Research On The Identification Of Supply Chain Risks Of Traditional Chinese Medicine Production Enterprises Based On SCOR Model

Background:Supply chain is a complex dynamic systems which covering raw material suppliers, manufacturers, distributors, logistics providers and end users. Any node in the supply chain will affect the interests of the entire supply chain, increasing the risk of supply chain. As the beginning of the supply chain of Chinese medicine production enterprises, the availability of market diversification for Chinese medicine has an important impact on its supply chain logistics quality and efficiency. However, in terms of scale and core competitiveness, China’s pharmaceutical manufacturers are very lacking. Result from many similar products and vicious competition, the market order is disrupted and the quality and efficiency of drug supply chain is reduced. What’s more, a series of events pesticide injury of traditional Chinese medicine which happened in recent years, more exposed the risks of the supply chain. We must clearly recognize that if the traditional Chinese medicine production enterprises wanted to enhance the competitiveness of the market, they should focus on supply chain management. Therefore, it’s very important for Chinese medicine production enterprises to establish effective supply chain that they can optimize the allocation of resources and save the cost of business. But now, the research on supply chain risk identification is less about tb.e pharmaceutical industry, which is even fewer about traditional Chinese medicine production enterprises. Therefore, it’s very necessary to carry out the research on traditional Chinese medicine production enterprise supply chain risk identification.Objectives:The purpose of this study is 1) applying the SCOR model to traditional Chinese medicine production enterprises supply chain risk management, and using literature study presents risk factors in Chinese medicine production enterprises in the supply chain; 2) using two rounds of Delphi Method assess the severity of consequences and the degree of control, excluding the indicators with the importance of variation coefficient≥ 3, and identifying the key risk control points; 3) carrying out countermeasure researches. The methods include theoretical study on SCOR, literature research and Delphi method.Method:The study mainly used theoretical study on SCOR, literature research and Delphi method.Contents:The contents of this study can be divided into three parts:1) identifying risk factors of Chinese manufacturers supply chain; 2) establishing and improving supply chain risk indicators recognition framework of Chinese medicine production enterprises, then identifying the key risk control points; 3) carrying out countermeasure researches.Results and Conclusion:This study preliminary identified 65 risk factors of Chinese manufacturers supply chain risk on the base of the SCOR model, and determined the risk indicator framework which comprises 61 three indicators through two rounds of the Delphi expert consultation, excluding indicator 9. Frequent exchange rate fluctuations, indicator 43.Insufficient quality of Chinese medicine production enterprise technology innovators, indicator 44. Chinese medicine production R & D investment is not enough and indicator 57. Strike. Besides, this study applied the traditional Chinese medicine production enterprise supply chain risk identification framework which based on SCOR model, analyzed and evaluated the risk critical control points of Chinese medicine production enterprises supply chain, then conducted a risk assessment to output the risk map which can determine the first fifteen large internal critical control points. The study found that Chinese medicine production enterprise supply chain risk indicators have three critical control points (including indicators 13,19,20) at significant risk zone. These three critical control points from raw materials procurement risk and systems risk, and companies must at all costs to eliminate these risks. There are 12 critical control points in a high risk zone, and companies can consider using more resources and commitment to eliminate these significant internal control deficiencies. In addition to this, there are 10 critical control points in a low risk zone, which companies only need to implement continuous monitoring of control points, according to the daily run.Countermeasure research:This study conducted countermeasure researches to prevent from the risks of planning, procurement, production/manufacturing, distribution, returns, traditional Chinese medicine research and development and external risk, which was mainly based on the findings of the fourth part, then made the research prospects. Among them, we should pay special attention to raw materials procurement risks in the procurement risk prevention. Chinese medicine production enterprises must meet the requirements for medicinal purchase of raw materials from qualified suppliers. At the same time, they must establish and strictly implement the drug incoming inspection and acceptance system. In the production/manufacturing risk prevention, we should pay special attention to risk prevention system and testing risk. Chinese medicine production enterprises must improve the level of production and management of pharmaceutical GMP, control quality strictly from the source to reduce the risk of drug quality. In the distribution risk prevention, we should pay special attention to the distribution management risks. Chinese medicine production enterprises should strictly implement the warehouse and kept in the library, while maintaining the original product quality level premise with economical and rational manner.All in all, the results have certain reference value for the identification and control of Chinese traditional medicine production enterprises supply chain risk. What’s more, it’s an inspiration for future in-depth research.