University of Dhaka International Business REPORT On Supply Chain Management: A Case of orion pharma ltd Course Title: Organization Behavior Submitted to: Mohammad Monirul Islam Lecturer Department of International Business Faculty of Business Studies University of Dhaka. Submitted by: GOBETYCOON Class: BBA (3 nd Year, 2 nd Semester) Batch: 17 th (IB 4 th ) Department of International Business Faculty of Business Studies University of Dhaka. Name ID Jubayda Jakia Juthi 05 Md. Golam Reza 44 Binoy Chanda 54
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University of DhakaInternational Business
REPORTOn
Supply Chain Management: A Case of orion pharma ltdCourse Title: Organization Behavior
Submitted to:Mohammad Monirul Islam Lecturer Department of International BusinessFaculty of Business StudiesUniversity of Dhaka.
Department of International BusinessFaculty of Business Studies
University of Dhaka.
Name IDJubayda Jakia Juthi 05
Md. Golam Reza 44Binoy Chanda 54Mehdi Hasan 60
Date of Submission: , 2014
, 2014
Mohammad Monirul Islam Lecturer Department of International BusinessFaculty of Business StudiesUniversity of Dhaka.
Subject: Submission of Report on “Supply Chain Management: A Case of orion pharma ltd.”
dear sir,
We have the pleasure to submit an elaborate report on “Supply Chain Management: A Case of orion pharma ltd” as a requirement of our course. In every sphere of preparation of this assignment we tried our best to make good combination between theoretical knowledge of our learning from the course “Supply Chain Management” and practical experience during the making of this assignment. We would like to say that it was great experience for us to work with orion pharma ltd. It has enlarged our practical knowledge about supply chain operation and various models in the organization.
We have given our utmost effort to reflect our skills, experience and knowledge for the successful completion of the report. All of our effort will be successful if the report can serve its purpose.
SincerelyGOBETYCOONDepartment of International BusinessUniversity of Dhaka
Acknowledgement
Alhamdulillah, first of all we would like to thank ALLAH as finally we were able to finish our assignment. We would like to express our gratitude to the Department of International Business for giving us such opportunity to gather experience. This task had been done with spontaneous participation of all the group member. Besides that, big thank we address to Lecturer of Department of International Business Mohammad Monirul Islam for her astute guidance, valuable suggestion and supervision.
We are deeply indebted to the authors whose book we have consulted in preparing this treatise. Our gratitude goes particularly to some Executive of “orion pharma Ltd” for their cooperation, spontaneous help and constant guidance to carry out the plan.
GOBETYCOONClass: BBA (3nd Year, 2nd Semester)Batch: 17th (IB 4th)Department of International Business Faculty of Business StudiesUniversity of Dhaka.
Executive Summary
We chose to scope out the supply-chain policy of any pharmaceutical company. Orion Pharmaceutical is the one we have collected required data of. Medicines, drugs(medically approved ones) and so many other cauterized clinical products ; facilities that are decided by the company ; supply-chain drivers, that is, the factors like inventory, transportation so forth that influence the company to particularize it s format of everything. These have been subcategorized into many other factors as well.
Mainly we tried to focus on the logistics activities of the company that how the firm collect its raw material. The transportation method they use, why they use that particular transportation method, inbound transportation method, outbound transportation method, level of integration among the tusk.
Objectives
The objectives of the report are to –
Knowing about the supply chain management system of Orion Pharma Ltd.
Collecting information that effect on their facilities, inventory management and
transportation system.
Knowing their pricing and sourcing strategies.
Acquiring knowledge about their maintained supply chain network and reason
behind choosing the network.
Getting information about the coordination system they followed between
demand and supply.
Methodology
With a view to completing the report the information has been collected from both primary and
secondary sources. Through interviewing one of the employee of Orion Pharma Ltd the
information is gathered about their supply chain factors and management of them. A
questionnaire is created to collect necessary information. Some of those questions provide the
freedom to answer freely to the interviewee and other questions had to reply with yes or no. So
the ‘open ended’ and ‘semi structured’ method was followed to collect the information.
Moreover as secondary source surfing internet and collect some information as well.
Orion Pharma Ltd.
Orion Pharma Ltd is a member of Orion Group was founded as a pharmaceutical manufacturing
company in 1965. It is one of the premier pharmaceutical companies of Bangladesh which has
been contributing to improving the human health care of the country by providing quality
branded-generic pharmaceuticals. We, at Orion Pharma Ltd., always believe in 'Quality never
ends' . The company has been awarded with the ISO-9001: 2000 Certificate in January 2003 for
serving its valued customers with products of excellent quality.
Vision
Orion Pharma. has set up its vision as to be regarded as a quality pharmaceutical company
globally through prod¬ucts and services and has been relentlessly workings towards it.
Products
Orion Pharma. Manufacturers and markets a wide array of dosage forms including tablet,
capsule, syrup, suspension, dry powder for syrup/suspension in different therapeutic groups like
antibiotics, anti-diabetics, anxiolyt-Ics, diuretics, cardiovascular drugs. NSAIDs etc. It
communicates its products and services to its customers through more than 400 skilled and well-
trained Field Forces and more than 25 marketing professionals.
Flagship Products
Among almost 250 products, Orion Pharma proudly declares the forion pharma owing flagship
The major drivers of Supply chain performance consist of three logistical drivers & three cross-functional drivers. Logistical drivers: Facilities Inventory Transportation & Cross-functional drivers: Information Sourcing Pricing. Company’s supply chain achieves the balance between responsiveness & efficiency that best meets the needs of the company competitive strategy.
Drivers of Supply Chain Performance are Efficiency & Responsiveness. Supply chain structure are- Facilities, Inventory, Transportation, Information, Sourcing, Pricing.
Supply chain decision –making framework:
Logistic drivers
Cross functional drivers
Supply chain
Strategy
Information
Facilities Transportation Inventory
Sourcing Pricing
Competitive strategy
1. Facilities:
Facilities are the actual locations in the supply chain network where product is stored,
assembled or fabricated. And our selected pharmaceutical company is a manufacturing
company which produces its products with two production factory.
Location of the factory: one factory situated in Tejgoan Industrial Area, Dhaka and one
situated in Chittagong road, Kanchpur, Narayangong. There are some reasons for locating the
factory in these places like transportation facility, financial facility, closer to the commercial
area etc.
Capacity of facilities: It has a little excess capacity because of its various production batch
which need different capacity according to its demand for the product. And this little excess
capacity makes it somewhat efficient.
Role in the supply chain: Facilities are the where of the supply chain. They are the locations
to or from which the inventory is transported. Production facilities, firms must decide
whether they will be flexible, dedicated or a combination of two. This company because of
its many types of product is flexible which make them often less efficient.
Role in the competitive strategy: This Company has only two sites of production and this
centralization of production which increase efficiency which comes at the cost of
responsiveness.
2. Inventory:
Inventory encompasses all raw materials, work in process and finished goods within a supply
chain. And this company uses such a inventory policy which made them somewhat efficient and
somewhat responsive. Its inventory related decision are given below
1) Cycle inventory: cycle inventories average inventory and this company stocks average
inventory for satisfying its demand.
2) Safety inventory: It is stocked for satisfying demand when it exceeds expectation and this
company do not keep safety inventory generally but in rare case.
3. Transportation: Transportation entails moving inventory from point to point in the supply chain. And decision
related to this are from choice of transportation mode: The mode of transportation is the manner
in which a product is moved from one location to another in the supply chain. Here the company
selects the truck as mode of transport for products. And it has its own transportation system for
collecting and supplying inventory.
4. Information system:
Orion Pharma ltd has its own survey team to collect information that allows the supply chain to
become more efficient and more responsive at the same time. The team collects information
through investigate quantity of sales, market and customer attitude about the product. Moreover
they collect information from organization works with market data to make survey report on
different product and sell them to related organizations. 4p is one of this companies from which
Orion Pharma Ltd buys information and survey report necessary for their company.
5. Sourcing Strategy:
For gathering raw material they are accommodated by both domestic and international suppliers.
They have quite lot suppliers from Bangladesh and among international suppliers they it is
predominantly India. Moreover they use a chain of responsibility to board of directors. The chain
of started from salesmen and go through local units, regional office and finally main head-office.
So the in every phase they maintained aggregate responsibility.
6. Pricing Strategy:
As the price of Pharmaceutical companies in Bangladesh has been decided by the Government
and its relevant units, Orion Pharma Ltd. is not out of it. The government provides a range for
product within which the company set the price of their own product.
Coordination:
The Orion Pharma Ltd. tends to depend upon their past records and information if their previous sales.
They make effort to link demand and supply in a traditional way. The chief coordinators are generally
believed to be implementing their such decisions in that repeated manner, if not ordered otherwise.
Network design:
Orion Pharma Ltd. , same as most other pharmaceutical companies, chooses to apply Retail Storage with
Customer Pick-up. This is the most traditional type of supply chain, inventory is stored locally at retail
stores. Customer walk into the retail store or place an order online or order by phone and pick it up at the
retail store. Local storage increases inventory costs because of the lack of aggregation. Very good
response time can be achieved with this system because of the storage system.
Phar
Product Flow
Customer
Customer Flow
Information Flow
Orion Pharma Ltd
Local
Pharmacy
Local
Pharmacy
Local
Pharmacy
Local
Pharmacy
Retailer Retailer
Conclusion
The mentioned company’s supply-chain strategy has given us a fair idea about pharmaceutical industries’
techniques overall. The Orion Pharma Ltd. has formatted itself into large sectors both domestically and
internationally, which helped us understand not only in a limited point of view. Their mechanics of
dealing with supply and demand include so many tactics as well as strategies that we have attempted to
