Capsule purchasing practices in Chinese pharmaceutical companies : a multiple-case study analysis

Abstract: China is now the main supplier in the generic pharmaceutical and bulk drugs supply market. The low-cost sourcing of raw materials from domestic manufacturers allows Chinese pharmaceutical companies to be competitive. Purchasing becomes strategic importance to the overall business performance through the implementation of concrete purchasing practices. This thesis is mainly to study the capsule purchasing practices in Chinese pharmaceutical companies. Three objectives are proposed in order to achieve the purpose: 1) Describe the capsule purchasing procedures of the companies; 2) Compare and analyse similarities and differences of their purchasing procedures; 3) Give acceptable reasons for these similarities and differences. These objectives are fulfilled on the basis of the developed van Weele’s purchasing procedure model and the factors integrated in purchasing. In this multiple-case study, qualitative approach is utilized in order to describe and interpret the how and why questions. The unstructured face-to face interviews are used. The study finds that the capsule purchasing strategy in Chinese pharmaceutical companies is at the stage of supply management and this may induct the raw material purchasing strategy in Chinese pharmaceutical industry.