Implementing Supply Chain Management 4.0: Potential Driving Forces and Strategies From an Empirical Study of Pharmaceutical Industries

Abstract

This study investigates the potential driving forces and strategies for implementing supply chain management 4.0 (SCM 4.0) in pharmaceutical manufacturing industries (PMIs). Pertinent data were collected from 111 related companies using a mixed-methods research approach. The study used IBM SPSS and AMOS version 21 for exploratory and confirmatory factor analysis, respectively. The driving forces include regulatory and compliance, market, technological, and economic drivers, while research, development, and innovation emerged as the first-ranked strategy. With the manufacturing landscape in Tanzania transitioning towards digital transformation, implementing SCM 4.0 is essential. Digital transformation in PMIs can improve supply chain performance by enabling predictive analytics, real-time tracking, and better resource optimisation. Incorporating digital technologies like the Internet of Things, artificial intelligence, blockchain technology, and big data analytics is crucial for PMIs to maintain competitiveness and resilience in a globalized market. The digital transformation can boost efficiency, precision, and regulatory compliance while mitigating SCM risks. The transformation in deploying advanced robotics and automating the production systems within the PMIs can assist in streamlining the manufacturing workflows, diminishing human errors, and ultimately increasing the PMI outputs. Likewise, collaboration between PMIs, academia, research institutions, and government agencies is essential for knowledge sharing and addressing common PMIs' challenges. PMIs should be customer-focused and use SCM 4.0 technologies to improve competitiveness and satisfy changing customer demands. Likewise, to develop new technology and business models, it is essential to support innovation and entrepreneurship through funding programs, incubators, and hubs.