A strategic response to COVID-19 induced supply chain disruption in South Africa’s pharmaceutical industry

Abstract

The COVID-19 pandemic had a significant impact on the pharmaceutical industry, leading to severe interruptions in global medicine supplies. Both large and small businesses implemented exceptional strategic efforts to mitigate the impact of the infection and minimize the resultant financial harm. A total of twenty-five semi-structured interviews were carried out with pharmaceutical supply chain experts in South Africa in order to gain insight into the strategic reactions and long-term impacts of these responses, as perceived by the participants. The occurrence of strategic reactions seems to resemble those observed in prior instances of disruptions in the pharmaceutical supply chain, but with some degree of variation. These solutions encompass methods for addressing the specific supply chain disruption, managing the reality of supply chain disruption to efficiently handle low switching costs, and implementing attempts to recover by increasing the customer experience. These strategic initiatives were expected to lead to the permanent closure of numerous pharmaceutical enterprises, increased consolidation in the global pharmaceutical supply chain, and long-term changes in responsiveness and efficiency improvements.