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 companys principal activities are to manufacture, import and market based pharmaceutical, nutritional, diagnostic, hospital and consumer products and provides tollmanufacturing 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 companys 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

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 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

ENDURING

PIONEERING

ABBOTT

CARING

ACHIEVING

CAPABILITIES OF ABBOTT

AGILITY INTEGRITYY

QUALITY OF EXECUTION

LEADERSHIP

COMUNICATION

Core Competencies Of Abbott

PRODUCTS & SERVICES CUSTOMER INTIMACY OPERATIONAL EXCELLENCE PEOPLE

Supply chain Integration

CUSTOMER I N F O R M A T I O N F L O W

RETAILERS/ WHOLESELLERS DISTRIBUTORS WAREHOUSE ( F O) Manufacturing WAREHOUSE (M O) TRANSPORTATION SUPPLIER MARKETING

P R O D U C T F L O W

Abbotts Supply Chain Structure

SUPPLY CHAIN MANAGER

CAPAPCITY PLANNER

MASTER SCHEDULER

MASTER SCHEDULER

PRODUCTION PLANNER

PRODUCTION PLANNER

MATERIALS MANAGER

WAREHOUSE MANAGER

LOCAL/ IMPORTED PURCHASE MANAGER

EXPORTS MANAGER

Supply Chain Process

Marketing ( Demand Generated) Manufacturing Planning (Demand Generated) Material Planning

Vendors (Quotations asked)

LC

Follow up ---import & dispatches

Clearance Transit Time

Material in Warehouse

Material Available For Production

Production

QA

Released by QA

FO Batches

Packing line

FO Quarantine (Sampling test by QA)

Central Depots

Dispatches

Satellite Depots & Distribution

Institutions

Wholesalers

Retailers

SCOR Model
PLAN

SOURCE

MAKE

DELIVER

RETURN MO Enable

RETURN FO

Plan
Delive Sourc Make Delive r r e Return Return

Source Return

Make

Deliver Return

Sourc Make Delive Sourc e r e Return Return

RM Manufact urer Suppliers Supplier

Indente rs Supplier

Whole ABBOTT Lab salers Pakistan Company Customer Customers Customer

Distribut ors

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 countrys 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
DISCUSS

PROPOSED FORECAST

SNO MEETING

ADS

Business Planing
Marketing department gives the forecast to the supply department and then its 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 SKUs, 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 informations 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

MATERIALS MANAGEMENT

WAREHOUSE

LOCAL/ IMPORTED PURCHASE

EXPORTS

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 ABBOTTs 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 PrintingAmmara 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
FIFO 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

Wastage Warehouse

Storage of control/locater system

Storage of control/locater system

Storage of temperature sensitive material

Cold Storage (Refrigerators 2C- 8C)

Issue of raw material MO

Hazardous drug labeling

Material requisition return

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 its 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 800C.

EXPORTS

Demand of products received by external customer

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.

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 AgencyMuslimabad, 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.

ABBOTTS DISTRIBUTION CHANNEL

Abbott Pak Abbott truck Hospital

Cent. Depot Abbott truck

Distributor

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

Product Returns

MANUFACTURER

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 (MOS)

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