Business Strategies for Sustainable Development: Leveraging Industry 5.0 and Circular Pharmaceutical Supply Chains to Overcome Medicine Waste

Abstract

Industry 5.0 (I5.0) presents opportunities for streamlining processes, reducing waste, improving resource utilization, and en-abling real-time monitoring and decision-making in the supply chain. This study proposes a strategy for information-sharingamong pharmaceutical supply chain partners, leveraging I5.0 technologies and circular economy strategies like redistributionof unused medicine to reduce waste. This will enable real-time demand data sharing throughout the SC, tracking the expirationdate, disposal, and redistribution of returned products. The study identifies 10 drivers for the adoption of I5.0 and the circularpharmaceutical supply chain (CPSC) to reduce medicine waste applying a Technology- Organization-Environment (TOE) frame-work in consultation with pharmaceutical supply chain professionals, analyzing their relationships using the Decision-MakingTrial and Evaluation Laboratory (DEMATEL) method. The findings reveal that “recognition of the significance of I5.0” and“government-supportive policies for circular supply chain and I5.0” are the most influential cause drivers, exerting significantinfluence on other drivers. Policies such as tax reductions, funding opportunities, and the development of robust digital infra-structure are essential to accelerate adoption. The findings highlight that strengthening these drivers will enhance the adoptionof I5.0 and CPSC, thereby reducing medicine waste. This study contributes to the literature in several significant ways by inte-grating I5.0 and circular supply chain strategies within the pharmaceutical sector to reduce medicine waste, addressing a criticalresearch gap. The proposed framework supports practitioners, policymakers, and industry associations in formulating strategiesfor adopting I5.0 and CPSC, enabling the reduction of medicine waste and contributing to sustainable development by aligningwith environmental goals.