Operation Mgt Term Paper Rr1903a03

8/8/2019 Operation Mgt Term Paper Rr1903a03

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NO1 Company history and profile

2 Product range

3 Transformational process4 Facility layout

5 Facility location

6 Production planning

7 Quality system

8 Inventory management

9 Model of supply chain management10 References & bibliography

ACKNOWLEDGEMENT

First of all thanks to almighty god who gave me courage and confidence

hence I completed my term paper. I would like to express my gratitude for

the helpful comments and suggestions by my teacher.

Most importantly I would like to thank my course in charge Mr. H.S. Bedi

for his supervision and support in accomplishment of my study about the

topic. Her critical commentary on work has played a major role in both the


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content and presentation of my discussion and arguments about the term

paper and I would thank my parents who supported me all along the study

and friends for their help in making of this term paper.

I have extended my appreciation to the several sources which provided

various kinds of knowledge base and support to me. I would also like to

thank my classmates who helped me in times in completing the study about

the given topic.

Jairaghuve

er Bawa.

Dabur India

Established in 1884 by Dr. S K Burman, Dabur India is the fourth largest

FMCG Company in India with business interests in Healthcare, Personal careand Food products. Over the years, Dabur India has focused onmanufacturing and selling Ayurvedic products targeted at the massconsumer segment. A number of personal care products, Ayurvedic tonicsand oral care products that it launched between 1940 and 1970 are leadingbrands today. Daburs top nine brands had 65% or more market share intheir respective product categories. These included the health tonicChyawanprash, Hajmola digestive tablets and candy, digestive Pudin Hara,Dabur Lal Dant Manjan and Dabur Amla hair oil. Dabur manufactures over450 products, covering a wide range in health and personal care. Dabur Indiahas 10 manufacturing locationsseven in India and one each in Nepal, Egypt

and UK. By restructuring its sales force to a zonal structure for betterpenetration, Dabur India now has a strong distribution network comprising of1.5 million retailoutlets, 47 C&F locations and 5,000 distributors. It has five subsidiarycompanies Dabur Foods, Dabur Nepal, Dabur Oncology, Dabur Pharma andDabur Egypt. Gearing towards a new system where direct involvement of thefamily is limited, the Burmans have formulated a Family Council which actsas an interface between the family and the Board and management of


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Dabur. The family members involvement has come in for a qualitative shiftwith fresh members being encouraged to develop their own ventures. Theseproposed ventures, presented to the Family Council for approval andfunding, present fresh avenues for new talent to bear fruit. Dabur has, overthe past couple of years, completed a significant strategic restructuring

xercise. The company exited from non-core businesses such as merchandiseexports and certain food products(confectionery, biscuits). Dabur has hived off its other food products (Realfruit juice and homemade culinary pastes) into a 100% subsidiary known asDabur Foods Ltd. Simultaneously, the company had been pruning its lowcontribution brands and refocusing on its key brands in family andhealthcare products. Daburs R&D is carried out by Dabur ResearchFoundation (DRF) employing over 135 scientists. DRF has been instrumentalin providing Dabur with new products from time to time. Some of DRFsimportant achievements have been developing Hajmola candy, validatingChyawanprashs immuno-modulation properties thereby paving the way for

its re launch, developing Vatikaa value-added coconut hair oil, discoveringan eco friendly process to isolate taxanesa class of anti-cancer drugs,developing Standardization Protocols for a number of Ayurvedic herbs inorder to ensure the quality of raw herbs as well as finished productsmanufactured from them.

Dabur India Ltd is one of Indias leading FMCG Companies with Revenuesof about US$750 Million (over Rs 3390 Crore) & Market Capitalisationof over US$3.5 Billion (over Rs 16,000 Crore). Building on a legacy ofquality and experience of over 125 years, Dabur is today Indias mosttrusted name and the worlds largest Ayurvedic and Natural HealthCare Company.

Dabur India is also a world leader in Ayurveda with a portfolio of over 250Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes fiveflagship brands with distinct brand identities -- Dabur as the master brandfor natural healthcare products, Vatika for premium personal care, Hajmolafor digestives, Ral for fruit juices and beverages and Fem for fairnessbleaches and skin care products.

Dabur today operates in key consumer products categories like Hair Care,Oral Care, Health Care, Skin Care, Home Care and Foods. The


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company has a wide distribution network, covering over 2.8 million retailoutlets with a high penetration in both urban and rural markets.

Dabur's products also have a huge presence in the overseas markets and aretoday available in over 60 countries across the globe. Its brands are

highly popular in the Middle East, SAARC countries, Africa, US, Europe andRussia. Dabur's overseas revenues stands at over Rs 500 Crore in the2008-09 fiscal, accounting for about 20% of the total turnover.

The 125-year-old company, promoted by the Burman family, had startedoperations in 1884 as an Ayurvedic medicines company. From its humblebeginnings in the bylanes of Calcutta, Dabur India Ltd has come a long waytoday to become one of the biggest Indian-owned consumer goodscompanies with the largest herbal and natural product portfolio in the world.Overall, Dabur has successfully transformed itself from being afamily-run business to become a professionally managed enterprise.

What sets Dabur apart from the crowd is its ability to change ahead of othersand to always set new standards in corporate governance & innovation.

PRODUCT RANGE OF DABUR

MEDICINES-

SHILAJEET

PUDIN HARA


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Triphla Capsule

Shatavari capsule

HEALTH CARE-

DABUR CHYAWANPRASH

DABUR HAJMOLA

DABUR LAL DANT MANJAN


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BODY CARE-

DABUR AMLA HAIR OIL

DABUR VATIKA SHAMPOO

DABUR BADAM OIL

FOOD-

REAL ACTIVE JUICE

BURRST

LEMONEEZ


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HOME CARE-

ODOPIC

ODOMOS

ODOPILL

TRANSFORMATIONAL PROCESS OF DABUR AYURVEDIC

MEDICINES

MANUFACTURING PROCESS OF TABLETS


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Dispensing Post Hoists Blending Granulation & Drying

Tablet Compression Containment Interfaces (Hicoflex) Tablet Coating

DISPENDING

The Buck Systems range of modular dispensing solutions provide forsimple ergonomic operation whilst ensuring control of the dispensingprocess.

The control system interlocks the process with the recipe managementsystem to provide batch data security and traceability for validationpurposes. Additional features such as removable hoppers and additionalextraction provide increased safety for operators and simplicity forcleaning. Solutions range from single level for simple applications tomultiple level, integrated dispensary management systems. Bulk
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ingredient dispensing includes fully automated excipient dosing or

interfacing with big-bag bulk ingredients for high containment.

IBC Post Hoists

IBC Post Hoists are used for many handling applications within thepharmaceutical manufacturing process. Common applications include liftingIBCs over the inlet of processing equipment, lifting IBCs up to dock withfilling equipment, and as IBC blenders.

Mixing and blending of pharmaceutical powders and

granules

The extensive process knowledge of GEA Pharma Systems and with continuousresearch delivers the most efficient mixing & blending processes. We offer a widerange of technical solutions and process options to ensure efficient mixing andblending of pharmaceutical powders and granules.

GRANULATION AND DRYING

EA Pharma Systems' advanced range of Aeromatic-Fielder and Collette fluidbed processing, high shear processing and single pot processingtechnologies for Granulation and Drying are known throughout thepharmaceutical industry, for their engineering excellence and technicalinnovation. GEA Pharma Systems is committed to delivering optimized solutions tomeet customer requirements. Built-in versatility of system design is achievedthrough a wide range of standard options and configurations, for efficientprocessing and easy integration with up-and down-stream equipment. As well asstand-alone equipment and fully integrated plants, the company offers acomplete engineering service from system design to process integration andoptimisation.

TABLET COMPRESSION
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GEA Pharma Systems offers a wide selection of highly innovative and reliabletablet presses for both pharmaceutical and industrial applications, usingGEA Courtoy rotary tablet compression technologies.

Courtoy, has been at the forefront of tabletting technology, having

introduced its first rotary press in 1928 and responding to the increasingdemand for its high-speed tabletting machines, Courtoy establish itself as ahighly respected supplier of tablet presses.

Since its acquisition by the GEA Group in 1999, Courtoy has been able toexpand its worldwide market share and to enhance its position as the trueinnovator in tablet compression technology for both single-layer and bi-layers tablet presses.

With the introduction of the ECM-based (Exchangeable CompressionModule) 'MODUL' rotary tablet press in 2002, Courtoy revolutionized the

pharmaceutical industry. The ECM-technologysucceeds in combiningproductivity, flexibility and safety, all in one - setting a new standardfor pharmaceutical tablet production!

Containment Interfaces (Hicoflex)

Split-valve technology has established itself in the industry as a standard for

contained materials-handling when working with rigid containers. However,the demands of the pharmaceutical industry have changed yet again. Inaddition to containment which is stillconsidered to be the most important aspect the equipment has to fulfilmore and more requirements, such as low investment and production costs,full prevention of cross contamination, fast project realisation, full yielddischarge capability, and so on. All these additional requirements shouldread strongly in one direction: flexible containment solutions.
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A new technology from Buck - Hicoflex is based on the time-testedfunctional principle of split-valve technology but is combined with the simplelocking principle of a snap ring. An example of this principle can be found inthe simple spectacle case; here, just like with the split-valve technology, twocomplementary half-locks are docked onto each other. This means thatmutual opening and closing can take place just as if it were a one-piecelocking unit. This process ensures that the product to be transferred isprotected from the environment during the transfer process. The two half-locks close after the transfer process and can be separated from each otherwithout any contamination

TABLET COATING

Tablet coating technology in the pharmaceutical industry has remainedfundamentally unchanged for the past 50 years. Until now.

Inconsistent and imperfect, this standard practice of tablet coating oftendelivers a non-homogenous product. Because the tablets are loaded in largerotating pans and vented for hot air drying, tablet edges can get groundedoff, intagliations can get filled in by coating material, and edges and cornersmay not be coated with the same thickness as the tablet faces.
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FACILITY LAYOUT

PRODUCT LAYOUT

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:

Product layout are found in flow shops. Flow shops produce high volume,highly standardized products that require highly standardized repetitiveprocesses. In a product layout, resources are arranged sequentially, based

on the routing of the products. In theory, this sequential layout allows theentire process to be laid out in a straight line, which at times may be totallydedicated to the production of only one product or product version. The flowof the line can then be subdivided so that labor and equipment are utilizedsmoothly throughout the operation. Two types of lines are used in productlayouts: paced and unpaced. Paced lines can use some sort of conveyor thatmoves output along at a continuous rate so that workers can performoperations on the product as it goes by. For longer operating times, theworker may have to walk alongside the work as it moves until he or she isfinished and can walk back to the workstation to begin working on anotherpart (this essentially is how automobile manufacturing works).

On an unpaced line, workers build up queues between workstations to allowa variable work pace. However, this type of line does not work well withlarge, bulky products because too much storage space may be required.Also, it is difficult to balance an extreme variety of output rates withoutsignificant idle time. A technique known as assembly-line balancing can beused to group the individual tasks performed into workstations so that therewill be a reasonable balance of work among the workstations.


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Product layout efficiency is often enhanced through the use of line balancing.Line balancing is the assignment of tasks to workstations in such a way thatworkstations have approximately equal time requirements. This minimizesthe amount of time that some workstations are idle, due to waiting on partsfrom an upstream process or to avoid building up an inventory queue in front

of a downstream process.

Advantages of product layouts include:

Output. Product layouts can generate a large volume of products in ashort time.

Cost. Unit cost is low as a result of the high volume. Laborspecialization results in reduced training time and cost. A wider span ofsupervision also reduces labor costs. Accounting, purchasing, andinventory control are routine. Because routing is fixed, less attention isrequired.

Utilization. There is a high degree of labor and equipment utilization.

Disadvantages of product layouts include:

Motivation. The system's inherent division of labor can result in dull,repetitive jobs that can prove to be quite stressful. Also, assembly-linelayouts make it very hard to administer individual incentive plans.

Flexibility. Product layouts are inflexible and cannot easily respond torequired system changesespecially changes in product or processdesign.

System protection. The system is at risk from equipment breakdown,

absenteeism, and downtime due to preventive maintenance.

BATCH PRODUCTION -

As businesses grow and production volumes increase, the production processis often changed to a batch method. Batch methods require that a group ofitems move through the production process together, a stage at a time.

Batch production is a very common method of organising manufacture. Goodexamples include:

Production of medicines Fish and chip shops Paint and wallpaper manufacturers Cereal farming

Advantages


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The batch method can be an advantage for businesses that produce a rangeof products. It is cheaper to produce a number of each item in one gobecause machines can be used more effectively, the materials can bebought in bulk and the workers can specialise in that task. There are twoparticular advantages of workers being able to concentrate their skills.

They should become more expert at their tasks, which will in turnincrease productivity (output per worker). This will lower costs, asfewer workers are needed to produce a set amount.

Better quality products should be produced as workers are morefamiliar with the task and so can find ways of improving it.

Disadvantages

Batch production requires very careful planning to decide what batch will beproduced when. Once a batch is in production it is difficult to change, as

switching to another batch takes time and will mean a loss of output. Batchmethods can also result in the build up of significant work in progress orstocks (i.e. completed batches waiting for their turn to be worked on in thenext operation). This increases costs as it takes up space and raises thechance of damage to stock.

FACILITY LOCATION-

DABUR INDIA LIMITED

GHAZIABAD


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Manufacturers and exporters of AYURVEDIC MEDICINES, COSMETICS,

PHARMACEUTICAL FORMULATIONS, FOOD PRODUCTS.

Company Profile :

Establishment Year 1884Firm Type public ltd.

Nature of Business manufacturer

Level to Expand export import international:

Capacity planning:

In addition to capacity planning, C-PORT is a powerful tool for process improvement and

introduction of new therapies. The simulator not only provides an outlook on capacity and


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demand-based utilization at Trust level, but it also allows users to model the introduction and

impact of new cancer regimens and drugs, assists the creation of business plans, simulates the

impact of business process changes, and tracks patient waiting times.

C-PORT provides aggregated data from across India and enables performance benchmarking

between units. The National Clinical Director for Cancer indicated that C-PORT should be used(and now has been implemented) to model the impact of new drugs being submitted for

evaluation by the National Institute for Clinical Excellence.

QUALITY SYSTEM-

We are one of the most trusted names in the market, known for offeringqualitative range of ayurvedic products. All procured high grade raw materialare carefully inspected and supervised by our experts on the grounds ofquality and effectiveness. These are manufactured as per GMP norms whichensure its quality.

Our team of quality inspector monitors that our gaso capsule , pain relief &antiseptic ointment and podin hara conforms of the industrial standards.They also make processing plans at every stage of production, right fromprocuring of raw material to the dispatch of final product. Further, thefinished podin hara capsules, health care, glucose d and chyawaprash arechecked by our inspectors, to ensure their high quality standards.


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Raw Material UsedThe raw material used for manufacturing taila, dandruff powder, bathingpowder and ointment is procured from renowned vendors. Our range of toothpowder, cough chyawaprash, gaso capsule, pain relief & antiseptic ointmentis manufactured using agriculture product from forest. Further, these arechecked by our team of quality assistant prior to purchase to make sure thatthe procured raw material is fresh and is rich in quality for manufacturing ourrange.

Manufacturing UnitTo cater to the increasing demands of our clients, we have six robust

manufacturing units that help us to offer quality ayurvedic products.Spread over a vast area of 20,000 square feets, our manufacturingunit has the installed capacity of 30000 units. Our state-of-the-artmanufacturing units, supported by our in-house designing unit, areintegrated with various latest machines that are managed by a team ofexperts.

We use traditional method for manufacturing our range. Some of themachines and equipment that are installed in our manufacturing unitinclude:

Drying Crushing Powdering Filtering Grinding Mixing

These machines are regularly checked in order to ensure their effectiveperformance and hence smooth, uninterrupted production process

Warehouse & Packaging


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To ensure proper storage of our taila, dandruff powder, cough tablets, gasocapsule, pain relief & antiseptic ointment, we have a spacious warehouse. Itis divided into a number of sections to ensure easy and safe accommodationof various ayurvedic products. Moreover, our warehouse has followingfeatures:

Fire safety arrangements Material handling equipment Pest free environment Controlled temperature, as per stored tablets and capsules

We give emphasis on the packaging of finished bathing powder, ointmentand tooth powder, to ensure that these reach their destination in theiroriginal condition. Consequently, we use corrugated boxes and big cartons intheir packaging.

INVENTORY MANAGEMENT SYSTEM

The pharmaceutical industry is a very important one in the industrial world

because of its major role in sustaining a healthy nation. Within the industry,there are various firms or companies engaging in one form of trade or theother. While some specialize on research and development in respect todrugs or medicine for curing one existing or new infection or disease, someare into manufacturing drugs and others are into prescribing drugs,marketing drugs and the likes. This scene, as if it were stage drama, is beenwatched, assessed and controlled by reputation organizations, associations,bodies, commissions and special committee to ensure that things do not gobeyond normal.

As an experienced store/warehouse manager and later as logistics andwarehouse manager, I have always desired to put some things together forfuture individual who may eventual find themselves working in such firm aspharmaceutical company. Many find it difficult to work as one and those whohad actually worked as one had lots of difficulty times such as lost whichcould not be accountable for and they have to pay for, lots of query toanswer on why drugs expired without knowing, damages, supplying wrong


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strength or SKU for another, lost in transit if saddled with a bit of logisticsresponsibilities and so on.

The store/warehouse is committed to:

i. serving you better via prompt delivery or dispatch of stocks,ii. handling your complaints with courtesy, absolute care and promptresponse,iii. proper and accurate documentation(s) for effectiveness and efficiency,andvi due process for in-coming, out-going and out-sourcing of stocks.

This is mine and you need something similar to this, not exactly. It alldepends on your organization and what you want to do or achieve. Inventorymanagement and control thus is a very vital knowledge at a store orwarehouse manager must have in order to perform well on the job.

Practically, inventory management is all about ensuring that everythingabout your stock is well planned and organized such that there is easy flowof stock within and outside the firm. This means that you must have enoughstocks to satisfy all orders and ensure that customers continue to havestocks at all time. It is a complex things and quite challenging. However,some programs have helped in reducing the stress of using varieties offormulas in getting reorder level, maximum and minimum stock level,warning level, annual demand, etc. This is about INVENTORY OR STOCKCONTROL.

In managing you stocks in a pharmaceutical company, you must learn firsthow to keep proper records. You must be very versatile in this and likefigures especially when you handle over 100 different types of drugs andsome have different strengths e.g. 10mg, 25mg, 50mg, 100mg, 500mg, 1g,4000iu, 10000iu, 20000iu, etc. Some of the documents you must have andmake use of are:

DELIVERY NOTE (DN): This records all drugs and materials leaving the storeto the customers, REPs, office workers and donations to institutions. It musthave Date, Particular (for drug name, expiry date, batch number andstrength), packaging details (e.g. bottles, vial, PC, etc), Name and Address of

the consignee, serial number, signature space for the store manager and thereceiver. It could be duplicated in pink or be in triplicate.

GOODS RETURN FORM (GRF): It records all goods return and in goodcondition.

GOOD RECEIVE NOTE (GRN): It records all imported stocks as they enter thestore i.e. stocks imported from manufacturer and being received into the


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store or stocks received from the production department into the store andready to be issued out.

PRODUCT REQUSITION NOTE (PRN): It records all requests for orderplacement forwarded to the purchasing manager or procurement

department when stocks reach reorder level. It should specify which stockneeds to be replenished and the quantity to be ordered (though theprocurement manager may know the right quantity to procure within thefinancial constraint of the organization).

WAYBILL: This is a store document that accompanies stocks being moved outof the organization which must be presented when stopped on the wayeither by the organization's security men or force on the way to thecustomer's warehouse or store.

BIN CARD: This is a document showing daily incoming and outgoing of stocks

in and out of the store or warehouse. It must show the consignee's name andaddress, batch number, expiry date, quantity, signature and the balance (oncontinuous basis). FIFO should be strictly applied so as to avoid loss due toexpiration of drugs.

INVENTORY SOFTWARE: Inventory management and control software couldbe installed on the office system for daily posting and accurate report asgenerated by the tested and tried program. Good ones include inflowinventory program, Chronos eStock Card, Inventoria Manager Stock etc.

In managing stock or inventory in a pharmaceutical company, the following

must be put into consideration:

1. The stocks expiry date must be checked and documented. It must bewritten on the bin card.MANAGEMENT ACTION: Ensure that there is proper surveillance on the expirydate of each drug to avoid loss due to expiration.

2. The Batch number must be noted and document as their may be manybatches of the same class of drugMANAGEMENT ACTION: FEFO (First Expiry, First Out) should be used here.The first expiring batch should go out first.

3. The temperature must be well noted and likewise the storage conditions.Some of such instructions are: store between 2oC and 5oC, store between15oC and 25oC, protect from sunlight, keep in deep freezer, etc. Adhere tothese instructions.MANAGEMENT ACTION: The temperature should be properly monitored toavoid damaged due to over/under temperature.


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Others include:

4. Stocks should not be jam-packed in the stock. There should be enoughspace and the store should be well organized to allow for easily location andfree movement.

5. Computer data should exist for all stocks in the store which will beupdated daily or almost immediately as the stocks are going out or coming into enable the manager to know quantity left for each stock at a glance onthe system in case of urgent demand.

6. Cleanliness is part of proper management of the warehouse.

7. Proper documentation and record updating is also necessary here fromsource document to Bin Card.

The stock control strategy is also necessary for effective and efficientmanagement of the warehouse. Lots of software now exists to removedifficulties in this area. In controlling the warehouse stocks, the controlmeasure/software/program should be able to determine the following uponwhich right decision should/could be taken:

1- maximum stock level2- minimum stock level3- reorder level of stock4- reorder quantity5- warning level for stock

6- normal reorder period7- normal consumption8- annul demand or quantity

The manual method of stock control is fast fading out though someorganizations still make use of it. However, daily check is needed to ensureefficiency. Computers these days have helped to save such time becausealert props up when stocks need to be reorder, below minimum level, whenover stock, etc.

In all, stock management and control is an important aspect of warehousemanager's responsibility which must handled effectively and efficient ifhe/she must stay on the job since all what is demanded from him or her isthis function. Therefore, the warehouse manager must endeavour to keepabreast of development via training and development in the form of furtherschooling, workshops, seminars, internet research, etc.


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Supply chain management

Managing extended supply chains is one of the biggest challenges faced byFMCG companies. Dabur tackled this with a Intelligent Enterprise 2003award winning project, a secondary SCM solution that it developed in-house

In 2001, Dabur decided to tackle its extended supply chain of over 30factories, six key warehouses, and 52 stocking points distributing over 1,000SKUs to 10,000 stockists countrywide. The company needed a system toaccurately control distribution and sales forecasting to reduce inventory in

the pipeline.

Dabur went ahead and built a system using Visual Basic and ASP with SQLServer 2000 as the database. It decided not to use a packaged SCM solutiondue to its high cost and the relative lack of complications in its supply chain.

The initiative

An easy-to-use, Intranet-based data-warehouse developed in-house displaysas-of-yesterdays sales, stock, receivables and banking. Over 5,000 ASPpages meet almost all reporting requirements and make this a single source

of information for all levels of decision-makers.

The primary rollout began in April 2001 and took 16 months. The first sixmonths were spent creating a business model common to all divisions(family products, healthcare, ayurvedic products, and pharmaceuticals), andtesting and piloting the same.

The innovation

The integrated primary and secondary system has a number of uniquefeatures. The tight integration of schemes, stockist credit limit control,

automated banking of cheques, and online cheque reconciliation are of greatuse when it comes to primary distribution. These are basically extensions tothe MFG/PRO ERP system and not core customisations.

Although Daburs stockists supply 1.5 million retailers, 70 percent of its salesare accounted for by the top 500 stockists. The induction of these topstockists into its supply chain is a first for any Indian FMCG company. The


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average sales of each stockist and current stock levels are the twoparameters.

Details are collected from stockists on a weekly basis. In case of primarydistribution points, an incremental backup is sent to the central location after

the CFA closes operations for the day. These are computed at night in aprocess called cubing. And when managers come into office in the morning,the information is ready for them.

The problems

Internet connectivity had to be provided to secondary stockists and reliablelinks were hard to come by. Daburs solution was to offer the option ofdownloading software, working offline, and connecting later to send inupdates. Power was another issue. The company has laid down stringentstandards. Every stockist needed to install a UPS, and in cases where the

power shortages are chronic, a genset.

The benefits

By integrating its primary and secondary supply chains, Dabur intends toreduce the number of days of inventory carried in the pipeline by four fromthe present 29 days and save Rs 5 crore in the process. Beyond this, thesystem lets it forecast seasonal spikes in sales and manufacture accordingly.The aim is to shift the focus to stockists rather than the CFAs to get a truepicture of whats happening in the market and react faster.

Future roadmap

Schemes based on secondary volumes help control secondary pipelines and

sales. Primary sales will therefore come from a resultant pull from

secondary replenishments. Sales order servicing can be further improved by

taking orders on the Internet, and by setting stocking norms and

replenishing stocks to improve the RoI of stockists. Sales officers targets can

be set against a measure of secondary sales and pipelines to further improve

control and avoid pushing stiff targets onto the CFAs.

Dabur pharmaceutical supply chain


25/25

There has been a paradigm shift in the supplychain process of Indian pharmaceuticalindustry. Value added tax, consolidation ofpharma companies and emergence of pharmaretail chains are some the factors that are

driving the changes in the distribution cycle.

A report by Ernst & Young entitled, IndianPharma Distribution, reveals, "With theintroduction of VAT in most of the states, thesqueeze on domestic margins and increasinggovernment pressure to contain retail drugprices, the reform in the Indian pharmaceuticalsupply chain is imminent".

REFRENCES & BIBLIOGRAPHY

www.dabur.com

www.daburindia.com

BOOK-

OPERATION MANAGEMENT WILLIAM J STEVENSON

Chart 2: PharmaceuticalSupply Chain from Factoryto Shelf

Source: Cygnus Research
http://www.dabur.com/http://www.daburindia.com/http://www.dabur.com/http://www.daburindia.com/

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Operation Mgt Term Paper Rr1903a03

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