Corporate Research Project on Pharmaceutical Industry of Singapore

Capstone Research by: Sanket Golechha – MJAN14GLM38

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

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

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


Proposed Objectives

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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

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


Primary Research

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Supply Chain – Novartis Pharma.

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Manufacturers•Manufacturing plants of Europe and USA

Distributors cum

Consignment Agents

• Zuellig Pharmaceuticals, Singapore (3PL)

Retailer

•Hospital Pharmacies, Watsons Pharmacy, etc

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


Supply Chain – Novartis Pharma.

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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


Counterfeit Drugs


Counterfeit Drugs entering the SC

Source: Finlay, 2012

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


Regulations in Singapore

Source: HAS Singapore, 2012

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


Challenges and Complexities

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IT involvement

Levels of IT involvement

Right upgradation at the right time

Application of IT in the system


Challenges and Complexities contd…

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Source: Frost and Sullivan, 2012

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


Recommendations

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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


Recommendations contd…

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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


Limitations of Study

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


Future Scope

Questions please

Thank You!

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


Literature Review

Source: Singapore Government, 2014


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


Literature Review contd…

Source: MarketLine Industry Profile, 2014


Distribution Models

Source: BCI Global, 2014


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

Secondary Research

To read Books, Journals, Reports and Articles onPharmaceutical Industry’s

• Performances and Trends

• Best practices by various companies to make theirsupply chain efficient

• Laws of the land and regulations by the governingbodies

• Technologies adopted to eliminate counterfeit drugs

• Logistics involved in the Supply Chain


Research Methodology

Primary Research

Interview Academic expert on

• Handling the complexity in Supply Chain

• Ways to make the supply chain efficient with productspecific requirements

Interview Industry expert on

• Processes followed by their company in the supplychain

• Methods adopted to eliminate counterfeit drugs fromthe supply chain

• System to meet the regulations by the governingauthorities


Research Methodology contd…


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

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