DISTRUBUTION CONTROL &PERFORMANCE EVALUATION

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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.

RANBAXY LABSCIPLADr. REDDYSLUPINAOROBINDO PHARMASUN PHARMACADILAABBOTT INDIA

Top PHARMA COMPANIES IN INDIA

INDIAN PHARMACEUTICAL DISTRIBUTION

31 % of MRP is absorbed in distribution system

Pharmaceutical Sales Force Structure

DISTRIBUTION CONTROLReplenishment Model

Demand Driven

Inventory

Buffer

Lead Time

Continuous Replenishment

Production and distribution are demand driven , coordinated with true customer demand

Little inventory held only in response to specific orders

Buffer at stockiest at CFAs level are kept

Decreased lead time because of availability of inventory at every level

By using just –in- time inventory

PERFORMANCE EVALUATION

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