SUPPLY CHAIN MANAGEMENT

vPALLAVI
vPOOJA
vSHIVPRAKASH
vSUSHIL
vUPASANA
vYAMINI
vBHAKTI
vSUNAINA
vAADIDEV
Why implementing supply
chain management……
Why implementing supply
chain……
Why implementing supply
chain……
INDEX
 Supply Chain Management(SCM)
 Driving Forces Of Supply Chain
Management
 SCM in Pharmaceutical Industry
 Information technology in SCM
 Enterprise Resource Planning(ERP)
 Ethics in SCM



WHAT IS SUPPLY CHAIN MANAGEMENT ?

 "Supply chain management is

delivering the right product to
the right place, at the right
time and at the right price--is
one of the most powerful
engines of business
transformation."
 These networks obtain supplies
and components, change these
materials into finished products
and then distribute them to the
customer.
Key Element in SCM
 Production
 Supply
 Inventory
 Location
 Transportation, and
 Information

Driving Forces of SCM
SCM in pharmaceutical
industry
 Globalization of market
 Development of information
 Indian pharmaceutical industry

Building SCM capabilities in
pharmaceutical industry
 The pharmaceutical industry is
experiencing unparalleled change and
challenge…globalization, treatment and
pricing economics, government controls
and ever-advancing technology.
 Identifying and evaluating the efficacy of
evolving sales channels should become
integral to the commercialization
process.
Building SCM capabilities in
pharmaceutical industry
 The winning pharmaceutical
companies will be those
organizations that can:
 Maintain profitability
 Generate and conserve cash flow
 Merge and integrate supply chains
Improper supply chain will
result in………
Information Technology in
SCM
 E-enabled SCM is emerging as a core strategy.
 Importance of IT in supply chain management.

 E-business has enhanced both supply chain

efficiency & responsiveness.
 SCM software
SCM software, or Supply Chain Management

software addresses one or more issues, mainly

the planning, sourcing, production, delivery and
return of goods. Supply Chain Management
software involves real-time data from all links of
the chain, with the internet being a vital
ingredient to greater supply chain visibility. SCM
software will allow companies to track demand,
supply, manufacturing status, logistics and
distribution of their products.

Benefit of IT in SCM
 Quicker customer response & fulfilment
rates
 Grater productivity & low rate
 Reduced inventory throughout the chain
 Improved forecasting precision
 Enhanced inter operational
communication and co-operation
 Fewer suppliers & shorter planning cycle
 More reliable financial system

SCM Collaboration

INFORMATION SHARING
BY HOOKING UP
SOFTWARE SYSTEM
Emerging Technology in SCM
 RFID: Radio Frequency Identification
They are essentially barcodes on steroid.

Whereas barcodes only identifies product

RFID Tag can tell what the product is,
where it has been, expiry date whatever
details someone wishes to program it
with.

Enterprise resource
planning(ERP)
 ERP it is an industry term for the broad
set of activities supported by multi
module application software that helps
a manufacturer or business, to manage
all the parts of its business.
Why ERP?
 Helps in reduction of operating cost
 Integrates all part of organization
 Increase in efficiency of operation
 Integration of information system
 Enables consolidation of different
software
 Helps in better customer service

Outsourcing in SCM
 Outsourcing is defined as the contacting
one or more company’s business
processes to an outside service provider
to help increase shareholder value, by
primarily reducing operating cost &
focusing on core competencies.
Why do companies
Outsourcing?
 Reduction in Cost
 Focus on core competencies
 Acquisition of new skills
 Acquisition of management techniques
 Fast growth
 Handling overflow situations
 Improvement in flexibility

New opportunities in SCM
Outsourcing
 In today’s global economy, companies are
making their best attempt at shedding
their flab & becoming “Lean & Trim.
 If SCM is implemented properly then
following strategic & competitive areas can
be utilized with their full advantage:
 Fulfilment
 Logistics
 Production
 Revenue & profit
 Costs
 Co-operation
Pharmaceutical Industry
Principles for Responsible
Supply Chain Management
 This document outlines the
Pharmaceutical Industry Principles for
Responsible Supply Chain Management
(the “Principles”) for ethics, labor,
health and safety, environment and
related management systems. The
Principles may be voluntarily supported
by any business in the pharmaceutical
industry.
Labor
 Freely Chosen Employment
 Child Labor and Young Workers
 Non-Discrimination
 Fair Treatment
 Wages, Benefits and Working Hours
 Freedom of Association
 Ethics
 Suppliers shall conduct their business in an
ethical manner and act with integrity. The
ethics elements include:
 1. Business Integrity and Fair
Competition
 All corruption, extortion and embezzlement
are prohibited.
 2. Identification of Concerns
 3. Animal Welfare
 4. Privacy
Health and Safety
Suppliers shall provide a safe and healthy


working environment, including for any

company provided living quarters. The
Health and Safety elements include:
 Worker Protection

 Process Safety

 Emergency Preparedness and Response

 Hazard Information
Management Systems
Suppliers shall use management systems to


facilitate continual improvement and

compliance with the expectations of these
principles. The management system
elements include:
 Commitment and Accountability

 Legal and Customer Requirements

 Risk Management

 Documentation

 Training and Competency

 Continual Improvement
Environment
Suppliers shall operate in an


environmentally responsible and efficient

manner to minimize adverse impacts on
the environment.
 Environmental Authorizations

 Waste and Emissions

 Spills and Releases

 Case study
Full company name : Teva
Pharmaceutical Industries

Region ( s ) of operation : 50
countries, 26,000 employees worldwide and
production facilities in Israel, North
America, Europe including UK, and Latin
America

Vertical industry:
Pharmaceuticals

Horizontal industry :
Consumers and healthcare providers

Turnover ( 2006 ):
US$ 8 . 4 billion
The problem

 At a trade show, a Product Manager revealed

that getting accurate forecasts was a
problem, the process relying heavily on a
stand-alone Excel spreadsheet that was
manually updated each month.
 Laborious’ and ‘time-consuming’ were two of
the phrases used to describe the manual
number-crunching process that, despite
the company’s best efforts, consistently
remained riddled with errors.
 What was worse, results could not be shared
effectively across departments.
The solution
 They switched on to Optimiza Demand
Plaanner -a purpose-built demand
management tool offering multi-level,
multi-channel forecasting.
 The effective transition from a set of
stand-alone spreadsheet-based
solutions to a fully integrated business
application which drove down man-time
while improving the efficiency and
effectiveness of the previously unwieldy
and inaccurate demand planning
process had made a marked difference.
Result
 ODP is now the information warehouse for
all Teva’s product management
purposes delivering precise information
on current and future volumes,
revenues, costs and margins; sales
history is adjusted to take account of
supplier shortages, and events for
specific customer contracts have been
added, along with all other adjustments
to reflect the changes in the highly-
dynamic pharmaceutical sector.
Thank you