The Impact Of Supply Chain Relationships In The Pharmaceutical And Bio-industry On Corporate Performance

With the establishment of the national strategy,"Healthy China",in the 13 th Five-Year Period and the rising of "Big Health" concepts,the biopharmaceutical industry occupies an essential strategic position within the development of the national economy.During recent years,the biopharmaceutical industry grows rapidly and implies a bright prospect.Meanwhile,the supply chain relationship has always been the focus of academia.Under different product strategies,how should an enterprise decide on upstream suppliers and downstream customers? What kind of supply chain relationship could boost the corporate performance to the utmost degree? All these questions contain great importance and practical significance.So far,the research literature about the effect of supply chain relationship towards corporate performance is relatively few.In regard to this situation,this thesis reviews the study on supply chain relationship concerning the competitive cooperation theory,information sharing theory,transaction cost theory,and bargaining power theory.Based on a comprehensive interpretation,this thesis selects the Unisplendour Guhan Group co.,LTD as the research object and analyzes the potential correlation between its supply chain relationship and corporate performance under different product strategies from 2010 to 2015.In order to enhance the persuasiveness,this paper compares and analyzes the corporate performance and supply chain relationship of four different biopharmaceutical enterprises within the same province and 63 companies from biopharmaceutical industry with complete data as well,with respect to inherent characteristics of the biopharmaceutical industry.From the perspective of a non-financial stakeholder,this paper pursues to provide theoretical support and experience for listed companies to consider the influencing factors of suppliers and customers when formulating financial policies.After a set of studies,this paper concludes that biopharmaceutical enterprises will have different supply chain relationships under different product strategies,while the concentration degree of the suppliers and customers will also vary.A single product strategy may drive an biopharmaceutical enterprise to greatly depend on its upstream suppliers and downstream customers,as well as lead to high concentration of suppliers and customers.Hence,the enterprise has to pass on part of the benefit to the upstream and downstream,which would not be conducive to its corporate performance in the long run.In pursuit of better corporate performance,one biopharmaceutical enterprise needs to manage its supply chain in a reasonable manner,and precisely handle its relationships with suppliers and customers at the same time.These measures enable the enterprise to maintain a high concentration of suppliers and a relatively low concentration of customers,thus reducing the enterprise’s reliance on sales channels.When the enterprise’s cost-savings from large-scale procurement exceed its passed-on benefits in the concessions to the market,the enterprise would then generate profits.