RANBAXY LABORATORIES LTD.

- II

Presented By: Priyanka Yadav

Ranbaxy Laboratories Limited

Ranbaxy Laboratories Limited

Type Traded as Industry Founded Headquarters Revenue Net income Parent Website Public BSE: 500359 NSE: RANBAXY Pharmaceutical industry 1961 (1961) Gurgaon, India 89.61 billion (US$1.82 billion) (2010) 11.48 billion (US$232.81 million) (2010) Daiichi Sankyo www.ranbaxy.com

QUESTIONS
QUE-1 Highlight the various steps,which Ranbaxy has taken for vendor development and in making them the real partners. QUE-2 The present exercise of building bridges with its supplier,may hamper the tradition of secrecy prevalet in the pharmaceutical companies.Discuss and give your critical comments. QUE-3 What are the net gains to the company because of to its suppliers development programme?

ANSWER -1 STEPS TAKEN BY RANBAXY

Nurturing Suppliers Relations

(a) providing training (b) quality monitoring (c) update about latest technology.

Conducted Vendors Meet

(a) 120 vendors attended (b) Problem areas like packaging, capsules ingredients like sugar and starch were identified.

Conducted Seminar and Training Programmes

(a) Jordan Lewis international expert on customer-supplier alliances. (b) Given training on how to improve services and be cost effective. IMPORTANT STEPS (a) Renamed partners meet as Partners Meet (b) Introduced Ranbaxy partners awards.

ANSWER 2 BUILDING BRIDGES AS A STRATEGY

EARLIER

- suppliers were kept at arms length - Allowed intervention in price negotiation only.

VOLTE FACE
Poor quality was the reason (a) Rejection Rate was high. (b) Products have to be exported to Europe and Australia.

Building bridges involves following (a) Helped suppliers to get land and obtain loan. (b) Suppliers were motivated 1. One of them switched from traditional glass bottles to superior plastic bottles. 2. Another supplier started manufacturing sticker labels rather than self adhesive labels. 3. Sugar problem- Sugar contained black molecules due to cast iron pipes used in manufacturing process, they funded them to change the entire pipe lines. Strategically they are now reducing the number of suppliers.

ANSWER -3 NET GAINS TO RANBAXY

Understand suppliers on basis of technical knowledge and commercial viability. Rejection rate was drastically reduced. (a) Quality (b) Transportation cost was reduced (c) Inventory level was reduced

THANK YOU