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Opportunities for Innovation in the Swedish Biopharmaceutical Supply Chain
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This research will shed light on a new type of empirics within the scientific area of Supply Chain Innovation (SCI). SCI opportunities specific for Sweden and for biological drugs are identified and the main research contribution of this report is thus empirical.

Biological medicine is the fastest growing segment within the development of new medicines. These types of medicines are often sensitive to temperature, light and shear forces and furthermore expensive. They are used to treat severe diseases such as cancer, diabetes and rheumatoid arthritis and securing a safe supply of biological drugs is thus essential. Meanwhile, changes on a macro level are affecting the pharmaceutical supply chain in Sweden. Current changes and problems could create new opportunities for innovation in the PSC for biological medicine. This thesis aims to identify those opportunities by drawing conclusions from, as well as connecting the main trends and problems affecting this supply chain. The reasoning behind this approach is that new trends create new needs, that new needs create new problems and that the problems create new opportunities for innovation. Both the method for data collection and analysis are qualitative. Trends and problems affecting the supply chain of biological medicine in Sweden were identified in literature as well as through interviews with the main actors in the Swedish PSC. Thus both primary and secondary data was gathered and analyzed. Through comparison between the theoretical and empirical findings, the most influential problems and trends were established. Subsequently the connection between the problems and trends was identified and this relationship provided the basis for the brainstorming that resulted in three suggested innovation possibilities. The three identified innovation opportunities are: a supply chain process innovation, an improved packaging solution for delivery from stocks to pharmacies and a logistics solution for home delivery. The supply chain innovation implies that pharmacies gain control over the final delivery from warehouse to pharmacy. This change is suggested to increase the market power of pharmacies, who currently have no ability to affect delivery times, even though they are pressed by strict regulations. The second innovation suggestion is an incremental improvement of the current package solution from storage to pharmacy. This package needs to be more volume efficient and user-friendly, without compromising with the safety and quality of the medicines. The final innovation proposal is a logistics solution that meets the increased demand for home delivery. We believe that a new logistics service is needed that is specialized in temperature sensitive pharmaceuticals where the pharmacies agrees on a co-transportation solution for home delivery to minimize transportation costs. This could be an initial model before the home delivery has grown in popularity and acquired a considerable position on the market.

Place, publisher, year, edition, pages
2016. , 76 p.
Keyword [en]
Supply Chain Innovation, Pharmaceutical Supply Chain, Biological Medicine, Pharmaceutical Cold Chain, Trends
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-189512OAI: diva2:946446
Available from: 2016-07-11 Created: 2016-07-05 Last updated: 2016-07-11Bibliographically approved

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