Unit: TLIL1907C/TLlL2007C Implement and Monitor Transport Logistic/Develop and Maintain Operational procedures for Transport and Logistics Enterprises-
Teacher: Bob Day
Prepared by: Ravisanthiran Shanmugarajah
Date: 13 June 2012
To: CEO, inova pharmaceuticals Pty Ltd
iNova Pharmaceuticals(Australia ) Pty Limited, develops and markets over-the-counter and prescription medicines. The product portfolio includes in-licensed and in-house developed drugs in the areas of weight management, pain management, allergy, sexual health, dermatology, cardiology and respiratory health. the company offers its products through a network of wholesale distributors, as well sales and marketing partners in Australasia, the Asia-Pacific, South Africa, the Americas, and internationally. iNova Pharmaceuticals Pty Ltd was formerly a subsidiary of 3M Co.
The competitive strategy of the company is to improve human health and well-being by providing valued pharmaceutical products and services, to be recognised as a trusted and respected leader in their chosen healthcare segment, with sustainable growth it wants to doubles it business every five years.
iNova is an intermittent process manufacturing company and it has 17 production lines working 24 hours per day for 6 days per week throughout the year. So elaborate planning and control over the production is crucial for meeting customer deadlines as well as for better inventory management. The inventories in iNova consist of supplies, raw materials, components, in-process goods and finished goods. It is necessary for it to holds some inventory for protection against unanticipated or unplanned occurrences.
The strategic goal of the company is to double the business in every 5 years through new products (research and development) and dedicated marketing resources for new as well as for existing products. This leads to increase in sales targets as well a production targets which results in increase in inventory thus reducing the profits. The return on investment is crucial as the business has to expand rapidly to meet the goal of the company and therefore it is very important to maintain a fine balance between customer services, inventory cost, production cost, transportation cost.
Even though the functional strategies of the supply chain have been designed to align with the competitive strategy of the company, there are several visible mismatches. In order to obtain the most important strategic fit the company have conducted a complete analysis in order to rectifying all the obstacles to achieve the most important strategic fit the CEO decided to evaluate and Monitor the company’s Transport Performance.
Mobilise the appropriate resources
Inova sells 60% of its finished products to its domestic customers in Australia through its wholesale customers then them selling it to the retail pharmacies and chemists mainly using road and air transportations. The rest 40% of its finished products are sold to its international and intercompany markets to export overseas customers mainly using Airfreight due to the light weight and urgencies nature of the pharmaceutical products. It also uses sea fright for products heavy in nature such as liquid medicines in order to reduce its fright cost.
As an essential part of the logistics process and supply chain management transportation must be effectively managed if organizations are to satisfy their customers and achieve acceptable rates of return on their investments.
Effective and efficient strategies are of paramount important to both shippers and transportation carriers. Shippers must be aware of the opportunities and pitfalls of inbound and outbound transportation, mode/carrier selection, contracts transportation brokers, private carriage options, carrier performance evaluation, and so on. Carriers must be...