“Analysis of SCM: A case study of Wyeth Pharmaceutical company” Submitted by: Shahzad Ali Rajpar Supervised by: Mr. Muhammad Amir Adam Program: MBA FALL 2010 National University of Computer & Emerging Science Management Science Department, Karachi, Campus Page | 1 Acknowledgments Thanks to Allah the All Merciful the all Benevolent for providing me the strength, courage, direction and skills to learn, acquire knowledge, and the ability to accept and meet challenges. Second I would like to thank all those people who have helped me in performing this research study, especially Mr. Aftab Amie Siddiqui manager planning and warehouse, Wyeth Pharmaceutical Limited Pakistan. I would like to express my sincere gratitude to my supervisor Mr. Mohammad Amir Adam for providing me his precious time, guidance, and instructions all along in order to materialize my content for the project report. I would also like to thank the FYP Coordinator Mr. Zaki Rashidi for his assistance and guidance for the research project. I am also thankful to my parents who accommodated me during those long hours of work in my project development and all the friends and colleagues who helped me out in my times of weakness and encouraged me. I am hopeful that the effort will be fruitful for the students to come in FAST after us. Once again, I am very thankful to all people who have been involved in this project report directly or indirectly. Page | 2 Table of Contents Acknowledgments ............................................................................................. 2 Table of Contents .............................................................................................. 3 CHAPTER 1 “INTRODUCTION” ........................................................................... 6 1.1 Supply chain management. ..................................................................... 6 1.2 Evolution of supply chain management. .................................................. 7 1.3 Challenges of supply chain management ................................................ 8 1.3.1 Information Integration ...................................................................... 9 1.3.2 Co-Ordination and Resource Sharing ................................................. 9 1.3.3 Organizational Relationship Linkage .................................................. 9 1.4 Activities in SCM .................................................................................... 10 1.4.1 Strategic: ......................................................................................... 10 1.4.2 Tactical: ........................................................................................... 11 1.4.3 Operational: ..................................................................................... 11 1.5 The management components of SCM .................................................. 11 1.6 SCM in Pharmaceutical industry ............................................................ 13 1.7 Pharmaceutical industry in Pakistan: Industry overview ........................ 14 1.8 Pharmaceutical sector current scenario ................................................. 15 1.8.1 Top Pharmaceutical Companies in Pakistan. ................................... 17 1.9 Introduction to Wyeth Pharmaceutical: .................................................... 17 1.9.1 List of products manufactured and/or sold in Pakistan: ......................... 19 1.9.2 Hirarchy ................................................................................................. 21 1.10 PROPOSAL PART 1: .................................................................................. 23 1.10.2The problem statement: .................................................................... 23 1.10.3Main Research Questions: .............................................................. 23 1.10.4 Objectives of the study: .................................................................... 24 1.10.5 Justification: ...................................................................................... 24 1.10.6 Limitations / Barriers ......................................................................... 25 1.10.7Scope: ................................................................................................ 25 1.10.8 Assumptions: .................................................................................... 25 Page | 3 1.10.9 Who will benefit from the study? .................................................. 26 2.0 CHAPTER 2 “LITERATURE REVIEW” ........................................................... 26 2.1Supply Chain Management ..................................................................... 26 2.2Logistics and Supply chain management ................................................ 30 2.2.1The Evolution of Logistics. ............................................................... 30 2.3Supply Chains and Flexibility .................................................................. 32 2.3.1From Manufacturing Flexibility to Flexible Organizations ................. 32 2.3.2Supply Chain Flexibility ..................................................................... 33 2.4Challenges of SCM .................................................................................. 35 2.4.1Information Integration ..................................................................... 36 2.4.2 Co-Ordination and Resource Sharing ............................................... 36 2.4.3Organizational Relationship Linkage ................................................. 36 2.5Oppertunities in SCM .............................................................................. 37 2.5.1Information Technology in SCM ........................................................ 37 2.5.2Supply chain management software’s .............................................. 38 2.5.3Supply Chain in Food Sector ............................................................. 38 2.5.4 E-Financial Supply Chain Systems ................................................... 39 2.5.5 SCM in Pharmaceutical industry ...................................................... 39 3.0 PROPOSAL PART 2: Research Methodology ............................................... 40 3.1 Research Design: ................................................................................... 40 3.2 Procedure: ............................................................................................. 40 3.2.1 Population: ....................................................................................... 40 3.2.2 Sample and Sampling Method: ........................................................ 40 3.2.3 Measurement/Instrument Selection: ................................................ 40 4.0 Data Analysis: ........................................................................................... 41 4.1 Up stream Activities. ................................................................................. 41 4.1.1 Vendor Analysis: ................................................................................. 41 4.2 Mid Stream Activities: ............................................................................... 43 4.2.1 Planning Department: ......................................................................... 43 4.2.1.1 ABC Classification: ........................................................................ 44 4.2.1.2 Marketing Forecast: ...................................................................... 45 4.2.1.3 Master Production Schedule: ........................................................ 45 4.2.1.4 Materials Requirement Planning: .................................................. 47 4.2.1.5 Schedule Adherence Report: ........................................................ 48 Page | 4 4.2.2 Purchasing Department: ..................................................................... 48 4.2.2.1Purchase Local: .............................................................................. 49 4.2.2.2 Purchase Requisitions: .................................................................. 49 4.2.3 Warehouse (Raw material packaging): ............................................... 53 4.2.4 Quality Assurance: .............................................................................. 54 4.5.1 Objectives of Wyeth’s QC: ............................................................... 54 4.5.2 QC of purchase material: ................................................................. 54 4.3 Down Stream Activities ............................................................................. 55 4.3.1 Shipping Department: ......................................................................... 55 4.3.2 Key Role of Wyeth’s Distribution Manager: ...................................... 56 4.3.3 Functions and Objectives of Wyeth’s Distributors: .......................... 57 4.3.4 Distribution list of Wyeth: ................................................................ 58 5.0 CHAPTER 5 :CONCLUSION and RECCOMENDATIONS: ................................ 62 As after being acquired by Pfizar in February 2009, Wyeth Pakistan is still facing management issues, which may affect its performance in both the short and long run. One such issue is of the name. The name of Wyeth has changed throughout the world but due to some share holders issues the name of the company still remains Pfizer. Another problem that has aroused is of the placement of the top management, though some of the directors and vast number of employees have been downsized, their experience