Critical factors affecting inventory levels of an over the counter (OTC) herbal medicine :

Abstract

Herbal medicines have been in existence throughout the ages, giving comfort, cure and wellbeing to human beings all over the world. Although, in the last few decades, herbal medicines weren’t given much of a prominence in health and wellbeing, herbal medicines are moving back into limelight, since recent years, as people are moving back to nature cures, trending towards natural products that are more congruent to the physiological, psychological balance of human being and to cost viable products. The market for herbal medicines is being increased at a rapid rate and continuous advertising of herbal medicines are frequent these days unlike in yester years, herbal medicine brands are nowadays becoming household names, proving the increasing trend for herbal medicines in the healthcare sector. With increasing competition, herbal medicine manufacturers are looking for ways and means of making efficacious, cost viable products available to consumers and gaining market stability for their products. While, availability at the right time being the most crucial factor to make a sale, demand unpredictability and limiting shelf life of product are being contradicting nature of the product segment, maintaining right inventory levels in the supply chain plays a critical role in movement of product in the supply chain and cost viability of product in the market. In this scenario of context, where herbal medicines are gaining a wider market acceptance, it has become imperative to have a closer look at the herbal medicine supply chain, streamline, instigate precautionary measures and implement solutions in instilling right inventory levels, in order to gain an edge over competition, by bringing out efficacious, economically and ecologically viable products to market at the right time, Supply chain aspects of herbal medicines are yet rather untouched in research studies. As a preliminary to set right inventory levels, this research has tried to identify the critical factors affecting over stocking and under stocking of an Over the Counter (OTC) Herbal Medicine, based on a case study of a selected herbal medicine. In this case study research, critical factors affecting over stocking and under stocking of a herbal medicine has been identified by obtaining information through interviews, questionnaires and by using Pareto Analysis and AHP (Analytical Hierarchical Process) analysis.