Pharmaceutical logistics under martial law

Authors

DOI:

https://doi.org/10.31617/2.2023(46)01

Keywords:

logistics, pharmaceutical industry, martial law, supply chain, pharmaceutical market, infrastructure, import dependence.

Abstract

Introduction. The pharmaceutical industry developed steadily before the war and had a constant trend of increasing annual turnover. The pandemic and quarantine restrictions affected the state of logistics and, accordingly, the dynamics of the industry. 

Problem. The full-scale invasion and martial law in Ukraine caused drastic changes in the industry, which is associated with changes in supply chains due to hostilities, occupation, mass shelling, destruction of transport and warehouse infrastructure.

The aim of the scientific article is to determine the main problems of the pharmaceutical industry in the conditions of martial law and the prospects for the use of logistics tools for the recovery and development of this industry in the post-war period.

Methods. The methods of elementary-theoretical analysis and synthesis, economic-statistical methods and the method of expert evaluation were used.

Results. The main problems of the pharma­ceutical industry under martial law can be divided into 5 main groups: infrastruc­tural, logistic, financial, industrial and social. They forced the industry to adapt, which caused positive changes – this is evidenced by statistical data and sales growth forecasts. The key factors influencing the level of quality of pharmaceu­tical logistics are accurate planning of the supply chain in terms of time and costs; security both in document control and in the environmental conditions to which the product is exposed. After Ukraine approves the status of a candidate for joining the EU, the industry under study can get new opportunities on the international pharma­ceu­tical market. 

Conclusions. The pharmaceutical industry is adapting to the conditions of martial law, taking into account infrastructural, logistic, financial, production and social problems. The restoration of stability in the pharmaceutical market is due to an increase in the number of investments in logistics and own production, a change in demand for products of own produc­tion, the expansion of the sales market and the opportunity for Ukraine to become a pharma­ceutical hub for Europe.

Author Biographies

Alina NECHYPORUK, State University of Trade and Economics

PhD (Economics), Associate Professor, Associate Professor at the Department of Trade Entrepreneurship and Logistics

Dmytro KOCHUBEI, State University of Trade and Economics

PhD (Economics), Associate Professor at the Department of Trade Entrepreneurship and Logistics 

References

State Statistics Service of Ukraine. Statistical information. https://www.ukrstat.gov.ua [in Ukrainian].

Kovin'ko, O. M., Stahova, A. I., & Vovk, A. P. (2017). The pharmaceutical market of Ukraine as a driver of economic development. Scientific Bulletin of the Uzhhorod National University. Series: International economic relations and the world economy. (Issue 11), (pp. 56-59). http://nbuv.gov.ua/UJRN/Nvuumevcg_2017_11_14 [in Ukrainian].

Shandrivs'ka, O. Je., & Cvetkovs'ka, A. V. (2022). Research of the pharmaceutical market of Ukraine: focus on market concentration. Bulletin of the Lviv Polytechnic National University. Series: Problems of economics and management, 1 (9), 56-68. https://science.lpnu.ua/sites/default/files/journal-paper/2022/apr/27443/v6n1ekonomika2022-58-70.pdf [in Ukrainian].

Garmatjuk, O. V. (2019). Modern trends in the development of the pharmaceutical industry of Ukraine. Scientific and practical journal "Economic Studies", 2 (24), 66-69. http://rps.chtei-knteu.cv.ua:8585/jspui/bitstream/123456789/492/1/18%D0%91%D0%B0%D0%B3%D1%80%D1%96%D0%B9.pdf#page=66 [in Ukrainian].

Bratishko, Ju. S., & Posylkina, O. V. (2023). Management of the innovative potential of the pharmaceutical organization. Modern achievements of pharmaceutical technology: Proceedings of X International Scientific and Practical Conference. (pp. 206-209). Kharkiv. https://dspace.nuph.edu.ua/bitstream/123456789/30318/1/zbirnik-konferencija-tfp-2023%20%281%29.pdf#page=207 [in Ukrainian].

Lisna, A. G., & Posylkina, O. V. (2022). Modern trends in the development of digital logistics in the pharmaceutical industry. Quality management in pharmacy: Materials of the 16th Scientific and Practical Internet Conference with international participation. (pp. 61-64). Kharkiv. https://dspace.nuph.edu.ua/bitstream/123456789/28173/1/61-64.pdf [in Ukrainian].

Lisna, A. G., & Mukalova, M. V. (2019). Justification of the logistics cost management mechanism in pharmaceutical companies. Professional management in modern conditions of market development: Materials of the reports of the VIII Scientific and Practical Conference with international participation. (pp. 290-292). https://dspace.nuph.edu.ua/bitstream/123456789/2655/1/36-42.pdf [in Ukrainian].

Palamar, A. O., & Skrynchuk, O. Ja. (2019). Marketing logistics in the pharmaceutical field. Professional management in modern conditions of market development: Materialy dopovidej VIII naukovo-praktychnoi' konferencii' z mizhnarodnoju uchastju. (pp. 300-301). https://dspace.nuph.edu.ua/bitstream/123456789/2655/1/36-42.pdf [in Ukrainian].

Shmatenko, O. P., Trohymchuk, V. V., Galan, O. V., & Bilous, M. V. (2019). Current issues of warehouse material support as a component of military-pharmaceutical logistics in the context of the development of a unified system of material support of the armed forces of Ukraine. Ukrainian military medical journal. Vol. 19, 1, 103-107. https://ujmm.org.ua/index.php/journal/article/view/162 [in Ukrainian].

Knop, Krzysztof. (2019). Evaluation of quality of services provided by transport & logistics operator from pharmaceutical industry for improvement purposes. Transportation Research Procedia. (Vol. 40), (pp. 1080-1087). https://www.sciencedirect.com/science/article/pii/S2352146519303199?via%3Dihub [in English].

Wu, Jianyun, & Dong, Mingqiu. (2023). Research on customer satisfaction of pharmaceutical e-commerce logistics service under service encounter theory. Electronic Commerce Research and Applications. (Vol. 58). https://doi.org/10.1016/j.elerap.2023.101246 [in English].

Ali, A., Cao, M., Allen, J. et al. (2023). Investigation of the drivers of logistics outsourcing in the United Kingdom’s pharmaceutical manufacturing industry. Multimodal Transportation. (Vol. 2). https://www.sciencedirect.com/science/article/pii/S2772586322000648 [in English].

In the language of numbers: How the pharmaceutical industry of Ukraine changed during the war (INFOGRAPHIC). https://www.dsnews.ua/ukr/society/movoyu-chisel-yak-zminilasya-farmacevtichna-galuz-ukrajini-pid-chas-viyni-infografika-20072022-462914 [in Ukrainian].

Pharma during the war: reorientation from anti-covid to hemostatic drugs, destroyed warehouses and migration of pharmacists. https://mind.ua/publications/20248405-farma-pid-chas-vijni-pereorientaciya-z-antikovidnih-na-krovospinni-zrujnovani-skladi-ta-migraciya-pro [in Ukrainian].

During the year of the full-scale war, russia caused almost $144 billion in damage to Ukraine's infrastructure. https://kse.ua/ua/about-the-school/news/za-rik-povnomasshtabnoyi-viyni-rosiya-zavdala-zbitkiv-infrastrukturi-ukrayini-na-mayzhe-144-mlrd

Pharma market ends the year on a positive note. https://www.apteka.ua/article/652995 [in Ukrainian].

How pharmacists resisted during the war and what they are counting on now. https://biz.nv.ua/ukr/markets/yak-ukrajinskiy-farmacevtichniy-rinok-ta-apteki-protistoyat-vtorgnennyu-rf-50270497.html [in Ukrainian].

Pharmacy sales according to the results of the first quarter. 2023 https://www.apteka.ua/article/664015 [in Ukrainian].

Pharmacy sales according to the results of 2022. https://www.apteka.ua/article/656982 [in Ukrainian].

Pharmacy sales in the first months of the war. https://www.apteka.ua/article/636253 [in Ukrainian].

Fundamentals of the Pharmaceutical Supply Chain. https://pharmanewsintel.com/news/fundamentals-of-the-pharmaceutical-supply-chain

"Visa-free for medicines" and Ukraine as a powerful pharmaceutical hub: utopia or reality. https://www.epravda.com.ua/columns/2023/04/6/698835 [in Ukrainian].

Kyiv can become a pharmaceutical hub. Why is this a good idea? https://biz.nv.ua/ukr/amp/farmacevtika-yak-kijiv-staye-farmacevtichnim-habom-pid-chas-viyni-novini-ukrajini-50289786.html [in Ukrainian].

Global pharmaceutical logistics market size & share analysis – growth trends & forecasts (2023–2028). https://www.mordorintelligence.com/industry-reports/global-pharmaceutical-logistics-market [in English].

Published

2023-06-23

How to Cite

[1]
NECHYPORUK А. and KOCHUBEI Д. 2023. Pharmaceutical logistics under martial law. INTERNATIONAL SCIENTIFIC-PRACTICAL JOURNAL COMMODITIES AND MARKETS. 46, 2 (Jun. 2023), 4–15. DOI:https://doi.org/10.31617/2.2023(46)01.

Issue

Section

LOGISTICS AND SUPPLY CHAIN MANAGEMENT