Monday, August 13, 2007

Holistic solution

This has reference to the editorial “Toys R’nt Us” (TNIE; 6 Aug 2007). Not wanting to lose the trust and confidence of its customers, American toy-producer Mattel went for worldwide product recalls. Toxic substances found in their Chinese-made toys prompted this action. Further, the falling share price will force Mattel to go for immediate supply chain corrections.

As rightly mentioned, India must learn a lesson from this episode and support its own manufacturing hubs with proper safety protocols. However, even though our system may be attuned to the concept of the consumer, there is a lot left to be desired. Case in point is the health sector of the state of Orissa, which has witnessed some horrific tales in recent times. We have seen gross negligence by some health-service providers and drug manufacturers that severely undermine the confidence of the consumers. Unfortunately we don’t see much urgency in seeking holistic corrections.

The pharmaceutical industry seems to be supported by an out-dated supply chain whose focus seems to be merely on warehousing, inspection and distribution. While these are important activities needed from a logistics perspective, there is a lot left to be achieved in terms of a robust supply chain. We need world-class domestic supply chains that would give “cradle-to-grave” support to the medicine manufacturing hubs of the country. That would mean greater involvement of our manufacturers from product development to delivery and beyond.

The Pharmaceutical associations have to take aggressive proactive steps in regaining the trust of consumers. To begin with, they have to share their expertise in identifying fake drugs and other supply chain delinquencies. I urge the Government and the medical fraternity to find a holistic solution rather than getting into a witch-hunt of nabbing the “culprits”.

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