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In an effort to determine the sources of dysfunction that affect the integrity of supply in the pharmaceutical and medical device industry, a research collaboration was created by the academia, business practitioners and regulators. The research used a multi-stage effort that relied on the DMADV (define, measure, analyze, develop, and verify) approach to identify and propose solutions for key issues influencing the reliability of supply chains in an effort to improve existing processes of the participating firms. The data was collected over 3 years and involved 41 executives from 25 participating firms that had either Fortune 500 or Fortune 100 status with median revenues of $7.3 billion, The study found that conventional wisdom about Supplier Relationship Management (SRM) is not working as intended due to the following issues: (1) A top-down mentality within the buying organization; (2) A lack of purposeful engagement with suppliers; (3) A lack of robust internal alignment and (4) The ‘dark side’ of a close relationship with suppliers/customers. The research also identified two significant shifts in the current conceptualization of SRM practices. The first paradigm shift was: From “our suppliers are causing the problems” to “we are causing the problems”. The next paradigm shift was: From “Suppliers are suppliers” to “Suppliers are customers first”. Finally, the research proposes a set of Good Supply Practices to increase manufacturers’ confidence in their products. The solutions include practices such as: robust internal alignment, purposeful transparency; comprehensive supplier qualification and manufacturer self-qualification.

About the Authors

Vishal Kashyap, Ph.D. Dr. Vishal Kashyap is University Professor of Business-to-Business Marketing at the University of Graz in Graz, Austria. His current research interests focus on the design, coordination, and management of distribution channels, interfirm relationships, franchising, and marketing strategy. His research has been published in the Journal of Marketing, Journal of Marketing Research, Journal of Business Research, Industrial Marketing Management, and the Journal of Personal Selling and Sales Management among others. Professor Kashyap has developed and taught courses on distribution channels and marketing strategy at both the undergraduate and MBA levels and has won teaching awards for his teaching at the MBA level. He earned his Ph.D. Association of Marketing Theory and Practice Proceedings March 2018 2 Copyright of the Author(s) and published under a Creative Commons License Agreement from the University of Massachusetts Amherst and is on the editorial review board of Industrial Marketing Management, Journal of Business Research, and Journal of Business Market Management. In addition, he continues to serve as reviewer for various other prestigious journals and conferences. Professor Kashyap is currently the co-chair of the B2B|SIG of the European Marketing Academy. In the past, he has also served as an office bearer for the Inter Organizational Special Interest Group (IOSIG) of the American Marketing Association.

Mee-Shew Cheung, Ph.D. Dr. Mee-Shew Cheung is Professor of Marketing and International Business at Xavier University, Cincinnati, Ohio. She holds a Ph.D. in Marketing and International Business from the University of Tennessee, Knoxville; and teaches Global Marketing and international business related courses at the undergraduate, MBA, and executive levels. Dr. Cheung's research interests include global supply chain management, interorganizational learning theories and marketing strategies in global subsistence marketplaces. Her work has been published in Strategic Management Journal, Journal of Operations Management, MIT-Sloan Management Review, and other outlets such as Industrial Marketing Management, Journal of Marketing Theory and Practice, Journal of World Business, International Journal of Management and Decision Making.

Marla A. Phillips, Ph.D. Dr. Marla A. Phillips joined Xavier University in 2008 as the Director of Xavier Health, where she leads initiatives with FDA officials and Pharmaceutical and Medical Device professionals. Marla began working in the pharmaceutical industry for Merck in 1996 where she took on roles of increasing responsibility, culminating in position of Head of Quality Operations at the Merck North Carolina facility. She holds a B.S. in chemistry from Xavier University, and a Ph.D. in organic chemistry from the University of North Carolina – Chapel Hill.

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