Cipla is an Indian pharmaceutical company with a global presence in 170 countries. It aims to ensure access to affordable medicines. The summary discusses Cipla's supply chain management and logistics processes, including: 1) Procuring raw materials from suppliers and conducting manufacturing at its 34 plants in India. 2) Storing finished goods in warehouses using inventory control systems before distribution. 3) Transporting drugs to retailers, medical stores, laboratories and customers through distribution centers.

1. Supply Chain Management &
Logistics of Cipla
Presentation by: Rahul, Soundarya Himanshu and Sriram.

2. Introduction
• Logistics is the management of the flow of resources between the
point of origin and the point of consumption in order to meet some
requirements.
• For example, of customers or corporations. The resources managed
in logistics can include physical items, such as food, materials,
equipment, liquids, and staff, as well as abstract items, such as
time, information, particles, and energy.
Definition
The task of coordinating material flow and
information flow across the supply chain.

3. LOGISTICS PROCESS
• Developing new sources of supply.
• Substitution of less costly materials
without imparing required quality.
• Application of new purchasing
techniques.
• Initiating make or buy studies.

5. The Supply Chain management
• A supply chain is a group of partners who
collectively convert a basic commodity
(upstream) into a finished product (downstream)
that is valued by end-customers, and who
manage returns at each stage.
Definition
Planning and controlling all of the processes
that link partners in a supply chain together in
order to serve needs of the end-customer.

6. PHARMACY
• Pharmacy is the science and technique of preparing
and dispensing drugs and medicines. It is a health
profession that links the health sciences with
the chemical sciences and aims to ensure the safe and
effective use of pharmaceutical drugs.

7. CIPLA
• Cipla Limited is a pharmaceutical company based in Mumbai, India.
Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes,
weight control, depression and many other health conditions.
• Cipla is a global pharmaceutical company whose goal is to ensure that no
patient shall be denied access to high quality & affordable medicine and
support.
• Mission: Cipla’s mission is to be a leading global healthcare company which
uses technology and innovation to meet every day needs of all the patients.
• Incorporated 1935
• Cipla has 34 manufacturing units in 8 locations across India and has
presence in 170 countries.
• Employees 22,300+
• Turnover USD 1.78 Billion
• Founder (1898-1972) Dr. K.A. Hamied
• Non-Executive Chairman Dr. Y.K. Hamied
• Non-Executive Vice-Chairman Mr. M.K. Hamied

8. Logistics Process Of CIPLA

9. MANUFACTURING
PROCUREMENT
OUTPUT/
FINISHED GOODS
WAREHOUSING

10. TRANSPORTATION
DISTRIBUTION
LABORATORIES RETAILERS
CUSTOMERS
MEDICAL STORES

11. Supplier Materials
• Biologic suppliers
▫ Chemicals
▫ Farm products (plants, eggs, animals, animal by-products)
▫ Laboratory animals
▫ Growth media, cell cultures
▫ Pathogens
▫ Proteins
▫ Test organisms
• Non-biologic suppliers
▫ Equipment
▫ Computers, software
▫ Databases (e.g., target molecules, DNA sequences)
▫ Clinical trial supplies
▫ Clinical trial subject population information

12. Make - Manufacturing (Commercialization)
SCM Strategies
• Standardization of manufacturing processes
▫ Terminology
▫ Metrics
▫ Product process “toolkits”
• Managing network assets
▫ Grouping plants with standard equipment and processes
geared to specific product types (e.g., dry products, freeze-
dried, parenteral)
▫ Redundant facilities (security, shifting of work between
plants)
• Improved demand forecasting
▫ Global demand management center
▫ Centralized ownership of all forecasting tools and databases
▫ Use of ERP web-enabled global planning capabilities
• Judicious use of contract manufacturing (e.g., packaging)

13. WAREHOUSING
• Cipla uses the latest in pharmaceutical technology to
funnel seven decades of experiences into one capsule
that cures, one drop that defends and one puff that
protects. They explore every drug to its last particle and
instill safe and sure healing to create one dose of
confidence.
• Inventory is a list for goods and materials or those goods
and materials themselves, held available in stock by a
business. In accounting inventory is considered an asset.

14. Controlling the Inventory
As Cipla has huge number of business operations so there is a need of
sophisticated and technical form of inventory control. Use of computer
for inventory control is very feasible
Cipla Uses :
• Point of sale terminals relay information on each item used or sold
.The manager receives information printouts at regular intervals for
review and action.
• Off line point of sale terminals relay information directly to the
suppliers computers who uses the information to ship additional
items automatically to buyer/inventory manager.
• Cipla also uses another method of inventory management by outside
agency.

15. Successful Inventory management in
Cipla
At Cipla, successful inventory management involves balancing the cost
of inventory with benefits of inventory.
• They undertake following steps:-
• Maintaining a wide assortment of stock-but not spreading the
rapidly moving ones too thin.
• Increasing inventory turnover-but not sacrificing the service level.
• Keeping stock low-but not sacrificing the service or performance.
• Obtaining lower prices by making volume purchases- but not ending
up with slow moving inventory.
• Having an adequate inventory on land- but not getting caught with
obsolete items.

16. Distribute – Types of Counterfeit Drugs
• Identical copies
▫ Least common
▫ Made with same ingredients, formulas and packaging but
not by the same manufacturer
• Look-alikes:
▫ High-quality packaging and labeling; very convincing
appearance
▫ Little or no active ingredients
• Re-labels:
▫ Authentic drugs that have passed their expiration dates
▫ Distributed by foreign sources.

17. THANKYOU