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&A
Pharmaceutical 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“

Supplier Customer
Material Flow Information Flow Management
Management

Schedule/
Conversion Stock Delivery
Resources
Deployment
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)

WAREHOUSE
CAPACITY
W1 W2 W3

F1
8 8 15 120
FACTORY

F2 15 10 17
80

3 9 10 80
F3

REQUIREMENT 150 80 50
 OPTIMUM SOLUTION
F1 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 suppliers
Huge 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