Herbal, founded in 1983, became a leader in natural health products through strong R&D, but its procurement and operations lagged behind. This case focuses on inefficiencies like manual systems, fragmented supplier ties, and planning gaps, which began disrupting production and service across three sites. Sadia, the new Head of Operations, must lead a procurement transformation. Using Resource-Based View and Transaction Cost Economics, learners assess Herbal’s challenges and recommend strategic solutions. The case emphasizes the need for agile, integrated, and digital procurement practices while navigating organizational change and supply chain resilience in a dynamic market environment.

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Revamping Procurement at Herbal Pharma: Bridging Operational Gaps for Sustainable Growth

  • Abdul Rehman Shaikh,
  • Asad Ali Qazi

摘要

Herbal, founded in 1983, became a leader in natural health products through strong R&D, but its procurement and operations lagged behind. This case focuses on inefficiencies like manual systems, fragmented supplier ties, and planning gaps, which began disrupting production and service across three sites. Sadia, the new Head of Operations, must lead a procurement transformation. Using Resource-Based View and Transaction Cost Economics, learners assess Herbal’s challenges and recommend strategic solutions. The case emphasizes the need for agile, integrated, and digital procurement practices while navigating organizational change and supply chain resilience in a dynamic market environment.