The effectiveness of reverse logistics in the pharmaceutical industry
Student name: Ms Gurleen Kaur Chadha
Guide: Dr Sukanya Das
Year of completion: 2017
Host Organisation: TERI University
Abstract: The pharmaceutical industry is a pivotal part of an economy. It’s growth is crucial to the economy
as well as individuals. However, with the growth of this industry, problems related to the industry
are emerging as well. The problem focussed in this study is the large number of unused or expired
medicines in pharmacies, hospitals or households. These medicines are a threat because they may
enter the environment through various ways and pose a threat to the environment, animals as well as humans. To resolve this threat, there is a process called Reverse Logistics, as per which the unused or expired medicines are taken back in a reverse order from the stakeholders in the supply
chain for a safe disposal. But, the reality is that an attenuated reverse logistics process takes place in
the industry. This study aims to study the various reasons (economic, social, political, technical and
environmental) for the improper functioning of the reverse logistics. For this, two methodologies have been employed, Analytical Hierarchy Process (AHP) and Contingent Ranking (CR). AHP is a criteria based study that studies all the stakeholders in the supply chain consider while returning
back the medicines. The results manifest that policy feasibility is the most important criteria while considering the disposal of unused or expired medicines and environmental feasibility is the least important while decision making. This shows the insensitivity of the stakeholders toward the environment. CR was availed for studying the consumers who were least involved in the reverse logistics process, even after being the broader base of the supply chain. Also, with the help of a regression, it was found that socio-economic indicators such as education and income had no role to
play in the disposal practices of the consumers. A consumer could be highly educated or less, both
use unsafe disposal practices such as disposal in trash or flushing them down. Desolate yet true!
Keywords: Pharmaceutical Industry, Supply Chain, Reverse Logistics, AHP, CR, Stakeholders,
Choice Sets
