supply chain management Abbot pharmaceutical
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Transcript of supply chain management Abbot pharmaceutical
Table of contents
Introduction Principal Activities Company profile(vision, mission) Core values and competencies Supply chain mission and process
a)Supply chain integrationb)Supply chain structurec) Supply chain process
i. Procurement process(including vendor approval requirements, Bid sheets, vendor approval steps)
ii. Types of purchasesiii. Material classificationiv. Documentation for purchasing(local or
imports)v. Advising banks of Abbottvi. Shipping companies through which Abbott
import raw material
D) Warehouse storage procedure
Suppliers of Abbott raw material Make or buying decision Overview of documents(including
presentation of document and suppliers rates for the month)
Abbott Distribution Distribution channels Future outlook of Abbott Pharmaceutical
IntroductionAbbott started operations in Pakistan as a marketing affiliate in 1948; the company has steadily expanded to comprise a work force of over 1500 employees. Currently two manufacturing facilities located at Landhi and Korangi in Karachi continue to use innovative technology to produce top quality pharmaceutical products.
Abbott Pakistan has leadership in the field of Pain Management, Anesthesia, Medical Nutrition and Anti-Infectives. Our wide range of products is managed and marketed through three marketing arms.
On June 29, 2005 Abbott Pakistan Achieved Class 'A' accreditation against the Oliver Wight ABCD Check list. This was an outstanding achievement, which puts Abbott Pakistan amongst some of the best global companies in terms of operational excellence.
A continuous process of innovation, research and development at Abbott's worldwide facilities enables Abbott Pakistan to offer effective solutions for various healthcare challenges, with products and services that are well focused, within the customer's reach and contribute to improved health care of the people of Pakistan.
Abbott believes that Corporate Social Responsibility is fundamental to earning and deepening the trust of the people it serves, an integral part of its commitment to improve lives has contributed to a number of humanitarian causes and supported various institutions in various fields including health and education.
The promise of our company is in the promise that our work holds for health and for life
General information
Head Office: Lahore:
Abbott Laboratories (Pakistan) Limited, Abbott Laboratories (Pakistan) Limited, Diagnostics Division, Diagnostics Division, Opposite Radio Pakistan Transmission, House No: 123 - A, Ahmed Block, Hyderabad Road, Landhi, New Garden Town, Lahore. Karachi. Telephone#: 042 5854141, Office: +92-21-5015045-49 (111 222 688) Fax#: 042 5844737 Dir: +92-21-5100422 Fax : 92-21-5042952
Islamabad: Peshawar:
Abbott Laboratories (Pakistan) Limited, Abbott Laboratories (Pakistan) Limited, Diagnostics Division, Diagnostics Division, House #35,Street #39,I-10/3 University Town, Islamabad. Karachi Market, Khyber Bazar, Office 051-4445670 Peshawar. Fax 051-4445671 Office +92+91-5840252 Fax +92-51-5840252 Islamabad.
Principal Activities
Abbott Laboratories (Pakistan) Ltd. The company’s principal activities are to manufacture, import and market based pharmaceutical, nutritional, diagnostic, hospital and consumer products and provides toll-manufacturing services. It operates in two segments Pharmaceutical and other. Pharmaceutical segment manufactures, import and markets research based pharmaceutical products registered with the ministry of health and provides toll-manufacturing services. Other segments includes importing, manufacturing and marketing diagnosing equipment, testing kits, consumer healthcare,
nutritional and hospital products. The company’s pharmaceutical products include Kalaricid, Erthrocin, Hytrin, Epival, Brufen, Entamizole, protium and Forane. The other products include Ensure, Pediasure, Pedialyte, Formance etc.
Company profile (vision, mission)
VISION
“To be a premier health care company in Pakistan”
MISSION
To deliver consistently superior products and services which contribute significantly to improve the
quality of life of the consumers? This will be achieved while ensuring that the interests of all
stakeholders including healthcare providers, employees, share holders and the communities are
secured. Abbott Pakistan will comply with the highest standards of local cGMP/EHS and adhere to the
corporate code of Business Conduct and Ethics.
DEDICTATED TO
Employees
Customers
Share holders
Suppliers
Public
Core values and competencies
CORE VALUES OF ABBOTT
PIONEERING
CARING
ACHIEVING
ENDURING
ABBOTT
CAPABILITIES OF ABBOTT
CORE COMPETENCIES OF ABBOT
PRODUCTS &
SERVICES
AGILITYCOMUNICATION
LEADERSHIP
INTEGRITY QUALITY
OF
OPERATIONAL
EXCELLENCE
SUPPLY CHAIN MISSION
ABBOTT’s SCM mission is to configure, coordinate and improve all the
sequentially related activities and set of operations with the idea of satisfying the
entire chain of suppliers’ suppliers and customers’ customers by providing right
product, at the right time, in the right quantity and becoming highly recognized by
our employees, customers and shareholders and abiding by Government
regulations by adhering to strict ethical and moral standards”.
CUSTOMER
INTIMACY
PEOPLE
SUPPLY CHAIN INTEGRATION
Marketing
Transportation
Supplier
Warehouse (M O)
Manufacturing
Warehouse ( F O)
Customer
Retailers/ wholesellers
Distributors
INFORMATION
FLOW
ABBOTT’S SUPPLY CHAIN STRUCTURE
P R O D U
C T
F
L
O
MASTER SCHEDULER
CAPAPCITY
MASTER SCHEDULER
SUPPLY CHAIN MANAGER
SUPPLY CHAIN PROCESS
LOCAL/ IMPORTED PURCHASE MANAGER
EXPORTS MANAGER
WAREHOUSE MANAGER
MATERIALS MANAGER
PRODUCTION PLANNER
PRODUCTION PLANNER
Marketing
Manufacturing Planning
Material Planning
Vendors
LC
Follow up ---import & dispatches
QA
Released by QA
Material in Warehouse
Clearance Transit Time
Material Available For Production
Production
FO Quarantine
FO Batches
Packing line
PROCUREMENT ABBOTT Pakistan has two purchasing departments. One is for local purchases and the other one
is for imports.
The procurement function is divided in two categories:
Direct Product Related Purchases
General Purchases
There is a clause imposed by ABBOTT Int. Chicago on ABBOTT Pakistan that if the amount of
requisition value is above $ 1000, then at least 3 quotations must be taken.
FO Quarantine
Wholesalers
Satellite Depot’s
Retailers
Institutions
GENERAL PURCHASES General Purchases include routine items such as stationery, office equipments, transportations
and other minor items which are not directly related with production activities.
DIRECT PRODUCT RELATED PURCHASES This includes each and every raw material that is required to make end products
MATERIAL CLASSIFICATIONS ABBOTT Pakistan classifies its materials according to the values or the cost of materials,
basically they have allotted three grades or types to their materials:
Grade A (very costly materials, e.g. erythromycin)
Grade B (moderate cost, e.g. clathromycin)
Grade C (least cost, e.g. bubble gum and artificial flavors like mint)
LOCAL PURCHASING
Local purchasing department of Abbott Laboratories Pakistan deals with local vendors concerning:
Designing –FP Plastics, Al-Ahad Plastics, Thermoplas (Korangi) > Lead Time 30 Days
Printing–Ammara Commercial Printing (Memon Goth, Malir) > Lead Time 30 Days
Packaging – Saima Packaging (Korangi Industrial Area) > Lead Time 30 Days
Slicing Aluminum foils - Muhammad Corporations, Gulshan -e- Iqbal
Cartons – Sultan Packages (Dalmiya, Karachi) > Lead time 7 Days
Cartons – King Packages (Lalukhait, Karachi) > Lead Time 7 Days
Cartons - Decent packages (S.I.T.E Area) > Lead time 7 Days
Dextrose – Rafhan Industries (Faisalabad)
Pseudo - Alpha Chemicals – (Lahore)
Essential Chemicals – (Lahore)
IMPORT PURCHASING
ABBOTT Pakistan has indenters through which they place their orders to the respective manufacturers
of raw materials
Some of the Indenters of ABBOTT Pakistan are:
Rasheed sons - KHI
Munico Associates - KHI
S. Aijazuddinn - KHI
Arfeen - KHI
INDENTER
An indenter is a local supplier or the middle party, we also call them as an agent who gives
information to the manufacturer and tells then to arrange the material. They have link with
the manufacturer and paid commission by them.
IMPORTED RAW MATERIALS
Dy Red – Sencient UK
Potassium chloride – Merck, Germany
Sodium Citrate – Sanfu, Taiwan
Sodium chloride – Dominon salt, New Zealand
Acid Citric – Jungvuzlaur, Austria
Aluminum Seals and PV– Vaasen, Flexible Packaging Holland
Artificial bubble gum – IFF Holland
Supplier for Sugar - Malayam Malaysics, Malayasia
Sodium Sulphate – Merck, Germany
IMPORTED MATERIALS’ AVERAGE LEAD TIME
By sea is approximately 75 days
By air approximately 45 days
DOCUMENTS REQUIRED FOR IMPORT
Invoice
Picking List
Form 3 and 7 (Imposed by Ministry of Health which contains Batch Certificate, name of
the manufacturer, raw material to get a Drug Import License from MOH)
Bill of Lading / Air Label
Certificate of Analysis
Certificate of Origin
ADVISING BANKS OF ABBOT PAKISTAN
Detuche Bank
Standard Chartered Bank
ABN AMBRO
HSBC
Then after this process the LC is send to the concern suppliers and indenters and then they
set the raw material to be shipped, shipment is done through different shipping company and
this part is dealt by the imports department.
FEW SHIPPING COMPANIES THROUGH WHICH ABBOT
PAKISTAN IMPORTS RAW MATERIALS
P&O NEDLLOYD
MAERSK SEALAND
HOPAG LLOYD
Warehouse storage procedure
WAREHOUSE
Checking of raw material on the bases of check list
Received through MRR & kept in quarantine for QA approval
Storage of raw/packaging material after acceptance
FIFO
Handling of non acceptance material
Storage of control/locater system
Storage of temperature sensitive material
Issue of raw material
M O
Hazardous drug labeling
Washing of utensils, containers
Material requisition return
Cold Storage
(Refrigerators 2C- 8C)
Wastage Warehouse
Manufacturing
End Product
Quality Assurance of Finished
Warehouse FO
The process of warehousing starts when a consignment enters the premises of ABBOTT and
starts unloading. An actual physical cont is taken first and only then is the consignment allowed
to be fully offloaded. Two separate warehouse facilities exist: one for finished orders and one for
material orders.
While offloading material orders, if any individual packet is found to be damaged or exposed, it
is straight away placed in the Rejection Room which is located separately so that there is no
possibility that it might get mixed and be used up in the production process. Also, there are
certain raw materials which require a temperature range of 2-8°C. In order to ensure that this
temperature range is maintained throughout its long journey, each packet has a temperature seal
attached to it and if, at any point in time during transportation, the temperature exceeds the said
limit, it changes color.
Suppliers of Abbott raw material(International)
Direct Material Suppliers
Agilent Technologies August Faller KG Colbert Packaging Graham Packaging Company, L.P. Nosco Palladio Zannini Pratt Industries Precision Wire Components Robinson Printing
Sigma-Aldrich Inc. Sonoco Sumitomo Seika Chemicals Co., Ltd. Tekni-Films, A Tekni-Plex Company The Tech Group Thoro Packaging Toyobo Co., Ltd. Zeus Industrial Products, Inc.
Indirect Suppliers
Cognizant Technology Solutions Dell ManpowerGroup Solutions TAPFIN Mindshare PHH Arval
Contract Manufacturers
Besins Healthcare Bionostics, Inc. Catalent Pharma Solutions RR Donnelley Global Turnkey
Solutions
Quantum Staples Verizon Wireless VWR International
Overview of documents & supplier rates
Supplier rates and date of consignment data from pral software abbott work\
Attachments_2012_12_20\CH 29 DRY FEB 2012.xls
Bill of Lading / Air Label abbott work\Attachments_2012_12_31\BL.jpg
Invoice
Picking List
Custom clearance and forwading agent document
Bank contract for consignment registration and letter of credit
Application for permission of purchase of foreign exchange