Supply Chain Management Project Guidelines

One of the class requirements will be to prepare a Term Project Report. Your objective is to apply the concepts learned in this course and to analyze how companies apply these theories / concepts in practical area. The report should be written in English. The report should be concise and clear; the emphasis is on understanding from particle point of view and quality, not quantity. You are required to select any FMCG of your choice in food and confectionary industry sector. (Note: Beverage Companies are excluded) This report should be submitted one week before your last scheduled class (Hard Copy). No Late submission will be entertained. The report outlines are suggested but not limited as below: 1. Executive Summary ABBOTTs SCM mission is to configure, coordinate and improve all the sequentially related activities and set of operations with the idea of satisfying the entire chain of suppliers suppliers and customers customers by providing right product, at the right time, in the right quantity and becoming highly recognized by our employees, customers and shareholders and abiding by Government regulations by adhering to strict ethical and moral standards.

2. Company Profile Abbot Laboratories (Pakistan) Ltd. The companys principal activities are to manufacture, import and market based pharmaceutical, nutritional, diagnostic, hospital and consumer products and provides toll-manufacturing services. It operates in two segments Pharmaceutical and other. Pharmaceutical segment manufactures, import and markets research based pharmaceutical products registered with the ministry of health and provides toll-manufacturing services. Other segments includes importing, manufacturing and marketing diagnosing equipment, testing kits, consumer healthcare, nutritional and hospital products. The companys pharmaceutical products include Kalaricid, Erthrocin, Hytrin, Epival, Brufen, Entamizole, protium and Forane. The other products include Ensure, Pediasure, Pedialyte, Formance etc.

Abbott has approximately 70,000 employees worldwide and a global presence in more than 130countries. Abbott Pakistan started operation in Pakistan as a marketing affiliate in 1948. The company has steadily expanded to compromise a work force over 1400 employees. Currently two manufacturing facilities located at Landhi (largest tablet manufacturing plant) and Korangi in Karachi continue to use innovative technology to produce top quality pharmaceuticals products. The diagnostic division operates from its office located at Korangi, Karachi. Competitive Strategy

3. Market and Product Profile Target Market Market Share Sales Turnover

4. Draw and Explain Supply Chain Structure(mehdi)

SUPPLY CHAIN INTEGRATION

I N F O R M A T I O N F L O W CUSTOMER

RETAILER/ WHOLESELLER DISTRIBUTOR WAREHOUSE MANUFACTURING WAREHOUSE TRANSPORTATION

P R O D U C T F L O W

SUPPLIER MARKETING

ABBOTTS SUPPLY CHAIN STRUCTURE

SUPPLY CHAIN MANAGER

CAPAPCITY PLANNER

MASTER SCHEDULER

MASTER SCHEDULER

PRODUCTION PLANNER

PRODUCTION PLANNER

MATERIALS MANAGER

WAREHOUSE MANAGE R

LOCAL/ IMPORTED PURCHASE MANAGER

EXPORTS MANAGER

SUPPLY CHAIN PROCESS (PARTICIPANTS INVOLVED)

Marketing ( Demand Generated)

Manufacturing Planning

Material Planning

Vendors (Quotations asked)

LC

Follow up ---import & dispatches

Clearance Transit Time

Material in Warehouse

Material Available For Production

Production

QA

Released by QA

FO Batches

Packing line

FO Quarantine (Sampling test by QA)

Central Depots Satellite Depots & Distribution Dispatches Wholesalers Retailers Institutions Supply chain process 1. Marketing 2. Supplier 3. Transportation 4. Warehouse 5. Manufacturing 6. Warehouse 7. Distributor 8. Wholesaler/Retailer 9. Customer

Stages Involved Participants Involved

Who is the supplier/distributor etc and how many times in a month does a company acquire raw material/distribution of goods, and what is the lead time? Supplier-Distributor --Customer--Retailer--Agent Franchise Wholesaler---Service provider

Drivers of Supply Chain Inventory What is their inventory, do they have buffer inventory to cover the mismatch b/w supply and demand and what is the basis of the decision?, when material comes to the company and when it is utilize for production? Average amount of inventory kept for cycle, safety and seasonal inventory?

Facility Location of warehouses,qty,capacity,warehousing methodology(SKU storage,job lot storage,cross-docking) Pricing Margin of supply chian in the price which u charge from the customer? What is the pricing strategy ? responsive or efficient? Location

Transportation Which mode of transportation do u use ? Name of transporters? Sourcing Who are your suppliers and on what u are dealing with them?( supplier evaluation and selection?

Have u ever outsourced your product? Procurement process?

Push and Pull Bounder and it resulting Impact on the supply chain of the company. Does your company wait for customer order (pull process) or done its production on the basis of anticipation of demand?(push process)

5. How the company is achieving strategic fit?(mehdi) Understanding the customer and supply chain uncertainty Do you have responsive or cost conscious customers? Does your customer concern about product variety, innovation or price? Understanding supply chain capabilities How does the firm meet the customer demand? Achieving strategic fit What is your competitive strategy? What is your supply chain strategy? What is your product demand? (Certain or uncertain) 6. Production Planning and Control Forecasting technique and tools used by the company Which technique did company uses and how Qualitative Time series Causal simulation

Role of aggregate planning

How does aggregate planning helps you in your company? Production strategy used by the company Chase strategy Level strategy Time flexibility Role of MPS in the production (Qty, when, what), Role OF MRP (material requirement planning) in inventory management and Production scheduling Bill of material Inventory availability (what is in stock) Production lead time Procurement lead time

Role of Capacity Planning How does your company identify its capacity? How does your company compensate the demand when demand is greater than capacity and vice versa? Inventory Management techniques and tools for dependant demand and independent demand items Lot sizing techniques for dependent demand and independent demand items 7. Sourcing(mehdi) Vendor Selection Criteria Sourcing Strategies for local / imported items Pool of suppliers for various distinct materials Centralized / Decentralized Purchasing Role of E-Procurement in the supply chain of the company 8. Application of JIT / Lean manufacturing in the supply chain of the company 9. Distribution Strategy and Transport Network Design A group of 4 5 participants is allowed for this project Project Presentation will be held on last scheduled class day Formal Attire is mandatory for the presentation