Understanding Supply Chain Bottlenecks In Saudi Pharmaceutical Companies

Abstract

This study analyzes supply chain bottlenecks in Saudi pharmaceutical manufacturing companies through a comprehensive systems approach. Drawing on the Supply Chain Operations Reference (SCOR) model framework, the research identifies critical constraints affecting supply chain performance across reliability, responsiveness, flexibility, cost, and asset management dimensions. The analysis reveals complex interconnections between various bottlenecks, including forecast inaccuracies, dependence on imported raw materials, long lead times, limited production flexibility, high inventory costs, and inefficient asset utilization. These challenges create reinforcing patterns that amplify negative effects throughout the pharmaceutical supply chain. Based on this systems analysis, three strategic interventions are proposed: developing collaborative supplier relationships, investing in advanced manufacturing technologies, and implementing integrated information systems. These strategies work synergistically to address multiple bottlenecks simultaneously, enhancing overall supply chain performance. The findings provide valuable insights for pharmaceutical executives and policymakers in Saudi Arabia as they work to strengthen the sector's competitiveness and resilience in alignment with Vision 2030 objectives of pharmaceutical manufacturing localization and enhanced drug security.