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Coordinating the distribution networks in clinical supply chains A case of AstraZeneca’s pharmaceutical and lab kits networks

Decreasing profits and sharp globalized competition has driven the leading
pharmaceutical companies to reduce the expenditures of new drug development by
redesigning the clinical logistics processes. Under this context, the study managers of a
clinical study of AstraZeneca in cardiovascular sector wanted to investigate the potential
coordination of the distribution flows of the pharmaceutical kits and ancillary lab kits to
the investigation sites as performed by the two strategic outsourcing partners, Fisher and
Covance, respectively. As the study is at the last phase before the commercialization of
the studied drug, multicentre trials on large groups of patients take place across the globe
reaching 29 countries, 95 investigation sites and 13.500 patients. AstraZeneca’s R&D
department considers that there are potentials of reducing the logistics costs on a so
expanded supply chain network.
The purpose of this study is to investigate the efficacy, the challenges and the potential
benefits which can be reaped by the planned co-distribution channel, taking into account
the performance of the two parallel supply chains which are mapped and evaluated
considering the particularities of the regulatory framework that applies in the
pharmaceutical industry. For the steps of the study various theoretical models from the
literature have been used as a tool to gather and analyze the empirical data which are
extracted by conducting semi-structured interviews with all the stakeholders that have a
major role in the drug and lab kits supply chains and from internal documents of
AstraZeneca. Identifying the weaknesses and the responsiveness of the two chains, a
coordination plan is being proposed to reach to the future-state of the redesigned
distribution network. This plan investigates the changes in the clinical logistics
operations, the challenges and the constraints towards the completion of the codistribution
channel.
The findings show that the plan is feasible in terms of material and information
coordination, but is should be cautious so that the efficacy and quality of the clinical
study won’t be affected. Close collaboration between the stakeholders is required but the
roles in the new coordinated logistics network must be distinct and beneficial for all of
them. The structure of the co-distribution channel has to be adapted to the diversity of
the regulatory landscape in the importing countries and therefore scrutinized
investigation is needed in that field so that the shortage risk, that encounters high costs
can be mitigated. Finally, the applicability of the findings to coordination projects of
supply chains with similar characteristics with the ones of the clinical pharmaceutical
sector is discussed.