A strategic framework for supply chain optimization in pharmaceutical SMEs: an empirical study

Abstract

This study investigates the supply chain challenges faced by pharmaceutical SMEs in India. It aims to identify critical operational gaps and develop an empirically validated framework to improve efficiency, regulatory compliance and overall competitiveness. A mixed methods approach was adopted, combining a comprehensive literature review, expert interviews and survey data from 96 Indian pharmaceutical SMEs. The qualitative phase explored issues in procurement, technological integration and logistics. Quantitative validation was performed using Exploratory Factor Analysis and cluster analysis, which distilled the challenges into five dimensions: innovation and traceability, strategic risk management, warehouse and inventory management, compliance and collaboration and customer relationship management. The analysis reveals significant disparities in supply chain practices, categorizing SMEs into three clusters: Strategic Growth Leaders, Struggling Sustainers and Future Driven Innovators. Key challenges include stringent regulatory compliance, limited financial resources and inadequate technological adoption. The proposed framework offers targeted strategies to address these gaps, demonstrating potential for improved operational performance and financial outcomes. This research provides a novel, integrated framework linking supply chain performance with financial metrics in the context of pharmaceutical SMEs. By offering actionable insights for both practitioners and policymakers, the study contributes uniquely to the literature on SME supply chain management in emerging economies.