The Organization Restructuring for Supply Chain reengineering—Case study of Taiwan Pharmaceutical Industry

• Main Authors: Shu-hua Chen, 陳淑華
• Other Authors: Cheng-chang Lin
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/68515049282316628965

碩士 === 國立成功大學 === 高階管理碩士在職專班 === 96 === The pharmaceutical industry plays an essential role in the national defense and people's livelihood, and therefore has been strictly monitored and regulated by the government. The promotion of quality standards, such as GMP, CGMP, and PIC/S, has substantially upgraded the quality of the domestic pharmaceutical industry up to international level, yet at the same time increased the production costs. Since the implementation of National Health Insurance, the growth of generic drug market in Taiwan has become limited. Due to the price competition among the domestic competitors and patent protection on the foreign ones, Taiwan’s local pharmaceutical companies, while supplying more than 70% of the drug consumption, only accounts for less than 30% of the total drug expenditures. Currently, the business environment for local pharmaceutical industry is suffering from increasing manufacturing cost and shrinking market share as foreign companies penetrate. Presently, besides defending the existing domestic market, Taiwan’s pharmaceutical industry is striving to become active in the international market in order to break-through the current bottleneck. The purpose of this research is to understand in depth about the predicament of Taiwan’s pharmaceutical industry. Moreover, strategies for successful implementation of business transition in order to be better prepared for the international market will be discussed. This research provides a reference for future business re-engineering, particularly for pharmaceutical industry. It analyzes the organizational changes in process re-engineering by reviewing the literature on supply-chain management, business process re-engineering, and organizational changes. In addition, the research also investigates how should the pharmaceutical industry implement its re-engineering and organizational changes in a transition period, enhance the sustainability of the changes with the support from the overall system, and conduct performance evaluation using empirical evidence. This research uses purchase cycle re-engineering as an example, proposing a framework to simplify the information, organization, and procedure in the purchasing process. Specifically, the framework utilizes an E-supply-chain management system to assist upstream and downstream purchase interface to effectively decrease the purchasing time and cost for material and supplies, and to increase quality of the purchase. This will help the internationalization of the industry and its transformation into scheduled production, which emphasizes the mass production for fewer kinds of products. In this regard, this study could serve as a reference for industry’s business transition and re-engineering, based on which that the pharmaceutical industry in Taiwan could potentially improve its business operating framework and start to play a significant role in the international arena.