Logistics in Pharma Sector

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Trends & Issues in Logistics Management for Healthcare and Pharmaceutical Organization

Prof. Perumal Magayson

Key Logistics Trends
Logistics management’s primary focus is on optimizing the delivery of service to customers, by managing complex tradeoffs between customer service, transportation, warehousing and inventory. Some World Class companies have been able to reduce the costs of their logistics operations to 50% of the levels of their competitors.

DEFINITION OF LOGISTICS
What is Logistics = Logical thinking + Statistics "Logistics means having the right thing, at the right place, at the right time in the right quantity at the right price."

Therefore Logistics is……

……is an optimization process of the location, movement and storage of resources from the point of origin, through various economic activities, to the final consumer.

Key Logistics Trends
Globalization Supply Chain Integration Flexibility and Speed Track and Trace Capabilities Collaborative Logistics Reverse Logistics

Key Logistics Trends
Transportation marketplaces Optimization Technologies Growth and expansion of 3PL and 4PL services

UNDERSTANDING OF SUPPLY CHAIN MANAGEMENT
The analogy that a chain is only as strong as its weakest link holds here as well. Organizations must first be able to provide quality products or services in a timely, cost-effective manner if they want to tackle broader supply chain issues. Total Quality Management, Just-in-Time manufacturing, concurrent product development, are just as relevant today as they were in the past.

UNDERSTANDING OF SUPPLY CHAIN MANAGEMENT
SCM often requires significant changes in the firm’s organizational structure. SCM issues cut across functional areas and even business entities. Therefore, the responsibility and authority for implementing SCM must be placed at the highest levels of an organization. Firms that attempt to imbed SCM within a functional unit (such as purchasing, operations, or logistics) usually have limited success.

UNDERSTANDING OF SUPPLY CHAIN MANAGEMENT
SCM requires firms to put in place information systems and metrics that focus on performance across the entire supply chain. This is because individual units that seek to maximize their performance without regard to the broader impact on the supply chain can cause problems a manufacturing unit’s decision to minimize its inventory levels may reduce delivery performance to the end user.

UNDERSTANDING OF SUPPLY CHAIN MANAGEMENT
The organizations that make up the supply chain are “linked” together through physical flows and information flows. Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-today flow of goods and material up and down the supply chain.

UNDERSTANDING OF SUPPLY CHAIN MANAGEMENT
SCM adds another layer of complexity to a firm’s strategy development efforts. –

Years ago, firms could succeed by being particularly good in one functional area, such as marketing, finance, or operations. Now firms recognize that they have to have sufficient capabilities across multiple functional areas in order to survive.



Elements of the Supply Chain

Elements of the Supply Chain
Customer Planning Purchasing Inventory Production Transportation

MEETING THE CHALLENGE OF SUPPLY CHAIN MANAGEMENT
How Does Supply Chain Management Work?

MEETING THE CHALLENGE OF SUPPLY CHAIN MANAGEMENT

MEETING THE CHALLENGE OF SUPPLY CHAIN MANAGEMENT
How is Supply Chain Management applied in the Logistics Function? – – –

It provides for a strategic view of logistics functions. It is not simply what occurs inside of a company It is completely customer driven

The Dynamics of Supply Chain Management
Supply chain management is a holistic, enterprise wide view of how the productive resources...
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