CPDN: Improving Supply Chain Resilience
(4 pages of text)
The director of operations at Canadian Pharmaceutical Distribution Network (CPDN), located in Mississauga, Ontario, had been asked by the company’s president to develop recommendations that would address the growing problem of drug shortages. Managing shortages was taking up a significant amount time, which in turn negatively affected CPDN’s customer service levels and drove up its distribution costs. There were also broader implications for patient care and total costs to the Canadian health care system. It was Friday, January 18, 2019, and the president was expecting to present the director of operations’ recommendations to the board of directors the following month.
This case can be used in an undergraduate or graduate course in supply chain management, purchasing, business ethics, or health care. By working through the case and assignment questions, students will have the opportunity to do the following:
- Evaluate the CPDN business model and assess the benefits for the health care system.
- Assess CPDN’s supply chain and evaluate its performance measurement system and key performance indicators.
- Quantify the ability of CPDN members to generate value from the CPDN business model.
- Identify potential opportunities and challenges facing CPDN in improving its supply chain performance.
- Analyze the challenges facing CPDN in the area of drug shortages and develop suitable alternatives.
Health Care Services
Canada, Large, 2019
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