Supply Chain ManagementOf Pharmaceuticals

“Working together for healthier world”

Introduction of PfizerPfizer, Inc. is an American multinational pharmaceutical• It is the world's largest pharmaceutical company by revenues• Type: Public • Industry :Pharmaceutical • Founded :1849• Headquarters :Cooperate New York, United States research in Groton,

Connecticut, United States• Area served :Worldwide • Revenue :US$ 49.605 billion (2014)• Employees :78,000  (2013)• Acquisitions: Warner–Lambert in 2000, Pharmacia in 2003 and Wyeth in 2009, the

latter acquired for US$68 billion• Subsidiaries: Agoura Pharmaceuticals, G. D. Searle & Company, Greenstone,

Parke-Davis, Pfizer UK, Warner Lambert, Wyeth • Products: Lipitor (atorvastatin),Lyrica (pregabalin); Dipluran (fluconazole),

Zithromax (azithromycin), Viagra (sildenafil,) Celebrex (celecoxib)

Pfizer in IndiaPfizer Limited (India) has a turnover of US$ 184.96 million (March 2012)• One of the highest spenders in pharmaceutical R&D globally, Pfizer has made clinical

research investments of US$ 1.18 million (March 2012) in India • The company was awarded the FICCI SEDF (Socio Economic Development

Foundation) Certificate of Commendation for its social responsibility efforts• Pfizer has won several awards including that for the multinational pharmaceutical

company of the year and the most respected MNC About our products • Six Pfizer brands feature among the Top 100 pharmaceutical brands in India • Two of Pfizer India's brands -- Cortex (Cough Formulation) and Becosules

(Multivitamin) -- continue to rank among the Top 15 pharmaceutical drug brands• Pfizer has won the Golden Peacock Innovative Product for Magnex (Sulperazon)• Becosules has won the Most Trusted Brand AwardLocation & People • Headquartered in Mumbai • Over 3,000 colleagues • State-of-the-art manufacturing facility at Thane, Maharashtra

What is Supply Chain Concept?"It is the strategic management of activities involved in

the acquisition and conversion of materials to finished products delivered to the customer“

Material Flow Information Flow

Supplier Managem

ent

Customer Managem

ent

Schedule/

Resources

Conversion

Stock Deploym

ent

Delivery

Flow of Raw Material• Procurement Organizations• Pfizer Global Supply (PGS)• Pfizer Research, Development and Medical (RDM)• Pfizer Worldwide Biopharmaceutical Businesses (WBB) • Global Procurement and Operations (GPO)

• Identify business need; conduct pre-project planning; review applicable supplier diversity registrations

• Form cross-functional team and define project• Collect internal and external data• Perform strategic analysis• Formulate strategies and develop implementation plans• Refine implementation plan and select supplier• Measure, monitor and report project progress

• World largest research based Pharmaceutical (Fortune 500:2012)

• > 95 Plants worldwide• > 300 External

suppliers/contract Mfg.• > 175 Distribution centers• > 35,000 SKUs• > 2,109 Global logistics lanes• > 45500 Shipments • > 17394 Freight contract

lines

Pfizer‘s Effort to Risk Management• Cargo Theft• Counterfeit Drug• Economically motivated

adulteration• Illegal diversion

Supply Chain !• Delivering information and monitoring logistics performance

in that warren of activity is no easy task- the Logistics Delivery Platform.

• Partnered with GT Nexus and Unyson Logistics!•  An Information Platform (anchored by GT Nexus) and a

Network Analytics Platform (anchored by Unyson Logistics).• Device independence Mode - which is a very specific strategy of

injecting a virtualized information and process layer between Pfizer and its control towers, service providers and trading partners across the value chain.

• They use the same platform to manage the network via activities such as performance monitoring, network analysis and management of contract rates.

• "We've insourced the 'think' and outsourced the work to our providers,"

Supply Chain Security Team

StrengthsState-of-the-art infrastructure Variety of formats supporting each other Better understanding of Indian suppliersHuge financial support Systematic collection of data from supplier to retailer

Weaknesses

New technologies like EPC/RFID & 2D Barcodes are introduced

Opportunities• Growing pharmaceutical sector in India• Growing patient awareness• Implementation of better and organized

government rule for inventory control and management of narcotic drugs etc

• Inclination towards branded drugs and company • Better transportation and third party support

Threats Key challenges related to drug supply chain are

management of drug expiration, drug returns / recalls, counterfeit drugs and others. The drug recall process is complex and expensive, where all to be recall products need to be tracked and then shipped back

Evolution of new companies at a very fast rate which is capturing the market share also increasing the chances of counterfeit drugs etc

Illegal smuggling…. Government policies

Governments efforts

• Strengthening Supply Chain Management It has been proposed to establish a structured supply chain

management system with a Logistic Manager at both State and District level ensuring the distribution system to flow in top to bottom approach

• Strengthening Procurement System In order to ensure hassle free procurement, the State

proposes to create a Procurement Society To make the process even faster, it suggests decentralizing small purchases at the District Level and positioning a procurement specialist at the zonal level.

Expectations from suppliers• Operate in full compliance with all applicable laws, rules

and regulations.• Conduct their business in an ethical manner, acting with

integrity.• Commit to upholding the human rights of workers and to

treat them with dignity and respect.• Provide a safe and healthy work environment, including

any company-provided living quarters.• Operate in an environmentally responsible and efficient

manner to minimize adverse impacts on the environment.• Facilitate continuous improvement and compliance with

the expectations of these principles by using management systems.

Conclusion•Review, Monitor and Validate•Strengthening Drug Procurement and

Supply Chain Management•Strengthening Distribution Division •Additional Drug Requirement to meet

Unforeseen Situations