Distrubution Control & Performance Evaluation

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DISTRUBUTION CONTROL &

PERFORMANCE EVALUATION
97

INDIAN PHARMACEUTICAL INDUSTRY


OVERVIEW
Indian pharmaceutical industry is on a strong growth path
with the total value of Indian Pharma industry expected to
reach almost $50 Billion by 2015-2016.
A key issue faced by the industry is management of the
supply chain. Supply chain in India is highly fragmented with
more than 550,000 retail pharmacies in the country.
According to a report by bioplan Associates, though the
number of distributors have increased by 4 fold in the last
three decades, from 125,000 in 1978, the volume of
prescriptions distributed have not increased proportionally.

Top PHARMA COMPANIES IN INDIA

RANBAXY LABS
CIPLA
Dr. REDDYS
LUPIN
AOROBINDO PHARMA
SUN PHARMA
CADILA
ABBOTT INDIA

NDIAN PHARMACEUTICAL DISTRIBUTION

31 % of MRP is absorbed in distribution system

Pharmaceutical Sales Force


Structure

DISTRIBUTION CONTROL
Replenishment Model

Demand
Driven

Production and distribution are demand


driven , coordinated with true customer
demand

Inventory

Little inventory held only in response to


specific orders

Buffer

Buffer at stockiest at CFAs level are kept

Lead Time

Decreased lead time because of


availability of inventory at every level

Continuous
Replenishm
ent

By using just in- time inventory

PERFORMANCE EVALUATION

THANK YOU

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