Friday, March 18, 2011

YADAV Prashant, STAPLETON Orla, VAN WASSENHOVE Luk
INSEAD Working Paper 2011/36/TOM/ISIC revised version of 2010/54/TOM/ISIC

The World Health Organization estimates that almost a third of the world’s population still lacks access to essential medicines. The distribution network for medicines is ineffective and inefficient in many developing countries. Discussions often centre on why the medicine supply chain cannot replicate the supply chain for consumer products and beverages. There is little understanding of the similarities and differences between the two. This article compares these two supply chains in developing countries from a structural and incentive perspective. It illustrates the complexity of medicine supply chains, and highlights the important differences between these and consumer beverage (soft drink) supply chains.