Logistics Performance in the Indian Pharmaceutical Sector: A Comparative Study of Two Leading Firms in Madhya Pradesh

Abstract

This study examines a comparative analysis of the logistics management practices of two leading pharmaceutical companies, Abbott India Ltd. and Glenmark Pharmaceuticals Ltd., with special reference to Madhya Pradesh. Primary data was collected by 50 supply chain personnel through a structured questionnaire by Google Forms. A mixed-methods approach, combining a literature review, a survey, and interviews, was used. The study explores procurement processes, warehousing infrastructure, inventory management, distribution networks, and technology adoption. Statistical tools, including correlation and regression analysis, are employed to examine the efficiency and effectiveness of logistics operations. The preliminary findings underscore critical differences in digitization levels, 3PL partnerships, and cold chain capabilities. The paper concludes with strategic recommendations tailored to both companies for enhancing logistics performance and resilience.

Introduction

The Indian pharmaceutical supply chain is rapidly evolving due to globalization, rising demand, technological innovation, and regulatory pressures. Efficient logistics is vital for product safety, timely delivery, and regulatory compliance. This study compares logistics practices between Abbott India Ltd. and Glenmark Pharmaceuticals Ltd., focusing on their operations in Madhya Pradesh.

Objectives:

1. Examine and compare logistics practices of Abbott and Glenmark.

2. Analyze key logistics elements—warehousing, transportation, and inventory control.

3. Assess the role of technology.

4. Identify challenges and recommend improvements.

Literature Review Highlights:

• Challenges: Regulatory barriers, poor inventory management, and high transportation costs.

• Technology: Tools like SAP, RFID, IoT, and WMS improve accuracy, visibility, and efficiency.

• Models: Centralized systems (used by Abbott) increase control but risk bottlenecks; decentralized models (partially used by Glenmark) offer flexibility but may reduce efficiency.

• Regulations: Compliance is critical for reliability but adds financial and operational burdens.

Company Profiles:

• Abbott India Ltd.: Established in 1944, operates in diagnostics, pharmaceuticals, and nutrition. Uses SAP, RFID (partially).

• Glenmark Pharmaceuticals Ltd.: Founded in 1977, focuses on generics and APIs. Uses SAP, RFID, and full WMS.

Methodology:

• Design: Descriptive and comparative.

• Approach: Quantitative, using questionnaires and interviews.

• Sample: 50 logistics professionals (25 from each company).

• Tools: SPSS, Excel; data analyzed via correlation and regression.

Key Findings:

Conclusions:

• Abbott outperforms Glenmark in logistics due to greater technological integration, better inventory control, and centralized dispatch systems.

• Glenmark faces higher costs and delays due to manual operations and decentralized logistics.

Recommendations:

• Glenmark should invest in automation (WMS, RFID) and adopt centralized models where feasible.

• Both firms must continually adapt to regulatory and technological shifts to maintain logistics efficiency.

Conclusion

This study compares the logistics operations of Abbott India Ltd. and Glenmark Pharmaceuticals Ltd. in Madhya Pradesh, revealing significant differences in technology integration, warehousing, transportation, inventory control, and procurement. Abbott\'s centralized approach improves operational effectiveness and cost control. In conclusion, the results show that Abbott\'s technology-heavy, centralized logistics model leads to improved delivery schedules, reduced overall costs, and increased inventory accuracy. Despite its agility and regional adaptability, Glenmark must make investments in automation and process standardization to match its rival\'s levels of efficiency. Nonetheless, both businesses demonstrate a dedication to upholding drug safety regulations and compliance in their supply chains.

References

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Copyright

Copyright © 2025 Ms. Pallavi Sharma, Dr. Dharmendra Mehta. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.