EVA pharma document fro material and logistics management course

1. In this Research we are going to talk about
Eva Pharmaceuticals and how it implements
its Supply Chain
Eva Pharmacudicals
Pharmacuidical Industry
Group Members
 Omar Sherif |15204143
 Abdallah Hamed | 15207000
 Ahmed Mahmoud | 15204114
 Mostafa Khalil | 12104410
 Akram Mahmoud | 15204105
 Omar Ashraf | 15204102

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Table Of contents
Eva Pharmaceutical -------------------Page 2
Pharmaceutical Industry ---------------Page 5
Economic utility & Target Customer ------Page 6
Corporate social responsibility----------Page 7
The Logistical Activities --------------Page 8
SCOR Model ----------------------Page 12
Level of integration----------------Page 15
Supply Chain Diagram-------------Page 16
Appendix-----------------------Page 17

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Eva Pharmaceutical
Dr Riad Armanious built the Group, now known as Armanious Group, with the launch of 1 pharmacy.
With this Pharmacie La Sant Egypt’s oldest and most reputable pharmacy was born in 1919. The
Armanious name grew and a reputation of excellence and trust was beginning to flourish. Eva’s first
name came from Eva Cosmetics, as Dr. Mounir Riad Armanious continued his father’s success by
building on the strong heritage of the Armanious group and creating Eva Cosmetics, a personal care
manufacturing and distribution plant. Eva Cosmetics facility Occupying a 40,000 m2-area of land and
with a capacity of 384 million units per year, the new facility allowed the group to do more. Established
in 1997, Eva Pharma is one of Egypt's leading pharmaceutical companies, built on the heritage of Les
Laboratories Delta, Egypt's second oldest pharmaceutical company.
Today, Eva Pharma is the fastest growing pharmaceutical company in the MENA region, growing at a
rate of more than 30% CAGR (compound annual growth rate) for the past seven years; transforming
from a successful local company into a world class multinational organization , . Ranking 8 based on
sales [GDP]
Eva Pharma is an active contributor to the on-going drug industry in Egypt, North Africa and the Middle
East, with huge market participation

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Quality
Quality is an ideology that is built inside Eva Pharma then circulated across all channels, touching all
stakeholders and becoming a fundamental component in how we do business. The quality of our
products and our obligation to continue positively and meaningfully affecting global healthcare; is a core
element of our mission, vision
Vision
Empower the fight for health and wellbeing as a Human right
Mission:
To save and improve millions of lives in Africa and frontier markets by offering accessible, high quality
branded medicines that meet specific local market needs through innovative research & product
development, a passionate diverse top team and state of the art scale facilities.
Values:
Values At Eva Pharma we pride ourselves on our core values and ethics that have guided our growth and
helped position us as one of the most trusted providers of healthcare products in Egypt and the region.
The founding pillars of our philosophy, is to improve people's lives by honoring our core values: -
Customer First - Ownership - Passion for Success - Honesty - Fairness - Respect - Positive Impact.

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Products
Eva Pharma develops and manufactures pharmaceutical products. It offers
 Antibiotics such as Floxabact and Moxiflox;
 Nervous system medicines including Conventin and Metograine;
 Muscle ache gels and pain killers;
 Heart medicines such as Buspalex and Nicotipan;
 Decongestants, anti-tussives, analgesics;
 Antivirals for HIV, HBV, and Herpes;
 Eye drops; sedatives; and osteoarthritis medicines including Diacerein, Glucosamine, and
Genuphil.
Competitor
Novartis, Novartis has started in 1996 from a merger, Novartis AG is a publicly traded Swiss holding
company that operates through the Novartis Group, Novartis competitive advantages is via government
support as they make about 23% as exports so the Swiss government offers more opportunities to grow
and expand, Novartis is Switzerland’s biggest export company, they are also a publicly traded company
so they have more funds from investors to expand their operations and market share thus making them
better in making and their delivering.
Eva Pharmaceutical is ranking 8 in Egypt while Novartis is ranking 1 but what makes still has market
share in the market is that they are a huge supplier of medicines in Egypt and that they are already
established and they know the market needs and wants and thus they are better at planning, the
opportunities to collaborate with other supply chains are low and very rare in Egypt as each has its own
policy and this in the main problem in the pharmaceutical industry in Egypt

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Pharmaceutical Industry
Sales of Pharmaceutical Companies Increase by EGP 10bn, Growing By 31% Factories’ revenues
amounted to EGP 5bn in November, despite calls for raising prices the growth rates achieved by the
pharmaceutical sector in 2016 are considered to be the highest in 10 years
Sales of pharmaceutical companies operating in the Egyptian market rose by EGP 10bn at the end of
2016, registering EGP 41.6bn, up from EGP 31.7bn in 2015— an increase of 31%.
How did the government affect the industry?
A report issued by IMS health, an information technology company, stated that pharmaceutical
companies’ sales— excluding tenders— exceeded EGP 13bn in the fourth quarter of 2016, which saw
many calls from companies to raise prices to counter the hike in production costs, following the central
bank of Egypt’s (CIB) decision to float the pound, leading to the national currency’s depreciation from
egp8.88 against the us dollar to egp18.
The Report Pointed Out That When The Flotation Decision Was Introduced In November, Companies
Achieved Sales Of EGP 5bn, Equivalent To 12% Of Total Sales In 2015 Up From EGP 3.8bn In
October 2016, While December Saw Sales Of EGP 4.3bn.
Competitive landscape
Egypt’s domestic pharmaceutical industry is strong, with a presence of around 120 pharmaceutical
companies, of which fewer than ten are multinationals with local production bases. On the 17th of
January 2017, the Prime Ministry issued a decree that grants the Egyptian Military’s National Agency
for Military Production a license to partake in the founding of a company named the Egyptian National
Company for Pharmaceuticals. The decree was justified with the need to address drug shortages in the
short and medium-term.
MarketOverview
Egypt is among the largest producers and consumers of pharmaceuticals in both the Middle East and
Africa. Typified by high demographic growth and urbanization, the growth of the industry is contingent
on high population growth, an expanding generic drug sector, and increased health awareness. Egypt
maintains a Risk/Reward Index of 44.3 out of 100, remaining above the regional average of 40.4,
making it the 4th most attractive pharmaceutical market in Africa. 2 By 2020, the market is forecasted to
expand at a compound annual growth rate (CAGR) of 8.0% in local currency terms to reach a value of
EGP 48.6 bn.

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Economic utility
They add value though possessionvia the medicine itself as most medicines are purchased as needed to
treat or cure sickness
They add value through form by providing a easy to open package with information of the medicine
present in the package and making the medicine easy to use through ways the medicine is taken for
example before meals or after meals to , or through vile or syrup to satisfy all the customers’ needs and
their wants
They add value through place by making the most generic medicines available in pharmacies throughout
the MENA region
They add value through time via working with reliable distributors that they are working with constantly
to ensure that medicines are reaching their sale point in the time required
 Comment: They achieve all the economic utilities through distributers that provide the packaging
and transportation to the customers

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TargetCustomer
Their target customers are patients and because pharmaceutical industry is different in nature the ways
they satisfy customers is by the release of the product itself, they use focus groups & survey groups for
the company to their satisfaction level and they do testing trials for end users who are willing to test the
medicine to ensure that the medicine works for example to control the blood pressure and to make it
ready for usage and production, they Price their products based on the Type of the product either it’s a
Brand or Generic and the amount of R&D on said product the pricing is mostly based on Cost pricing
 Comment: The surveys that the firm gathers helps in determining the medicines effectiveness on
the consumer. And the only thing that affects the demand will be external factors like inflation or
regulations
CSR
In 2010 Dr. Mounir Armanious Foundation has started with its culture of giving back to the community,
Armanious group launches an entity founded solely with the objective of providing social care and
services to the community. They donate to non-profit organization like Baheya Hospital, Abu Al Resh
hospital and Qasr El Eyni Hospital
 Comment: We think that this foundation with its social efforts that they do to benefits the
community is putting their reputation in a good position

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The LogisticalActivities
Quality Control
As their products are sensitive in nature, the quality control process is one of the most important activity
as the products are effected by temperature, humidity, light, pressure etc. there process first checks the
concentration of each medicine then pick a random sample from the product and double check with the
standard, one of the tools used and most popular and vital is HPLC is a high performance liquid
chromatography, this machine separates, identify, and quantify each component in a mixture. It relies on
pumps to pass a pressurized liquid solvent containing the sample mixture through a column filled with a
solid adsorbent material
 Comment: Using this tool they ensure that the mixture used in the product has the right
concentration and requirements to continue production which tell us that their process is
effective in lowering the amounts of defects to ensure customer satisfaction
Transportation
They own a one distributor and work with other seven to distribute their products to their customers,
they use trucks as their mode of transportation but the distributers they work with pay freight costs and
they mostly control their transportations, their performance is measured by time, quality and safety, the
transportation of raw materials is by Ships. The distributors are categorized as class A, B, C based on the
reach, storage, systems, employees, customers and offers that they offer.

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Warehousing
Their warehouse is built with specific requirements to maintain a specific temperature, humidity, light,
pressure, some space is wasted due to some products need to be stored in specific place, the warehouse
always has an independent power station and rain roof to maintain the safety of products, problems
rarely happen as any staff member who does a mistake is legally liable
 Comment: the products that the company makes requires specific areas to be stored in thus the
wasted space are understandable.
Inventory
Inspections are done constantly using monitors to make sure that the products are safely stored under the
right factors, any expired inventory is instantly burned as medicines cannot be recycled or reused
 Comment: monitoring the inventory is another way that the firm avoids any loss of raw materials
or products we sees this one of the ways to provide quality to their customers
Packaging
The packaging of the products are in many forms like Box, jars and Vials, the packaging is mostly done
by the distributors , but some products require to be in the same shape as the packaging with a
Cellophane cover because if it sees any light the product is instantly spoiled

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Demand Forecasting
Demand forecasting is done yearly relying on historic and growth data of the company and the data is
broken down to per product, per semester, quarter, month, and per seasonal products, then there is vision
forecasting that is done every 3 to 5 years, They supply is based on growth of the demand and in any
case there was excess supply due to economic reasons they offer promotions, demand forecasting is very
important as products they produce require to see if people need it or as if medicines are produced to
treat a something that is not there then the product has no other use so using forecasting is very
important
Material Handling
The materials handling is the most sensitive as the staff handling the materials are completely covered
with hazmat suits from top to bottom and are sanitized, not everyone enters these areas, the precaution
taken like in case of fire they use powder or foam extinguisher, they also used temperature controlled
trucks to ensure that the products transported will not get spoiled or damaged
Internalized Logistics
They export products to Libya and middle Africa, their operations and distributors are controlled by
contractor, because he knows the market and the culture and language so it makes it easier and faster to
sell products there to end users
Facility location Decision
The government offers special places like industrial area for the facility and they must be away from
population due to safety reasons, the suppliers are not a factor in the decision as the only barrier is
customs

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Procurement
Raw materials are purchased internationally they have two countries they get their supply from one is
from UK and other is India, the benefits from UK are the rarity of the materials and from India there are
also rare materials but they are cheaper the process is streamlined.
Comment: they are effective at picking their suppliers due to the tests they do to insure that the
materials used are
Order Management
In order management they use TPS systems but DSS system is the main one to control the process, the
factors that affect the orders are time, quality and most importantly safety, customer. They see order
management as important part as most of their supply chains process are orders received and orders sent
as a supplier or a customer
Reverse Logistics
The only reverse flow in the company is when a product happens to be mismanufactured as a case they
mention where a pressure medicine was mismanufactured and they instantly pulled it from the market,

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Supply chain Members
 Supplier
 Manufacturing department
 Quality control & Assurance department
 R&D
 Production department
 Warehouse
 Contractors
 Distributors
 Pharmacies/Customer
 Patients/Customer
SCOR Model
Sourcing Phase
The suppliers are international as the raw materials required are in not in available in Egypt, they
supplies mostly come from Europe or India due to rare and specific materials like plants that grow in
specific regions. They follow Standard operating procedures SOP for pharmaceuticals to plan their
process. A Standard Operating Procedure (SOP) is a set of written instructions that document a
routine or repetitive activity which is followed by employees in an organization. It is important that they
ensure that the processes outlined in the SOPs accurately reflect the practices at their pharmacy. All
members of the pharmacy team are responsible for following the implemented SOPs that are relevant to
their roles and responsibilities.

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Production Phase
Their production plan in case they want to produce a new product they look for new suppliers but they
have to test the materials first through the R&D department where they study and test it then they start
using the same supplier once they the product enter the market they start looking for supplier but with
lower prices to keep production. The production is based on the efficacy required for the medicine to be
useable, for example chemotherapy medicines require years to be produced and to be effective while
painkiller tablets require months since the formula used and materials required are already well known,
they do not favor lower cost if that is lower the innovation in making their products as the pharma
industry relies on innovation to competitive.
Delivery Phase
They work with seven distributors and own one they work with them to maintain the availability of the
products throughout Egypt, the one they own is for their supplies deliveries and also used for delivering
products, They distributors are key part of their supply chain as they are ones who deliver to their
customers and that is how their products have maximum reach they also the one who control the
minimum capacity to delivered , Eva sometimes License products that are not available in Egypt but
they only promote & package it
 Comment: the rely heavily on distributors for their transportation needs’ which puts them in
disadvantage due to the distributors controlling the way the products are reached to the customer,
in case any problem happens with their packaging or delivery time it will effect Eva directly and
they won’t be able to respond in time.

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Return Phase
They have no return polices at all, the only case where returns happen is when mismanufacturing occurs
they recall the product from market to avoid any problems, there no return of the product as their It
could be a dangerous for the Pharmaceutical company or even pharmacists to accept and return
medicines or unused portions of prescribed medicines that are returned by consumers, because he would
no longer have any assurance of the strength, quality, purity or identity of the product returned
Level of integration
The integration is high in the supply chain as Eva uses an internet network inside the company to collect
and analysis all the data of the products, materials and customers, and this network is integrated with
order management , transportation management , quality control, warehousing and demand for casting
as a pharmaceutical company they high rely on innovation and innovation relies on accurate information
collected, their management information system is a single integration that is purchased from outside ,
they have direct communication with the marketing and sales department as this is where they get their
demand information as they are using pull strategies to produce based on the customer needs and wants
and this how the package and price decision are decided upon, they also have a department called
Market Access this department is link between the company and the ministry of health
Recommendations

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The Supply Chain / Ultimate Supply Chain
Suppliers Eva’s
Distributor
Quality
Control &
Assurance
Manufacturing
Department
R&D
Production
Department
Warehouse
3rd
party
Distributors
3rd
party
Contractor
Pharmacies
B2B Material Flow B2C Information Flow
Patients
3rd
party
marketing &
selling Firm

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Appendix
Questions
Phase 1 Questions
1. How did Eva Pharmaceutical start?
2. How Eva pharmaceutical did became successful?
3. How & why did it expand in Egypt?
4. Why we choose the pharmaceutical market?
5. How do they achieve Economic utility?
6. How do they add value to their products?
7. How to they satisfy their customers?
8. Who are Eva’s competitors?
9. How are their products priced and what is the pricing based on?
2 Part 1 Questions Phase
10. How many branches/members of Supply Chain does Eva pharmaceutical interact with?
11. How does the members interact with each other’s and what is their integration level?
12. How many suppliers does Eva work with?
13. Are the supplier’s international or local or both?
14. Why are they international, local or both?
15. If a problem is encountered [delays, bad materials] how do you fix it and how to minimize this of
occurring?
16. Do you have any CSR campaigns?
17. How do you store your products and does each products have their own special storage section?
18. On what basis does you decide the marketing package of the products?

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19. Who does the industrial package the supplier or you?
20. Who pays the transportation cost of the Raw materials and products?
21. What are types of dispatchers do you use?
Phase 2 Part 2 Questions
Quality Control Questions
22. How many common types of quality checks do we have and what are them?
23. Quality control must follow some procedures so what are they?
24. What are the quality control tools?
Transportation Management Questions
25. Do you use your own transportation vehicles or do you use a provider
26. What kind of transportation mode do you use and why
27. What is the transportation route you use and why
28. Who pays the freight costs?
29. On what’s factors do you measure the performance of your transportations [KPI]
Warehousing Questions
30. What’s the most challenging aspect of managing warehouse and its staff?
31. Describe a situation you had to resolve an unexpected problem in warehousing if you encountered any?
32. How are you efficiently using your warehouse space?
Inventory Questions
33. How do you get rid of your expired inventory?
34. How many times are inspections done?

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Packaging Questions
35. What is the design of the package?
36. What type of packaging o you use and why?
37. Who does the packaging you or the supplier?
Demand Forecasting Questions
38. What is importance of demand forecasting?
39. What is demand forecasting methods that you use?
40. How long does it take you to forecast demand each quarter?
41. Is demand forecasting worth the time that you give considering that you are in the pharma industry?
Task 2 Phase 2 Part 3
Material Handling Questions
42. Do you use any material handling system?
43. How do you store your tablets without losing quality or sanitation?
44. Do you use any temperature control fright options?
Internationalized logistics Questions
45. What distribution models do you use?
46. Do you build or rent storage?
47. What challenges did you encounter?
48. When choosing a local provider what factors do you base your decision upon?
49. What activities do you use 3PL for?

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Facility location decision Questions
50. What factors do you base your decision upon for the location?
51. Did you happen to choose a bad location, what happened then?
52. Would there be any case where you have considered changed your location?
Procurement Questions
53. Do you purchase RM locally or internationally?
54. And what is the benefit [cost, quality]?
55. Is procurement a time consuming process or is it streamlined?
56. Does every time you start producing a new product do you use the same suppliers list as before or do
you look for new ones?
57. Procumbent process is based on what mostly [new products, low supply]?
Order Management Questions
58. What type of OMS do you use?
59. On what factors do you measure the performance of the order management?
60. Do you see Order management as a key important part as it is what connects most SC Members?
Reverse logistics Questions
61. What is the cost of reverse logistics [is it a costly process]?
62. How quickly do you process returns?
63. Did you happen to ever had to recall product from the market?
64. What do you do with items that can't be resold? (recycling)
65. Do you issue customers refund and if so. How long does that process take?
Extra Questions

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66. On what basis do you push or pull?
67. Because of the high importance of pharmaceuticals do you think that you should Abaddon push
strategies?
68. Would focus on a product that has high demand than others?
69. On what basis do you favor cost over quality or vice versa and why?
70. Does low quality in pharmaceuticals usually means low quality?
Phase 3
Production Questions
71. When producing a product do you produce a new product or produce an already introduced product
since in the Pharma Inc. Cost of introducing a new product is higher than an already product in the
market
72. When does the production cycle start and finish , estimated time of production
73. What is the estimated quantity you produce in 6 month
74. Do you favor long production runs or short runs or do you do your own thing ( as it will lower the cost
of products but in return will increase warehouse and inventory cost)
75. do you favor lower cost but lower innovation in making products
Delivery
76. How long normally will a shipment take to arrive
77. Do you own your distribution channels (if not why)
78. What is the distribution channels do you use
79. Who controls the preferred minimum capacity to deliver inbound and outbound you or the other party
Returns
80. Do you have a return policy

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81. And why you don’t have and what do to you do
Level Of integration/complexity
82. Which department do you have direct communication with
83. What type of SC Configuration do you apply
84. Do you own all your members of the SC
85. On what basis do you price your products cost or the market
Competitors
86. Who are your main competitors
87. And what makes them a competitors [ unique aspect]
88. What is your competitive advantage over the other competitor
89. Have considered a supply chain collaboration with your competitor
Management Information system
90. Do you use a single Implementation or best of breed Software
91. Do you use SaaS or built in customized software
92. How does MIS works with operations (what operations that require the use of MIS)