Supply Chain Management
Assignment - 1
Pradeep Pydi -127 4081
Supply chain management is defined as effective integration of flow of materials and information with in the process of supply and demand. This current report is based on a global pharmaceutical company, which is based in New Zealand market. The pharmaceutical company’s supply chain is quite complex and essential, as pharmaceutical products should be distributed to the end users at the right situation, reaches the right people at right time. The supply chain is also considered to be very responsible and highly sensitive as less than 100% customer service is not acceptable (PMC, 2013).
The problem with the supplier side is long material lead-time, and most product line is short dated. The answers for these problems have been discussed above.
It is recommended that, company should make an effort to improve relationship with supplier to implement the delivery lead-time and to meet all specifications related to product line including shelf life. Also the company has to make a long-term alliance with shipping and freight forwarding companies to reduce delivery lead-time.
It is also recommended that company should also invest more time and money in employ better technologies to reduce the risk of order shortages from customers. Better bar coding systems and forecasting software systems should be useful tools for inventory management, this can be helpful in meeting order specifications. Better forecasting will reduce unnecessary stock levels in warehouse, and it also can be useful tool in reducing continuous movement of goods between both the warehouses. To reduce delivery delays it is recommended that, company should outsource both inbound and outbound logistics departments.
Table of Contents
Executive Summery: 1
Geographic Map 5
Analysis & Application of SCOR model: 7
Major Issues: 7
Problem Statement: 7
Best Practice Implications: 8
Resolving problems in internal operations: 8
Resolving supply side problems: 10
The pharmaceutical companies play very significant role in the health and medical system of any country, and it also heavily regulated industry many countries including New Zealand. Because of its unique nature of supply and demand, pharmaceutical companies always should balance both clinical and economic interests. Company’s main supply chain target should be to ensure continuous flow of drugs to hospitals, pharmacies, and supermarkets with very little root for errors.
PharmaCo New Zealand is subsidiary company of PharmaCo Global, which sells range of around 600 pharmaceuticals ‘over the counter’, pharmacy only’, and ‘controlled drugs’. Company’s head office is located in Auckland, and they have a small manufacturing plant to make cough syrup and a large warehouse also located on same site. They also have a satellite warehouse located in Christchurch.
PharmaCo receives all it’s stock (Except cough syrup) from its global distribution warehouse located in Singapore, and products are shipped directly to warehouses located in Auckland and Christchurch. PharmaCo supplies its products to domestic pharmacies, progressive enterprises, five district health boards, and three pharmacy chains located in pacific islands includes Viz., Fiji, Tonga, and Samoa.
North Island and pacific Island orders are being served by Auckland warehouse, and South Island orders are served by Christchurch warehouse. Companies most revenue is generated from Supermarket orders, and...