Pakistani industry leaders in the pharmaceutical sector believe that the inadequate
SCM models utilized those in sector are a hindrance to growth?
2. Do Pakistani pharmaceutical industry executives believe that, the functioning of the
supply chain is subpar?
3. Do Pakistani pharmaceutical industry professionals see an issue with the functioning of
the country's supply chains in terms of flexibility and agility?
4. Do Pakistani professionals in the pharmaceutical sector see a problem with source act in
administration of country's pharmaceutical supply chain?
 5. Do professionals working in the pharmaceutical industry in Pakistan perceive a problem
with the supply chain performance of the nation's pharmaceutical industry's output
performance?

Hypothesis
Cost drivers on supply chain management (SCM) for exports can be guided by hypotheses to aid
research and testing. The proposed hypotheses outline connections between distinct factors and
their effect on export-related expenses. Here are some hypotheses regarding cost drivers in
supply chain management for exports.

Hypothesis 1: The mode of transportation affects export costs.

Null Hypothesis (H0): No significant difference exists in export costs among the various
transportation modes (e.g. air, sea, road).

Alternative Hypothesis (H1): The transportation mode choice has a significant impact on export
costs.

Hypothesis 2: Export Costs are influenced by the location of the supplier.

Null Hypothesis (H0): The geographical location of the supplier has no significant effect on
export costs.

Alternative Hypothesis (H1): Technical terms have been explained where necessary. The distance
between suppliers and the export point has a significant effect on export costs.

Hypothesis 3: Regulatory Compliance Costs Impact Export Expenses

Null Hypothesis (H0): There is no significant correlation between the costs incurred for
complying with regulations and the aggregate expenses on exports.

As per the Alternative Hypothesis (H1), regulatory compliance expenses have a noteworthy
impact on the total expenditure towards exports.

Hypothesis 4: Inventory holding costs have a significant impact on export expenses.

Null Hypothesis (H0): There is no significant correlation between inventory holding costs and
export expenses. The results showed that the coefficient for inventory holding costs was
statistically significant, indicating that there is a positive correlation with export expenses.
However, further research is needed to determine the exact extent of this relationship and
whether other variables also play a role.

Alternative Hypothesis (H1): Higher inventory holding costs have a positive correlation with
increased export expenses.

Hypothesis 5: Exchange Rate Fluctuations Affect Export Costs

The null hypothesis (H0) is that exchange rate fluctuations have no significant effect on export
costs.

Alternative Hypothesis (H1): Export expenses are greatly impacted by changes in exchange
rates.

Theoretical Frame work:

The use of modern transportation technologies and

Dependent strategies has significantly reduced transportation
Variable costs in Pakistan's export supply chain

I believe that optimizing the coordination and

Regression efficiency of transportation processes can help reduce
costs in the export-related supply chain in Pakistan
Model 1 In my opinion, government initiatives and policies
related to transportation infrastructure have a
positive impact on cost reduction in SCM for exports
Independent in Pakistan.
Variable The adoption of eco-friendly transportation practices,
such as green logistics, can lead to cost savings in the
export supply chain within Pakistan

I believe that collaboration and partnership between

different stakeholders in the transportation and
export sectors play a crucial role in achieving cost
reduction goals in Pakistan's SCM.
 Dependent The geographical location of suppliers significantly
Variable affects export costs in our supply chain

I believe that suppliers located closer to major

Regression transportation hubs and ports can lead to cost savings
in the export process.
Model 2
The proximity of suppliers to the final destination of
products plays a crucial role in reducing export-
related expenses.
Independent
Variable Suppliers located in regions with well-developed
transportation infrastructure are more likely to
contribute to cost reduction in our supply chain for
exports.

I think that strategic supplier selection based on

geographical proximity is an effective way to optimize
export costs in our Supply Chain Management.
 Dependent : Regulatory compliance costs significantly contribute
to the overall increase in export expenses for
Variable pharmaceutical companies in Pakistan.

The proximity of suppliers to the final destination of

products plays a crucial role in reducing export-
Regression related expenses..

Model 3 Streamlining and optimizing regulatory compliance

processes can play a critical role in reducing export
expenses for pharmaceutical companies in Pakistan.

The proximity of suppliers to the final destination of

Investing in advanced technology and resources to
ensure compliance with pharmaceutical regulations is
Independent a cost-effective strategy to manage export expenses
for pharmaceutical companies in Pakistanexpenses.
Variable
Inventory holding costs play a significant role in
increasing export expenses for pharmaceutical
companies in Pakistan

Effective inventory management strategies can

substantially reduce export expenses for
pharmaceutical companies in Pakistan..

Effective risk management strategies for handling exchange

rate fluctuations can help pharmaceutical companies
reduce export expenses in Pakistan.

I think that staying updated on exchange rate trends and utilizing

financial instruments to mitigate currency risk is a cost-effective
strategy to minimize the impact of exchange rate fluctuations on
export expenses for pharmaceutical companies in Pakistan.
 Dependent Exchange rate fluctuations have a significant impact
on increasing export expenses for pharmaceutical
Variable companies in Pakistan

Regression
I believe that currency exchange rate instability
Model 5 negatively affects the cost efficiency of the
pharmaceutical supply chain in Pakistan.

Effective risk management strategies for handling exchange

Independent rate fluctuations can help pharmaceutical companies
reduce export expenses in Pakistan.
Variable
The proximity of suppliers to the final destination of
Pharmaceutical companies that proactively hedge
against exchange rate risk are better equipped to
manage and lower export-related costs.

I think that staying updated on exchange rate trends

and utilizing financial instruments to mitigate
currency risk is a cost-effective strategy to minimize
the impact of exchange rate fluctuations on export
expenses for pharmaceutical companies in Pakistan.

Literature Review

The literature review looked at topics like SCM efficiency, distribution and transportation
logistics challenges, and demand forecasting methods that could aid in improving SCM
activities. Information from respected journals, supply chain experts, and organizations was
included in the research's content, along with particular trends in industry-wide problem areas
and solutions. While looking for journal articles, books, and other trustworthy sources online,
more information was found. These included Thoreau, a number of ProQuest theses and
dissertations, the NCBI, Medline Plus, the EBSCOhost database, PubMed, Google Scholar, and
JSTOR.
In this section, there are several subsections: (a) a general analysis of supply chain distribution
processes, which will describe how things work in Pakistan; (b) SCM challenges in the
distribution of medicine in Pakistan, which will talk about the problems that supply chain
organizations face; and (c) problems in SCM activities caused by weak transportation
infrastructure and the transportation infrastructure The section was summarized after these
discussions.
In order to locate pertinent material in online databases for the literature review I conducted for
this study, I used a variety of key words and phrases in my search strategy. The literature search
was initiated using Thoreau, multiple ProQuest dissertations and theses, NCBI, Medline Plus, the
EBSCOhost database, PubMed, Google Scholar, JSTOR, PsycINFO, Questia, Sage, and other
electronic databases. The methods for locating literature were helpful in assembling a valuable
collection of research studies. It also helped in the development of a framework that would
include relevant information about the medical supply chain in Pakistan.

How the Supply Chain Network in the Pharmaceutical Industry Operates

To become a truly competitive regional industry leader, Pakistan's national pharmaceutical

industry must liberalize and enhance its supply chain management performance (Usman, Raouf,
Ahmad, & Sparks, 2009; Nadvi & Halder, 2005). There are currently more than 600 companies
in Pakistan. Determining the exact amount is difficult due to its periodic upward bias. Remember
that more than half of the nation's founding pharmaceutical companies are still in business
(Usman, Raouf, Ahmad, & Sparks, 2009; Nadvi & Halder, 2005).

Pakistan's pharmaceutical market is still evolving. In terms of supply chain, the nation is getting
better and better at developing its own supply chain network for the development and production
of pharmaceutical products (Ali & Akram, 2012). This may be because the nation has
internalized many lessons from the last ten years of the twentieth century. Recall that at the time,
international businesses held the lion's share of influence over Pakistan's pharmaceutical sector.
Nearly two decades later, there are now much more Pakistani-owned and operated businesses
than foreign enterprises. More than half (55%) of Pakistan's numerous pharmaceutical
operational units are owned and run by Pakistanis, while just under half (45%) are run by foreign
businesses (Zaman, 2011).

One of the main issues that Pakistan's pharmaceutical industry's supply chain framework is still
working to resolve is the excessively high levels of government influence and, in some cases,
total control over the prices of pharmaceutical products, even those that multinational
corporations import into the nation (Fogel, 2006). Consequently, the country's pharmaceutical
industry's supply chain remains reliant on imports for raw materials, precursors, and finished
goods.

Global markets: Pakistan still has a relatively young upstream supply chain network for
pharmaceutical products (Zaman, 2011). It still relies on foreign imports. For some reason, the
government hasn't addressed this serious supply chain issue, even though it should have done so
in partnership with the private sector (Zaman, 2011).

The nation's pharmaceutical industry faces several obstacles to its continued growth and
expansion, one of which is the growing costs associated with the manufacturing of medications
(Zaidi, Bigdeli, Aleem, & Rashidian, 2013). R&D expenses, labor costs, energy prices, and other
variable expenses could all be contributing factors to this. Because of these developments, the
idea of starting a pharmaceutical company or subsidiary in Pakistan is generally less appealing
(Zaidi, Bigdeli, Aleem, & Rashidian, 2013).
Since the pharmaceutical industry is subject to an extremely restrictive economic environment,
especially for smaller businesses, very few, if any, startups in the country are able to turn a profit
(Shabbir, n.d.). This is explained once more by the pharmaceutical industry's supply chain
framework's lack of cohesive individual components, or clusters. The lack of linearity and
standardization in the process may make it difficult for a company to supply other businesses if it
wants to address supply shortages and gaps in a specific area of drug manufacturing (like pre-
formulation and formulation drug requirements, among others) (Wilson, Williams, Jones, &
Andrews, 2012).
The nation's political unpredictability and rapidly deteriorating law-and-order situation may also
be to blame for this supply chain issue in Pakistan's pharmaceutical sector. Seldom are markets
and their clients prepared for unfettered access to trade and other sales-related activities when the
political, social, and economic climate is unfavorable to such activity (Fogel, 2006).

In order for pharmaceutical companies to thrive and have complete and unfettered access to both
domestic and foreign markets for their output products, Pakistan is falling behind other countries
in establishing a stable political system as well as a social and economic environment. This is
applicable to all four categories of active drug manufacturing businesses in the country:
formulation, fundamental manufacturing, semi-fundamental manufacturing, and repackaging,
based on the various types of readily available drug manufacturing licenses. More unfettered
market access is almost always the answer to the problems these four distinct types of
pharmaceutical companies in Pakistan face.

Examples of this include electronic commerce, deeper consumer behavior research and
comprehension, and a focus on highly specialized pharmaceuticals (Aamir & Zaman, 2011).

Important Steps in the Supply Chain Framework of the Pharmaceutical Industry

The standard products that companies in the pharmaceutical industry sell are easily recognized as
drugs. Given that drugs come in a variety of forms and are not all the same type, they are
classified as both homogeneous and heterogeneous economic entities. Every couple of years,
new classes and types of medications are found. It just takes a few months from the time they are
discovered to the point where they are fully developed and put on the market, depending on the
right regulatory frameworks and the real need or demand for the product. Probably all
pharmaceutical industry companies have to go through the two crucial processes of drug
development and discovery, which are centered on the commercialization of new
pharmaceuticals (Shabbir, n.d.).
Tangibility, assurance, flexibility, responsiveness, consistency, and empathy are found to be the
most crucial elements, according to it. There is a lot of research that shows a lot of different
factors or dimensions that can be used to judge the performance of supply chain management.
However, they came to the conclusion that there shouldn't be a rigidly universal set of factors or
items that can be used to judge service quality across a subset of service industries, or in this
case, the supply chain performance of a target nation (Pakistan's pharmaceutical industry).
According to Ahmad, Usman, Raouf, and Sparks (2009), a supply chain management
performance technique that is truly effective and appropriate is made up of a flexible or dynamic
set of variables (or dimensions) as opposed to a rigid one. On paper, this should allow the
individual, team, or organization evaluating the performance of the supply chain framework in a
given sector to do so based on the variables or dimensions that matter, rather than just those that
were included in a questionnaire or standardized evaluation method (Shah, 2004). Regarding the
development of a consistent framework to assess supply chain management performance with
respect to the pharmaceutical sector, the justification or conclusion presented above aligns with
other previously published studies.

Drug Research

Drug finding is the process of designing medications with the potential to treat diseases that are
now incurable or that are already treatable but in a more effective and/or efficient way (Dunlap,
Kotabe, & Mudambi, 2010). In the past, drug discovery techniques simply allowed scientists to
separate the active ingredients from any product raw material and use them to magnify or
increase the effects of specific conventional treatments. For many years, the conventional
approach to drug development has been successful. It has also made it possible for the
pharmaceutical industry, which is still expanding, to develop a solid understanding of how raw
materials and ingredients for drugs, as well as those materials' active components, may be
analyzed, separated, and created for use in human medicine that is both safe (Guler & Nerkar,
2012). This opened the door for a more contemporary and, potentially, more effective and
efficient method of finding novel medicines. Modern pharmaceutical and biotechnology
companies leverage their current understanding of how body functions rather than merely
concentrating on the advancements produced by the material understanding of medications.

Despite the many advances in drug development and the limited number of compounds that can
be used for final drug development programs, pharmaceutical companies' capacity to discover
new treatments is still somewhat limited. One of the difficulties that has been mentioned in
earlier research is the laborious and slow synthesis process that is used to locate and produce
natural products, also referred to as compound synthesis in the pharmaceutical industry (Guler &
Nerkar, 2012). The foundation of chemistry is the application of an almost perfect, highly
discriminative, and selective method of chemical synthesis. One requirement in a chemistry-
based drug approach is a broad scope, which facilitates the identification of a greater number of
compounds with drug-like properties.
It is preferred to use processes that are simple, don't react with oxygen or water, only need
reaction work-up and product isolation, and don't need chromatographic purification. These
processes should use reagents that are easy to find, produce higher yields, and work with a wider
range of starting materials. Without getting too technical, click chemistry's advancement is proof
positive that the pharmaceutical industry's drug discovery environment is dynamic and ever-
evolving. This means that more people will be able to take advantage of the relief that
pharmaceutical products offer from illnesses and physical ailments, and there may be more
profitable pharmaceutical products in the future (Guler & Nerkar, 2012). However, focusing
solely on supply chain management's performance component will result in more restrictions and
a greater need for supply chain management best practices.

Development of Drugs

Drug development is one of the pharmaceutical industry's major procedural endeavors. Using
this approach, the drug discovery process is often successful. When a medicine is successfully
discovered, a recently discovered molecule is already considered a viable marketable product
(Dunlap, Kotabe, & Mudambi, 2010). Before being offered for sale to prospective customers, the
recently found molecule would still need to pass a number of tests. The various drug
development phase subcomponents may be helpful in this situation. The drug development phase
is the formal process of assessing whether a recently discovered molecule is suitable for use as a
medication (Wilson, Williams, Jones, & Andrews, 2012). In addition to selecting the proper
formulation, dosage, list of indications, contraindications, and safety measures, a pharmaceutical
company conducting drug development operations must also manage supply chain-related
decisions, such as selecting which natural and synthetic raw materials to use and where to source
them (Wilson, Williams, Jones, & Andrews, 2012). Within this domain, a pharmaceutical
company seeking to launch a new brand or product submits an application to the drug regulatory
body of a specific nation for a new drug or pharmaceutical product. Following this, the company
initiates an intricate sequence of in vitro investigations, in vivo investigations, and intensive
clinical trials (Guler & Nerkar, 2012). These components of drug development are further broken
down into numerous smaller parts. For instance, the clinical phase, which is arguably the most
significant, is divided into four subphases: Phases I, II, III, and IV. This is because additional
post-approval trials are often carried out in response to requests from the drug regulatory body,
and studies on market monitoring are carried out during the fourth phase. It is crucial to keep in
mind that clinical trial phases operate in a sequential fashion rather than concurrently, which
means that the drug development process cannot move on to the next stage or phase without
finishing the one before it (Schouten et al., 2011).

Impact of transportation disruptions on supply chain performance.

These elements of drug development are subdivided into a plethora of smaller components. For
example, there are four subphases within the clinical phase, which is arguably the most
important: Phases I, II, III, and IV. This is due to the fact that studies on market monitoring are
conducted during the fourth phase, and additional post-approval trials are frequently conducted
in response to requests from the drug regulatory body. The drug development process cannot
proceed to the next stage or phase without completing the previous one, so it is imperative to
remember that clinical trial phases function sequentially rather than concurrently (Schouten et
al., 2011).