IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v5y2018i1p1423871.html
   My bibliography  Save this article

Supply chains for iilicit products: Case study of the global opiate production networks

Author

Listed:
  • John Miltenburg

Abstract

In 2014, approximately 0.4% of the global adult population used illicit opiates (e.g. opium, heroin). Ninety five percent of these drugs were supplied by three global supply chains: the Afghanistan network, the Golden Triangle network, and the Mexico-Columbia network. The supply from these networks is insufficient to satisfy the demand. This paper analyzes the three supply chains (1) to understand how supply chains for illicit products operate and (2) to determine the elements in the supply chains that restrict the supply. Following the global production network (GPN) framework, the paper examines how product value is created and captured, markets and demand, networks, distribution routes, supply, inventory, and cost. The paper finds that the current high rate of seizures is the primary cause of the insufficient supply, that there is no easy way to increase supply, and that the most expedient solution is to boost the existing supply using additives (e.g. fentanyl). The paper gives insight into the characteristics of low capability supply chains and how increases in capability brought about by adapting to new conditions affects their design and operation.

Suggested Citation

  • John Miltenburg, 2018. "Supply chains for iilicit products: Case study of the global opiate production networks," Cogent Business & Management, Taylor & Francis Journals, vol. 5(1), pages 1423871-142, January.
  • Handle: RePEc:taf:oabmxx:v:5:y:2018:i:1:p:1423871
    DOI: 10.1080/23311975.2018.1423871
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2018.1423871
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/23311975.2018.1423871?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeffrey Clemens, 2008. "Opium in Afghanistan: Prospects for the Success of Source Country Drug Control Policies," Journal of Law and Economics, University of Chicago Press, vol. 51(3), pages 407-432, August.
    2. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Introduction: global production networks—debates and challenges," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 267-269, May.
    3. Thomas Friedli & Andreas Mundt & Stefan Thomas, 2014. "Strategic Management of Global Manufacturing Networks," Management for Professionals, Springer, edition 127, number 978-3-642-34185-4, December.
    4. Rudberg, Martin & Martin West, B., 2008. "Global operations strategy: Coordinating manufacturing networks," Omega, Elsevier, vol. 36(1), pages 91-106, February.
    5. James Piazza, 2011. "The illicit drug trade, counternarcotics strategies and terrorism," Public Choice, Springer, vol. 149(3), pages 297-314, December.
    6. Miltenburg, John, 2015. "Changing a multidomestic production network to a global function network: North America Heinz ketchup from 1960 to 2015," International Journal of Production Economics, Elsevier, vol. 168(C), pages 267-278.
    7. Hülsmann, Michael & Grapp, Jörn & Li, Ying, 2008. "Strategic adaptivity in global supply chains--Competitive advantage by autonomous cooperation," International Journal of Production Economics, Elsevier, vol. 114(1), pages 14-26, July.
    8. Vila, Didier & Martel, Alain & Beauregard, Robert, 2006. "Designing logistics networks in divergent process industries: A methodology and its application to the lumber industry," International Journal of Production Economics, Elsevier, vol. 102(2), pages 358-378, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Miltenburg, John, 2015. "Changing a multidomestic production network to a global function network: North America Heinz ketchup from 1960 to 2015," International Journal of Production Economics, Elsevier, vol. 168(C), pages 267-278.
    2. Feng, Cheng-Min & Wu, Pei-Ju, 2009. "A tax savings model for the emerging global manufacturing network," International Journal of Production Economics, Elsevier, vol. 122(2), pages 534-546, December.
    3. Ahmed Sayem & Andreas Feldmann & Miguel Ortega-Mier, 2018. "Coordination in International Manufacturing: The Role of Competitive Priorities and the Focus of Globally Dispersed Facilities," Sustainability, MDPI, vol. 10(5), pages 1-20, April.
    4. Viktorija Badasjane & Anna Granlund & Mats Ahlskog & Jessica Bruch, 2022. "Coordination of Digital Transformation in International Manufacturing Networks—Challenges and Coping Mechanisms from an Organizational Perspective," Sustainability, MDPI, vol. 14(4), pages 1-21, February.
    5. Reza Oladi & John Gilbert, 2015. "International Narcotics Trade, Foreign Aid, And Enforcement," Economic Inquiry, Western Economic Association International, vol. 53(3), pages 1630-1646, July.
    6. Cheng, Yang & Farooq, Sami, 2018. "The role of plants in manufacturing networks: A revisit and extension," International Journal of Production Economics, Elsevier, vol. 206(C), pages 15-32.
    7. Lindo, Jason M. & Padilla-Romo, María, 2018. "Kingpin approaches to fighting crime and community violence: Evidence from Mexico's drug war," Journal of Health Economics, Elsevier, vol. 58(C), pages 253-268.
    8. Becker, Tristan & Lier, Stefan & Werners, Brigitte, 2019. "Value of modular production concepts in future chemical industry production networks," European Journal of Operational Research, Elsevier, vol. 276(3), pages 957-970.
    9. Cristina Chaminade & Monica Plechero, 2015. "Do Regions Make a Difference? Regional Innovation Systems and Global Innovation Networks in the ICT Industry," European Planning Studies, Taylor & Francis Journals, vol. 23(2), pages 215-237, February.
    10. McKelvey, Bill & Wycisk, Christine & Hülsmann, Michael, 2009. "Designing an electronic auction market for complex 'smart parts' logistics: Options based on LeBaron's computational stock market," International Journal of Production Economics, Elsevier, vol. 120(2), pages 476-494, August.
    11. Hammami, Ramzi & Frein, Yannick & Hadj-Alouane, Atidel B., 2009. "A strategic-tactical model for the supply chain design in the delocalization context: Mathematical formulation and a case study," International Journal of Production Economics, Elsevier, vol. 122(1), pages 351-365, November.
    12. Vasquez Escallon, Juanita, 2015. "When too much punishment decreases legality. The case of coca-reducing policies in Colombia," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113156, Verein für Socialpolitik / German Economic Association.
    13. M. Fattahi & M. Mahootchi & S. M. Moattar Husseini, 2016. "Integrated strategic and tactical supply chain planning with price-sensitive demands," Annals of Operations Research, Springer, vol. 242(2), pages 423-456, July.
    14. Andersson, Camilla I.M., 2011. "Counterproductive Counternarcotic Strategies?," GlobalFood Discussion Papers 118959, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    15. Osman, Hany & Demirli, Kudret, 2010. "A bilinear goal programming model and a modified Benders decomposition algorithm for supply chain reconfiguration and supplier selection," International Journal of Production Economics, Elsevier, vol. 124(1), pages 97-105, March.
    16. Liao, Shu-Hsien & Hu, Da-Chian & Ding, Li-Wen, 2017. "Assessing the influence of supply chain collaboration value innovation, supply chain capability and competitive advantage in Taiwan's networking communication industry," International Journal of Production Economics, Elsevier, vol. 191(C), pages 143-153.
    17. Ladino, Juan Felipe & Saavedra, Santiago & Wiesner, Daniel, 2021. "One step ahead of the law: The net effect of anticipation and implementation of Colombia’s illegal crops substitution program," Journal of Public Economics, Elsevier, vol. 202(C).
    18. Reyes, Luis Carlos, 2014. "Estimating the Causal Effect of Forced Eradication on Coca Cultivation in Colombian Municipalities," World Development, Elsevier, vol. 61(C), pages 70-84.
    19. Correia, Isabel & Melo, Teresa, 2016. "A computational comparison of formulations for a multi-period facility location problem with modular capacity adjustments and flexible demand fulfillment," Technical Reports on Logistics of the Saarland Business School 11, Saarland University of Applied Sciences (htw saar), Saarland Business School.
    20. Silvestre, Bruno S., 2015. "Sustainable supply chain management in emerging economies: Environmental turbulence, institutional voids and sustainability trajectories," International Journal of Production Economics, Elsevier, vol. 167(C), pages 156-169.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oabmxx:v:5:y:2018:i:1:p:1423871. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.