Supply Chain Management

Of Pharmaceuticals

“Working together for healthier world”

Introduction of Pfizer• Pfizer, Inc. is an American multinational pharmaceutical• It is the world's largest pharmaceutical company by revenues• Type:Public • Traded as: NYSE: PFE Dow Jones Component S&P 500 Component• Industry :Pharmaceutical • Founded :1849• Headquarters :Cooperate New York, United States research in Groton,

Connecticut, United States• Area served :Worldwide • Key people :Ian Read• Revenue :US$ 67.42 billion (2011)• Employees :103,700 (2011)• Acquisitions: Warner–Lambert in 2000, Pharmacia in 2003 and Wyeth in 2009, the

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

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

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

Pfizer in India

• Pfizer 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 -- Corex (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 Award

Location & People • Headquartered in Mumbai • Over 3,000 colleagues • State-of-the-art manufacturing facility at Thane, Maharashtra

An overview of Pharmaceutical Industry

According to industry statistics, the pharmaceuticals market remains committed to recovery despite the global economic slowdown, with a compound annual growth rate (CAGR) of 5-8% forecast for 2012-2015. This trend is supported by a consistent spending in R&D, about 18% of revenue or $68 billion in 2011, and an ever stronger focus on supply chain management. Pharmaceutical chemical spending approaches $100 billion and contract manufacturing continues its double digit growth (CAGR 11%) exceeding $25 billion/year (Figure 1).

Supply chain management seems to be on the forefront of executives' minds today, together with R&D productivity, cost cutting and M&APharmaceutical companies seek to adopt operational models from other industries with tighter margins and stealthier (Six-Sigma) performance

ISSUSES

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 FlowSupplier Management

Customer Management

Schedule/Resources Conversion Stock

DeploymentDelivery

Flow of Raw Material

Till its User

Flow of FINISHED PRODUCT

to end users

Inventory management

Transportation management in pharmaceutical Industry

PROBLEM2:DETERMINE THE OPTIMUM SOLUTION FOR THE COMPANY OF TRASPOTATION PROBLEM(USING NWCM AND MODI METHOD)

8 8 15

15 10 17

3 9 10

REQUIREMENT 150 80 50

120

80

80

CAPACITY

F1

F2

F3

W1 W2 W3

WAREHOUSE

FACTORY

OPTIMUM SOLUTIONF1 W1 8*120 =960

F1 W2 8*E = _

F2 W2 10*80 =800

F3 W1 3*30= 90

F3 W3 10*50 =500

2,350 RS

strength

State-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

weakness

opportunity

• 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

Threat 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

Strategies & Activities Create a Sustainable Drug Procurement and Supply

Chain Management

Strengthen:- MIS Division:new regulations like ePedigree and new

technologies like EPC/RFID & 2D Barcodes are introduced

Finance Division Procurement/Distribution Division

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 decentralising small purchases at the District Level and positioning a procurement specialist at the zonal level.

Conclusion• Review, Monitor and Validate

• Strengthening Drug Procurement and Supply Chain Management

• Strengthening Distribution Division

• Additional Drug Requirement to meet Unforeseen Situations