final report abbot

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RELATIONSHIP MANAGEMENT ABBOTT

Term Report

1. M. HASSAAN AHMED KHAN(1948)2. BILAL AHMED PARACHA(2228)3. WAQAS SALEEM(2142)4. M. SAAD KHAN(2074)5. ABDUL RASHEED SONIJA (2066)

IQRA UNIVERSITY GULSHAN CAMPUS

Submitted to:

MR. SOHAIL MAJEED

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Abstract

In this report the process of supply chain management, supply chain management

structure, material flow of the Abbott laboratories Pakistan Ltd is being discussed, furthermore

supply chain relationship is also discussed in details with having context of building relationship

on long-run basis. In the lights of significance of relationship among the management and

suppliers of certain issues and remedies are also being included in this report. Distribution of

ABBOTT, import material and export of product with respect to role of indenter and benefits of

indenter which also facilitate the buyers and suppliers with mutual gain or win win respective.

Policies are also being discussed in details and recommendation is also considered in this report.

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We dedicate this report to our Faculty Mr. Sohail Majeed Iqra

University Gulshan Campus. Mr. Sohail challenged us to do work

on an organization in context of supply chain management and

successfully we collect information, gather and present the

information in professional way. With clear vision and

determination plus the support of Mr. Sohail, we able to make

report on a centralized organization namely as ABBOTT, therefore

we all group members like to dedicate this report to Mr. Sohail

Majeed.

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CONTENTS

Abstract...........................................................................................................................................2 Table of Figures..............................................................................................................................6 INTRODUCTION..........................................................................................................................7

COMPANY PROFILE.........................................................................................7 SUPPLY CHAIN MISSION ................................................................................7

ABBOTTS SUPPLY CHAIN STRUCTURE.............................................................................8 SUPPLY CHAIN PROCESS

................................................................................................9

MATERIAL MANAGEMENT DEPARTMENT .....................................................................11 APPROVED DEMAND FORECAST ..............................................................13 APPROVED SUPPLY PLAN............................................................................13 MASTER PRODUCTION SCHEDULE ..........................................................13MATERIAL MANAGEMENT PLANNING ...................................................13BID SHEET .........................................................................................................14

BID SHEET + INDENT TO IMPORT LC ......................................................14

APPLICATION FOR OPENING LC:......................................................................15 INDENT OR PERFORMA INVOICE .............................................................16 DELIVERED FORMS BY BANKER TO IMPORTER..........................................16PREPARATION OF L/C BY BANKER.................................................................16 WORKING OF MATERIAL FLOW ...............................................................17

RELATIONSHIP MANAGEMENT..........................................................................................19 DEVELOPING RELATIONSHIP WITH SUPPLIERS ................................20

Supplier performance evaluation tools .....................................................................21 ROOT CAUSE ANALYSIS...............................................................................21

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MATERIAL CLASSIFICATION .....................................................................24 LOCAL PURCHASING ....................................................................................24 IMPORT PURCHASING ..................................................................................25 INDENTER .........................................................................................................25 IMPORTED RAW MATERIALS ....................................................................25 ADVISING BANKS of ABBOT PAKISTAN...................................................26FEW SHIPPING COMPANIES THROUGH WHICH ABBOT PAKISTAN

IMPORTS RAW MATERIALS..................................................................26 EXPORT..............................................................................................................26

ABBOT DISTRIBUTION CHANNEL......................................................................................27

ABBOTT POLICY FOR SUPPLIERS ......................................................................................28

DOCUMENTATION AND INVOICING ........................................................28RESTRICTIONS ................................................................................................28

RETURN......................................................................................................................29 CONDITIONS FOR RETURNING RAW MATERIALS..............................29RETURN OF MATERIAL ORDERS (MOS) ................................................29

WASTAGE HANDLING ...................................................................................29 RETURN OF FINISHED ORDERS (FOS) ....................................................30

OBSERVATION AND RECOMMENDATION.......................................................................31 References .....................................................................................................................................33

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Table of Figures

Figure 1. Supply Chain Structure. .................................................................................................. 8

Figure 2. ....................................................................................................................................... 10

Figure 3 Supply Chain Process (cont.)......................................................................................... 10Figure 4. Material Flow. ............................................................................................................... 12Source Reportbd.com.. . ................................................................................................................ 15Source: Gartner Consulting; 2001. ............................................................................................... 20Figure 5 Abbot Distribution Channel. . ........................................................................................ 27

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INTRODUCTION

COMPANY PROFILE

Abbot Laboratories (Pakistan) Ltd, The firms main core activities are to trade in,

produce and market based pharmaceutical, dietary, indicative, medical (hospital) and consumer

products and facilitates toll-manufacturing services. It functions in two divisions Pharmaceutical

and other. Pharmaceutical division produce, trade in and markets research based pharmaceutical

products registered with the ministry of health and provides toll-manufacturing services. Other

divisions includes importing, manufacturing and marketing diagnosing equipment, testing kits,

consumer healthcare, nutritional and hospital products. The companys pharmaceutical products

include Kalaricid, Erthrocin, Hytrin, Epival, Brufen, Entamizole, protium and Forane. The other

products include Ensure, Pediasure, Pedialyte, Formance etc (Abbott Company Info, 2010).

SUPPLY CHAIN MISSION

ABBOTTs SCM mission is to configure, coordinate and improve all the sequentially

related activities and set of operations with the idea of satisfying the entire chain of suppliers

suppliers and customers customers by providing right product, at the right time, in the right

quantity and becoming highly recognized by our employees, customers and shareholders and

abiding by Government regulations by adhering to strict ethical and moral standards.

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ABBOTTS SUPPLY CHAIN STRUCTURE

Figure 1. Supply Chain Structure.

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SUPPLY CHAIN PROCESS

Vendors

Price Sample

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Figure 2. .

Figure 3 Supply Chain Process (cont.)

Institution Distributors Export

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MATERIAL MANAGEMENT DEPARTMENT

As a group we visited the material management department and after having the

conversation with the officials of