Peer reviews

Heather:

1. Problems facing the pharmaceutical industry are increases in the cost of production.  There are huge cash flows for pharmaceutical companies, but there are also large outflows of cash for maintaining and innovation products.  These costs along with the regulation laws and pricing controls are factors to consider.  Accessibility is also a factor, as there are larger numbers of people who need health care services and the companies want to ensure availability for those consumers.

2. Advantages for LVTLS would be implementing transportation and strategic planning for these companies to aid in customer support. This type of planning would be beneficial in providing a competitive position for these companies by offering a specific transportation services.  They can reduce transportation and warehouse costs for the company because they have experience in the field of moving product in an effiencient manner. Ensuring that they can meet the needs of the market in an efficient and accessible manner will help increase in profits all around. 

Kyle:

1. Discuss the challenges faced by the pharmaceutical industry.

One of the main challenges faced by the pharmaceutical industry is competition. According to Statisca, the US holds almost half of the world's pharmaceuticals. Compounding that challenge of competition is strict government regulations that could slow development and implementation of new drugs. This not only could slow production but ultimately halt a particular drug and could end up being costly (specific drugs being recalled, lawsuits, etc.)

2. Which of these challenges provide the best opportunity for LVTLS? Why?

One opportunity LVTLS has is fostering organizational relationships (1-4-6). Collaboration with pharmaceutical companies include the warehouse departments, accounting, and the vendors receiving their product is vital for LVTLS to thrive. 

As discussed in the text, transportation management 1-4-9 is the glue that helps the supply chain function (Coyle, p.21). To remain competitive the pharmaceutical companies will need rely on LVTLS to deliver on-time scheduled delivers and same day deliveries if needed. 

Reference:

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2017). Supply chain management: a logistics perspective.        Mason: South-Western.

https://www.statista.com/topics/1719/pharmaceutical-industry/