Procurement & Supply Chain Analysis and Improvement Programs TGA

This report provides a comprehensive analysis of the procurement and supply chain management of the Therapeutic Goods Administration (TGA) in Australia, utilizing the dynamic alignment model to assess its current strategies and identify areas for improvement. The analysis covers various ...Read More

Running head: PROCUREMENT AND SUPPLY CHAIN MANAGEMENT
Procurement and Supply Chain Management
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Table of contents
Vision, mission and strategic goals of TGA..............................................................................3
Part A: Findings of supply analysis...........................................................................................3
Part B: Findings of operations analysis......................................................................................4
Part C: Findings of information analysis...................................................................................4
Part D: Findings of integration analysis.....................................................................................5
Part E: Findings of sustainability analysis.................................................................................6
Discussion of the procurement and supply chain analysis of TGA...........................................7
Discussion of improvement programs.......................................................................................9
Improvement programs assisting TGA to achieve its vision, mission and strategic goals......10
Conclusion................................................................................................................................10
Reference..................................................................................................................................12

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Executive Summary
The report focuses on the importance of supply chain management and the manner in which
companies can achieve it in an efficient manner. For the purpose of the report, Therapeutic
Goods Administration (TGA) has been considered. TGA is a regulatory body that provides
therapeutic goods in Australia. It helps in conducting assessments and monitoring activities
that are essential for the protection of the Australian community. The vision, mission and
strategic goals of TGA are stated and an analysis of the issues faced by the company in
various aspects has been considered. The report has used the dynamic alignment model to
analyse the procurement and supply chain strategies used by TGA. At the same time,
recommendations are made that highlights the effectiveness of the use of the programs for the
mission, vision and strategic goals of the company.

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Vision, mission and strategic goals of TGA
The vision of Therapeutic Goods Administration (TGA) is to provide better health
and wellbeing to all the people in Australia with the help of regulatory excellence. This vision
is directly linked to the vision of the Department of Health (Tga.gov.au, 2018). The mission
statement is to provide protection to the health and safety of the community of Australia by
the regulation of therapeutic goods. The focus of the company is of three main factors that
include purpose, principles and priorities (Tga.gov.au, 2018). The strategic goal is to regulate
with the norms of the Therapeutic Goods Act of 1989.
Part A: Findings of supply analysis
TSA has to manage the products that are required for the protection of the health of
the community. The products of the company usually include the health care services that are
required for curing the community. According to Brown (2018), the suppliers of TGA usually
consist of the medical houses and medicine-manufacturing units. Some of the top suppliers in
the country take care of supplying TGA with the best quality medicine. TGA has its branches
all over Australia and because of this, the geographic dispersion of the company lies in the
different states of the country. The supply market of the company comprises of the medicinal
factories that exist in the country. As stated by Chopra (2014) the sourcing services can help
in enhancing the quality of services. Services rendered outside the regular demography can
help in analysing the quality of service. This, in turn, can help in improving the existing
service of the company. The suppliers of the company are selected based on the availability
of the suppliers and the amount of time required for delivering the materials. As such, the
development practise program of TGA includes forming a supplier analysis by raining an
interactive program with the main suppliers of the company. Analysis has shown that TGA
has the worst supply chain management strategies. This proves a major challenge for the

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company to outsource its supply in the outside world (Diaconu, 2014). Thus, this requires
proper analysis by the managers of the company.
Part B: Findings of operations analysis
The sales market of the company is the medical centres that are located in the
Canberra region. Despite its poor supply chain management, TGA manages to get the best
deals in terms of medicines from the region of Canberra. The therapeutic goods are available
in a few regions of the country and capitalisation of the sources is the main aim of the
company. The customers are not differentiated as TGA targets customers suffering from any
type of disease. Therefore, the geographic dispersion of the customers of TGA includes
customers from all over the country (Estenson, 2016). This provides the company with an
opportunity to grow in the market of Australia. The demand forecasting technique that is used
by TGA is the survey method. The survey can help TGA to understand the thoughts and ideas
of the customers. This is required for improvement and different sales market are analysed by
the application of this technique. The inventory management technique used by the company
is the Just In Time technique. According to Grimm (2013), this technique provides the
company with the required materials a few days before its dispersion. This is a risky
technique and is one of the reasons behind the poor supply chain management of the
company. Thus, some of the inventory management challenge faced by the company includes
keeping less cash tied up for the purchase of materials. More loans can hamper the chances of
purchasing valuable goods in the future.
Part C: Findings of information analysis
Hugos (2013) claimed that the lack of clarity of the goals of the company to the
stakeholders might hinder the progress of a company. In the case of TGA, the goals need to
be clearly stated to the stakeholders that include the suppliers. The supply chain of TGA is

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the worst in the business sector and hence, improvement is required in this part to ensure that
it is continued in an effective manner. The Bullwhip effect can be used as a distribution
channel for the company that can forecast the supply chain inefficiencies. This can also help
the company to understand the price fluctuations in the economy and take remedial actions.
TGA can remedy the causes of the Bullwhip effect by reducing uncertainty and variability.
As such, the use of modern information technology tools can help TGA to continue its
communication with the suppliers. According to Myerson (2015), the use of online
conference method and cloud computing are some of the best methods that can be used for
maintaining a proper supply chain management. The impact of the application of these tools
for TGA include can help in improving the supply chain management. It has been seen that
communication plays a major barrier to TGA and lack of communication is the reason for the
improper supply chain management. The collaboration of TGA with its suppliers and
customers include areas in which solid foundation can be formed. Proper infrastructure is
required to ensure that the collaboration is done in a proper manner for enhancing
opportunities.
Part D: Findings of integration analysis
The supply chain of TGA is showed as poor and is unable to meet the demands of the
market in an effective manner. Pagell and Wu (2017) stated that the poor supply chain of the
company has led to incurring unnecessary costs of outsourcing. The target of the customers is
not met due to the poor outsourcing is done by the company. TGA also need to maintain good
communication with the suppliers and within the various departments of the organisation.
The inventory management of the company has also been poor due to the lack of proper
supply chain management. At the same time, collaboration with other pharmaceutical
company is avoided by TGA while purchasing injections. Hence, after analysing the supply

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chain management of TGA using the 9-step framework model it can be said that the level of
integration of the company is the third stage. The third stage comprises of validating the
baseline model. It consists of two phrases that provide an understanding of the different
aspects of improvement in the supply chain of an organisation. In this regard, the Triple-A
supply chain management model can be applied. According to Wang and Disney (2016),
TGA is agile in the market as the company seeks opportunities for engaging in collaboration
with the suppliers. The adaptability of the company is also important as the changes in the
Australian economy can fluctuate and it is necessary that alignment with these changes be
done so that TGA can improve its supply chain system.
Part E: Findings of sustainability analysis
The procurement and sustainability practises of TGA include a systematic analysis of
the manner in which the sustainability can be developed. The competition among the
employees in the market is high and therefore, TGA needs to select the best people that can
help in the improving the supply chain strategies. According to Christopher (2016), the
supply chain management of the company is outdated and the sustainability of the company
collaborating with various organisations that promote sustainability. The promotion of the
sustainability can help TGA to ensure mitigating the threats posed by the new entrants. As
such, a link between the supply chain sustainability approach and total business value can be
maintained that can help TGA achieve its desired sustainability in the market.

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Figure: Link between supply chain sustainability approach and total business value
(Source: Jacobs, Chase & Lummus, 2014)
By applying the Trigger’s model of sustainability, the implementation of the
sustainability practices in TGA can be analysed. According to Seuring and Müller (2008), the
model is used to analyse based on the motivation and ability of the organisations. In the case
of TGA, the company is seen to be placed in the high motivator, low ability category as the
sustainability issues of the company is high, and it provides a huge disadvantage for the
improvement of the company. Thus, the sustainability factors of TGA need to be improved to
gain effectiveness in the market.
Discussion of the procurement and supply chain analysis of TGA
The analysis of the issues sustained by TGA shed light on the fact that the supply
chain management of the company is worse and this is the main reason for the failure of
engaging with the stakeholders (Stadtler, 2015). The demand of the customers is not met and
to meet it TGA can use the Dynamic Alignment model. The dynamic alignment model can
help TGA approach the situations in a structured manner. The inventory and stockpiling of
the company are also out of control due to the poor supply chain system. Therefore, the

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EpiPen had to suffer due to the loss of control over the inventory management (Monczka et
al., 2015). The architect of the model is to establish clear goals and structures that are
necessary for driving performance. Another important aspect of the procurement is that TGA
serves as a monopoly company. Despite its collaboration with the suppliers, the company
does not get involved with other pharmaceutical companies while selling injections. The
inability to identify the shortage problem is another big concern for the company. The
effectiveness of producing and selling the items in an effective manner is necessary for the
functioning of TGA. Thus, as stated by Hugos (2018) it is necessary that the supply chain of
the company be well maintained to optimise the good, services and capital involved in the
organisation.
TGA need to ensure that the inventory is controlled so that the goods can be used in
the future and stocks can be used to avoid a shortage of the items. At the same time, the
communication of the company needs to improve so that misunderstanding does not take
place. According to Mangan, Lalwani and Lalwani (2016), the communication between the
top managers and juniors is required for conducting effective workplace. In the case of TGA,
the company the lack of clarity of goals of the organisation has been a major problem for the
company. This can disable the participation of the employees in the matters of the company.
One of the important considerations that are required to be taken by TGA is the fact that the
patients of the company must not know about the mission and vision. With the issues in the
supply chain management, the stockpiling of TGA cannot be procured with the efficiency of
the system. Brindley (2017) observed that the creation of stockpiling and an undefined
relationship between the employee and the management can lead to shortage problems.
Thereby the suffering caused by the EpiPen injections of the patients is a prime example of
the importance of stockpiling. It is necessary to unlock the potential of the workers and
sustain the enthusiasm of the employees. This can be done by elevating the leadership and

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management practises so that the value and model of the partnership can be driven by culture.
At the same time, the sustainability can be a major issue for the company, as it needs to
ensure that a proper environment is maintained that can help in gaining the support of the
communities. TGA uses outdated supply chain strategies for procuring and categorising the
products. Every product is handled differently so that the company does not have to suffer
from lack of proper identification of products.
Discussion of improvement programs
The improvement programs that can be implemented for ensuring the strategic
development of TGA include enhancing the coordination between the company and the
suppliers. The challenge is bigger as the pharmaceutical companies do not cooperate well and
work in a united effort. As such, the mitigation techniques that can be used include creating a
benchmark so that TGA can understand from other companies about the supply of drugs. The
supply needs to be such that it meets the requirement of the customers and ensure that the
medicines are delivered on time according to the needs. Wisner, Tan and Leong (2014)
claimed that maintaining a compliance with the regulations of the laws of the country could
be an effective way to enhance the supply chain. The regulation effects of the medicine can
be enhanced by understanding the manner in which top companies supply the medicines.
Collaboration with other pharmaceutical companies can help TGA to continue to work in an
environment that can serve the community better. However, as stated by Brandenburg et al.
(2014), TGA need to ensure that the temperature of the medicines and within the premises is
maintained so that it helps the patients. Technology can be improved so that it can help in
enhancing the manner in which assistance is provided to the patients. At the same time, the
company need to keep in mind that the vision, mission and strategic goals so that the changes
implemented does not have any negative effect on it.

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Improvement programs assisting TGA to achieve its vision, mission and strategic goals
As established earlier, the mission of TGA is to protect the community of the region it
serves. The vision of the company is aligned with the Department of Health and it includes
providing a better lifestyle for the people of Australia (Tga.gov.au, 2018). Thus, the strategic
goals of the company include regulating with the legislation that is involved in the
Therapeutic Goods Act, 1989. Hence, the application of the new programs can help TGA to
improve its vision, mission and strategic goals. Interaction with the suppliers can help in
understanding the community. This is because the suppliers interact with the local people and
have full knowledge about the manner in which the people can respond to the changes in the
environment. The vision and mission statement of the TGA aim at improving the lives of the
people and as per the rules of the Department of Health, the company can align its strategic
goals for the improvement of the community. The improvement in the supply chain
management of TGA can help in better managing of inventory and resources. The application
of the benchmark process can help the company to understand the manner in which supplies
can be made (Tga.gov.au, 2018). These two factors can assist TGA in ensuring that the
mission and vision are achieved along with the strategic goals. Thus, the new program is
effective for creating a complete change in the aim of the TGA.
Conclusion
It can be concluded that supply chain management is important for every
organisation. In a health, care centre such as TGA, the application of a proper supply chain
management can help the company gain more customers. The factors that lack in the
company about the supply chain management include the lack of communication and
guidance. Thus, with the effective implementation of these two factors, TGA can ensure that

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the mission and vision are achieved by proper strategic goals. Hence, the improvement of the
company is necessary for continuous service to the Australian community.

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