GROUP MEMBERS:

Madiha Zulfiqar Ahmad (2876)Syed Fata Naqui (3348)

Mubshir Khan (3817)Aamir Raiz (3355)

M. Faisal Khan (3973)Sara Zeeshan (3410)

Syeda Hifa (3211)

PROJCT OF

SUPPLY CHAIN MANAGEMENT

SUBMITTED TO: SOHAIL MAJEED

ON December 20 th , 2010

ACKNOWLEDGEMENT

Warehouse

First of all we would thank Almighty ALLAH for making us capable and giving us the strength to complete this project because without His help and blessings, we could not have completed this project. We are very grateful to Almighty ALLAH who has guided us the way for a bright future.

Special thanks to Mujeeb Ali khan for guiding and assisting us throughout our project. He is always full of energy and willing to

teach us the concepts about supply chain management. It would not have been possible to complete this project if there had not been his

support and efforts with us.

We would also like to thank our teacher Sir. Sohail Majeed who found us capable for

giving us this project.

This is the group effort of Madiha Zulfiqar ahmad, M. Faisal khan, Aamir Raiz, Mubshir Khan, Syed Fata Naqui, Sara Zeeshan and Syada Hiyfa.

PREFACE:

IQRA University as an intense, challenging and rewarding, learning oriented center of excellence is rapidly growing institute of higher business education in Pakistan for your professional and personal growth. In the 21st century, it is increasingly important for all of us to become aware of the era of high technology that we are living in. Advanced Computer, Management, Engineering Technology and value adding knowledge is the secret of success in today’s and tomorrow’s world. In today’s world it is important that those wishing to move ahead are able to work in an increasingly complex and interdependent global environment.

As students of Iqra University we feel pride to be the students of such a university. We the students second last semester our extremely thankful to our supply chain management teacher for motivating us to visit an organization to increase our knowledge practically for our supply chain management report. He has helped us truly while guiding us throughout the semester in our course of Supply chain management.

We are very much thankful to providing us so much information and giving precious time to us. We the members of the group feel immense pride that we visited Macter Pharmaceutical (PVT) LTD PAKISTAN.

TABLE OF CONTENTS

Pages

1. Acknowledgement ……………………………………………. 22. Preface………………………………………………………… 33. Table of content………………………………………………. 44. Objective and scope…………………………………………… 55. Supply chain model of Macter………………………………… 66. Introduction…………………………………………………… 77. Vision………………………………………………………….. 78. Marketing department…………………………………………. 89. Research and development department………………………... 810. Forecasting and planning………………………………………. 811. Inventory management department…………………………… 912. Purchasing……………………………………………………... 913. Supplier………………………………………………………… 914. Raw material department……………………………………… 1015. Manufacturing department……………………………………. 10-1116. Quality assurance department…………………………………. 1217. Finish good department……………………………………….. 1218. Warehouse process…………………………………………….. 1319. Production department………………………………………… 1320. Distribution Logistic ………………………………………….. 1421. Sale…………………………………………………………….. 1422. Sale graph……………………………………………………... 1523. Distributor …………………………………………………….. 1624. Distribution network…………………………………………… 16-19

OBJECTIVE:“To achieve the maximum knowledge about supply chain management and how company lowers its cost and increase efficiency, enhance flexibility, improve customer service, optimize value chain, inventory. Logistic and warehouse and all supply chain process of Macter International PVT (LTD)”.

SCOPE:“Learn and examine how the company effectively and efficiently manage their supply chain system and to find out how company improve supply chain to increase profitability”.

“SUPPLY CHAIN PROCESS OF MACTER INTERNATIONAL (PVT) LTD”

THE SUPPLY CHAIN MODEL DESIGN OF MACTER PHARMACEUTICAL (PVT) LTD

INTRODUCTION:Macter international private limited is a leading pharmaceutical company. It

is dedicated to pharmaceutical excellence with core values of honesty, integrity, excellence and commitment to earn the trust and confidence of its customers.

Pharmaceutical company come in health care sector and the pharm a means drugs making company Macter come in national and international company of Pakistan around 800 pharmaceutical company are running in Pakistan whereas the Macter concern it’s stand on 30 ranked company of Pakistan and they have 220 to 230 products of medicine are making where 70-80 products are running product.

For more than 33 years, Macter is well known for high quality, cost effective medicines. They enjoy a strong reputation in the medical community as a best in class value provider of pharmaceutical products. They are also the largest pharmaceutical toll manufacturers catering to the quality manufacturing needs of a host of leading national and multinational pharmaceutical companies in Pakistan and abroad.

Macter is ranked amongst the leading national pharmaceutical companies in Pakistan and has a significant share in the generic pharmaceutical business with more than 50 brands and 100 products in segments of: Antibiotics, Gastroenterology, Hepatology, Orthopedics/Rheumatology, Cardio-metabolic, Respiratory, CNS, Vitamins and Vaccines.

VISION:“Their vision is to delighting their customers and continuous train their

worker and improving there working way for better future”.

MARKETING:The Macter pharmaceutical (PVT) LTD, supply chain process start with

marketing process. It’s comes under the design function unit. The marketing happen on both ends of supply chain process of Macter. They are using pulling strategy the needs arise by directly approach prescriber and generate need in the market. They

marketing department is actually doing forecast next 15 month so to give time to import, maintain the stock at level, production level , QC, FG, Distribution and Chemist. The marketing department associate with R&D department.

RESEARCH AND DEVELOPMENT:In Macter the research and development function is working on provide

necessary literation and studies to check the viability of a product and provide evidences to business development interact with regulatory. Since the research and development team is involved in the development of formulations and advanced analytical methodologies, product improvements and innovations. The R&D department is linked with marketing department whatever the marketing department getter information they let R&D department know so they can improve in their formula and innovations process.

FORECASTING AND PROGRAMMING DEPARTMENT:The MActer forecasting and programming department work is to maintain a

structure of the overall firm, as the demand forecasted by marketing department this department starts working how they can run the organization to achieve their goal in cost effective way, fulfill the demand and achieve their sale target. The worker schedule are assign on this department how many worker have to work and for how many time period if in case of high demand arise they also make an over time schedule so the demand is fulfill on time and the supplier also get delightful.

INVENTORY MANAGEMENT DEPARTMENT:This department is responsible for maintaining accurate inventory levels. This

department ensures to avoid inventory shortages. It is also responsible for classifying inventory as well and maintain warehousing inventory for future use and keeps record of location for easy retrievals. It is also responsible for replenishment, returns and defective goods. Before manufacturing any product marketing and sales

department forecast the demand from previous sales and then material is ordered according to the demand forecast. Inventory management department is responsible for ordering and arranging the material.

PURSHASING:The purchasing decision is based on the demand forecasting once the

demand forecasted the purchasing department send acquisition transmit to their supplier. During purchasing the purchase department make sure that their supplier are trust worthy and maintain a good relation with them. As we know that Macter is a pharmaceutical company and come in health care sector so they make sure their supplier supply them a good quality raw material and can also supply raw material if incase the demand come high in ratio.

SUPPLIER:

The MActer main suppliers are Dr. Ready India, Vensi Lab India, West Pharmaceutical Singapore and Johnson Pharma UK. The Macter believe that they make a good relation with their supplier so they can get discount on their purchasing. They having good relation with their supplier come favorable when they generate extra demand to them they give more discount relief since we know that their purchasing is in bulk quantity so the discount margin is very high.

RAW MATERIAL:When the demand is forecasted the Company sends acquisition to their

supplier so that they can deliver the raw material as Macter all supplies are import that is why have to schedule and forecast that they can give time for import. The raw material department is the second major department in supply chain process and

it’s based on material so they have to manage how adequate material they are required because if they purchase excess raw material then the company overhead increase and finance get disturb so they the company will not run properly or else shortage the raw material then company production disturb and the cost of product will getting increases so the raw material accuracy is one of the major role player in the company manufacturing process. The raw material department have to look all area of the company so that they never go for over inventory neither having shortage of the material. The base of the material department is market forecast as much as the market forecasting is accuracy the plan is as much as successful and they get easier for implementation that plan in all departments otherwise their might be some disturbance occurs in implementation. All the raw material is purchase as per the company SOP, so the quality of the product will not lose. Macter can’t compromise on the product quality so the raw material is purchased with high quality assured. Once the raw material comes they dispense to quality assurance department then go to granulation which comes under manufacturing department.

MANUFACTUING DEPARTMENT:The manufacturing department is the top most department of the company.

The raw material disperses to manufacture department. Macter manufacturing process takes place under stick CGMP (current good manufacturing practice) principle. They have variety of dosage forms such as liquids, tablets, capsules, dry syrups, creams and ointments, sterile ampoules, vials and metered-dose inhaler. There have very organize manufacturing process for every product even though they even care for every gram dosage that during mixing 250gm powder never get mixed into 625gm, etc. different medicine are available in different grams like augmentin are available in 250gm and 625gm. They very care during mixing that the ratio of powder medicine never get change because it’s directly associate with patient life similarly they did with the powder injection carefully check during manufacturing. And every stage of manufacturing QC, (quality control) department assure that either the medicine is on standard quality if any problem occurs is immediately has been capture.

Macter is one of the very few companies in Pakistan which has latest “Macofar” high-speed (300 vials per minute) sterile vial filling compact lines and “Bausch and Stroebel” compact line for ampoules. These machines are housed in aseptic filling facilities maintained at ISO 14644 class 5 standard, ensuring a high standard of air purity during manufacturing and then suck the inside dirty/polluted

air of manufacturing area and thought pipes they never trough that polluted air directly into air they first again filter and then bump into water.

Macter also has a separate penicillin manufacturing facility over an area of 9,000 square feet, which has oral formulation & filling areas and sterile filling areas designed in accordance with clean-room specifications defined by international accepted ISO 14664 standards.

Pamasol (Aerosol) Manufacturing:

Macter Aerosol Manufacturing, Filling and Sealing Operations consists of a Pamasol high speed 6 head fully automatic filling and sealing machine capable of doing 110 cans per minute. Manufacturing is performed in a fully automatic, computer controlled and integrated manufacturing system comprising of a 300 kg capacity jacketed and automated vessel. Mixing, filtration of product and gases, addition of actives and non-actives, weight, temperature and pressure control and transfer of product to the filling machine is all controlled and monitored through dual computer system.

Pamasol (Aerosol) filling and sealing machines:

Once the product is manufactured and QC passed, it is filled through the Pamasol filling machine. This machine first descramble the cans, blow cleans them, fills with the product and seals with the metered dose valves. Once sealed, the propellant is added with the special gassing heads. The filled cans then pass through the on-line check which weighs each can for uniformity of filled volume. Any cans which may be above or below the predetermined weight limit are automatically rejected.

QUALITY ASSURANCE/QUALITY CONTROL DEPARTMENT:

One of the major department which is continuously working with manufacture department is quality assurance department. Macter has strong commitment to quality. They set a quality management system which ensures high quality in every department as well as in manufacturing, the quality assurance staff monitor at all stage to ensure product safety and effectiveness throughout products’ shelf-life.

Quality assurance/ quality control department evaluates vendors, tests and releases raw material, packing material, intermediate and finished products; test stability of products; validates equipment and processes; control documentation and monitors manufacturing and packing operations and ensures complete adherence to the requirements of ministry of health, cGMP, GLP &GSP.

Macter having quality control laboratories are well-equipped with all required instruments, including HPLC, GC, Spectrometer, TOC equipment etc. there is a separate microbiological lab for testing of sterile products, bio-assays and environmental monitoring. A dedicated and well-equipped Quality Control Laboratory has been set up in Penicillin Manufacturing facility for the analysis of Penicillin-based product.

Quality assurance/quality control department continuously track the updates in testing method & regulatory requirements.

FINISH GOOD DEPARTMENT:After manufacturing the material comes into finish good department where

the packing of the medicine happen here they do blister packaging, bottle syrups packaging all sort of packaging are done here. This department also do naming, labeling, package and instruction on all medicine and ready them for dispatch to the quarantine area and then deliver to warehouse.

WAREHOUSE:Macter warehouse is on 2 km far away from factory they also have small

warehouse inside their manufacturing area. They have very well established warehouse system using warehouse management system software and follows FEFO (FIRST EXPIRY FIRST OUT) inventory system for distribution.

There warehouse is based on medicine temperature requirement like for risky medicine who have to place on low temperature like all hepatitis medicine are need 7 degree centigrade temperature they make a freezer area in warehouse where all high-risk product are placed as per the medicine requirement concern. So the Macter design their warehouse as per medicine requirement.

PRODUCTION DEPARTMENT:The Macter has very develop system and having iScala software implemented so

that their forecasting is very much accurate, with the production department is also working with quality assurance department and quality control department they are working a as per SOP or not. SOP document contain all the written instruction as per concern with medicine manufacturing and government instruction. The production department is actually working on aggregate planning of product delivery to their distributer. The Macter is making inventory on quarterly bases. The production department also working per EOQ (economic order quantity) as they are quarterly producing inventory so they have make proper schedule for safe inventory for sale reserve in case of any emergency come they should have enough stock and they can deliver that on that time like few month back as the fluid come they immediately supply medicine there on cheaper price that they can cure them from virus and illness. The production department is associates with raw material up to warehouse department.

DISTERIBUTION LOGISTIC:

Macter has their own vehicles which having fully best fit temperature for sensitive medicine, these vehicles takes finish good products and deliver them to warehouse. Whereas for city to city distribution they are using third party logistic.

SALE:Macter international has a countrywide marketing and sales team to more

than 500 personnel working under 8 business units. Their team covers all major hospitals and around 20,000 clinics in the length and breadth of the country. Sales are managed through an extensive third-party distribution network that suppliers retailers and wholesalers in all urban and major rural center.

SALE GRAPH:SALES OF LEADING COMPANIES (MILLION UNITS Q4-2008)

MACTER SALES (MILLION UNITS) FUTURE FORECASTED

CAGR 2009-14-11.2%

DISTRIBUTER:

Distributers send a daily updates of sale invoice details to marketing department including remaining stock details. Those distributers have their own fleet of Suzuki and bikes for receiving order from company as per their invoice requisition. They supply inventory to their distributer from warehouses. The distributer order twice in the month to company, so that the company keep safety inventory to facilitate chemists. Distributers always take order from chemists. The chemist can be called POS (point of sale) from where the sale actually happened. From distributer the products deliver to customer and then they are delivering to end user or consumer

MACTER DISTRIBUTERS

1. KARACHIM.A. Jinnah Road Extension, Karachi.

2. THATTA

Al- Jilani Medicos, Ali Shopping Centre, Shahi Bazar, Thatta

3. HYDERABADDr. Farid Ahmed & Co, B#13, Autobhan Road, Unit-2 Latifabad, Hyderabad

4. MIRPUKHASPharma House, Sir Syed Road, Mirpurkhas

5. NAWABSHAHAamir Nazir & Co, 221,Ayaz Gul Manzil, Sakrand Road, Nawabshah

6. SUKKURTarique Nazir & Co., Medicine Plaza, Bunder Road, Sukkur

7. JACOBABADAther Nazeer & Co., Civil Hospital Road, Jacobabad

8. LARKANADr. Farid Ahmed & Co, Resham Gali, Larkana.

9. QUETTAPrimier Agencies, Abdullah Pal Street, House No.9-14/79/9-A, Jinnah Road, Quetta.

10. VEHARIZafar & Co., Liaquat Road, Vehari

11. R.Y KHANSiddique Medicine Co, Near Ashraf ul Madaris,Canal Bank, Azizabad Colony, R. Y. Khan

12. BHAWALNAGARAslam Traders, 116-A, Model Town, Bahawalpur

13. BHALWALPURAslam Traders, Wokla Colony, House No. 33/34, Chistian Road, Bahawalnaga

14. SAHIWALRauf Drug Agencies, House # 3, Street # 2, X-Block, Tariq Bin Ziad

Colony. Sahiwal

15. T.TSINGHAkbar Drug Agencies, Qaim Centre, Shorkot Road, Toba Tek Singh

16. FAISLABADAl Hafeez Distributors, 42-Chenab Market, Madina Town, Faisalabad

17. LAHOREBabar Medicine Co., Opp. Micro Elecronics, Adjacent Mitsubishi Motors

how Room, PECO More, PECO Road, Kot Lakhpat. Lahore

18. OKARANew Ali Hajvery Medicos, Sahiwal Road, M.A. Jinnah Road, Okara

19. MULTANInter Sales, 63-Sultana Abad, Gulgasht, Multan

20. GUJRANWALAIqbal Brothers, Moon Star Road, S.I.E. Gujranwala

21. JEHLUMIdeal Traders,Tehsil Road, Near Regent Cinema, Jhehlum.

22. RAWALPINDIIndus Traders, D-92/93, 3rd Floor, Gulf Centre,Muree Road,Rawalpindi

23. SWATSwat Distributors, 27-Royal Market, Old Post Office Road, Mingora, Swat

24. GILGIT J.S. Enterprises, Karim Plaza, Air Port Road, Gilgit

25. AZAD KASHMIRQazi Enterprises, C.M.H. Road, Muzaffarabad, Azad Kashmir

26. ABBOTABADUnited Distributors, Opp. Girls College, Link Road, Abbottabad

27. JHANGSameel Distributors, Church Road, Near Munawar Hussin Hospital, Jhang

Saddar

28. SARGODANoor Enterprise, 3-Session Road, Sargodha

29. MIANWALISaad Medicine Co, 401, Bank street, Mianwali

30. LAYYAH Al Ahad Medicos, Opp.The Bank of Punjab, Choubara Road, Layyah

31. MARDANDrug Agencies, Cantt Colony, The Mall Road, Mardan

32. BANNU

Nasir Medicos, New Shahid Market, I/S Lakki Gate, Bannu.

33. KOHATMehtab & Brothers, Syed Plaza, Teehrah Bazar, Kohat

34. D.I KHAN Shamsh Enterprises, North Circular Road, Opp. 

Commerce College, D. I. Khan

35. D.G KHANZam Zam Enterprises, 285-C, Khayban-e-Sarwar, D.G.Khan

36. ATTOCKRabbani Traders, B-9, Plenders Lane, Attock City.