This document provides an overview of a report on understanding procurement and distribution models for a company called Future Bio Science. It discusses direct and indirect procurement, types of distribution channels, and gives profiles of some of Future Bio Science's principal companies that it imports biotechnical equipment from, such as Cleaver Scientific, Techno Plastic Products, and Biocision. The objectives of the report and internship were to analyze Future Bio Science's distribution policy and processes around procurement, imports, inventory management and other supply chain functions.

1. A REPORT
ON
UNDERSTANDING PROCUREMENT AND
distribution model
(Supply Chain and Logistical Imperative
Study)
Industry Guide: Mr. B.M. Sharma
General Manager
Future Bio Science Pvt. Ltd
Faculty Guide: Prof. Rajkishan Nair
IILM-GSM, Greater Noida

2. DECLARATION FORM
I hereby declare that the Project work entitled “UNDERSTANDING PROCUREMENT
AND DISTRIBUTION MODEL (Supply Chain and Logistical Imperative Study)” submitted
by me for the Summer Internship during the Post Graduate Diploma in Management
Program to Institute for Integrated Learning in Management, Greater Noida is my own
original work and has not been submitted earlier either to IILM GSM or to any other
Institution for the fulfillment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part is lifted and incorporated
in this report from any earlier / other work done by me or others.
All care has been taken to keep this report error free and we sincerely regret for any
unintended discrepancies that may have crept into this report. We shall be highly obliged if
errors (if any) be brought to our attention.
Thank You,
Bharat Chaujar
Email id:Bharat.chaujar@gmail.com

5. SUMMER INTERNSHIP
REPORT
ON
UNDERSTANDING
PROCUREMENT AND
distribution model
(Supply Chain and Logistical Imperative
Study)
Prepared By:
Name: Bharat Chaujar
Roll No: PGDM – 20150098

6. Summer Project Certificate
This is to certify that Mr. / Ms. Bharat Chaujar_ Roll No. PGDM-20150098 a student of
PGDM (IB) has worked on summer project titled_UNDERSTANDING PROCUREMENT
AND DISTRIBUTION MODEL ” (SUPPLY CHAIN AND LOGISTICAL IMPERATIVE
STUDY)”At Future Bio Science after trimester-III in partial fulfilment of the requirement
for the programme. This is his/her original work to the best of my knowledge.
Date: - __________ Signature ___________
Seal: Name of Faculty________

7. ACKNOWLEDGEMENT
I wish to place on record my deep sense of gratitude to Future Bio Science India Pvt.
Ltd. for providing me an opportunity to take up this project and giving me a platform
which is the first step of my professional career.
The summer project, from the very beginning to the tail end has been carried out under the
guidance of Mr. B.M Sharma, General Manager. The more I try to thank them the least I
am, able to because words cannot ever express my indebtedness to them.
I am indebted to my guide Prof. Rajkishan Nair, IILM-GSM, Greater Noida for extending
his untiring guidance to me, by constantly discussing the project matter and helping me in
clarifying my thinking in several pertinent issues and providing a meaning full insight into
the subject.
In the end I would like to thank Almighty without whom nothing can be done and many
unknown individuals, whom I interacted with for end number of my needs. All of them with
their due cooperation and at times with detachment taught me the real lessons of business
world. Many a name and incident I still remember and they have become a part of my
experience and those whom I can’t recall to have enriched me directly or indirectly.

8. TABLE OF CONTENTS
 Executive summary
 Objectives
 Company Profile
 Working Methodology
 Problems and Limitations
 Swot Analysis
 Porter’s Five Forces Model Analysis
 Recommendations
 Conclusions
 Bibliography

9. EXECUTIVE SUMMARY
This report is a short description of my two month internship carried out as compulsory
component of the PGDM course which I am currently pursuing at Integrated Institute of
Learning In Management, Graduate School of Management (IILM-GSM), Greater Noida.
The internship was carried out within the company FUTURE BIO SCIENCE PVT LTD in
the year 2014. Since I am inclined to pursue Marketing and Operations as a specialisation in
my second year of PGDM, the work was concentrated on Procurement and Distribution
System of the company. At the beginning of the internship I formulated several learning
goals, which I wanted to achieve: to understand the functioning and working conditions of a
company; to see what is like to work in a professional environment; to see if this kind of
work is a possibility for my future career; to use my gained skills and knowledge; to see
what skills and knowledge I still need to developing a professional environment; to get
fieldwork experience; to enhance my communication skills; to build a network.
Future Bio Science is a company who is into the business of bio technical equipments which
are used by scientists in government institutions and hospitals all round India for carrying out
research work for the growth and development of the country in health sector. FBS is
immensely putting their hard work to give the Indian scientists and the doctors the best
laboratory equipments and machines of latest technology which are being used by scientists
and doctors outside India.
My Project was inclined to learn the processes of: -
1.) Logistics Department.
2.) Marketing Department.
3.) Imports from Principal Companies.
4.) Distribution Network.
5.) Inventory Management.

10. FBS imports biotechnical equipments and laboratory tools from the principal
companies. It imports from the manufacturing plants of principal companies in U.S.A
and Switzerland and many other countries for contributing in Health Care processes
of Indian Hospitals and Government Institutions through two channels of distribution
that is indirect selling and direct selling in the ratio of 9:1. The indirect selling here
refers to the channel partners, distributors and direct selling refers to FBS own sales
force.
FBS prefers for their contribution with full dedication through a supply chain having
its distribution through exclusive direct selling in order to provide better services to
end customers and to enhance the earnings.
The project envisages and identifies the processes of streamlining a distribution
network through exclusive direct selling channel without any impact on the existing
profits of FBS.
The primary objective of the project is to analyze distribution policy of FBS
emphasizing on exclusive direct selling and indirect selling distribution model.
Further the project is to analyze and learn the processes of foreign currency orders,
warehousing processes of the company, inventory management and documents
mandatory for imports of the company.

11. Introduction:-
Procurement: - Is the acquisition of goods, services or works from an
outside external source. It is favorable that the goods, services or works are appropriate
and that they are procured at the best possible cost to meet the needs of the purchaser in
terms of quality and quantity, time, and location. Corporations and public bodies often
define processes intended to promote fair and open competition for their business while
minimizing exposure to fraud and collusion.
Direct procurement and Indirect procurement
TYPES
Direct
procurement
Indirect
procurement
Raw
material and
production
goods
Maintenance,
repair, and
operating
supplies
Capital
goods
and
services
FEATURES
Quantity Large Low Low
Frequency High
Relatively
high
Low
Value
Industry
specific
Low High
Nature Operational Tactical Strategic
Examples
Crude oil in
petroleum
industry
Lubricants,
spare parts
Crude
oil
storage
facilities

12. Based on the consumption purposes of the acquired goods and services, procurement
activities are often split into two distinct categories. The first category being direct,
production-related procurement and the second being indirect, non-production-related
procurement.
Direct procurement occurs in manufacturing settings only. It encompasses all items that are
part of finished products, such as raw material, components and parts. Direct procurement,
which is the focus in supply chain management, directly affects the production process of
manufacturing firms. In contrast, Indirect procurement activities concern “operating
resources” that a company purchases to enable its operations. It comprises a wide variety of
goods and services, from standardized low value items like office supplies and
machine lubricants to complex and costly products and services; like heavy equipment and
consulting services.
Distribution:
Product distribution (or place) is one of the four elements of the marketing mix.
Distribution is the process of making a product or service available for use or consumption by
a consumer or business user, using direct means, or using indirect means with intermediaries.
Channels and Intermediaries
Distribution of products takes place by means of channels. Channels are sets of
interdependent organizations (called intermediaries) involved in making the product available
for consumption to end-user. Merchants are intermediaries that buy and resell products.
Agents and brokers are intermediaries that act on behalf of the producer but do not take title
to the products.

13. Supply Chain Management
Supply chain management (SCM) is the management of the flow of goods. It includes the
movement and storage of raw materials, work-in-process inventory, and finished goods from
point of origin to point of consumption. Interconnected or interlinked networks, channels and
node businesses are involved in the provision of products and services required by end
customers in a supply chain. Supply chain management has been defined as the "design,
planning, execution, control, and monitoring of supply chain activities with the objective of
creating net value, building a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance globally.
 Main function of Supply Chain Management are as follows:
Inventory Management
Distribution Management
Channel Management
Payment Management
Financial Management
Supplier Management
Transportation Management
Customer Service Management

14. Objective:-
The primary objective of any Summer Training is to gain through practical experience, a
sound appreciation and understanding of the theoretical principles learnt in two semesters of
PGDM. My Summer Training was oriented towards developing the skills, knowledge and
attitudes needed to make an effective start as a member of the Management profession. I was
required to undergo 6 weeks summer training after 3rd trimester. This training was basically
meant to understand the practical aspects of concepts learned during all the trimesters in the
real life scenario. The training imparted practical exposure in the Industry. The objectives of
my Summer Training were:
 Understanding real life situations in organizations and their related environments and
accelerating the learning process of my knowledge could be used in a realistic way.
 Systematic introduction to corporate Culture and development of requisite skills
 Recognizing my responsibilities as a professional.

15.  Understanding the formal and informal relationships in an organization.
 Continuous learning.
 Understanding problems and providing unique solutions.
The work assigned to me at Future Bio was primarily concerned with understanding how the
company is procuring the equipments from its principal companies that are located in
different parts of the world. Since we are into the business of importing the biotechnical
equipments which are used by scientists and doctors for their research work, my industry
guide asked me to learn the operations of different departments of the company. My work
was divided into two parts.
1.) Supply Chain Optimization.
2.) Distribution Model of the Company

16. Company Profile
Established nine years ago, FBS is today India‘s most reliable premier Biomedical company.
Future Bioscience offers services of representation, distribution and manufacturing of quality
biomedical products in India. With a broad spectrum of products for tissue culture, molecular
biology, electrophoresis, liquid handling, lab essentials and equipments FBS is a one stop
solution. FBS Represents more than a dozen iconic giants in the fields of Molecular biology,
Cell culture, Bio-Technology like TPP; Switzerland, HTL;Poland, Biocision;US, Cleaver
Scientific; UK, Grant Instruments;UK, Metertech;Taiwan and Sorenson;US, .
FBS has a dedicated field force and over 80 trusted channel partners. FBS is a choice name
for annual supply contracts to research organizations and many pharmaceutical companies.
FBS truly resonates ‘You can rely when we supply’.
The FBS range of plastic ware brings home a no compromise quality for less. Cooperation
and support from the scientific fraternity has kept us motivated into bringing in new and
latest product lines at affordable prices into India. With unflinching commitments towards
the global standards of quality and reliability Future Bioscience is all set to foray in the field
of advanced biosciences.
This Year, in addition to the existing above mentioned product lines and reputed international
manufacturers, it is a great privilege to express the inclusion of a whole new range of
products from
· National Scientific Company, USA- Pioneers of Universal fit bevelled pipette tips.
· Capp, Denmark- The manufacturers of advance micropipettes.

17. · Longene, China- Fast Thermal Cyclers.
. Air Clean Systems, US- Leaders in PCR workstations, Fume hoods and Enclosures.
· Launch of FBS Brand- Plastic wares and Molecular Biology Reagents.
We had introduced Cleaver’s, UK nine years ago in India and today we are one of their top
distributors globally. This position has been achieved because of a highly qualified and
experienced team of Technical, Product management and Marketing professionals. They keep
a tab of the market pulse, train the field force, arrange for promotional activities like coffee
table discussions, road shows, expositions and lab demonstrations.
Further to strengthen our focus into the market penetration we are looking forward to work as
a strong channel partner for Internationally acclaimed global manufacturers with a similar
ideology to work as a team for mutual benefits and on a long term.
Principal Companies
 Cleaver Scientific Limited: Providing expertise and excellence in
Electrophoresis
Drawing on years of manufacturing and laboratory experience, Cleaver Scientific are a UK
based electrophoresis equipment suppliers who provide premium and technically enhanced
high specification, low cost electrophoresis equipment for the world market. These include

18. DNA electrophoresis units, protein electrophoresis units, Electro blotters, Radiation
protection and Gel Documentation Equipment.
Based in Rugby, Warwickshire, in the centre of the UK, our premises are well served by both
rail and road networks. Our location enables us to serve most businesses Worldwide in good
time.
Cleaver Scientific is an ISO9001:2000 accredited company and all our products comply with
CE regulations.
 Techno Plastic Products Ltd
TPP, the color Yellow
TPP, the color Yellow is the Swiss Brand that belongs to the international circle of brands
for high quality plastic disposable products for tissue culture and laboratory technology.
Field of applications of TPP products can be among others found in biotechnology,
pharmaceutical, institutes and universities as well as in research institutes and others.
TPP is constantly active in the research and development of new products as well
as improvements on treatment of the cell growth areas. Also TPP aims to receive a leading
role in the area of hygienically standards in production.
These are TPP's engagements towards the end-users receipt of best results.
TPP home of tissue culture.

19.  Biocision: Consistent Sample Management At All Temperature
Founded by a group of scientists, biomedical engineers, and drug discovery experts,
our patent-pending products enable researchers to achieve pre-analytical sample
reproducibility and consistency – experiment to experiment, lab to lab and site to site - and
are applicable to a wide array of scientific disciplines including cell and tissue culture and
cryopreservation, histology, immunohistochemistry, virus and bacterial research, molecular
biology, cell therapy, pharmaceutical manufacturing, biofuels research and many others.
BioCision’s first products, the CoolRack® line, were made from a novel aluminum alloy that
is 300 times more conductive than ice and adapts rapidly to the temperature of any freezing
or cooling medium. The CoolRack® line includes thermo-conductive modules that hold tube
or plate samples of different sizes to standardize temperature control right at the benchtop.
Subsequent product lines include CoolBox™portable ice-free cooling and freezing devices
and CoolCell®, a novel cell freezing device for blood, stem cells, cord blood and cell lines,
as well as a line of TruCool™ consumables.

20.  Grant: Scientific Instruments
Grant Instruments, based near Cambridge, England, is an independent, privately owned
company, founded in 1952 by Peter Ward and Cecil Chapman. Grant is a world leader in the
manufacture and design of equipment for sample preparation, scientific analysis, data
acquisition and data analysis providing solutions to the global scientific and industrial . The
company has a worldwide reputation for paying the highest attention to quality, reliability,
service and support. Grant works strictly to all legal and regulatory requirements and pays
particular attention to the safety testing of products. The company operates
to ISO9001:2008 quality management system and ISO 14001:2004environmental
management standard, regulated by British Standards Institute .In the last 60 years, Grant has
expanded both organically and through partnership and acquisition. The company is
organized into two focus areas - Scientific and Data Acquisition. Grant also provides custom
solutions for unique or special applications.
Grant Instruments designs and manufactures a wide range of high quality scientific
equipment used in many applications for analytical, diagnostic and research purposes which
includes temperature controlled unstirred water baths, heated circulating baths, chillers,
refrigerated baths and circulators, dry block heaters, shaking baths, boiling baths and
ultrasonic baths for cleaning. In addition it offers a wide range of products aimed for life
science applications. These include thermostatic shakers, rotators, rockers, centrifuges and
centrifuge-vortex mixers, heating / cooling dry blocks, magnetic stirrers, UV cabinets and
shaker-incubators.

21.  The Drucker Company:
From humble beginnings, The Drucker Company continues the tradition of providing
quality centrifuges. With little more than a vision and determination, Ken Drucker
purchased the Phillips Company, a St. Louis, Missouri instrument repair company, in 1932.
Hard work, superior craftsmanship and unique engineering resulted in a centrifuge design
with features far advanced for the time. Success quickly followed and the company was
transformed into the business of manufacturing centrifuges.
After relocating to Astoria, Oregon, the company experienced rapid growth as customer
acceptance grew. In 1983 the business was moved to Hialeah, Florida. New product offerings
and increased demand resulted in two subsequent moves; first to Kendall, Florida and then to
Sunrise, Florida.
In 1995 a Sales and office was opened in State College, Pennsylvania. Within a year of
opening the State College office, the manufacturing operations and all administrative
functions were relocated from Florida to its current location in Port Matilda, Pennsylvania.
After more than 75 years, The Drucker Company remains focused on centrifuges. Our new
corporate headquarters in Port Matilda, Pennsylvania is now complete and houses our
administration, customer service, technical service, accounting, and engineering departments.
Our belief in designing and offering quality, high-performance centrifuges coupled with
superior customer service remains steadfast and continues to be the cornerstone for future
success for both our employees and valued customers.

22. Work Methodology
The work methodology at FBS was a mixture of both study/office job and field work.

23. Supply Chain Optimization across Business for Future Bio
Science Pvt. Ltd

24. FBS – Principal Companies
(Imports)- Cleaver TPP Grant
Units being imported
Manufacturing in Solan
through air. CHA CHA
Mother Warehouse,
New Delhi
Mother Warehouse,
Solan, Himachal Pardesh
Janak Puri
Warehouse
JanakPuri
Warehouse
DISTRIBUTORS DISTRIBUTORS
DISTRIBUTORS
Hospitals Hospitals Hospitals Hospitals

25. Future Bio Science:-
Established nine years ago, FBS is today India‘s most reliable premier Biomedical company.
Future Bioscience offers services of representation, distribution and manufacturing of quality
biomedical products in India.
Future Bio Science:-
FBS is a sister concern of Genaxy India Private Limited.
Genaxy Private Limited:-
Genaxy India is a leading company of biotechnical equipments in India and is a 100%
subsidiary of world renowned company Genaxy Private Limited which is an American based
company. It has its headquarters located in U.S.A.
Working:-
FBS imports units or products (implants) from the principal companies situated in different
parts of the world. It also manufactures the laboratory equipments in its factory and
manufacturing plant located in Solan, Himachal Pardesh and does the forecasting of imports
of units prior one year and places its order to the principal companies. But variations are done
on purchase orders monthly for imports with the principal companies after first month.
Shipments come through air. Shipments arrive at the New Delhi airport. This is because
Future Bio Science has its Mother Warehouses located at New Delhi. From airports, the
Custom House Clearance (CHA) clears the shipments and delivers the same to the mother
warehouses. From mother warehouses located in New Delhi units are further transferred to
warehouses in other cities of India owned by FBS Pvt. Ltd. Warehouses are located in almost
all the major metropolitan cities in India (Mumbai, Chennai, Kolkata). All these transfer
processes of units are carried by C and F agents.
Product Line Offered by the Company:-
FBS Liquid Handling Products
 FBS Futurfit Microcentrifuge Tubes.
 FBS futurfit Micropipette Tips.
 PCR Tubes and Plates

26. FBS Plasticware and Generic Products
 FBS ELISA Plates.
 FBS futurfit Nitrilite Gloves.
 FBS Futurfit Screw Cap Conical Centrifuge Tubes.
 FBS Petri Dishes.
FBS Molecular Biology Reagents
 FBS Taq Polymerase
 PCR Master Mixes
 DNTP’s
 FBS Mini Centrifuge
Future Bio does its business in India with the distributors so as to reach their target segment
which has been identified as premium hospitals, medical institutions and medical
representatives and surgeons. Future Bio has 80 active distributors. They are located all over
India. Units after reaching the warehouses in New Delhi, Chennai, Ahmadabad and Mumbai
are further transferred to the active chain of distributors on demand. Distributors take sales
orders and then pass on to the FBS and then invoice is generated by Future Bio. It currently
has a distribution model which performs sales through two channels and proportions:
 Indirect Selling – Through Distributors (90%)
 Direct Selling – On its own (10%)
Its 90 % sales are through distributors and 10% direct sales. In direct sales FBS has key
accounts the leading Government Institutes engaged in research work and many leading
universities of the country which are actively participating and giving their immense
contribution in health sector.

27. Proposed Business to Customer Distribution Model
Future Bio Science
FUTURE BIO
WAREHOUSES
FUTURE BIO
WAREHOUSES
Distributors Distributors
Distributors
Distributors
Scientists/Doctor
s

28. FUTURE BIO DISTRIBUTION MODEL
CURRENT SCENARIO
SUPPLIERS
• Company manufacturing units and
imports(Laboratory Equipments)
• Company supplying units to distributors
DISTRIBUTORS
• Distributors Recieving units(Lab Equip)
• Further supplying to Hospitals and
Scientists and govt. institutions.
Scientists
• Institutes recieves imports.
• Scientists uses them for research and
devlopment processes.
For implementation and practicing of distribution model of direct selling, the company needs
to understand the market and customers. Our end customers are big corporate and
government institutions and doctors engaged in research and development processes. The
patients or general public benefited from these research processes are not our end customers.
The product is a technical product and requires huge amount of knowledge to sell. As bio-technical
equipments are products used by scientists and doctors, the company cannot go for
advertising through electronic and print media as restricted by Indian authorities through
various rules and laws. At the same time, we also have extreme pressure from the same
Indian authorities not to increase the selling prices of the products further and the authorities

29. require under the rules to fix a maximum retail price (MRP) on the products. The reason of
this is the same that all the products are being biotechnical equipments used for R and D
processes for further development of health products.
To go for direct selling model FBS needs to understand market point of view and its
customer. What they think about the direct selling. Are they happy with the current scenario
in which distributors are involved? Are the doctors ready to accept supplies of units through
the middlemen that are distributors or do they want to trade with company directly?
Survey Conducted On Hospitals:
I conducted a survey on big corporate hospitals to understand the hospitals point of view.
The Big corporate hospitals where I conducted the survey are:
 B.L Kapoor, Hospital, New Delhi
 Sir Ganga Ram, Hospital, New Delhi
 Action Cancer, Hospital, New Delhi
 Max, Hospital, New Delhi
These hospitals are not hospitals they are now big corporate. They employ doctors on
packages and operate in a corporate manner.
After receiving units from distributors, these corporate hospitals intentionally and
deliberately make delay in payments to the distributors, say after six months or 4 months on
an average. The hospitals make delay in payments deliberately to bother them and with the
intent to throw them out of the chain. The delay in payments suffocates the distributors. They
receive payments very late and have to make the payments to their supplier in time that is on
dates which are fixed, usually it is 30 days. The distributors receive payments late from the
hospitals and make the payments to their supplier early. This puts distributors in credit
crunch.
These corporate hospitals want to deal and trade with companies directly. They want to
remove the middlemen tactfully by delaying their payments and putting them in financial
crunch. They know the financial limitations of the distributors and their credit limits with the
company normally being one month. Most importantly they want to remove their margin as
to bring down the cost.

30. After removing distributors and wiping out their margins hospitals will be able to bring
down the average cost and budget allotted for research and development. On the other hand
distributors are indeed fed up with the corporate hospitals as these hospitals make payments
late and they (distributors) have to pay to their suppliers early. This puts distributors in credit
crunch.
Loss to the Company:
The company wants to directly deal with these research institutes but at the same time
company has to maintain the inflow of the cash as importing these equipments from the
principal companies involves huge investments as these equipments are very expensive.
So, for encouraging the distributors not to quit and keep doing business for us FBS cut down
its own margins for distributors to lure them for keep ordering and maintaining the inflow of
the cash. The distributors not only makes the payment on time but also eradicates the
company’s obligation of getting the equipments installed at the location. Distributor hires the
team of engineers who are well aware of the product not only installs the machinery but also
take cares repair and maintenance of these high end machineries.
Distributor Operating Network
Catering Different
Parts of Delhi
Distributor’s
Office
Location –
Janak Puri
New Delhi
Distributor’s
Warehouse
Location –
Janak Puri
New Delhi
FBS

31. Problems and Limitations
All studies have limitations. The limitations of the study are those characteristics of design or
methodology that impacted or influenced the application or interpretation of the results of the
study. They are the constraints on the generalizability and utility of findings. The following
were some of the limitations of the project-
 As we are importing all the equipments. So, all the orders are invoiced in foreign
currency and dollar value keeps on fluctuating every day.
 Government Policies, governments at times keep changing the excise duty rate
usually higher than the previous or existing rates which drastically effects the
profitability of the company.
 Mishandling of the goods while the goods are shipped or in the process transit.
 Shipment in transit for longer durations, when shipment remains in transit for longer
duration and the delivery of the goods cannot made on time to the part as committed it
effects the goodwill of the company as well as the penalty as per written in the terms
and conditions of the order .
 Many customers were more inclined towards hefty discounts but being the company
policy not more than 10 % discount was allowed to the customers with the exception
being bulk orders.

32.  As the project is prepared for academic purpose it suffers from the limitation of the
time and due to which a detailed study into all the strategies adopted by the
organization was not possible.
 The Product in which we are dealing is very technical and I had no idea about the
product and the equipments to be handled.
 In doing market observation survey, the resistance and reluctance shown at the
distributor and the customer end have caused time consuming activity keeping my
observation to limit only.
Analysis

33. Swot Analysis
 STRENGTHS-Core
competencies in quality and performance technologies. The Quality we are
supplying at FBS is unmatched and far better than other players in the same segment.
Strong brand name, image and reputation among the scientists and doctors and corporate
hospitals.
The supply chain network of the company is very effective as already discussed under the
head of methodology.
We are doing 90% of our sales through the distributors which provides the institutes and
the hospitals to have enough time to make the payment.
Employees at FBS are very much motivated and dedicated.

34.  WEAKNESS-Unmatched
quality comes with a hefty price tag, so this sometimes acts as a weakness
and many scientists are not convinced with our prices for whom budget is a constraint
prefer other inferior brands.
No advertising and promotions- Since the product is technical and is of no use for the
general public we cannot market are products through the electronic media or through
papers. It becomes very difficult to convince our end customers the scientists and the
doctors or to reach them at mass.
 OPPORTUNITY-Nowadays
institutes not only the private institutes engaged into research work but also
the government institutes are heavily spending on research work and activities requires
research. So it has given a lot of opportunities to players already into the business and for
new entrants.
 THREATS-The
manufacturing plants of these high end equipments involves huge investment. China
has seen immense growth in this industry and heftily investing for the manufacturing
units and supplying at much cheaper rates. Also any change in the Govt. policies would
also act as a potential threat.

35. PORTER’S FIVE FORCES MODEL
Threat of Substitute Products - High
Demand for research products is connected to the growth in the economy as the budget for
research activities is made in the beginning of the financial year. The biotech industry has
seen an increase in substitute products due to the increase in demand for biotech equipments
over the past ten years. This threat of substitution for bio-technical equipment manufacturers
is currently high, however, we would expect a decrease in substitution threat as the recession
lingers.

36.  Threat of New Entrants - Low
There are many manufacturers in this industry with a declining long-term demand. We
would not expect to see new entrants because manufacturing these units requires huge
investments and already the economic condition of the country is not stable. We are
witnessing the low budget allocation towards the health care sector.
 Bargaining Power of Buyers - High
Buyers have ultimate buying power with numerous options from competitors and
substitute products. Buyers also only buy biotech equipments sporadically and are
therefore not typically loyal to one brand. The demand for these products does not rises
seasonally and also requires huge cash support. Also the end customers the scientists have
discretion to buy products in which they go for their personal interests and benefits.
 Bargaining Power of Suppliers – Low
The inputs to manufacturing are not basic commodities and are specialized and
technologically advanced and requires huge cash support. Also demand for these products
generates sporadically, given this understanding of the products being supplied we can
assess that supplier power is low.
 Rivalry Among Competitors – Intense
The competitive forces (downward pressure on prices, declining demand, increased
imports) are causing increasing rivalry among competitors, including foreign competition.
Thus, for FBS the Rivalry among its competitors is intense.

37. Recommendations
A. Future Bio should prefer for direct selling distribution model or Business to Customer
model because by eliminating the distributors or channel partners:-
i. The company gains profits while withholding margin of distributors.
ii. The company further gains profits in the form revenues from selling the
medical equipments directly to the hospitals and medical institutes.
iii. There is an increase in profits of the company due to reduction of variable
cost. The elimination of intermediaries is the reason of lowering of the
variable cost.
iv. The company further enhances its earnings through increase in sales as the
cost of distributors will reduce and more customers will go end buying for
FBS those earlier could not afford due to lack of money or budget constraints.
B. As the research recommendations are mostly made by the doctors and scientists and
not by the hospitals, the company can have tie ups with different medical
institutes and colleges where they can incorporate courses where training can be
provided to doctors and scientists using FBS instruments and machineries. Each
principal company has their own set of instruments that are used while researching
and developing activities are being performed. As till now in medical institutes and
colleges, the knowledge provided to upcoming doctors and scientists are on by theory
classes. Only after the completion of the courses, the companies train doctors and
scientists using their instruments. So if the company has their own training programs
in medical colleges, the doctors can get a practical experience along with the
knowledge provided by the Institute. Doing this the company can not only make the
doctor’s brand loyal as they have been trained using FBS instruments but also market
their products.

38. C. FBS is hiring majority of its employees from biotech background as they believe they
have better product knowledge and understanding towards highly technical products
and not from management background as the product line does not require and
marketing and sales promotion activities.
But I believe the management background professional are very innovative and can be
very effective in enhancing the overall growth of the business.

39. Conclusion
The past months of my internship have been very instructive for me. FBS has offered me
opportunities to learn and develop myself in many areas. I gained a lot of experience,
especially in the field of operations. A lot of the tasks and activities that I have worked on
during my internship are familiar with what I’m studying at the moment. I worked in many
areas where I did different work. This gave me the chance to find out which areas I want to
work in after my education. The area that I found most interesting is supply chain
management.
Before my internship started my ideas did not match the experiences that I have gained
during my internship. There is a big difference in the school projects and the tasks and
activities during the actual work. In school we learn how to describe the work in projects,
where in work you learn how to implement them in reality. This internship was definitely an
introduction to the actual work field for me. I have learned to work in a business organisation
and apply my knowledge into practice.
On the whole, this internship was a useful experience. I have gained new knowledge, skills
and met many new people. I achieved several of my learning goals, however for some the
conditions did not permit. I got insight into professional practice. I learned the different facet
of working within real life situations. The internship was also good to find out what my
strengths and weaknesses are. This helped me to define what skills and knowledge I have to
improve in the coming time. It would be better that the knowledge level of the language is
sufficient to contribute fully to projects. After my master I think that I could start my working
career.
At last this internship has given me new insights and motivation to pursue a career in supply
chain in future. This internship was definitely beneficial for me and I’m grateful and thankful
that I got to experience and learn many things.

40. Bibliography
http://en.wikipedia.org/wiki/Distribution_(business)
http://en.wikipedia.org/wiki/Procurement
http://www.futurebioscience.net/