The document provides information about the Indian healthcare market, diagnostic industry in India, Biswayan Diagnostic Center (BDC), and suggestions for improving BDC's operations. It notes that the diagnostic equipment market in India is large and growing, and BDC aims to provide quality diagnostic services. It analyzes BDC's suppliers, procurement processes, use of IT, and challenges. Suggestions for BDC include investing more in IT, improving processes through documentation and standardization, and revising supplier selection criteria.

1. Amit Kumar (MS08A003)Sourav Dutta (MS08A050)Sunayan Pal (MS08A053)

2. Indian Healthcare market InformationBig market – Medical technologyForeign hand in Indian marketDiagnostic equipments accounts for the largest portion of the medical technology market (Rs 5750 Crores) in IndiaImport comprised over 50% of the medical devices market in 2007 Source : National institute of pharmaceutical Education and Research

3. Diagnostic industry in IndiaIndia's diagnostic industry is headed for a major boom. Domestic diagnostic industry Market size : USD 500 million Growth rate : 20 % CAGR (Compound Annual Growth Rate) over the last five years.Around 70 % of treatment decisions in the country are based on lab resultsBy 2010, 2 million patients are expected for clinical trials translating into 20 million tests.Key business drivers for this industry are:Emergence of the country as a preferred global R&D hubExpansion of the clinical trials marketOpening up of the health insurance industry for privatization- International health insurance companies when enter India, will tie up with chain of labs thereby changing the face of the diagnostic industry.Increased health awareness and quality consciousness in urban India resulting in an increased test prescription rateDemographic of the countries :old age populations requiring much of the diagnostic services.

4. Government forcesMuch influence of government on the types of diagnosis and their quality to be done. Moderate control on the prices and type of services can be provided.Power of SuppliersTwo types of suppliers: One is the equipments suppliers and other patients for the diagnosis (Doctors). Doctors have huge bargaining power here where as equipments suppliers power is limited.Barrier to entryBarrier to entry is high as it requires huge capital investment initially. Government policies supportive of entry. Economies of scale exist.Threat of SubstitutesVery less but new technologies can pose threat. Equipments available for certain self diagnosis by patients.Industry CompetitionIt is a highly competitive industry because of many players and being an unorganized sector. High fixed cost and medium to high working capital required.Power of BuyersEnd customers do not have much bargaining power. Brand identity exists but is in the hands of influencers (Doctors).Price sensitivity is less .Porter’s 6 force models

5. Biswayan Diagnostic Center (BDC) Vision:Total Commitment, Compassion & Care, backed by Corporate Excellence

6. To serve a way of lifeAbout BDC Started its 1st Operation in July 2003Two more centers will be open on May 2010One stop solutions for Medical Services and medicines.Parent group Name: Mahamaya Enterprise ltd. CoalTransportationSteel rodsCementCore competenciesKnown for provided quality reports and quality services to all its valued customers.Provides state-of-the-art computerized technology for procedural investigations.Thrive for efficiency and excellence.Highly dependable, ultra modern, multi-specialty diagnostic referral centre.Latest and modern technology, prompt and efficient services by efficient professionals.Responsible for not only patient's curative needs, but also ensures the affordability.

7. Reporting Hierarchy of the Biswayan diagnostic center (BDC)

8. Services offered by Biswayan Diagnostic Center Laboratory ServicesRadiology ServicesEurology ServicesInfertility ServicesIndoor ServicesClinic ServicesPreventive Healthcare ServicesHaematologyMicrobiologySerologyClinical PathologyEndocrinologyCytopathologyHistopathologySemenologyCT ScanHigh Power X-Ray (500MA)Digital X-RayDental X-RayContrast Radiology ProceduresUltra SonographyPeripheral DopplerGuided FNACEEGEMG / NCVIUI / IVFConsultation to ProceduresEye / ENT SurgeriesConsultants of various DisciplinesHealth Check-up Packages

9. Traditional Procurement Cycle InefficienciesInefficiencies in procurement cycle lead to : Sub-optimal unit pricesLong order fulfilment cyclesHigh inventory levels High processing costs

10. Procurement – The 3 Cycle ModelHospital procurement cycle is actually having 3 distinct cycles: Sourcing Cycleorder management Cycle Payment CycleAn effective procurement strategy should address Opportunities for :increase efficiency by 25%minimum of 20% savings

11. Key Entities of Biswayan Diagnostics Center (BDC):Doctors ( general and specific)Para medical staffsInfrastructureMedicineDiagnostic equipmentsTesting reagentsLaboratory equipmentsDiagnostic equipmentsOffice stationaryComputers, printers, scannerSecurity devicesAmbulancesKey Suppliers in surgical, lab and diagnostic equipmentsGlobal PresenceGE HealthcareSiemens AGPhilipsWipro H.CJohnson & Johnson

12. Procurement ManagementOverall viewDetail View

13. Supplier Selection of the Diagnostics equipmentsThe AHP ModelAlternativesWipro H.CGE HealthCareSiemens A.GResult Summery

14. Indian Medicine market InformationPharma Companies in IndiaDoctor’s Preference

15. Purchasing mode of MedicinesMedicines are bought from wholesaler and Local DistributerThere are 3 ways on which the medicines are bought:

16. Purchasing mode of Medicines

17. Purchasing mode of Equipments Inventory Projections:By using IT systems

18. Stores update their own database and place order when reorder point is reached

19. Analysis and demand projection done on product basisSupplier Selection Criteria:After sales Service /AMC

20. Technology

21. Price\Payment flexibility

22. Quality

23. Customer RelationshipPrice and Cost StructurePrices of the Medical services and medicines were determined by the market rate.BDC follow a competitive pricing strategy (lesser price than the nearby diagnostic centers)Equipments which cost more than 8-10 Lakh are purchase using a 3-5 year term loan. GE is a one stop shop (Can purchase equipments and avail financing using the GE finance).Important Cost Drivers for BDC:General Price Influencers:Purchase Price of the machineAnnual maintenance contract (AMC)Interest paid against loan ( if finance using a term loan)Tax paid annuallyMachine insurance costPara medical operator salaryGeneral administrative costParticipation in collaborative contacts where price advantageousUtilization of early discount payments wherever possible Price trend analysis and audits on a selected range of products or contracts to ensure contract conformanceProactive seeking of price reductionsNegotiation of additional benefits in terms of additional goods and servicesprovided with contracted suppliers.