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The pharmaceutical industry throughout the globe is currently facing an issue of improper disposal of medicine. In this new day and age where the focus is increasing over greener supply chains and greener industries to improve the environment, pharmaceutical industries have had a tough time evolving. However, globally there is a change occurring to increase the reverse flow of medicines to properly dispose of the drug and build a greener image for the industry. However, the pharmaceutical companies in Pakistan are still trying to adapt to the new change and have recently started looking at evolving the reverse logistics of the medicine.
The Pharmaceutical Industry is one of the few industries in the world which gained a high growth cycle. The global pharmaceuticals market was worth $934.8 billion in 2017 and will reach $1,170 billion in 2021, growing at 5.8%, according to a recent Pharma market research report by The Business Research Company. Similarly, the pharmaceutical industry of Pakistan is developing very rapidly and is highly backing the national economy. Pakistan has a very efficient and forward-looking pharma industry.
In Pakistan, more than 600 pharmaceutical manufacturing units meet around 70% of the country's demand. The pharmaceutical industry divides into national and multinational companies (Market Research.com, 2018). The Pakistan pharmaceutical company successfully provides high-quality drugs at affordable prices to millions of people and values at Pak Rs 312 billion (Pakistan Pharmaceutical Manufacturer's Association, 2015). The industry has contributed to establishing itself in the last few years, and currently, most of the industry is following best manufacturing practices according to international and domestic guidelines.
Reverse logistics is essential in pharmaceutical companies from the financial perspective, regulatory perspective, and environmental point of view. Also, pharmaceutical companies create an image of corporate social responsibility through the efficient reverse logistic process and build a good reputation. Moreover, global awareness related to the environmentally sustainable, green supply chain is increasing, and it is also the main factor that forcing companies to do such practices.
The research aims were to understand the impact of Reverse Logistics in the pharmaceutical industry to have a more efficient supply chain process, promote a green supply chain and have a process of proper disposal of medicines in the second and third tier of the forward supply chain process.
Reverse logistics is the movement of goods from customers to manufacturers to capture their value or proper disposal. Reverse logistics and recycling in the pharmaceutical industry are critical, but the practice is not very common in Pakistan. It is essential to implement reverse logistics for proper disposal of pharmaceutical products, making efficient supply chain practices, and creating a sustainable environment.
The key objectives of the study are:
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To observe the business environment where Reverse Logistics is implemented and identify the resources required to utilize the process's advantages effectively. The resources may include knowledge of the Reverse Logistics process, support of management, etc.
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To analyze the potential of having Reverse Logistics at the second and third tier of the forward supply chain in the pharmaceutical industry and its importance in having more efficient and effective practices of Reverse Logistics.
The basis of the research was to understand the process of reverse logistics from a pharmaceutical industry perspective and find out the ways other than distributors for the reverse of unused or expired medicine from customers and retailers for proper recycling or disposal of such products. This research studies the implementation of reverse logistics in the pharmaceutical sector to dispose of drugs. In this way, the company can easily create a good CSR image, attain environmental sustainability, and achieve healthcare goals.