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Table of Contents
Introduction of Company
History of Pharmacy
Sanofi Aventis Product line
Swot Analysis of the company
Vaccination Department (Sanofi Pasteur)
Planning
Procurement
Manufacturing
Quality Control and Assurance
Distribution Channels
Warehousing and Storage
Major Distributors of Sanofi Pasteur
Major competitors of Sanofi Pasteur
The Overall Supply Chain Process of Sanofi Pasteur Pakistan
Recommendations
Vote Of Thanks
It was a learning experience for us to carry out our term project on The
supply chain process of Vaccination Department of Sanofi Aventis which was
assigned to us by our respected teacher Mr.ArsalanZahid. We would like to
thank you for providing the guidance and the skills that helped us in
preparing the report.
It was an educational experience to carry out such a term project on a topic
so informative and practical.
Yours sincerely,
Syed Zulfiqar Ali Naqvi
Asad Jamal.
Executive Summary
In this report we have discussed brief introduction of Sanofi Aventis. This
multinational pharmaceutical firm was founded in 2004 having its head office in
Paris, France. It has various products top brands includes Flagyl, Claforan, Amaryl,
Vaccines, Lantus, and many more etc. However, we have also mentioned Swot
Analysis of Company. Major strengths which includes like strong and recognize
brand name and socially responsive. Major Weaknesses like, slow decision making
process and less employee benefits and perks. Opportunities which company should
have to avail by utilizing their strength and key environmental threats.
The procurement of the finished vaccines from France Sanofi Lyon company their
storage in a cold temperature environment and the wide distribution network
channel, planning of forecasting technique, manufacturing process cycle of the
vaccines, warehousing inventory controlling system, major distributors, major
competitors and some final recommendations are briefly discussed in this report .
Sanofi Aventis
Introduction
Sanofi Aventis, multinational pharmaceutical is having its head office in Paris,
France. The company was founded in 2004, when Aventis was acquired by SanofiSynthelabo, however both the company basically emerged in 1999.Sanofi-Aventis
Pakistan limited ("Sanofi") has a strong presence in Pakistan. With over 1000
employees working every day with the commitment to improve health and wellness
across the country, Sanofi ranks amongst the top ten pharmaceutical firms in
Pakistan.
By working in collaboration with stakeholders, it is ensured that patient-centric
approach yields tangible benefits to the common man through provision of quality
medicines that cater all age groups. The company is in the business of improving
lives and alleviating suffering, because when the world has its health, it will have
everything.
The manufacturing facilities of Sanofi-Aventis are among the most modern and
environmentally friendly facilities in the country, maintaining the demanding
standards of cGMP. There is great emphasis on quality, professionalism and high
ethical standards. The rich product portfolio of the company includes life-saving
drugs, several of which are leaders in their respective classes.
History of Pharmacy
The earliest drugstores date back to the middle ages. The first known drugstore
was opened by Arabian pharmacists in Baghdad in 754, and many more soon began
operating throughout the medieval Islamic world and eventually medieval Europe.
By the 19th century, many of the drugstores in Europe and North America had
eventually developed into larger pharmaceutical companies. Most of today's major
pharmaceutical companies were founded in the late 19th and early 20 th centuries.
Cardiovascular
Thrombosis
Oncology
Central nervous system
Metabolic disorders
Internal medicine
Vaccines
Oral anti diabetic
Pain management
Allergy management
Anti biotic
Diarrhea
Gastric disease
Cough and cold
Anti malaria
Sleep disorder
SWOT Analysis:
INTERNAL
EXTERNAL
STRENGTHS
WEAKNESSES
1)
Slow
decision
making process due to
elongated
hierarchy
structure.
2) Decreasing market
share.
3)
Less
employee
benefits and perks.
4) Tough Credit Policy
(Cash/Credit
89%/11%)
OPPORTUNITIES
THREATS
better
employment
opportunities.
A global company:
Vaccines:
PLANNING:
Quantitative forecasting technique is being used by the Sanofi Pasteur for the
seasoned vaccines like typhoid, influenza that have past data trend available to
Sanofi Pasteur and for some new emerging diseases like dengue the product
forecasting in still in the pipeline in which qualitative technique is used in which
expertise opinions thorough out the world are held under consideration for the
forecasting of the dengue vaccines.
On global level scale there are certain limitation faced by the Pakistan for the
vaccines as it is a third world country and global manufacturing is very sensitive.
The regional manufacturing takes up to 5 to 6 months for producing vaccines
related to any disease. If the first world country has fluctuation in demand the
higher demand of those countries are met by the 3 rd world countries inventory.
The supply chain planning team of USA, Canada usually sits in Singapore with in
touch of Lyon company in France. Pakistan Sanofi doesnt have access into the
planning of the vaccines production.
Some vaccines are being produced on level based strategy depending up on the
nature of demand of those vaccine is constantly stable original forecasts of the
country and some specialized vaccines like yellow fever vaccine is produced on
chase strategy based upon the demand of African countries.
If some kind of epidemic disease occurs in any region of the world the Sanofi lyon
(France) usually enhances its vaccines production schedule with proper
concentration according to the demand requirements of the victimized countries.
Sanofi Pakistan benchmarks the forecasting of the competitors like GSK. If the
competitors forecasting of the vaccines is about 100000 of typhoid vaccines then
the sanofi Pasteur Pakistan would decrease its forecasting to 50000 typhoid
vaccines and in some special case if the GSK fails to launch the vaccines of 100000
than sanofi Pasteur Pakistan grabs that opportunity and enhances its forecast up to
150000 vaccines.
Procurement:
The vaccines are imported in finished form from France Lyon the parent company
with credit term of 60 days with the parent company. The lead time consist of 6
months from the process of beginning till finishing of the final product to the related
companies orders unless they have excessive inventory of the vaccines in their
pipeline.
The supplier of multinational pharmaceutical company is usually a parent company
so therefore they face allegation of transfer pricing as if one thing costs 100 will be
about 1000 to Sanofi Pakistan Company. There are no certain financial risk dealing
with the parent company supplier but Sanofi Pakistan usually faces the commitment
risk of the parent company as they are the only sole manufacturers and suppliers of
the vaccines product.
The parent company gives priority to the 1st world countries orders rather than the
3rd world countries hence therefore some of the specialized vaccines are still not
available in the Asian region in Pakistan.
SEED VIRUS:
The first step in developing a vaccine is obtaining a seed virus. The seed virus is a
specially modified version of the virus designed to produce a vaccine in mass
quantities. After world health officials analyzed and identified the dominant
circulating strain, they selected virus strains and submitted them to contracted
laboratories for preparation of the seed virus.
DISTRIBUTED
CHANNELS
In Pakistan there is a cold chain warehouse of the Sanofi Pasteur located in Karachi
through which the inventory is being stored in properly controlled temperature of 2
to 8 degree centigrade and are further distributed to all over the Pakistan from the
warehouse.
There are 15 distributors in Pakistan who generally purchase the vaccines from the
company and further distribute it to the wholesaler and retailers and the
institutional distribution is being handled by the Sanofi Pakistan itself they usually
transmit the vaccines by the air mode of transportation because the orders of the
institution are generally shorter than the large distributors of the company.
When they usually sell the vaccines to the distributor they maintained the
temperature of 2 to 8 degree through cold chain containers that are design for
these cold chain supply items. Distributors are maintaining the temperature with
their specialized cold chain vans .
There is a risk of non payment by the customers of Sanofi which includes the
distributors as well. So to tackle this problem, the company sells their products on
cash basis to the distributors which comprise approximately 89% of the companys
sales.
The reversal flow of the product is properly being managed by the Sanofi Pasteur in
two ways. Firstly, the excessive inventory is returned by the distributor back to the
company which is in turn supplied to another distributor who has demand for
supplies. Secondly, the expired and nearly expired inventories returned by the
distributors to the company are disposed of by the company before being used.
the company they usually rent the cold chain container to cater the higher
inventory demand.
The whole setup of maintaining and storing inventory is usually computerized based
on ERP system in which the company monitors the inventory level up to 1 to 2
months of the distributors directly and distributors do not have access to seek the
companys inventory level. The sales out are being monitored by the company in
which the inventory that has been sold by the distributor to the retailers and
wholesalers comes in the record of the company.
Whereas they cant monitor the inventory level of the institutions due to the
inaccessibility given by the institutions.
The packaging of the insulin is usually solely produced by the company itself in
accordance with instructions of government of Pakistan Sanofi Pasteur has been
labelling the packaging in Urdu version for administration of dose use safety.
PFIZER INC.
MERCK & CO INC.
GLAXOSMITHLINE PLC
NORVATIS
RECOMMENDATIONS:
The company should relax its tough credit policy for the time-tested and
reputable customers in the market. 89% of sales are made on cash basis.
There are reputable doctors in the medical industry who if given the vaccines
on credit terms, can enhance the share of the company ensuing greater
market share. By relaxing tough credit policy only for reputable distributors
and renowned doctors, the company can give tough competition to its
competitors as a result of increased sales. The time-tested distributors in the
market dont create problems like delayed payments or default.
The company needs to enhance its storage capacity of 400000 inventories of
vaccines relying on the single cold warehouse unit based in Karachi by
acquiring some new geographical location or a unit to cater the higher
demand of disease like dengue and other diabetic insulins. By doing that the
major problem of renting a cold chain container will get dissolved once for
all.
The parent company of France Lyon needs to provide equal priorities to the
3rd world countries orders like they are providing for the 1 st world countries
orders as they are the only solely producer in the vaccines field and the
diseases which are life threatening are dependable upon them so for
minimization of the causalities in the 3rd world country concentration and
priority level should be to same extent like 1st world countries orders.
Focusing on untapped markets like Cancer, HIV, and new disease to increase
market share.
Conducting seminars and ATL (Above the line) advertising activities to create
awareness about emerging diseases.
They should monitor the inventory level of the institutions like they are
monitoring for distributors.