Supply Chain Management: Survey in the Brazilian

Ricardo L. Machado, Dr.PUC Goiás, Brazil

[email protected]

The research was guided by the following general question: How do pharmaceutical companies in Brazil (in the state of Goiás) manage their supply chains?

The general research question was deployed and specific issues have emerged, such as: How is demand planning, supply and infrastructure along the SC? How is the procurement process done in terms of reliability,

quality, cost and time? How do pharmaceutical companies manage the production,

implementation and infrastructure requirements, in order to attend quality and service regulatory standards?

What is the delivery process, considering work distribution channels, order management, storage, time to deliver, service completeness, reliability, cost and flexibility?

How do the revenues occur in the supply chain?

CIO - ICIEOM 2013 - Valladolid

Process Definition ActivitiesPlanning Processes designed to match the

demands with the resources andmaterials available, with plans ofsupply, production anddistribution

Develop guidelines and formulate goals.Integrate best solutions in the areas of inventory,purchasing, production, distribution and return.Align such aspects with financial and marketing plansof the organization

Procurement Procedures for identifyingsources for obtaining materialsrequired for execution ofproduction plans

Schedule inventories and deliveries of products andservices that will meet the demands of a company.Monitor supply sources through performanceindicators and contract management.

Manufacturing Manufacturing and assemblyprocesses to produce asdemanded by production plans

Schedule and provide production.Convert raw materials, inspecting and packing themin ways that meets the company's consumers

Distribution Products delivery processes tomeet the demands

Managing customer orders, logistics storage,separation, billing, shipping and distribution ofproducts

Return Processes associated withreturning of products that do notmeet specifications

Perform reverse logistics of products sold tocustomers, and returns of materials for use in internalbusiness processes


The main suppliers are mostly located abroad and are responsible for active ingredients. The manufacture is on account of the pharmaceutical companies, which are subjected to stringent quality standards established by ANVISA - National Agency for Sanitary.Pharmaceuticals distributors are the main sales channels and deal with nearly 70% of the total volume traded.Other channels of direct sales to pharmacies and hospitals, respectively, represent the volume of 13 % and 17% of the drugs commercialized in the Brazilian market.


This research is characterized by a survey quantitative study.

The population of this research was composed of 18 pharmaceutical companies that make up the cluster of Goiás.

The main research tool used was a standardized and self-administered questionnaire.


0%

10%

20%

30%

40%

50%

60%

Yearly Budget (US$)

0% 10% 20% 30% 40%

Up to 50

51 to 150

151 to 500

501 to 5000

Over 5000

Number of Employess


0%10%20%30%40%50%60%70%80%90%

Industry´s Portfolio

80%

10%

10%

Types of Production Systems

Pushingsystem

Pulled system

Pushing andpuled systems


60%30%

10%

Configuration of the SC

SupplyChain -Type 1

SupplyChain -Type 2

SupplyChain -Type 3


0%10%20%30%40%50%60%70%80%90%

100%

Information considered relevant to the planning process

0%

5%

10%

15%

20%

25%

30%

20%

30%

10%

20%

Time horizon of the forecast


70%

20%

10%

0% 20% 40% 60% 80%

Not shared withpartners

Shared with suppliersand customers

Shared only with keysuppliers

Participation and access to knowledge about targets by

partners

10%

10%

30%

20%

10%

20%

0% 10% 20% 30% 40%

Sales forecasts

Determined bythedifference between…

Minimum stockcalculation

Determined btsoftware (MRP)

Didn´t store anything

Did not answer

Inventory Planning of theFinished Products


10%

40%

50%

0%

10%

20%

30%

40%

50%

60%

Very highdependence

Highdependence

Moderatedependence

Degree of dependence with suppliers

20%

10%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Very high level High level Moderate level

Transparency of negotiation with suppliers


20%

40%

30%

10%

0% 10% 20% 30% 40% 50%

Very high level

High level

Moderate level

Low level

Sharing of information

20%

60%

20%

0% 20% 40% 60% 80%

Very high level

High level

Moderate level

Quality of delivered products


50%

50%

0% 20% 40% 60%

Delivery times were mostly met

Delivery times were partiallycomplied

Timeliness of delivery by suppliers

80%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Always deliver lots completely

Deliver incompletely

Comprehensiveness of the lots delivery by supplier


30%

20%

40%

10%

0% 10% 20% 30% 40% 50%

Very high

High

Moderate

Low

Reliability of the transportation system


10%

50%

40%

0%

10%

20%

30%

40%

50%

60%

Very high High Moderate

Flexibility in the production process

30%

50%

20%

0%

10%

20%

30%

40%

50%

60%

Very high Moderate Low

Setup time


80%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Very high High

Compliance with regulatory requirements


0% 50% 100%

Mostly accomplished

Partially completed

80%

20%

Compliance with deadlines for deliveries

0% 20% 40% 60%

Always completelydelivered

Partially delivered

50%

50%

Completeness of the loads delivered


0% 20% 40% 60% 80%

Very high

High

Low

10%

80%

10%

Flexibility in the delivery system

0% 20% 40% 60%

Partly outsource

Completely outsource

40%

60%

Property of the transportation system


0% 20% 40% 60%

Very high

High

Moderate

Low

10%

50%

30%

10%

Transportation costs

0% 20% 40% 60%

Very high

High

Moderate

20%

50%

30%

Reliability of delivery


80%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Exist Doesn´t exist

Existence of recycling program

60%

40%

0%

10%

20%

30%

40%

50%

60%

70%

Exist Doesn´t exist

Existence of environmental preservation program


40%

60%

0%

10%

20%

30%

40%

50%

60%

70%

High Moderate

Complexity of return of sales


The competition was observed between companies instead of their supply chains;

Very little integration occurred between the links (partners) inside the supply chain;

The companies had a great concern about the quality of their products, because it was a compulsory request, and they were much more concerned about questions of internal improvements, than improving the performance of the supply chain as a whole.


Documents

Supply Chain Management: Survey in the Brazilian