PRESENTATION

SUPPLY CHAIN PROCESS

Group Members

• Sawaira BB-6702 • M. Usama BB-5920

• Warda Towzik BB-6729 • M. Jahanzaib BB-28176
• Abdul Moiz BB-28643 • Saqib Mazhar BB-27624
• Shakeel Ahmed BB-28301 • Raza Ahmed BB-5228
OUTLINE:
• Introduction
• Categories of products
• Process view
• Jargons used in supply chain
• Supply chain process
• Business model
• Manufacturing
• Inventory management
• Logistics
• Transportation
• Order-to-Delivery cycle
• Conclusion
INTRODUCTION:

• Found in 1995 & Start in operation in 2000.

• In 2010 Martin Dow has acquired Roche
manufacturing facility in Pakistan.
• Martin Dow has four strategic partners including la
roche ltd
• But in all this success supply chain management
strategies play a vital role.
CATEGORY OF PRODUCTS:
Martin Dow is producing medicines under following categories
consisting 111 products all together.

• Cardiovascular
• Gynecologist
• Antipsychotic
• Anti-Infectives
• Oncology
• Pain Killer
PROCESS VIEW:
Martin dow produces the goods on the Make-to-stock
basis in which they follow the push system because as
their stock come below the required range than the order
generated
• 2 Months Finish Goods Inventory at Distributor

• 2 Months Finish Goods Inventory at MDP

• 1 Month Raw material Inventory

Jargons used in
Understanding/ Definition
Supply Chain

• Estimation of sales volume and value (man, materials, machine)

 Budget
• Rolling sales forecast – Month to month basis prediction to meet budget
 RSF i.e 12 months / 24 months
 Demand • Actual Primary Sales (Ex-factory) Out of 12 months of RSF, 3 months
firm period
 MPS • Master Production schedule 12 months production / Supply plan
 MRP • Materials requirement planning / Master Resource Planning (Man,
Machine, Materials) 12 month Supply plan (3-4 months firm orders)
 S&OP
• Sales & Operational Planning
 RCCP • Rough Cut Capacity Planning (Machines based plan)
 PR, PO • Purchase Requisition, Purchase Order
 GR • Goods Receipt
 Day 1-5
SUPPLY CHAIN PROCESS
2 working day Sale order review
nd

(Demand Summary)
12-24 month Rolling Sales Forecast review

Day 30 to 31 Day 5 to 10
Day 26 to 30
Month End Closing YTD,
MTD review Demand Develop Supply Plan Proposals
NPLs Review
forecasting Materials Planning, Production
Planning, Toll Mfg, Purchase Plan and
Material Master Data Mgt Ordering Logistics

Day 10 to 15
Supply Materials and Procurement Planning
Planning and Pull Push of materials
Demand & Supply
Day 21 to 26 Product
Day 25 to 30
Lifecycle Chain Planning
Product Portfolio review management
Cycle Monthly Production Plan
Product Discontinuation inventory
write-offs, Expiry exposures etc And & Weekly Scheduling

Day 15 to 20
Supply Review Day 10 to 15
Supply Plan Strategy Pre-S&OP, S&OP Product wise
Profitability analysis MTD, YTD review Inventory
Covers end to end Value
Inventory reviews
Working capital Director’s Meeting Distribution of Product
(Business Review Meeting)
Sales and operations
Gross Margins planning Customer Service Level, KPIs
 SUPPLY CHAIN
PROCESS
• Raw material and finish goods are procured from different suppliers of both local
and international repute.

• International supplier of Martin Dow is belonging from china, India and European
countries and about 70%-80% of the material acquired from china and india.

• Delivery from international supplier takes process time approx 45 days by air and
70 days by sea.

• Company made purchases direct from foreign suppliers as well as through the local
indenters some of are, Causeway Arfeen, Gudia and Morgan Chemicals.
 BUSINESS MODEL

T T T T
S O O O

Make to Stock Make to Order Configure to Order Engineering to Order

Finish goods created Products are made Components Highly
and store before after receipt of created and stock customizable
receipt of customer
order. order, including a before receipt of products are
combination of customer order. designed,
standardized and Assemble after engineered and
customized receipt of order. produced after
components. receipt of order.
MANUFACTURING
• Martin Dow has state of the art manufacturing facility.

• Their qualified experts attend all the manufacturing and testing procedures
according to Cgmp(Certificate of good manufacturing practices) in order to
guarantee and safety of the product.

• Quality awareness amongst its staff and management is reflected in Martin

Dows successful client relationship.

• Manufacturing covers all the operation which is essential to produce a

product
• Tablet/capules/Suspension/injection
• Packaging
INVENTORY MANAGEMENT
• Inventory is very well managed with the help of SAP
system

• They have created separate departments of raw materials,

packing materials, goods under quality check.

• They are also maintain the temperature around 20 degree &

kept temperature sensor to keep record.
• FIFO
• Batch System
 LOGISTICS
• Martin Dow has a separate logistic team who look after logistics process.

• For Import, they place order on CPT/CFR basis so logistics part start when material arrived
at Karachi Airport/Sea port.

• For customer clearance, they have hired a clearing agent named as RAJAB ALI & SONS.

• DOCUMENT REQUIRED FOR CLEARANCE

• Commercial invoice
• Packing List
• Form-3 (in case of raw material)
• Form-7 (Batch Certification)
• COA (Certificate of Analysis)
• AWB/BL
TRANSPORTATION
FOR IMPORT LOCAL
70% By Air TRANSPORTATION
Sensitive Material, Expiry date, Cool Chain needed
products
OUT SOURCED
• LCS
30% By Sea • TCS
 ORDER-TO-DELIVERY
CYCLE
• For import of Raw materials, their order to delivery cycle
takes 30-45 days to deliver the material in their warehouse if
consignment shipped by air.

• The lead time, process time, custom clearance etc. if

consignment is shipped by sea, then it takes 60-70 days to
complete the whole cycle.

• For finish goods, they area already maintaining the inventory

of 02 months at distributor side and 03 months in house stock
so order to delivery is not an issue.
CONCLUSION
Working on this project we found that the SCM of
Martin Dow is integrated through SAP based ERP
system which interconnects all the entities in the chain in
a way that benefits the organization by reducing the
errors and waste.