Cipla

Supply Chain and Logistics

1. Supply Chain Management & Logistics of Cipla Presentation by: Rahul, Soundarya Himanshu and Sriram.

2. Introduction Logistics  is the management of the flow of resources between the point of origin and the point of consumption in order to meet some requirements. For example, of customers or corporations. The resources managed in logistics can include physical items, such as food, materials, equipment, liquids, and staff, as well as abstract items, such as time, information, particles, and energy. Definition The task of coordinating material flow and information flow across the supply chain.

3. LOGISTICS PROCESS Developing new sources of supply. Substitution of less costly materials without imparing required quality. Application of new purchasing techniques. Initiating make or buy studies.

4. The Supply Chain management A supply chain is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage. Definition Planning and controlling all of the processes that link partners in a supply chain together in order to serve needs of the end-customer.

5. PHARMACY Pharmacy  is the science and technique of preparing and dispensing drugs and medicines. It is a health profession that links the health sciences with the chemical sciences and aims to ensure the safe and effective use of pharmaceutical drugs.

6. CIPLA Cipla Limited  is a pharmaceutical company based in Mumbai, India. Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control, depression and many other health conditions. Cipla is a global pharmaceutical company whose goal is to ensure that no patient shall be denied access to high quality & affordable medicine and support. Mission: Cipla’s mission is to be a leading global healthcare company which uses technology and innovation to meet every day needs of all the patients. Incorporated 1935 Cipla has 34 manufacturing units in 8 locations across India and has presence in 170 countries. Employees 22,300+ Turnover USD 1.78 Billion Founder (1898-1972) Dr. K.A. Hamied Non-Executive Chairman Dr. Y.K. Hamied Non-Executive Vice-Chairman Mr. M.K. Hamied

7. Logistics Process Of CIPLA

8. MANUFACTURING PROCUREMENT OUTPUT/ FINISHED GOODS WAREHOUSING

9. TRANSPORTATION DISTRIBUTION LABORATORIES RETAILERS CUSTOMERS MEDICAL STORES

10. Supplier Materials Biologic suppliers Chemicals Farm products (plants, eggs, animals, animal by-products) Laboratory animals Growth media, cell cultures Pathogens Proteins Test organisms Non-biologic suppliers Equipment Computers, software Databases (e.g., target molecules, DNA sequences) Clinical trial supplies Clinical trial subject population information

11. Make - Manufacturing (Commercialization) SCM Strategies Standardization of manufacturing processes Terminology Metrics Product process “toolkits” Managing network assets Grouping plants with standard equipment and processes geared to specific product types (e.g., dry products, freeze-dried, parenteral) Redundant facilities (security, shifting of work between plants) Improved demand forecasting Global demand management center Centralized ownership of all forecasting tools and databases Use of ERP web-enabled global planning capabilities Judicious use of contract manufacturing (e.g., packaging)

12. WAREHOUSING Cipla uses the latest in pharmaceutical technology to funnel seven decades of experiences into one capsule that cures, one drop that defends and one puff that protects. They explore every drug to its last particle and instill safe and sure healing to create one dose of confidence.  Inventory is a list for goods and materials or those goods and materials themselves, held available in stock by a business. In accounting inventory is considered an asset.

13. Controlling the Inventory As Cipla has huge number of business operations so there is a need of sophisticated and technical form of inventory control. Use of computer for inventory control is very feasible Cipla Uses : Point of sale terminals relay information on each item used or sold .The manager receives information printouts at regular intervals for review and action. Off line point of sale terminals relay information directly to the suppliers computers who uses the information to ship additional items automatically to buyer/inventory manager. Cipla also uses another method of inventory management by outside agency.

14. Successful Inventory management in Cipla At Cipla, successful inventory management involves balancing the cost of inventory with benefits of inventory. They undertake following steps:- Maintaining a wide assortment of stock-but not spreading the rapidly moving ones too thin. Increasing inventory turnover-but not sacrificing the service level. Keeping stock low-but not sacrificing the service or performance. Obtaining lower prices by making volume purchases- but not ending up with slow moving inventory. Having an adequate inventory on land- but not getting caught with obsolete items.

15. Distribute – Types of Counterfeit Drugs Identical copies Least common Made with same ingredients, formulas and packaging but not by the same manufacturer Look-alikes: High-quality packaging and labeling; very convincing appearance Little or no active ingredients Re-labels: Authentic drugs that have passed their expiration dates Distributed by foreign sources.

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