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Root Cause Analysis of Shortage of Medicines

RCA of Shortage of Medicines

Shortage of medicines is a critical challenge in the pharmaceutical industry, directly impacting patient care, treatment continuity, and public health outcomes. When essential drugs are unavailable, healthcare providers struggle to maintain treatment protocols, often resulting in delayed therapies, substitution with less effective alternatives, or even adverse health consequences. Beyond patient impact, shortages create significant operational and reputational challenges for pharmaceutical companies, including disrupted supply chains, increased regulatory scrutiny, and financial losses due to unmet market demand.

Medicine shortages arise from multiple interconnected factors spanning supply chain, manufacturing, regulatory, workforce, and market dynamics. For example, distribution inefficiencies such as transportation disruptions and poor inventory tracking can prevent timely delivery to healthcare facilities. Raw material shortages, often linked to export restrictions on APIs or dependence on single suppliers, further constrain production capacity. Manufacturing challenges including failed regulatory inspections, product recalls, limited production lines, and outdated facilities exacerbate supply risks.

Regulatory and compliance hurdles also contribute, with import/export restrictions, sudden policy changes, country-specific trade barriers, lengthy approval cycles, and complex documentation requirements delaying market availability. On the market side, unpredictable demand forecasting, lack of real-time data, panic buying, and demand surges during epidemics or pandemics often overwhelm supply systems. Financial and economic pressures, such as price controls, low profit margins, high production costs, and raw material price fluctuations, add further strain. Finally, workforce and operational challenges including absenteeism during pandemics, labor strikes, high staff turnover, and shortage of trained technicians amplify disruption risks.

A GEN-AI powered root cause analysis (RCA), structured through a fishbone diagram and aligned with Six Sigma principles, can be invaluable in addressing these shortages. By systematically analyzing why a shortage occurred and categorizing causes across supply chain, manufacturing, compliance, market, financial, and workforce dimensions, RCA ensures a comprehensive understanding of the underlying issues. This structured approach supports the design of targeted Corrective and Preventive Actions (CAPA), addressing root causes such as failed inspections, transport disruptions, or skilled labor shortages, rather than only mitigating surface-level symptoms.

Applications like ProSolvr, which integrate fishbone diagram-based RCA with GEN-AI capabilities, take this a step further. ProSolvr enables pharmaceutical teams to map complex interdependencies between causes, visualize bottlenecks, and prioritize corrective measures. With clear visual insights and AI-driven recommendations, organizations can ensure that lessons learned from one shortage are systematically applied to prevent recurrence. This not only strengthens supply chain resilience but also enhances operational efficiency and organizational preparedness in the face of future disruptions.

Shortage of Medicines

    • Supply Chain & Logistics
      • Distribution Inefficiencies
        • Transportation disruptions
        • Poor inventory tracking
      • Raw Material Shortages
        • Export restrictions on APIs
        • Dependence on single supplier
    • Manufacturing & Production
      • Quality Control Issues
        • Failed regulatory inspections
        • Product recalls
      • Capacity Limitations
        • Limited production lines
        • Outdated manufacturing facilities
    • Regulatory & Compliance
      • Import/Export Restrictions
        • Sudden policy changes
        • Country-specific trade barriers
      • Lengthy Approval Processes
        • Multiple review cycles
        • Complex documentation
    • Market & Demand Factors
      • Unpredictable Demand Forecasting
        • Ineffective forecasting models
        • Lack of real-time data
      • Sudden Demand Surges
        • Panic buying behavior
        • Epidemics or pandemics
    • Financial & Economic Factors
      • Low Profit Margins
        • Preference for high-margin drugs
        • Price controls by governments
      • High Production Costs
        • Energy and labor cost inflation
        • Rising raw material prices
    • Workforce & Operations
      • Operational Disruptions
        • Pandemic-related absenteeism
        • Strikes or labor disputes
      • Skilled Labor Shortages
        • High staff turnover
        • Lack of trained technicians

Suggested Actions Checklist

Here are some corrective actions, preventive actions and investigative actions that organizations may find useful:

    • Supply Chain & Logistics
      • Distribution Inefficiencies
        • Corrective Actions:
          • Optimize delivery routes, expedite delayed shipments, and adjust inventory allocations.
        • Preventive Actions:
          • Implement advanced inventory management systems and predictive logistics planning.
        • Investigative Actions:
          • Audit past distribution disruptions to identify systemic bottlenecks and weaknesses in tracking.
      • Raw Material Shortages
        • Corrective Actions:
          • Identify alternative suppliers and expedite import approvals for critical APIs.
        • Preventive Actions:
          • Establish multi-supplier contracts and maintain safety stock levels.
        • Investigative Actions:
          • Review supplier reliability and assess geopolitical or regulatory risks affecting raw material supply.
    • Manufacturing & Production
      • Quality Control Issues
        • Corrective Actions:
          • Quarantine affected batches and implement immediate process corrections.
        • Preventive Actions:
          • Strengthen in-process checks, adopt stricter QC protocols, and train staff on compliance standards.
        • Investigative Actions:
          • Conduct thorough audits of failed inspections and product recalls to trace root causes.
      • Capacity Limitations
        • Corrective Actions:
          • Schedule overtime or temporary production expansions to meet urgent demand.
        • Preventive Actions:
          • Invest in additional production lines or upgrade manufacturing facilities.
        • Investigative Actions:
          • Analyze historical production bottlenecks and capacity utilization trends.
    • Regulatory & Compliance
      • Import/Export Restrictions
        • Corrective Actions:
          • Expedite documentation and seek special exemptions where possible.
        • Preventive Actions:
          • Monitor regulatory changes proactively and diversify sourcing across countries.
        • Investigative Actions:
          • Track previous delays caused by trade barriers and analyze their impact on supply.
      • Lengthy Approval Processes
        • Corrective Actions:
          • Prioritize high-impact approvals and streamline internal review procedures.
        • Preventive Actions:
          • Simplify documentation and implement standard templates for regulatory submissions.
        • Investigative Actions:
          • Map past approval delays to identify process inefficiencies and repetitive bottlenecks.
    • Market & Demand Factors
      • Unpredictable Demand Forecasting
        • Corrective Actions:
          • Adjust production schedules and inventory levels based on revised forecasts.
        • Preventive Actions:
          • Implement advanced forecasting tools and integrate market intelligence systems.
        • Investigative Actions:
          • Analyze past forecasting errors to identify gaps in data or methodology.
      • Sudden Demand Surges
        • Corrective Actions:
          • Activate emergency supply plans and prioritize high-demand regions.
        • Preventive Actions:
          • Maintain buffer stock and develop contingency manufacturing capacity.
        • Investigative Actions:
          • Study past surge events to anticipate triggers and prepare response strategies.
    • Financial & Economic Factors
      • Low Profit Margins
        • Corrective Actions:
          • Reevaluate pricing strategies and optimize product portfolio for profitability.
        • Preventive Actions:
          • Introduce cost-efficient production techniques and explore high-margin product opportunities.
        • Investigative Actions:
          • Assess historical margin trends and analyze market-driven pricing pressures.
      • High Production Costs
        • Corrective Actions:
          • Negotiate better raw material rates and reduce energy consumption in production.
        • Preventive Actions:
          • Implement energy-saving technologies and long-term supplier contracts.
        • Investigative Actions:
          • Review production cost drivers and analyze periods of cost spikes.
    • Workforce & Operations
      • Operational Disruptions
        • Corrective Actions:
          • Deploy temporary staff and reschedule production to offset absenteeism.
        • Preventive Actions:
          • Develop business continuity plans and cross-train employees for key roles.
        • Investigative Actions:
          • Analyze disruption patterns caused by pandemics or labor strikes.
      • Skilled Labor Shortages
        • Corrective Actions:
          • Hire temporary skilled staff or reassign experienced employees.
        • Preventive Actions:
          • Implement continuous training programs and retention strategies for key personnel.
        • Investigative Actions:
          • Identify departments most affected by turnover and gaps in technical skills.
 

Who can learn from the Shortage of Medicines template?

  • Supply Chain and Logistics Teams: They can understand how factors like transportation disruptions and poor inventory tracking contribute to shortages, helping them optimize distribution strategies.
  • Manufacturing and Production Teams: Insights into capacity limitations and quality control issues enable them to improve production planning, facility utilization, and product reliability.
  • Regulatory Affairs Teams: By analyzing causes such as lengthy approval processes and import/export restrictions, they can streamline compliance workflows and anticipate regulatory bottlenecks.
  • Market and Demand Planning Teams: Understanding sudden demand surges and unpredictable forecasting helps them develop more accurate demand predictions and responsive supply strategies.
  • Finance and Operations Departments: They can learn how high production costs and low profit margins affect resource allocation, enabling better budgeting and investment in critical supply areas.
  • Human Resources and Workforce Management Teams: By reviewing skilled labor shortages and operational disruptions, they can implement training, retention, and staffing strategies to maintain a resilient workforce.

Why use this template?

GEN-AI powered RCA with ProSolvr transforms medicine shortages into structured learning opportunities. It helps pharmaceutical organizations design and implement effective CAPA, strengthen supply chain reliability, and maintain trust with healthcare providers and patients, ensuring that essential therapies and medications remain available when needed.

Use ProSolvr by smartQED to systematically mitigate challenges in the pharmaceutical industry and build long-term operational resilience.

Curated from community experience and public sources:

  • https://miaspharma.com/shortage-management-pharmaceutical-medicines/
  • https://www.sciencedirect.com/science/article/pii/S1551741124000573