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Pharmaceutical Industry: Trends, Recalls and Returns Essay

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Introduction

Pharmaceutical industries are some of the many companies that work under the influence of reverse logistics. Consequently, they are faced with issues that are narrowed down to these logistics during their daily operations. Reverse logistics are involved with the processes of returning goods back to the distributor or manufacturer. In pharmaceutical organizations, these processes play an important role (Attia, 2013). Currently, reverse logistics are viewed as sources of possible income or competitive advantages in these industries. Returns and recalls in the pharmaceutical industry are destroyed once they reach the producer.

The trends of reverse logistics may be quite restrictive while considering the fact that products must meet the market approval standards for all pharmaceuticals. The reverse logistics mostly apply in cases where the products have passed their dates of expiry depending on the selling terms. It has been argued severally that the formation of strategic platforms to warrant service and sales’ security must be implemented to retain a functional market. In essence, pharmaceutical products are sensitive and must be handled diligently to ensure that the sellers are encouraged to sell viable products only (Brito & Dekker, 2004).

For instance, the expiry of drugs may cause serious effects on the people consuming them. Since such poisoning can lead to death where it either fails to meet its projected use leading to an expansion of a disease or literally introduces toxins to the normal body functioning. The pharmaceutical industry, therefore, applies the reverse logistics to maintain a profitable and secure endeavor throughout the health care services. The reverse logistics applies in 2 fundamental aspects of returning and recalling products, as discussed in the following subtitles.

Returns in pharmaceutical industries

Most returns are the procedural business strategies aimed at sustaining a model of making profits when maintaining the value of products. The returns must have an operating process to foster the delivery and ensure that the returned model is not being misused by the buyers to their benefits. The products can also be returned when they fail to meet the standards described by the organizations. Most returns initiated by clients or buyers arise with losses where the costs of delivery as well as being sued precedes.

It has been argued that the delivery of pharmaceuticals product below the acceptable standards depicts a high level of negligence (Puri & Ranjan, 2012). Such negligence on human life can lower the reputation of the producing company, where it loses its capabilities to assure the integrity and convince people on its roles in saving human roles via the production of qualified drugs.

Recalls in pharmaceutical industries

Pharmaceutical products are recalled when they are discovered to be harmful, cause side effects, or below the stipulated standards. Drugs are recalled if they cause defects like when they are contaminated or if they have a confusing dose instructions. Poor qualities, impurities, and drug inefficiency may also contribute to drug recalls. If a drug recall announcement is made, the drugs are returned to the distributor or producer where purchase refunds are made (Dhanda & Peters, 2007).

Recalls are used to counter an offense commitment by a company. It is effective when companies recall products before the issues are realized in the market and legal measures are taken. Such companies lose their brand where future sales reduce in case there are other firms producing compliment products.

References

Attia, A. M. (2013). Logistics strategy in Egypt: An empirical study on the pharmaceutical industry. 2013 International Conference on Advanced Logistics and Transport, 13(3), 34-87.

Brito, M. P., & Dekker, R. (2004). A Framework for Reverse Logistics. Reverse Logistics, 4(1), 3-27.

Dhanda, K. K., & Peters, A. (2007). Disassembly and Reverse Logistics. Environment Conscious Manufacturing, 23(34), 491-507. Web.

Puri, S., & Ranjan, J. (2012). Study of logistics issues in the Indian pharmaceutical industry. IJLEG International Journal of Logistics Economics and Globalisation, 4(3), 150.

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IvyPanda. (2020, September 24). Pharmaceutical Industry: Trends, Recalls and Returns. Retrieved from https://ivypanda.com/essays/pharmaceutical-industry-trends-recalls-and-returns/

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"Pharmaceutical Industry: Trends, Recalls and Returns." IvyPanda, 24 Sept. 2020, ivypanda.com/essays/pharmaceutical-industry-trends-recalls-and-returns/.

1. IvyPanda. "Pharmaceutical Industry: Trends, Recalls and Returns." September 24, 2020. https://ivypanda.com/essays/pharmaceutical-industry-trends-recalls-and-returns/.


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IvyPanda. "Pharmaceutical Industry: Trends, Recalls and Returns." September 24, 2020. https://ivypanda.com/essays/pharmaceutical-industry-trends-recalls-and-returns/.

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IvyPanda. 2020. "Pharmaceutical Industry: Trends, Recalls and Returns." September 24, 2020. https://ivypanda.com/essays/pharmaceutical-industry-trends-recalls-and-returns/.

References

IvyPanda. (2020) 'Pharmaceutical Industry: Trends, Recalls and Returns'. 24 September.

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