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Presented By:
  Muhammad Umer       (4771)
  Syed Taha Ahmed     (4634)
  Jibran Ahmed        (4637)
  M. Usman Suleman    (4744)
  Amna Sultana        (5161)
  Shazia Noor         (4480)

Presented to:
  Sir Sohail Majeed
OUTLINE:
•   Introduction
•   Categories of Products
•   Process View
•   Supply Chain Operations
•   Supply Chain Participants
•   Supply Chain Structure
•   Production Facility
•   Supply Chain Processes
•   Logistics
•   Order-to-Delivery Cycle
•   Quality Standards
•   Customer Relationship Management
•   Recommendations
INTRODUCTION:
• Start its operation in 2000.


• In 2010 Martin Dow has acquired Roche manufacturing facility in Pakistan.


• Martin Dow has four Strategic partners including La Roche Ltd,


• But in all this success supply chain management strategies play a vital role
CATEGORY OF
PRODUCTS:
•   Martin Dow is producing medicines under following categories consisting 111
    products all together.

•   Cardiovascular

•   Gynecologist

•   Antischychatric

•   Anti-Infectives

•   Onchology

•   Pain Killer
CLASS A PRODUCTS:
               Products

              Categories                   Market Share   Annual Sales

Antibiotics   Psychotropic   Painkillers

Rocephin                                     22.13%       656 million

 Fansidar                                    57.54%       107 million

               Lexotanil                     54.45%       354 million

                Valium                       95.86%        98 million

                 Librax                      100.0%       154 million

                              Synflex        39.98%       216 million
PROCESS VIEW:
•   Martin Dow produces the goods on the Make-to-Stock basis in which they follow the
    push system because as their stock come below the required range than the order
    generated


• 2 Months F.Goods Inventory at Distributor

• 2 Months F.Goods Inventory at MDP

• 1 month Raw material Inventory
PRODUCTION
FACILITY:
•   Production facility of martin Dow is situated in korangi industrial area where the raw
    material is processed into finished goods.
SUPPLY CHAIN
OPERATIONS:
       Demand Forecasting


            Planning


            Sourcing


         Manufacturing


            Delivery
SUPPLY CHAIN
PARTICIPANTS:
•   Suppliers




•   Distributors




•   Hospitals (Institutional sales)
SUPPLY CHAIN
STRUCTURE:
                         Supplier
      Local                                  International

                         Material
   Raw material                              Finished goods

                        warehouse
   raw material                              finished good

                       manufacturing


                  finished goods warehouse

                         Distribute
    Distributor                                Hospitals

                          Retailer


                         customer
SUPPLY CHAIN
PROCESSES:
• Core supply chain processes of the Martin Dow are

  Procurement:
                                        Ministry of      Final
    Forecasting       Shipment
                                         health        Consumer



   Requisition of
                    Letter of credit    Ware house     Distribution
   raw material



                       Purchase           Quality
   Bids/quotation                                      Warehouse
                        Order           Inspection



     Supplier                                            Quality
                       Decision        Manufacturing
    Comparison                                         Inspection
SUPPLY CHAIN
PROCESSES:
•   Raw material and finished goods are procured from different suppliers of both local and
    international repute.

•   . International supplier of Martin Dow is belonging from china, India and European countries
    and about 70%-80% of the material acquired from china and India.

•   Delivery from international supplier takes process time approx 45 days by air and 70 days by
    sea.

•   Company made purchases direct from foreign suppliers as well as through the local indenters
    some of are, Causeway Arfeen, Gudia and Morgan Chemicals.
MANUFACTURING:
•   Martin Dow has state of the art manufacturing facility.


•   . Their qualified experts attend all the manufacturing and testing procedures according to cGMP(Certificate
    of good manufacturing practices) in order to guarantee, efficacy and safety of the product.


•   Quality awareness amongst its staff and management is reflected in Martin Dows successful client
    relationship


•   Manufacturing covers all the operation which is essential to produce a product


    •   Tablet/capsules/Suspension/injection
    •   Packaging
DISTRIBUTION (OUT
  SOURCED):

                 Distribution       Reason:
  • Muller & Philips                       •To minimize cost
. • Pharma Link                            •To reduce work load
                                           •It’s a manufacturing company



                 Hospitals                       Domestic sales

 • Institutional sales            • 3-Level Distribution
 • 0-Level Distribution
 • Bulk buying through tenders.
INVENTORY
 MANAGEMENT:
•   Inventory is very well managed with the help of SAP system.

•   They have created separate departments of raw materials, packing materials, goods under

    quality check.

•   They are also maintain the temperature around 20 degree & kept temperature sensor to

    keep record.

•   FIFO

•   Batch System
PERFORMANCE
 MEASUREMENT:

•   Quality

•   Timely delivery

•   Targets
LOGISTICS:
•   Martin Dow has a separate logistic team who look after logistics process.

•   For Import, they place order on CPT/CFR basis so logistics part start when material arraived at
    Karachi Airport/Sea port.

•   For customer clearance, they have hired a clearing agent named as RAJAB ALI & SONS.



• DOCUMENTS REQUIRED FOR CLEARANCE
•   Commercial Invoice
•   Packing List
•   Form -3 (in case of raw material)
•   Form-7 (Batch Certification)
•   COA(Certificate of Analysis)
•   AWB/BL
WAREHOUSING:
•   Martin Dow has a big warehousing facility in their factory with separate storage
    facility of Raw material, packaging & finished goods
COLD STORE:
•   Martin Dow is maintaining very modernize cold storage system with the help of latest
    technology.

•   Hiring qualified staff working at the premises to maintain the temperature of 0-8
    degree.
TRANSPORTATI
ON:
                                              Local Transportation
            For Import
                                                  Out Sourced
• 70% By Air                                  • LCS
Sensitive Material, Expiry date, Cool Chain
needed Products                               • TCS
• 30 % By Sea

Reason:
    •To minimize cost
    •To reduce work load
    •It’s a manufacturing company
ORDER-TO-
DELIVERY CYCLE:
•   For import of Raw materials, their order to delivery cycle takes 30-45 days to deliver
    the material in their warehouse if consignment is shipped by air.

•   The lead time, process time, custom clearance etc. If consignment is shipped by sea,
    then it takes 60-70 days to complete the whole cycle

•   For Finished goods, they are already maintaining the inventory of 02 months at
    distributor side and 03 months in house stock so order to delivery is not an issue.
3V’S:
       3V’s     SAP based ERP System enables
                information sharing efficiently
• Visibility    ,effectively and timely that

• Velocity
                • increases Visibility ,

• Variability   • Help Coping up with variations
                • Help maintain the Velocity
QUALITY
STANDARDS:
SHE (safety, health and environment)


GMP (Good Manufacturing Practices)


Environmental certificate (ISO 14001)

Vendors Manufacturing Sites Approved By WHO & FDA


Internal Audit on Semi Annual Basis
CUSTOMER
RELATIONSHIP
MANAGEMENT:
•   Martin Dow maintaining customer relationship management through SAP based online
    programmed.

•   Every of their sales individual has an access to that software which was updated everyday
    to understand the customer’s problem & their feedback.

•   The information supplied timely about prices, products, their availability for their sales
    people so they can manage the customer easily.

•   Martin Dow also build their customer relationship by participating Health Exhibitions &
    seminars by giving full information & guidelines about diseases and medicines with their
    side effects so people will get aware of that.

•   Martin Dow has an efficient distribution system which aims to provide quality customer
    service to its customers.
CONCLUSION:

• Working on this project we found that the SCM of Martin
  Dow is integrated through SAP based ERP system which
  interconnects all the entities in the chain in a way that
  benefits the organization by reducing the errors and
  waste.
Supply chain process of Martin Dow Limited

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Supply chain process of Martin Dow Limited

  • 1. Presented By: Muhammad Umer (4771) Syed Taha Ahmed (4634) Jibran Ahmed (4637) M. Usman Suleman (4744) Amna Sultana (5161) Shazia Noor (4480) Presented to: Sir Sohail Majeed
  • 2.
  • 3. OUTLINE: • Introduction • Categories of Products • Process View • Supply Chain Operations • Supply Chain Participants • Supply Chain Structure • Production Facility • Supply Chain Processes • Logistics • Order-to-Delivery Cycle • Quality Standards • Customer Relationship Management • Recommendations
  • 4. INTRODUCTION: • Start its operation in 2000. • In 2010 Martin Dow has acquired Roche manufacturing facility in Pakistan. • Martin Dow has four Strategic partners including La Roche Ltd, • But in all this success supply chain management strategies play a vital role
  • 5. CATEGORY OF PRODUCTS: • Martin Dow is producing medicines under following categories consisting 111 products all together. • Cardiovascular • Gynecologist • Antischychatric • Anti-Infectives • Onchology • Pain Killer
  • 6. CLASS A PRODUCTS: Products Categories Market Share Annual Sales Antibiotics Psychotropic Painkillers Rocephin 22.13% 656 million Fansidar 57.54% 107 million Lexotanil 54.45% 354 million Valium 95.86% 98 million Librax 100.0% 154 million Synflex 39.98% 216 million
  • 7. PROCESS VIEW: • Martin Dow produces the goods on the Make-to-Stock basis in which they follow the push system because as their stock come below the required range than the order generated • 2 Months F.Goods Inventory at Distributor • 2 Months F.Goods Inventory at MDP • 1 month Raw material Inventory
  • 8. PRODUCTION FACILITY: • Production facility of martin Dow is situated in korangi industrial area where the raw material is processed into finished goods.
  • 9. SUPPLY CHAIN OPERATIONS: Demand Forecasting Planning Sourcing Manufacturing Delivery
  • 10. SUPPLY CHAIN PARTICIPANTS: • Suppliers • Distributors • Hospitals (Institutional sales)
  • 11. SUPPLY CHAIN STRUCTURE: Supplier Local International Material Raw material Finished goods warehouse raw material finished good manufacturing finished goods warehouse Distribute Distributor Hospitals Retailer customer
  • 12. SUPPLY CHAIN PROCESSES: • Core supply chain processes of the Martin Dow are Procurement: Ministry of Final Forecasting Shipment health Consumer Requisition of Letter of credit Ware house Distribution raw material Purchase Quality Bids/quotation Warehouse Order Inspection Supplier Quality Decision Manufacturing Comparison Inspection
  • 13. SUPPLY CHAIN PROCESSES: • Raw material and finished goods are procured from different suppliers of both local and international repute. • . International supplier of Martin Dow is belonging from china, India and European countries and about 70%-80% of the material acquired from china and India. • Delivery from international supplier takes process time approx 45 days by air and 70 days by sea. • Company made purchases direct from foreign suppliers as well as through the local indenters some of are, Causeway Arfeen, Gudia and Morgan Chemicals.
  • 14. MANUFACTURING: • Martin Dow has state of the art manufacturing facility. • . Their qualified experts attend all the manufacturing and testing procedures according to cGMP(Certificate of good manufacturing practices) in order to guarantee, efficacy and safety of the product. • Quality awareness amongst its staff and management is reflected in Martin Dows successful client relationship • Manufacturing covers all the operation which is essential to produce a product • Tablet/capsules/Suspension/injection • Packaging
  • 15. DISTRIBUTION (OUT SOURCED): Distribution Reason: • Muller & Philips •To minimize cost . • Pharma Link •To reduce work load •It’s a manufacturing company Hospitals Domestic sales • Institutional sales • 3-Level Distribution • 0-Level Distribution • Bulk buying through tenders.
  • 16. INVENTORY MANAGEMENT: • Inventory is very well managed with the help of SAP system. • They have created separate departments of raw materials, packing materials, goods under quality check. • They are also maintain the temperature around 20 degree & kept temperature sensor to keep record. • FIFO • Batch System
  • 17. PERFORMANCE MEASUREMENT: • Quality • Timely delivery • Targets
  • 18. LOGISTICS: • Martin Dow has a separate logistic team who look after logistics process. • For Import, they place order on CPT/CFR basis so logistics part start when material arraived at Karachi Airport/Sea port. • For customer clearance, they have hired a clearing agent named as RAJAB ALI & SONS. • DOCUMENTS REQUIRED FOR CLEARANCE • Commercial Invoice • Packing List • Form -3 (in case of raw material) • Form-7 (Batch Certification) • COA(Certificate of Analysis) • AWB/BL
  • 19. WAREHOUSING: • Martin Dow has a big warehousing facility in their factory with separate storage facility of Raw material, packaging & finished goods
  • 20. COLD STORE: • Martin Dow is maintaining very modernize cold storage system with the help of latest technology. • Hiring qualified staff working at the premises to maintain the temperature of 0-8 degree.
  • 21. TRANSPORTATI ON: Local Transportation For Import Out Sourced • 70% By Air • LCS Sensitive Material, Expiry date, Cool Chain needed Products • TCS • 30 % By Sea Reason: •To minimize cost •To reduce work load •It’s a manufacturing company
  • 22. ORDER-TO- DELIVERY CYCLE: • For import of Raw materials, their order to delivery cycle takes 30-45 days to deliver the material in their warehouse if consignment is shipped by air. • The lead time, process time, custom clearance etc. If consignment is shipped by sea, then it takes 60-70 days to complete the whole cycle • For Finished goods, they are already maintaining the inventory of 02 months at distributor side and 03 months in house stock so order to delivery is not an issue.
  • 23. 3V’S: 3V’s SAP based ERP System enables information sharing efficiently • Visibility ,effectively and timely that • Velocity • increases Visibility , • Variability • Help Coping up with variations • Help maintain the Velocity
  • 24. QUALITY STANDARDS: SHE (safety, health and environment) GMP (Good Manufacturing Practices) Environmental certificate (ISO 14001) Vendors Manufacturing Sites Approved By WHO & FDA Internal Audit on Semi Annual Basis
  • 25. CUSTOMER RELATIONSHIP MANAGEMENT: • Martin Dow maintaining customer relationship management through SAP based online programmed. • Every of their sales individual has an access to that software which was updated everyday to understand the customer’s problem & their feedback. • The information supplied timely about prices, products, their availability for their sales people so they can manage the customer easily. • Martin Dow also build their customer relationship by participating Health Exhibitions & seminars by giving full information & guidelines about diseases and medicines with their side effects so people will get aware of that. • Martin Dow has an efficient distribution system which aims to provide quality customer service to its customers.
  • 26. CONCLUSION: • Working on this project we found that the SCM of Martin Dow is integrated through SAP based ERP system which interconnects all the entities in the chain in a way that benefits the organization by reducing the errors and waste.