A Preliminary Phase of Supply Chain Risk Management

Abstract

Health is a basic human right that should maintain and continuously improve in quality. One of the activities to support the preservation of the quality of health services is the supply continuity of medicines. In Indonesia, since 2010, the government has been encouraging the prescription of medicines by their generic names in all public facilities and pharmacists are allowed to choose the generic substitution for the prescribed non-generic medicines. Then, generic medicines supply chain should be able to meet the demand at the right time in the right quantity and the right quality. However, during the practice, some issues arise due to some uncertainties and risks. Risks, which occur in supply chain activities, can affect the flow continuity of information, materials, and products, from the initial supplier to the delivery of the products, which can hinder the supply of generic medicines. For this reason, supply chain risk management of generic medicines are important to keep the generic medicines supply. However, studies about generic medicines supply chain risk in Indonesia are limited. Therefore, the aim of this study is to identify the supply chain risks of generic medicines, as the first step in risk management, based on literature review and expert validation. The results showed that supply chain risks of generic medicines that involve in the activities are demand risks, supplier risks, transportation risks, information flow risks, financial risks, quality risks, inventory risks, production risks, and environment, social and regulation risks.