This document discusses the supply chain management of a pharmaceutical company. It describes the key steps in the pharmaceutical supply chain which include: procurement of raw materials, manufacturing, storage in warehouses, distribution to distributors, hospitals and pharmacies, and marketing and sales to consumers. It emphasizes the importance of planning, forecasting, quality control and regulatory compliance in the pharmaceutical industry given the sensitivity of drugs.

1. Presented by:
 Syed Nabeer Ali Rizvi………….. 14747
 Salik Raza Zakai………………….12740
 Muhammad Shaqran Akhtar..10914
 Farooq Muhammad……………..12779
 Junaid Ather………………………..
Supply Chain Management

2. Introduction
SJ&G is one of the oldest pharmaceutical company established in
1889 and started local manufacturing in 1967, in its well-
equipped manufacturing plant.

3. Pharmaceutical Industry Overview
Pharmaceuticals directly affect millions of people’s health,
industry manufacturers are very strict about ensuring the safety and quality of
drugs at each level of the supply chain. These companies use fixed, regulator-
certified suppliers of raw materials. Companies also store the raw and packaging
materials in separate warehouses.

4. Raw Material & Packaging Material
Material Warehouses
Distributors
Finished Goods Warehouses
Manufacturing Units
Consumers
Pharmacies / Hospitals
Supply Chain Model of Pharmaceutical Industry

5. Supply Chain Management
After a company processes the raw materials, it makes the final drug at the manufacturing
unit. A company that has a single manufacturing unit uses only one warehouse, while a
company with multiple manufacturing units stores its drugs in central and regional
warehouses.
Next, distributors and super stockists receive the drugs and supply them to entities in the
retail segment:
 hospitals
 pharmacy stores
 health care centers
 clinics
Then, retailers sell OTC drugs directly to consumers. A prescription drug purchase
requires authorization from a qualified doctor.

6. WHAT IS SUPPLY CHAIN MANAGEMENT?
 Supply Chain Management (SCM) includes all the activities that must take place
to get the right product into the right consumer’s hands in the right quantity
and at the right time – from raw materials extraction to consumer purchase.
SCM focuses on planning and forecasting, purchasing, product assembly,
moving, storage, distribution, sales and customer service. SCM professionals
are involved in every facet of the business process as they strive to achieve a
sustainable competitive advantage by building and delivering products better,
faster and cheaper.

7. Planning and Forecasting
 Demand forecasting: This is the investigation of the companies demand for an item or
SKU, to include current and projected demand by industry and product end use.
 Supply forecasting: Is a collection of data about our current production and suppliers,
as well as technological and political trends that might affect supply.
 Price forecast: This is based on information gathered and analyze about demand and
supply. It provides us prediction of short- and long-term prices of our products and the
underlying reasons for those trends.

8. Factors Effecting Planning and Forecasting
 Season
 Competition
 Market Research
 Project planned
 Sales trend

9. Importance of Planning & Forecasting
 Increasing customer satisfaction
 Reducing inventory stock outs
 Scheduling production more effectively
 Lowering safety stock requirement
 Reducing product obsolescence costs
 Managing shipping better
 Improving pricing and promotion management

10. Planning and Forecasting
SALES FORECAST 2019
S/N Countries Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
1 Afghanistan 142,973 147,263 161,989 170,088 142,973 147,263 186,475 195,799 205,589 215,868 226,662 226,662 2,169,604
2 SriLanka 20,653 20,653 21,693 18,340 26,585 27,085 28,660 31,565 35,158 36,220 39,165 39,515 345,290
3 Myanmar 20,350 21,550 20,140 18,635 27,175 27,390 28,640 31,745 32,565 34,865 36,365 36,365 335,785
4 Tajikistan 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
5 Kyrgzstan - - - - - 5,000 5,000 5,000 5,000 10,000 10,000 10,000 50,000
6 Vietnam/Cambodia - - 15,000 - - 15,000 10,000 5,000 20,000 10,000 10,000 25,000 110,000
7 Uganda/Rwanda/Kenya - - - - - - 30,000 15,000 15,000 30,000 30,000 30,000 150,000
Sales 193,976 199,465 228,821 217,063 206,733 231,738 298,775 294,109 323,311 346,953 362,192 377,542 3,280,679
EXPORT SALES FORECAST 2019

11. Procurement / Purchasing
 Procuring Raw Materials and Other Resources
One role of our purchasing department is to procure all necessary materials needed for production or
daily operation of the company.
 Achieving the Best Possible Price
Our purchasing department also is charged with continuously evaluating whether it is receiving these
materials at the best possible price in order to maximize profitability.
 Paperwork and Accounting
Purchasing department handle all of the paperwork involved with purchasing and delivery of supplies
and materials. Purchasing ensures timely delivery of materials from vendors, generates and tracks
purchase orders and works alongside the receiving department and the accounts payable department
to ensure that promised deliveries were received in full and are being paid for on time

12. Procurement steps
• Procurement life cycle in our organization consists of 7 steps:
1. Identification of need
2. Supplier Identification
3. Supplier Communication
4. Negotiation
5. Purchase Orders
6. Logistics Management: expediting, shipment, delivery
7. Payment

13. Manufacturing - Workflow

14. Transportation
Pharmaceuticals typically require special attention
and handling throughout the supply chain.
As temperature-sensitive biologically based products
continue to rise, so, too, do a myriad of obstacles for
freight forwarders and transportation companies.
The growing cold chain industry calls for adaptations
in pharmaceutical transportation in order to meet
and exceed growing temperature requirements and
safety compliance regulations.

15. Types of Products
 Medical substances:
It is a wide category that covers natural and synthetic substances of various physical and chemical
origin. As cargo, most medical substances are fragile and sensitive to fluctuations in temperature and
humidity. For instance, medical liquids are bottled in glass tare. In order to keep cargo safe and
mechanically undamaged, medical liquids are secured within a vehicle with excess space filled with
soft packaging materials.
 Medical supplies:
This category includes various instruments, equipment, materials, reagents, and appliances used for
medical purposes. During transportation of this kind of cargo, quality deterioration should be
prevented and exploitational characteristics should be preserved. Medical supplies, like medical
substances, must be marked accurately in order ensure appropriate transportation.
 Medical equipment:
Hi-Tech equipment is categorized as expensive and fragile, therefore triggering certain transportation
requirements. In addition, medical equipment is often of non-standard configuration and size and
therefore classified as oversized cargo.

16. Warehousing
 Pharmaceuticals are stringently regulated by the Food and Drug Administration
(FDA). The FDA’s regulatory standards for the industry are referred to as Current Good
Manufacturing Practice (CGMPs; also known as “Good Manufacturing Practice”
[GMP]) standards. These standards apply to warehouses, processes, and to the drugs
themselves.

17. CGMPs Related to Warehousing
CGMPs related to warehousing include:
 Drugs must be stored to prevent contamination, and be positioned to allow for
inspection and cleaning of the area.
 Each lot of drug products must be identified with a distinctive (and traceable) code,
and the lot’s status must be identified (approved, quarantined, rejected).
 Written procedures must describe the distribution process for each drug. This includes
procedures for recalls.
 Written procedures must describe the appropriate storage conditions for each drug.

18. Distribution

19. Manufacturer

20. Sales & Marketing (Customer Care)
 Free samples
 Continuing medical education
 Pharmaceutical representatives
 Peer influence
 Key opinion leaders
 Colleagues
 Journal articles and technical documentation
 Free Medical Camps
Forecasting