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TRANSCRIPT
Presentation
Presented to : SIR FAROOQ AZAM
Presented by :
AYESHA HABIB(BBC-09-34)
ASHIFA HAMID(BBC-09-61)
ZAINUB MUSTEHSAN(BBC-09-69)
Company Profile
• Abbot Laboratories (Pakistan) Ltd. The company’s principal activities are to manufacture, import and market based pharmaceutical, nutritional, diagnostic, hospital and consumer products and provides toll-manufacturing services. It operates in two segments Pharmaceutical and other. Pharmaceutical segment manufactures, import and markets research based pharmaceutical products registered with the ministry of health and provides toll-manufacturing services.
Company Profile
• Other segments includes importing, manufacturing and marketing diagnosing equipment, testing kits, consumer healthcare, nutritional and hospital products. The company’s pharmaceutical products include Kalaricid, Erthrocin, Hytrin, Epival, Brufen, Entamizole, protium and Forane. The other products include Ensure, Pediasure, Pedialyte, Formance etc.
Abbott Pakistan
• Abbott has approximately 70,000 employees worldwide and a global presence in more than 130countries. Abbott Pakistan started operation in Pakistan as a marketing affiliate in 1948. The company has steadily expanded to compromise a work force over 1400 employees. Currently two manufacturing facilities located at Landhi (largest tablet manufacturing plant) and Korangi in Karachi continue to use innovative technology to produce top quality pharmaceuticals products. The diagnostic division operates from its office located at Korangi, Karachi.
Abbott
VISION
“To be a premier health care company in Pakistan”
Abbott
MISSION
To deliver consistently superior products and services which contribute significantly to improve the quality of life of the consumers? This will be achieved while ensuring that
the interests of all stakeholders including healthcare providers, employees, share holders and the communities are secured. Abbott Pakistan will comply with the highest
standards of local cGMP/EHS and adhere to the corporate code of Business Conduct and Ethics.
Supply Chain Mission
Abbott’s 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 and 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”.
Core values of Abbott
PIONEERING
CARING
ACHIEVING
ENDURING
ABBOTT
CAPABILITIES OF ABBOTT
AGILITY
COMUNICATION LEADERSHIP
INTEGRITYY
QUALITY OF EXECUTION
Core Competencies Of Abbott
PRODUCTS & SERVICES
CUSTOMER INTIMACY
OPERATIONAL EXCELLENCE
PEOPLE
Supply chain Integration
MARKETING
TRANSPORTATION
SUPPLIER
WAREHOUSE (M O)
Manufacturing
WAREHOUSE ( F O)
CUSTOMER
RETAILERS/ WHOLESELLERS
DISTRIBUTORS
I N F O R M A T I O N F L O W
P R O D U C T F L O W
Abbott’s Supply Chain Structure
MASTER SCHEDULER
CAPAPCITY PLANNER MASTER
SCHEDULER
SUPPLY CHAIN MANAGER
LOCAL/ IMPORTED PURCHASE MANAGER
EXPORTS MANAGER
WAREHOUSE MANAGER
MATERIALS MANAGER
PRODUCTION PLANNER
PRODUCTION PLANNER
Supply Chain Process
Marketing ( Demand Generated)
Vendors (Quotations asked)
LC
Follow up ---import & dispatches
Manufacturing Planning
(Demand Generated)
Material Planning
Material in Warehouse
Clearance Transit Time
Material Available For Production
QA
Released by QA
Production
Central Depot’s
FO Quarantine (Sampling test by QA)
FO Batches
Packing line
Dispatches
Wholesalers
Satellite Depot’s & Distribution
Retailers
Institutions
SCOR Model
PLANPLAN
DELIVER MAKE
SOURCE
RETURN MO
RETURN FO
Enable
RM Manufact
urer
Make Deliver Source Make Deliver
Make Source
Deliver
Source
Deliver
Source
Plan
Indenters
ABBOTT Lab Pakistan
Distributors
Return Return Return Return Return
Return
Supplier
Supplier’s Supplier Company Customer
Whole salers
Customer’s Customer
PLANNING
• According to the external customer.• Past sales are taken into consideration.• Ads flexibility
PROCESS VIEW OF SUPPLY CHAIN
Push process is applied when forecast of every product is done and every product forecast is different from country to country due to the fact that in different country’s disease are different due to environment and various other factors. This requires different medicines. Pull process is performed when uncertain demand for any medicine increase for example when Dengue occurred there was increased demand for mosquito repellent lotion and injections.
Achieving Strategic Fit
Abbott achieved strategic fit through lean production. They control the upstream and downstream of products, services, finances and information through aligned goals and strategies. That collaboratively work to reduce cost and waste by efficiently and effectively pulling what is needed.
BUSINESS PLANNING
The executive management of ABBOTT Pakistan does the long term strategic planning. Every 7th day of the month they conduct a SNO (Sales and Operations) meeting. It is reviewed in the SNO meeting to highlight the gaps in performance if there any, and to make adjustments if required.
BUSINESS PLANNING
A D S
SNO MEETING
DISCUSS
PROPOSED FORECAST
Business Planing
Marketing department gives the forecast to the supply department and then it’s their job to make available all the resources required from the purchases till the delivery of end product to the consumer on the ATP (Availability to promise) .This is how they satisfy their external customers.
APPROVED DEMAND FORECAST
In ABBOTT Pakistan the demand is forecasted by the Marketing department. The Marketing department provides 24 months rolling aggregate demand forecast, which is known as ADS (Approved Demand Statement). This statement shows individual demands for all product lines demanded by end users to whom we are providing quality healthcare products.
ABNORMAL DEMAND PLANNING / HANDLING UNCERTAINTY
Abnormal demand is a demand, which comes unexpectedly Like at the time of War, NATURAL DISASTERS OR ANY EPIDEMICS According to ABBOTT they have a policy to maintain six weeks safety stock to handle the uncertainties and they have positioned themselves to handle such abnormal demand like ABBOTT did with MOSPEL at the time of Dengue Virus.
APPROVED SUPPLY PLAN
This plan is made on the bases of ADS and is approved once the supply department has made the initial supply plan. Then after the supply plan has been made it is forwarded it to the MM (Material Management Department.)
MASTER PRODUCTION SCHEDULE
The entire production is based on this plan weather it is Tablet, syrup, injectables or syrup manufacturing. This is set up on the bases of forecasted and some times abnormal demand as well. Date for all the batches is set up according to this plan but when there is a sense of urgency then there are some changes made.
CUSTOMER
MARKETING
MAS
MANUGISTICS
MANUFACTURING
MASTER PRODUCTION ARRIVAL
This is the inventory, which is going to arrive in bulk, and it is the job of Master Production Scheduler to arrange the bulk. This bulk can either be for export or for the market demand done through forecast. He also sets up when to make the required batch on which date.
STOCK KEEPING UNITS
ABBOTT Pakistan has 270 SKU”s, out of which 240 Pharma products and 30 are Nutritional products.
SAFETY STOCK
The raw material, which is stored in extra units in warehouse, is known as safety stock. ABBOTT maintain a MO and FO safety Stock of 6 weeks
MATERIAL MANAGEMENT PLANNING
ABBOTT Pakistan is using MRP II to effectively and efficiently handle the Material issues, which is based on the information’s provided by MPS, It has been adopted by ABBOTT Pakistan due to the imposition posted by ABBOTT International, Chicago. This requirement tells us on the system what is the quantity required according to the Master Production Schedule. All transactions are made electronically into BPCS known as Business Planning & Control System. If there is an additional requirement due to abnormal demand then there are some changes made in MRP.
CAPACITY PLANNING
ABBOTT Pakistan have a CCR system known as Capacity Consumption Rate which tells us, the consumption rate of the resources, which are available for the production, and on the bases of this update a new planning is developed depending on the consumption rate. A capacity control process is used to measure and manage the resource requirements and where appropriate, the work through put and queue levels. Once they got the ADS than they sub divide that plan into monthly basis and adjust the machines capacity according to it. The planned capacity utilization at ABBOTT is approx. 95%. And to manage the capacity control process ABBOTT Pakistan is using a system known as BPCS which stands for Business Process Control System.
MAKE OR BUY DECISION
As far as the make or buy decision is concerned, some of the products are imported. The primary reason for importing those products is that the quality of the raw materials is not up to the mark or they are very expensive. Also, these products cater to a very small market segment and manufacturing them here would not be profitable. Therefore ‘C’ categorgry materials (grading as per their value) are purchased locally like for instance Pseudo used in cough syrups from Lahore (alpha chemicals).
Some of the products which ABBOTT buy from Parent company and from there subsidiaries.
• Pediasure
• Hematology Analyzers
The following products are manufactured in Pakistan.
• Tablets
• Liquids/Syrups/O.R.S
• Injectables, Creams/ Ointments.
SOURCE
In Pharmaceutical Industry there are two types in ingredients:
• Active Ingredients
• Excipient Ingredients
ACTIVE INGREDIENTS:Is an essential intergradient for any specific drug, without which a drug does not cure a respective disease?
EXCIPIENT INGREDIENTS
Is an intergradient which itself is not workable, it when mixed with some other intergradient becomes curable for a respective disease. It is against the Abbott Pakistan policy to disclose the Excipient Ingredients however some of the Active ingredients along with the suppliers and the country of origin are as follows:
• Dy Red – sencient UK
• Potassium chloride – Merck, Germany
• Sodium Citrate – Sanfu, Taiwan
• Sodium chloride – Dominon salt, New Zealand
• Acid Citric – Jungvuzlaur, Austria
• Dextrose – Rafhan Industries Faisalabad
• Artificial bubble gum – IFF Holland
LOCAL/ IMPORTED
PURCHASE EXPORTS WAREHOUSE
MATERIALS MANAGEMENT
BID SHEET
A bid sheet is a low cost effective sheet in which there are quotations form different suppliers and on the bases of that low cost suppliers are selected comparing their LANDED COST It includes:
• Representative/Agent
• Name of manufacturer and country
• Vendor status
• Quotation date
• Foreign currency
• Duty
• Landed cost/kg
• Local currency
• Exchange rates
• Cost and freight
VENDORS APPROVAL STEPS
Material Sample and vendor also provides
Certificate of Analysis & Form 7.
Quality Assurance test of the material in ABBOTT”s
own laboratory
Quality Control approves the material and assigns a
number to batch and a Yellow Sticker.
Trial Batch is made of a actual material
Stability Testing (QA)
Material Approval (QA)
Quality Assurance issue a Green Sticker (Release)
Batch Manufactured
End Product
ANALYSIS OF THE REQUIREMENT
Two general categories for vendors are:
A) Approved and Active
B) Approved and Inactive
This is the bases on which the vendors are selected and it is conducted by the ABBOTT itself in order to select the vendor who can provide the material of good quality and at low cost .The basic purpose of selecting a vendor is to have quality service provided by them and to check their EFFECIENCY & RESPONSIVENESS. Quotations from different vendors are sent through mail and on the bases of the BID SHEET, final selection of the vendor is made. There is no indenter involved in local purchases.
PROCUREMENT
ABBOTT Pakistan has two purchasing departments. One is for local purchases and the other one is for imports. The procurement function is bifurcated in two categories:
• Direct Product Related Purchases
• General Purchases
There is a clause imposed by ABBOTT Int. Chicago on ABBOTT Pakistan that if the amount of requisition value is above $ 1000, then at least 3 quotations must be taken.
GENERAL PURCHASES
General Purchases include routine items such as stationary, office equipment's, transportations and other minor items which are not directly related with production activities.
DIRECT PRODUCT RELATED PURCHASES
This includes each and every raw material that is required to make end products
MATERIAL CLASSIFICATIONS
ABBOTT Pakistan classifies its materials according to the values or the cost of materials, basically they have allotted three grades or types to their materials:
• Grade A (very costly materials)
• Grade B (moderate cost)
• Grade C (least cost)
Local Purchasing
Local purchasing department of Abbott Laboratories Pakistan deals with local vendors concerning:
• Designing –FP Plastics, Al-Ahad Plastics, Thermoplas (Korangi) > Lead Time 30 Days
• Printing–Ammara Commercial Printing (Memon Goth, Malir) > Lead Time 30 Days
• Packaging – Saima Packaging (Korangi Industrial Area) > Lead Time 30 Days
• Slicing Aluminum foils - Muhammad Corporations, Gulshan -e- Iqbal
• Cartons – Sultan Packages (Dalmiya, Karachi) > Lead time 7 Days
• Cartons – King Packages (Lalukhait, Karachi) > Lead Time 7 Days
• Cartons - Decent packages (S.I.T.E Area) > Lead time 7 Days
• Dextrose – Rafhan Industries (Faisalabad)
• Pseudo - Alpha Chemicals – (Lahore)
• Essential Chemicals – (Lahore)
IMPORT PURCHASING
ABBOTT Pakistan has indenters through which they place their orders to the respective manufacturers of raw materials. Some of the Indenters of ABBOTT Pakistan are:
• Rasheedsons - KHI
• Munico Associates - KHI
• S. Aijazuddinn - KHI
• Arfeen - KHI
IMPORTED MATERIALS’ AVERAGE LEAD TIME
• By sea is approximately 75 days
• By air approximately 45 days
Documents Required For Import
• Invoice
• Picking List
• Form 3 and 7 (Imposed by Ministry of Health which contains Batch Certificate, name of the manufacturer, raw material to get a Drug Import License from MOH)
• Bill of Lading / Air Label
• Certificate of Analysis
• Certificate of Origin
ADVISING BANKS OF ABBOT PAKISTAN
• Detuche Bank
• Standard Chartered Bank
• ABN AMBRO
• HSBC
Then after this process the LC is send to the concern suppliers and indenters and then they set the raw material to be shipped, shipment is done through different shipping company and this part is dealt by the imports department.
FEW SHIPPING COMPANIES THROUGH WHICH ABBOT PAKISTAN IMPORTS RAW
MATERIALS
• P&O NEDLLOYD
• MAERSK SEALAND
• HOPAG LLOYD
WAREHOUSE
Checking of raw material on the bases of check list
Received through MRR & kept in quarantine for QA
approval
Storage of raw/packaging material after acceptance
Handling of non acceptance material
Storage of control/locater system
Wastage Warehouse
FIFO
Storage of control/locater system
Storage of temperature sensitive material
Issue of raw material M O
Hazardous drug labeling
Material requisition return
Cold Storage (Refrigerators 2C- 8C)
Manufacturing
End Product
Quality Assurance of Finished Good
Warehouse FO
RECEIVING THROUGH MRR
Raw material is received in warehouse through MRR (Material Receiving Report).This report ensures that the right raw material for the required product is received.
FOR TESTING QA
The raw material is send to QA (Quality Assurance) for testing if it approved then it is ready for issuance to the manufacturing department also called as MFG. If it’s rejected then it is send back to the suppliers.
PRACTICES THAT SET ABBOTT APART
ABBOTT Pakistan also has a method of ensuring that such faulty material is not sold on the black market. For this reason, an employee of Quality Assurance accompanies the inferior quality materials to a disposal site where the materials are put into an incinerator where the temperature is as high as 800°C.
EXPORTS
Performa raised against the demand of products by the
exports in charge
Performa forwarded to Materials planning
Arrangement of raw material regarding the product
Invoice and bill of lading prepared
Documents sent to MOH Ministry of Health
Shipment made before the due time after all the process has been completed before.
Demand of products received by external customer
ABBOTT Pakistan fulfils the demand of countries like:
• South Africa
• Sri Lanka
• Thailand
• Bangladesh
• Malaysia
• Indonesia
• Syria
ABBOTT PAKISTAN TYPES OF PRODUCTS
TYPES OF PRODUCT:
• Tablets
• Liquids/Syrups/O.R.S
• Injectables
• Creams/Ointments
MAIN PRODUCTS
• Multivitamins
• Antibiotics
• Anti Inflammatory
• Cough and Cold
• Anaesthetics
• Analgesics
• Anti Arthritic
• Antacid
• Anti B.P.H
• Anti Epileptic
DISTRIBUTION
The distribution at ABBOTT is all about delivering products to customers at the right time, right place and in right quantity so that there are no shortages. Distribution can be done through different methods.
TYPES OF DISTRIBUTION
• Direct Distribution• Indirect Distribution
Direct Distribution is done through the manufacturing plant i.e. after manufacturing, products are distributed via ABBOTT delivery trucks to the institutions according to contracts and demand by institutions.
Indirect Distribution is all about distributing through appointed distributors i.e. those distributors who have proper contracts and than they distribute the respective product to the wholesalers and different chemists. Here, the concept of Third-party logistics (3PL) comes into play.
ABBOTT DISTRIBUTION
ABBOTT has their own depot i.e. their own distributorship in Karachi, Multan, Lahore and Islamabad dealing directly to customers
(Distributors and institutions) ABBOTT has market distributors in big cities and specific areas are assigned to each distributor (who works on 6% commission basis) so that they can specifically take care of their areas and make sure those proper services and products are delivered to each and every customer.
DISTRIBUTORS
• Premier Agency—Muslimabad, Karachi.
• Babar Medicine, Lahore.
• Nadeem Traders, Peshawar.
• Baloch Enterprise, Multan.
• D.S Pharma, Rawalpindi.
MODES OF TRANSPORTATION
ABBOTT has different modes of transport as per requirement of the product and the distance to be covered. Some products such as Atrelax require temperature controlled environments (2-8 °C) and for this reason they are delivered to Peshawar through courier services so that they can be maintained properly throughout.
They have their own vans with ABBOTT monogram and they are generally used for distributing to local customers (distributors and institutions) within Karachi and nearby areas. Names of some of the transportation services hired by ABBOTT are Lahore naulakkah transport, Bashir Siddique transport, Fast track cargo services, Leopard courier services.
ABBOTT’S DISTRIBUTION CHANNEL
Hospital
Cent. Depot
Abbott truck
Abbott truck
Distributor
Abbott Pak
Wholesaler
DOCUMENTATION AND INVOICING
There are some legal formalities that need to be fulfilled before making a contract with distributors.
• Delivery Chalaan
• Customer Invoice
• Merchandise Receiving Report (MRR)
Product Name
Quantity
Delivered by
Received by
Condition (sound or spoiled)
Date of receiving
RETURNS
MANUFACTURER
Product Returns
CONDITIONS FOR RETURNING RAW
MATERIALS
Raw Materials are returned either at the time when they are being unloaded or after they have been tested by the QA and found to be defective.
RETURN OF MATERIAL ORDERS (MO’S)
This can occur if the batch size is found to be wrong i.e. ABBOTT suppliers mistakenly supplied the wrong quantity of materials or the materials were of incorrect specifications or the product is found contaminated. In either case, the material is not allowed to be kept in the warehouse and is returned immediately.
Thank you