TABLE OF CONTENTS

BROOKES PHARMA (PRIVATE) LTD

SUPPLY CHAIN MANAGEMENT
Report Submitted by ANAS ISLAM IQRA UNIVERSITY Dated: Dec 30, 2011

Brookes Pharma (Private) Ltd

Plot No.58-59, Sector No.15, Korangi Industrial Area, Karachi-74900, Pakistan www.brookespharma.com

Letter of Acknowledgement

December 30, 2011 Kamran Zafar Manager, Supply Chain Brookes Pharma (PVT) LTD Karachi, Pakistan. Dear Kamran Zafar, I would like to take the opportunity to thank you for entertaining my internship this December at your company. My experience was extremely rewarding. In addition to sharpening my writing skills, working in direct contact with the department, and maturing professionally, I thoroughly enjoyed working with such a great team of people. It was a pleasure to watch and learn from my fellow colleagues. Taking this opportunity I would also like to thank Syed Danish Ali (Associate Manager Procurement) and Asif Sheikh (Assistant Manager Procurement) for their counseling. I hope the report covers all aspects of the supply chain department with proper structured data. If you have any questions about my report, I can be reached via email at anas-islm@hotmail.com I will contact you periodically to let you know how my career quest is progressing. Please extend my thanks and appreciation to the entire supply chain team for such a substantive internship experience. Sincerely, Anas Islam IQRA University

Objectives of Study

Dear Kamran Zafar, Internship provided me an opportunity to link theory with practice. The department fulfilled its mission of preparing me for significant professional and managerial positions in the private sector. The internship at Brookes Pharma

Provided a practical real world experience in the private sector organization Enabled me to develop important professional skills which cannot be taught in the Enabled me to compare theoretical ideas learned in the classroom within the world of Provided me with experience in a private company before entering the job market. Such

classroom. work regarding supply chain management experiences experience not only increased my job prospects, but also teaches what is expected in terms of professional behavior

Anas Islam MBA-Supply Chain Management Iqra University

S.No
1. Executive Summary Company Profile Vision Mission Values Philosophy

LIST OF CONTENTS

Page No.
4 5 6 7 7 8 10 13 14 15 17 21 23 25 26 27 29 31 32 34 39 42

2.

3. 4. 5.

Introduction to supply chain Supply Chain Department-Brookes Supply Chain Mapping Planning Department Procedures/Forms Procurement Department Local purchase process Requisition/Purchase order Import/Export Process Letter of Credit Warehouse Department Flow chart of Packaging Material Flow Chart of Raw Material Receiving/Dispensing/Issuance/Storage/Calibration Logistics Department Temperature sensitive products

6.

7.

8.

Executive Summary
4

This report focuses on the Supply Chain department of Brookes Pharma starting from planning to procurement of raw materials till warehousing and logistics. The findings show that all four departments are in unison following a plan of action. The flow of materials into the organization, planning, storing, and outflow of finished products are the key attributes that fall under the umbrella of supply chain at Brookes to achieve optimum level with all the checks and balances in place. The supply chain processes are horizontally integrated with one another with an enterprise resource planning software BIMS in place. All the activities carried out are recorded periodically of all processes involved.

COMPANY PROFILE
Brookes Pharma (Private) Limited Pakistan is one of the leading and fastest growing pharmaceutical firms of Pakistan. Operating since 1986 as a manufacturer of premium quality medicines, Brookes is now a sophisticated and advanced production facility, dedicated to making a broad array of highly specialized, ethical medicines in a vast range of dosage forms from tablets, capsules, pellets and gels to inject able medicines, granules, suspensions and syrups. The product portfolio of Brookes includes medicines under product lines of gastroenterology, anesthesia, dermatology, cardiology, NSAID and ant-septic drugs. Situated in Korangi, Karachi over a covered area of 60,000 square feet, Brookes operates under licenses and technical collaboration of large-scale pharmaceutical organizations including Merz Pharma Germany and Edmond Pharma Italy. Being a company that believes in a collective endeavor and cooperation, Brookes remains in pursuit of establishing and maintaining business relationships that could help achieve its broader goals of quality, efficiency and growth. This forward-looking approach and the will for expansion have helped Brookes become an internationally recognized name with its presence in pharmacies of a number of countries across the globe. Brookes is prepared to make further headways into many more countries as it revamps and upgrades its operations with the constructions of a completely new production unit. Engaged in third party manufacturing for companies including reputed multinationals, the organizations strict adherence to Current Good Manufacturing Practices (cGMP) and its commitment for the preparation of products of the highest quality, have won for it a unique place among Pakistani pharmaceutical firms.

Brookes is an ISO 9001, ISO 14001, ISO 17025, SA 8000 and OHSAS 18001 certified company. Brookes is an environment friendly organization, which meets all the NEQS parameters of its effluent and emissions. Brookes has a strong commitment to produce Pharmaceutical products of the highest quality while operating in a safe, Environment-friendly and social responsible and accountable manner. To fulfill the above commitment, the organization: Follows the pharmaceutical industry standards of quality by using appropriate systems of production, storage, distribution, quality control and quality assurance; Prevents incidents (injuries, ill health & accidents) by managing health, safety and environmental risks involved in all the various operations; Promotes environmental awareness among its employees and affiliated parties and adopts efficient techniques to prevent environmental pollution; Complies with the applicable national and international laws, standards and requirements of environment, health, safety and social accountability and safeguards the interests of all the stakeholders by acting in a socially responsible manner; Moreover, makes continual efforts to enhance quality, environment, health and safety systems by improving customer satisfaction, preventing errors & incidents, teamwork and human resource development.

VISION
We want to be a vision driven company focusing on capitalizing our human resources, implementing advance technologies and finding innovative solutions; which are pivotal in achieving par excellence in quality, productivity and cost efficiency; helping us in not only making our business efficient but also in capturing a decent place in the local and global pharmaceutical market.

We also want to be a company where projects are totally backed up by equity financing and retained earnings are sufficiently maintained to facilitate in the continuous provision of unmatched benefits to stakeholders and fulfillment of social responsibilities.

MISSION
To produce premium quality medicines in the areas of proprietary prescription products, branded generics and niche therapeutic segments. We produce medicines that conform to cGMP requirements and cater the healthcare needs of not only the local but also the international markets. We employ cutting edge technologies, that are environment friendly, and we always strive to achieve zero defect products by meeting international standards. We work tirelessly to provide the highest quality and most affordable medicines to the ailing humanity, thereby contributing for the betterment of society.

OUR VALUES
1. 2. We must not make shortcuts and must not stray from ethical path. We recognize that the ability to excel depends on the following: Integrity Knowledge Imagination Motivation We work together with our employees to harness these values in them to make them more productive and efficient. Skill Team Work Encouragement

OUR PHILOSOPHY
The corporate philosophy of Brookes has emerged out of a broader perspective of the structure, organization, functions and responsibilities of a pharmaceutical industry in an ecological, social and economic system. Like all pharmaceutical institutions, it is based on an optimistic vision of a collective struggle against diseases and a belief that diseases are curable. It upholds that the pharmaceutical industry does a vital function, without which no society can properly exist; that there is always a great need for better and economical makers of medicines and that the industry, apart from its necessary functions, can do a lot for the development and elevation of its community. Brookes considers itself an integral part of the global community, it acknowledges the authority, and significance of the global standards, which it not only lives up to but also makes a genuine effort to excel. Brookes regards global recognition by governments, organizations and, above all, by people as the greatest success that any organization could have and it continuously strives for the realization of this ambition. This vision of global recognition also implies a belief and confidence of Brookes on the potentials and abilities of its people, whom it regards as the greatest and most important among the resources that any organization possesses. It considers itself a family and it continuously strives for and ensures its development and wellbeing. Regarding the achievement, maintenance and enhancement of quality as its greatest concern, Brookes believes in operating at the cutting edge of the technology and in adopting systems and following standards that could help it produce the medicines of the highest quality. Brookes considers itself responsible for the safety and health of its employees and continuously endeavors to manage and control all the hazard and risks involved in the various operations. It follows the guidelines of the latest health and safety standard of OHSAS 18001. The organization also has a broad perspective of its placement in the society, community and environment. Considering itself as a positive component of the environment Brookes not only practices environmental preservation techniques and systems but also acts as an agent for the 9

overall betterment of the ecological system of the planet earth by creating environmental awareness among its family members, the industry and the community at large. Like environment, Brookes considers itself a component and part of the society and believes that an organization is not only responsible to do its functions in a proper and efficient manner but it should also go beyond and help society through its recourses to develop at all the various plains. This belief in communal service is one of the cardinal items of its doctrine, and it has manifested continuously in all the various operations of the organization.

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INTRODUCTION TO SUPPLY CHAIN MANAGEMENT

Supply Chain Management (SCM) is "Maximizing added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market." Due to globalization and ICT, SCM has become a tool for companies to compete effectively either at a local level or at a global scale. SCM has become a necessity especially for manufacturing industry when it comes to deliver products at a competitive cost and at a higher quality than their competitors. 1. to customers 2. 3.
4.

Flow of physical materials and services from suppliers through intermediate entities Flow of Cash from customer through intermediate entities to supplier Flow of Information back and forth along the chain Reverse flow of products returned for replacement, repairs, recycling, or disposal

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Here are some of the reason SCM has become important to today's manufacturing industry:-

COMPETITIVE EDGE THROUGH CORE COMPETENCIES

Today's business climate has rapidly changed and has become more competitive as ever in nature. Businesses now not only need to operate at a lower cost to compete, it must also develop its own core competencies to distinguish itself from competitors and stand out in the market. In creating the competitive edge, companies need to divert its resources to focus on what they do best and outsource the process and task that is not important to the overall objective of the company. SCM has allowed company to rethink their entire operation and restructure it so that they can focus on its core competencies and outsource processes that are not within the core competencies of the company. Due to the current competitive market, it is the only way for a company to survive. The strategy on applying SCM will not only impact their market positioning but also strategic decision on choosing the right partners, resources and manpower. By focusing on core competencies also will allow the company to create niches and specialization of core areas. In order to create a niche for competitive advantage, companies must look at the big picture of the whole process, and figuring out which process can be reduce, eliminate, raise and create.

VALUE ADVANTAGE
SCM has allowed business nowadays to not just have productivity advantage alone but also on value advantage. 'Productivity advantage gives a lower cost profile and the value advantage gives the product or offering a differential 'plus' over competitive offerings.' Through maximizing added value and also reduce the cost in the same time, more innovation can be added to the product and process. Mass manufacturing offers productivity advantage but through effective supply chain management, mass customization can be achieved. With mass customization, customers are given the value advantage through flexible manufacturing and customized adaptation. Product life cycles also can be improved through effective use of SCM. Value advantage also changes the norm of 12

traditional offerings that is 'one-size-fits-all.' Through SCM, the more accepted offerings by the industry to the consumers would be a variety of products catered to different market segments and customers preferences.

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SUPPLY CHAIN DEPARTMENT BROOKES PHARMA

The supply chain department at Brookes Pharma performs a number of vital tasks for the company. Being a manufacturing concern of pharmaceuticals the company heavily relies on its supply chain systems in absence of which it would not be possible to carry out its operations effectively and efficiently. A company concerned with health sciences has more responsibilities as compared to other manufacturing concerns industry as human life is benefited from its product. Supply chain of Brookes Pharma plays major role starting from procurement of raw material to the distribution of the finished product 1. 2. 3. 4. Planning department Procurement department Warehouse Logistics to the end consumer. The supply chain department consists of four departments headed by the Director Supply chain. the in the to be

The ERP (Enterprise Resource Planning) software used at the company is BIMS (Brookes Information and Management System)

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SUPPLY CHAIN MAPPING

As shown above the supply chain Of Brookes is divided into four departments which are then subdivided. Every personnel is assigned responsibilities in their respective departments.

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PLANNING DEPARTMENT
PLANNING
Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior. This thought process is essential to the creation and refinement of a plan, or integration of it with other plans, that is, it combines forecasting of developments with the preparation of scenarios of how to react to them. The term is also used for describing the formal procedures used in such an endeavor, such as the creation of documents, diagrams, or meetings to discuss the important issues to be addressed, the objectives to be met, and the strategy to be followed. Two attitudes to planning need to be held in tension: on the one hand we need to be prepared for what may lie ahead, which may mean contingencies and flexible processes. On the other hand, our future is shaped by consequences of our own planning and actions

PURPOSE OF A PLAN
It is therefore important to prepare a plan keeping in view the necessities of the enterprise. A plan is an important aspect of business. It serves the following three critical functions:

Helps management to clarify, focus, and research their businesses or project's development

and prospects.

Provides a considered and logical framework within which a business can develop and

pursue business strategies over the next three to five years. 16

Offers a benchmark against which actual performance can be measured and reviewed

Planning department of Brookes Pharma plays the most crucial role in managing an effective and efficient supply chain under the supervision of the Manager Supply Chain. This department requires agile and intelligent personnel to handle different tedious activities discussed below. It is being handled by Executive Officer Planning Ahmed Shah and Planning Officer Muhammad Sheriyar. A four months sales forecast is prepared by the Commercial/ Marketing department and is

forwarded to the planning department. A four month requirement of local/imported raw material is prepared on this basis and directions are given to the procurement department for procuring of different raw and packaging materials used for production. An immediate requirement of a particular product on a monthly basis is also made depending upon the urgency. A production monitor sheet month wise is also made by the planning department and a daily in process report is provided as to keep a check on the movement of the material from different manufacturing processes on their due dates and delays if any resolved. Batches are issued serial wise and after formula derivation done by the production department their respective MOs and FOs are issued by the planning department. Different forms with details are provided below for better understanding of the reader. 17

DIFFERENT REPORTS/FORMS USED

1. FOUR MONTH REQUIREMENT OF LOCAL/IMPORTED RAW MATERIAL

A four month requirement of local and imported raw material form provides the following information about raw material: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Item Name Unit Total requirement In transit Port Quarantine In-hand Last 3 months average consumption Excess including in transit Excess excluding in transit Quantity required Quantity to order Remarks

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2.

IMMEDIATE REQUIREMENT OF RAW MATERIALS FOR A PARTICULAR

MONTH An immediate requirement of raw material form shows the date of availability for a certain material as to when it will be available and the current status of the material is shown such as, material at port. It is also signed by the director supply chain. Name of material, unit, quantity, date of availability, requirement, in hand information is provided. 3. STOCK REQUIREMENT FORM

Consists of stock requirement for local/international buyers. Buyers are from different countries such as Srilanka, Afghanistan, Kenya, Vietnam, Philippines and Uzbekistan etc. A stock requirement form may consist of the following heads: 4. Name of drug Pack size Registration No Batch No. Manufacturing/Expiry Date Quantity PRODUCTION MONITOR SHEET PER MONTH

A production monitor sheet shows the dates of the material being transferred to different departments. 1. 2. 3. Liquid manufacturing and packaging Liquid filling and packaging Syrup/suspension manufacturing and packaging 19

4. 5. 6. 7.

Gel manufacturing and packaging Granules/tablets manufacturing and packaging Capsules Pellets

5.

DAILY IN PROCESS REPORT

A daily in process report is provided to the planning department to view the actual status of the product being manufactured such as its in the process of washing, filling etc which is signed by the supervisor. Daily in process report is checked with the production monitor sheet. 6. BATCH NUMBER ALLOCATIONS

130K1

Batch No. is issued serial wise which is then used in issuing MOs and FOs.In the example mentioned above K1 , K represents the month (A,B,C=Jan, Feb, Mar respectively) and 1 shows the year i.e. 2011.Batch No.s are same for commercial or export purpose. 7. FORMULA DERIVATIONS

Formula is derived keeping in view its for commercial or export. Formula is prepared by production, checked and approved by Q.C. Once approved, the planning issues MOs and FOs.

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8.

PART AVAILABILITY REPORT

Part availability report shows the actual position of a stock available. Stock Status Bin Card Report

It shows the status of finished goods up to the current date 1. 2. 9. Batch wise bin card Product wise bin card AMENDMENT SCHEDULE PRODUCTION

New dates are provided by the production department along with the reasons of delay which is then provided to the planning department. 10. RECEIVING REPORT

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PROCUREMENT DEPARTMENT

Procurement department is split into three sections that are Local purchases Imports Cash purchases Local purchase is headed by Associate Manager Local Purchase Mr. Syed Danish Ali whereas imports are being looked after by Assistant Manager Import Mr.Asif Sheikh. Both the managers have the task of procuring goods as per requirement given by the planning department. Their duties are somewhat similar as the basic purpose is of procuring goods while dealing locally and internationally. The basic duty of procurement is to keep the production process in continuity by meeting their needs and requirements.

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IMPORTANCE OF TIME IN LOCAL/IMPORTED PURCHASES

Availability of time plays the most essential role in procurement which means that if enough time is available the company may opt for importing goods due to fewer` prices as compared to the purchases made locally which are costly. The fewer prices are due to the price reduction given to manufacturing concerns such as pharma in the international market. Another reason may be due to the sensitivity or non availability of the product locally.

TYPES OF PURCHASES
1. 2. 3. Inventory Purchases; inventory purchases are core purchases directly related to the product General Purchases Cash/Spot Purchases

being manufactured i.e. Raw Material and Packaging Material.

ACTIVE

PRODUCT

INGREDIENT

AND

INACTIVE

PRODUCT

INGREDIENT API/IPI
Active Product ingredient is usually imported where as inactive product ingredient is procured locally from approved suppliers. For e.g. glycerin is used in the manufacturing of majority of the products and is procured locally. Active product is the core material used in the manufacturing of a product and is also printed on the packaging of the product.

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LOCAL PURCHASES PROCESS

The local purchase process can be mapped as mentioned below 1. NEED ESTABLISHMENT

The basic and the primary step in procurement be it local or imported, initiates with the establishment of need/requirement.

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2.

PROCUREMENT INFORMED ABOUT THE REQUIREMENT

Once the requirement has been established procurement is informed about the need in terms of quantity and the time when they will be required.
3. REQUIREMENTS ARE SENT TO THE APPROVED SUPPLIERS

These requirements are sent to the suppliers which are already in the database of the company and have gone through the filtration process of evaluation. These requirements consist of Item name Manufacturer Unit Quantity Required date The manufacturer name is provided so that the supplier is informed about the material needed and its manufacturer as a standard of quality needed. 4. QUOTATIONS RECEIVED FROM SUPPLIERS

The dates provided in the requirement are of immense importance as the vendor quotes his price on the basis of the dates provided. 5. REQUISITION IS MADE WITH MINIMUM 2 SUPPLIERS AND MAXIMUM 3

Minimum 2 quotations and maximum 3 based on the lowest prices quoted by the suppliers are requisitioned. 6. P.O Rates may be negotiated if possible and a P.O is issued to the lowest price quoted. 7. GOODS ARE RECEIVED BY THE WARE HOUSE ON THE MENTIONED RATES ARE NEGOTIATED AND THE BEST PRICE SUPPLIER IS ISSUED A

DATES

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REQUISITION FOR LOCAL PURCHASES

Requisition is prepared by the Local Purchase Associate Manager which is then checked by Manager Supply Chain and approved by V.P.Approval of V.P is mandatory. After approval of requisition a purchase order is issued. The information provided in the requisition is as follows 1. 2. 3. 4. 5. 6. 7. 8. 9. Supplier Name Payment Terms Item Code Item Name Required Delivery Date Quantity Rate Amount before G.S.T Remarks are also given, for e.g. 100% advance in cash

PURCHASE ORDER
A purchase order is automatically generated by the system (Brookes Information and Management System) once the requisition process is completed and approved, a copy of the requisition order is attached with the P.O. A purchase order consist of the following heads of information 1. 2. 3. 4. 5. 6. Name of the supplier Payment terms , days , advance P.O No. P.O date Requisition No. Requisition Date 26

PACKAGING MATERIAL-LOCAL PURCHASE

Art work needs to be prepared for packaging material whenever a new product is manufactured. The process of procuring packaging material is almost the same as in raw material but few more steps are involved in the requirement provided to the supplier. The suppliers are provided with the size/format and text. The standard can be measured in three classes being low, standard and high. A min/max range is provided in the standard class which ensures the print should be in-between the provided range. The supplier sends in their sample first in black and white and then in color which is checked by Q.C and may be approved or rejected and a P.O is issued.

EXPORT/IMPORT PROCEDURE
1. 4 months plan approval 2. Quotations 3. Requisition 4. Performa Invoice/Indent 5. Mode of payment LC/Bank contract/Advance a. b. c. Submission of LC to bank Follow up for LC/Bank Contract opening Follow up for shipment The indenter provides us the information about the dates of shipment 6. Follow up for documents 7. N.O.C from Ministry of health Once the shipment is made then we go to the ministry of health. Information about the material being procured is provided regarding the product that will be manufactured from the raw material. 8. Bank endorsement 9. Customs clearance The N.O.C document from the Ministry Of Health is provided to the customs for release of material. 27

10 Q.C release 11. Follow up for payment

LETTER OF CREDIT
Finance department of the company provides the name of the bank to the Import department to open LC as they are aware of the actual status of the account and the limits provided by different banks to the company.

LC TYPES
SIGHT AND D.A (DAY AFTER) Payment is paid upfront in sight LC to the bank where as there is a time span of 30, 60, 90 and 120 days in DA

METHOD OF IMPORTING GOODS FROM SUPPLIERS THROUGH LETTER OF CREDIT

1. 2. 3. 4. 5.

Seller and Buyer conclude a sales contract, with method of payment usually by letter of Buyer applies to his issuing bank, usually in Buyers country, for letter of credit in favor of Issuing bank requests another bank, usually a correspondent bank in Sellers country, to Advising bank usually in Sellers country, forwards letter of credit to Seller informing If credit terms and conditions conform to sales contract, Seller prepares goods and

credit (documentary credit). seller (beneficiary). advice, and usually to confirm, the credit. about the terms and conditions of credit. documentation, and arranges delivery of goods to carrier.

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6.

Seller presents documents evidencing the shipment and draft (bill of exchange) to paying,

accepting or negotiating bank named in the credit (the advertising bank usually), or any bank willing to negotiate under the terms of credit. 7. 8. 9. 10. 11. Bank examines the documents and draft for compliance with credit terms. If compiled Bank, if other than the issuing bank, sends the documents and draft to the issuing bank. Bank examines the documents and draft for compliance with credit terms. If compiled Documents release to buyer after payment, or on the other terms agreed between the bank Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the with, bank will pay, accept or negotiate.

with, Sellers draft is honored. and the Buyer. goods or the delivery order.

DOCUMENTS ATTACHED
1. COVERING LETTER

A covering letter is made for the bank where the LC is to be opened. Indent no. , date and address, amount is provided 2. UNDERTAKING

Brookes gives an undertaking to the bank about the amount, Harmonize systematic code (HS code) is provided. A harmonize systematic code is a code for a particular product which can be identified all over the world. 3. TERMS AND CONDITIONS/SPECIAL INSTRUCTIONS

The company (Brookes) mentions the terms and conditions to the bank about the material being procured, name of the advisory bank if provided by the supplier, address account no is provided. 4. PERFORMA INVOICE/INDENT

If the company is procuring goods via indenter then an indent is made else if the procurement is being done directly with the foreign vendor then a Performa invoice is made.

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WAREHOUSE
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods, which are usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture, manufacturing, or commerce.

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In warehouse 1 all raw and packaging material is received and stored which is then checked/tested and dispensed according to manufacturing order and finished order. The warehouse comprises of 1. 2. 3. 4. 5. 6. 7. 8. 9. Two Quarantine Areas, one for raw material and other for packaging material. Solvent Dispensing area CRT Quarantine Personnel Gowning area Sampling Booth Dispensing Booth for raw materials which have two entrances, one for material entrance and the other Utensils washing area Controlled Temperature room Material released area, comprising of 5 rows of racks

for personnel entrance.

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PACKAGING MATERIAL FLOW CHART

32

RAW MATERIAL FLOW CHART

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FLOW OF RAW AND PACKAGING MATERIAL

The vendor ships the material to the warehouse delivery as challan per purchase order. of Material is received along with the and certificate analysis. Physical inspection is carried out, M.R.R and identification labeling is done. The material is stored in the quarantine area. Samples are taken by the Q.A and then Q.C testing is done. Q.C may hold, release or reject the material. If the material is rejected it is returned to the supplier or disposed off. The released material is stored and batch dispensing is done with respect to the M.O and F.O. There are a numbers of SOPs being followed here at the warehouse. Lets start with the receiving procedure

1.

RECEIVING

PROCEDURE FOR RAW MATERIAL AND PACKAGING

MATERIAL Materials are received through the receiving bay where their physical inspection is done and are cleaned from outside. The quantity received is checked with the delivery challan and purchase order. Item name, supplier/manufacturer name, lot number, date of manufacturing/expiry, weight is checked. A received stamp is embossed on the delivery challan and the material is placed in the quarantine area. A material receiving report is raised on the basis of delivery challan or transfer note. Certificate of analysis is attached with the MRR which is then sent to QC for further process.

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2.

DISPENSING OF RAW MATERIAL

Planning submits MO to the warehouse for dispensing. Lot No. is allocated and issuance slip is generated. Before the dispensing starts a number of checks are put in place. A dispensing area checklist is prepared which comprises of Cleaning of the Weighing booth Recording of temperature and humidity

Temperature should not exceed 27 C and humidity should not be more than 60% else dispensing may not be done. Weighing balances are calibrated Utensils are clean Q.C released label should be checked with the code number, lot number, retest date,

condition and expiry date. After issuance container is sealed and cleaned properly. Dispensed material is placed on pellets or cage and is shifted to issue area of raw material.

3.

CLEANING OF DISPENSING UTENSILS

After the dispensing of material is finished the dispensing utensils are taken up for cleaning with the cleaning agents such as teepol 3%

4.

CALIBRATION OF WEIGHING SCALES

Weighing balances are cleaned and equipment calibration is done daily and recorded on the check list, date, time, weighting capacity, difference in weight if any.

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5.

INSTRUCTIONS FOR HANDLINGS PSYCHOTROPIC/NARCOTIC ACTIVE

PRODUCT INGREDIENTS All the material is kept and stored in a cage rack in CRT under lock 6. ISSUANCE OF PACKAGING MATERIAL

Planning department issues a F.O according to the requirement of M.O.Packaging materials are issued according to the FIFO method .Before issuance of packaging material the release label of Q.C is checked. The issuance slip is filled with the item name, code no, product name, pack size, batch no. Items are issued according to the F.O.Issuance slips are pasted on each item. After verification packaging material is received by the production department. 7. 8. GOOD STORING PRACTICE IN WAREHOUSE ISSUANCE OF LOT NUMBERS

A lot number helps in maintaining complete record of incoming inventory and identification. A lot number is generated automatically through BIMS at the time of raising M.R.R. 9. STORAGE CONDITION FOR MATERIALS Controlled temperature room

The temperature should be in between 15-25 C.Temperature is recorded three times in a day at 8am, 12am and 4pm Cold room General area 36 The temperature should be in between 02-08 C

10.

THERE ARE ALSO DEFINED PROCEDURES FOR THE USAGE OF

DIFFERENT MACHINES USED IN THE WAREHOUSE SUCH AS OPERATING PROCEDURE FOR THE DISPENSING BOOTH.

DAILY DISPENSING PLAN FOR RAW MATERIAL/PACKAGING MATERIAL

A daily dispensing schedule is filled regarding the materials that are dispensed to production on daily basis. This is done by following the dates of the production plan which are issued by the planning department. Material is dispensed according to the MOs and FOs.

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LOGISTICS

Logistics is the process of strategically managing the procurement, movement and storage of materials, parts and finishing inventory (and the related flows of information) through the organisation and its marketing channel in such a way that current & future profitability are maximised through the cost-effective fulfilment of orders. The logistics department of the company is the last and the fourth department of supply chain at Brookes. It is also known as finished goods department which is being supervised by Muhammad Islam (Finished Goods Supervisor) who bears a very down to earth character and is very proficient in his work with immense experience. The logistic department is divided into a quarantine area where the batch of products manufactured by the production department is stored. They are then checked by the Q.C department and are then released/hold depending upon the tests conducted and a green slip is

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attached for ready to be dispatched goods. A large area of the warehouse is allocated to promotional material/give away which is distributed to salesman all over the country.

It is the responsibility of finished goods department to look after the procedure for storage and distribution (Transportation) of finished goods. PREMISES AND FACILITIES Premises and other areas to be utilized for storage purpose; Should be sufficiently large and if necessary should have physically separated zone so that orderly segregated storage is possible. Should be adequately lit thus allowing activities to be carried out accurately and safely. Products required special storage conditions should be in separated area equipped to provide desired condition for example; Pancron Injection and Acuron Injection are stored at 2o to 8o C in the cold room.

STORAGE PROCEDURES All products should be stored in a manner so that the quality of the same is not adversely 39

affected and it is also protected from external influences. All products should be stored product wise/ batch wise so as to ensure smooth and safe handling. Returned goods should be stored while awaiting destruction of rework. Customers property is also in Finished Goods Store in segregate manner. In case of any loss/damage/breakage found in customers property, Senior QA Manager is informed who will further inform to the customer. RECEIPTS OF INCOMING STOCKS Upon receipt, each incoming delivery from Production Department should be checked against the relevant document Delivery Slip and physically verified by description and quantity and consequently recorded in Bin Card/ (BIMS). Upon receipt of goods returned from distributors the same should be checked and recorded through relevant document ICSRR (In Coming Stock Receiving Report) form number F-59 Rejected products should be destroyed through document Re-Working Slip form number F-79 Products should be reworked through relevant document Re-Working Slip form number F-86 STOCK DISPATCHES Packing List for stocks to be dispatched to distributors should be prepared on the basis of quantities allocated by (Commercial Department) through Allocation. Preferably FIFO system should be followed. Stocks should be arranged in separate area for marking and packing as per packing list. Once the stocks have been packed and marked they should be booked through Transporters (Truck and /or Courier Services in case of out station dispatches) and delivery vans in case of local dispatches. Delivery Challan should be prepared when goods are loaded on the vehicle. 40

 Upon receipt of Truck/Courier receipts the same should be forwarded along with relevant delivery challan to the Accounts Department. For dispatches of temperature sensitive products which require storage temperature 2o to 8o Celsius are dispatched through special cold storage transportation

TEMPERATURE SENSITIVE PRODUCTS

The purpose of this SOP is to develop a procedure for the safe delivery of quality products which are temperature sensitive, for which the Finished Goods Department is responsible. All products should be stored as per SOP LOG-001. TRANSPORTATION PROCEDURE FOR TEMPERATURE SENSITIVE PRODUCTS Following services will be used for transportation of the products; a. DISPATCHES THROUGH PIA: Product will be packed in recommended pack size with ice bags so as to maintain the required temperature during transportation. Goods will be delivered at PIA cargo office 2.5 to 3 hours before the actual flight time Immediately after dispatches the concerned customer will be informed through phone or fax about the dispatch details. Form F-95 will be used for fax message. Customer will acknowledge receipt by signing and returning the copy of our relevant invoice. b. D I S P A T C H E S THROUGH PTN (PERFECT TRANSPORT NETWORK) PTN vehicle equipped with refrigerated (temperature control up to 20oC) device will collect the product from Finished Goods department of our factory. Finished Goods department will keep ready the products to dispatch (in the cold room at 41

2o-8oC) prior to arrival of PTN vehicle. With every consignment format for periodic checking to temperature referred as Form No. F-96 will also be handed over to the driver/ PTN representative. When the vehicle reaches at the distributors point, the distributor before accepting the goods will check the temperature and record on the same format F-96 along with his initials. The same will be handed over to the driver/PTN representative, who will continue to take reading after every 2 hours till the next distributors point. The same procedure will be repeated till the whole product is delivered to the last distributor. The driver/PTN representative on his return will hand over the form F-96 to the PTN office located a t S h a r a h -e-Faisal, w h o w i l l a u t h e n t i c a t e t h e r e p o r t with t h e i r stamp/signature and forward to the Finished Goods department of Brookes. A format (referred as Form No. F-97) will be given to marketing department which is meant to check the storage condition of distributors. Marketing department will make sure that each distributor should send us the necessary information at the beginning and quarterly basis on the prescribed form F-97. This format is also providing us the information about the delivery of our temperature sensitive products.
c. DISPATCHES THROUGH COURIER SERVICES

Those stations/ areas where PIA has no flight or they do not fall even the route of PTNCold carrier Van Network; the temperature sensitive products will be dispatched via courier service. Product will be packed in recommended pack size with ice bags so as to maintain the required temperature during transit. Finished Goods department will keep ready the product for dispatch (in the cold room at 2o-8oC) prior to arrival of courier services. The stock will be picked by courier service in the late evening and will be delivered next morning. Distributor will be informed to pick stocks themselves from the courier office without waiting for delivery at their door step. 42

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