SUPPLY CHAIN MANAGEMENT

PALLAVI POOJA SHIVPRAKASHSUSHILUPASANAYAMINIBHAKTISUNAINAAADIDEV

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

DRIVING FORCES IN SCM

STRATEGIC PURCHASING SUPPLY MANAGEMENT

COMMUNICATION

SUPPLIER BASE REDUCTION

LONG TERM RELATIONSHIP

SUPPLIER SELECTION

SUPPLIER INVOLVEMENT

TRUST & COMMITMENT

LOGISTIC INTEGRATION

INTERNAL INTEGRATION

EXTERNAL INTEGRATION

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 softwareSCM 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

P & G

WALMARTDISTRIBUTION CENTRE

P& G

WALMARTDISTRIBU

TION CENTRE

INFORMATION SHARING BY HOOKING UP SOFTWARE SYSTEM

Emerging Technology in SCM RFID: Radio Frequency IdentificationThey 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 CompetitionAll 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.

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