CRP on Pharmaceutical Industry of Singapore If useful, do not forget to share and comment.

1. Capstone Research by: Sanket Golechha – MJAN14GLM38
Logistics and Supply Chain in
Pharmaceutical Industry

2. Logistics and Supply Chain in
Pharmaceutical Industry
Agenda
1. Introduction
2. Research Objectives
3. Research Framework
4. Research Findings
2
5. Recommendations
6. Limitations of the study
7. Future Scope

3.  Pharmaceutical Industry – Complex Supply Chain
 Various forms of products
 Product specific handling requirements
 Necessity – Presence across the World
 Involvement of various regulatory bodies
 Security concern to avoid counterfeit drugs from
entering the supply chain
 One of the fastest growing industry in the world
3 Logistics and Supply Chain in
Pharmaceutical Industry
Introduction

4.  To study the supply chain in Pharmaceutical
Industry of Singapore
 To study the regulations and security involved in
the supply chain to eliminate counterfeit drugs
from the Industry
 To suggest recommendations for the
Pharmaceutical industry of Singapore to make
their supply chain more secured
Logistics and Supply Chain in
Pharmaceutical Industry
Proposed Objectives
4

5. Logistics and Supply Chain in
Pharmaceutical Industry
Research Framework
5
Pharmaceutical
Industry
Business
Environment
Logistics
Environment
Supply Chain
Product Flow
Information
Flow
Money Flow
Complexity
Network
Criticality
Counterfeity
Cold Chain
Reverse
Logistics
Regulations
Legality
Laws of the
land
Regulatory
Bodies
Singapore

6.  Industry Expert
 Mr. Kalaiarasan – Supply Chain Head of Asia
Pacific, Middle East, African countries and Greater
China regions; Novartis Pharmaceuticals
 Pharmaceutical Academician
 Mr. Deepak Srideshmukh, professional trainer for
various practices of Pharmaceutical Industry
Logistics and Supply Chain in
Pharmaceutical Industry
Primary Research
6

7. Logistics and Supply Chain in
Pharmaceutical Industry
Supply Chain – Novartis Pharma.
7
Manufacturers
•Manufacturing
plants of Europe
and USA
Distributors
cum
Consignment
Agents
• Zuellig
Pharmaceuticals,
Singapore (3PL)
Retailer
•Hospital
Pharmacies,
Watsons
Pharmacy,
etc

8.  Product Flow
 Manufacturing houses
 Channels and players involved
 Information Flow
 IT Involvement
 Money Flow
 Pricing and Credit Period
 Returns/Reverse Logistics
 Function of Time
 Lead Time, Inventory Turnover
 Reverse logistics
 Expiry, Damaged, Recalls
Logistics and Supply Chain in
Pharmaceutical Industry
Supply Chain – Novartis Pharma.
8

9.  Categories of counterfeit products,
Products that have
 no active ingredient
 wrong/different ingredients than what is mentioned
 incorrect quantities of the active ingredient as
mentioned
 right ingredients in right quantities but fake
packaging
 copied from the original product
 Impurities/contaminants at unreasonable level
9 Logistics and Supply Chain in
Pharmaceutical Industry
Counterfeit Drugs

10. 10 Logistics and Supply Chain in
Pharmaceutical Industry
Counterfeit Drugs entering the SC
Source: Finlay, 2012

11.  HSA – Health and Sciences Authority of
Singapore
 National Pharmaceutical Administration
 Centre for Drug Evaluation
 Product Registration Department
 Institute of Science and Forensic Medicine
 Licensing
 Manufacturer’s, Product’s, Distributor’s, Importer’s
 Certificate to Export
 Collaborations
 WHO, FDA, EMA, etc.
 Taxation
 Import Duty – 0% and GST – 7%
11 Logistics and Supply Chain in
Pharmaceutical Industry
Regulations in Singapore
Source: HAS Singapore, 2012

12.  Network Design
 Presence all over the world
 Life of the drug
 Inventory Management and Material Handling
 Large number of Stock Keeping Units
 Cold Chain maintenance
 Temperature and environment sensitive drugs
 High capital investment
 Awareness in smaller countries
 Reverse Logistics
 Breakage, Expiry and Recalls
 Regulations to destroy the product
Logistics and Supply Chain in
Pharmaceutical Industry
Challenges and Complexities
12

13.  IT involvement
 Levels of IT involvement
 Right upgradation at the right time
 Application of IT in the system
Logistics and Supply Chain in
Pharmaceutical Industry
Challenges and Complexities contd…
13
Source: Frost and Sullivan, 2012

14.  Accountability and Traceability through Track and
Trace Technology
 Serialization in products
 Authentic coding with all details
 Track the network the drug has travelled
 International Collaboration and Cooperation
 Centralized database
 Collaboration between drug regulatory bodies
 Cooperation between International Investigation
agencies for making the industry secure
Logistics and Supply Chain in
Pharmaceutical Industry
Recommendations
14

15.  Vigilant Pharmacists
 Details at POS on and the trends and pattern in
particular product range
 Destroy empty boxes and used containers
 Inform the company in case of any suspicious
activity
 Educating Consumers and Creating Awareness
 Importance of authentic drugs
 Make consumers aware about their international
collaborations and initiatives for their betterment
and safety
Logistics and Supply Chain in
Pharmaceutical Industry
Recommendations contd…
15

16.  Collection of data and information that is
considered confidential by companies or
regulatory bodies
 Finding industry experts and getting appointment
within the stipulated time
 Lack of connect between the industry experts and
students due to cultural and language differences
16 Logistics and Supply Chain in
Pharmaceutical Industry
Limitations of Study

17.  This study could be extended to the role of Third
party logistics Companies and their operations
 Supply Chain of other ASEAN countries could be
studied
 Innovative supply chain involving Postponement
could be studied
17 Logistics and Supply Chain in
Pharmaceutical Industry
Future Scope

18. Questions please
Thank You!

19.  Business Environment of Singapore
 Demography
• Population, Area, Population Growth rate, etc
 Economic Environment
• GDP, Growth rate, Inflation, Labour Force, etc
 Logistics Environment
• Major airports, ports, capacities, market leaders
 Rankings
 Singapore
• #1 Logistics Hub in the World (World Bank, 2013)
• Connection with 275 cities in 65 countries across the
globe
19 Logistics and Supply Chain in
Pharmaceutical Industry
Literature Review
Source: Singapore Government, 2014

20.  Pharmaceutical Industry
 Total revenue from prescription drugs was $954
Billion in 2012 (Pharmaceutical Research and
Manufacturers, 2013)
 Singapore
• Growth of 4.9% in 2013 to reach a value of $0.6
Billion
• GlaxoSmithKline Plc leading player with 7.6% market
share
20 Logistics and Supply Chain in
Pharmaceutical Industry
Literature Review contd…
Source: MarketLine Industry Profile, 2014

21. 21 Logistics and Supply Chain in
Pharmaceutical Industry
Distribution Models
Source: BCI Global, 2014

22. 22 Logistics and Supply Chain in
Pharmaceutical Industry
IT Adoption Stages
Source: BCI Global, 2014
Setup that automates the
entire organization
Integrated enterprise
application such as
Business Intelligence
Solutions integrating
multiple functional
areas, like ERP
Department
Specific
Solution
Level 4
Level 3
Level 2
Level 1

23. Secondary Research
 To read Books, Journals, Reports and Articles on
Pharmaceutical Industry’s
• Performances and Trends
• Best practices by various companies to make their
supply chain efficient
• Laws of the land and regulations by the governing
bodies
• Technologies adopted to eliminate counterfeit drugs
• Logistics involved in the Supply Chain
23 Logistics and Supply Chain in
Pharmaceutical Industry
Research Methodology

24. Primary Research
 Interview Academic expert on
• Handling the complexity in Supply Chain
• Ways to make the supply chain efficient with product
specific requirements
 Interview Industry expert on
• Processes followed by their company in the supply
chain
• Methods adopted to eliminate counterfeit drugs from
the supply chain
• System to meet the regulations by the governing
authorities
24 Logistics and Supply Chain in
Pharmaceutical Industry
Research Methodology contd…

25. Logistics and Supply Chain in
Pharmaceutical Industry
Milestones
1st Dec – 15th Dec ’14
• Report submission
• Final Presentation
1st Nov – 31st Nov ’14
• Primary Research
• Secondary Research
10th Oct – 30th Oct ‘14
• Literature Review
• Mid Review Presentation
• Secondary Research
6th Sept – 10th Oct ’14
• Research Topic
• Proposal Presentation
• Literature Review
Final Presentation
Primary Research
Mid Review
Proposal for the Topic
25