Archive for the ‘Warehouse management’ Category:
Safety and Security Concern in Pharmaceutical Supply Chain
The Pharmaceutical world is not anyway exception to the marketing malpractices, as according to statistics of World Health Organization (WHO), counterfeit medicines of worth $32 billion are in circulation in drug market. On the other hand, Food and Drug Administration (FDA) told the number of investigations done by it, has just doubled from the total numbers as it occurred in previous year.
One of the worst cases of counterfeit medical scam was registered in US medical history in 2003 when Pfizer discovered tens of thousand of counterfeit bottles of top selling cholesterol medicine, Lipitor. And this discovery of false medicine soon spread to 15 U.S states.
Apart from the monitoring of production of counterfeit medicines, the drug administration authorities also look after the other area of concern that is product expiration. One of the prominent reasons found for product expiration as its being collated in the supply chain for too long before they can be distributed to the retailers.
The Healthcare Distribution Management Association presented a stat that phrama industry annually incur $ 2 billion a year in returns and product losses and another $ 2 billion annually in the costs related to processing returns, expirations and recalls.
In order to regulate the system, the public as well as Congress are trying their lot to bring about a process where a secure supply chain can be established for prescription drugs and counterfeiting can be minimized. To strengthen the process, the US Congress passed the Prescription Drug Marketing Act in 1988, which requires a detailed record of drug’s movement thorough the supply chain from the manufacturer to the medical store. And supplier to the defense authorities is expected to use active and passive RFID tags on shipments to the military.
For a Pharmaceutical firm while tracking a drug through the supply chain there are many points that are needed to be kept in mind. The issues like detecting which drug, from which batch, has been counterfeited needs to be checked out, however, the process of creating a drug from raw material than its packing and shipping is a complex process.
Presently Pharma Industry handles supply of finished product at the batch or lot level and incase any counterfeit is detected then entire batch is recalled thus increasing cost for the manufacturer and the retailer and lost in consumer confidence as well. Moreover, in system of contract manufacturing there are more chances of counterfeit as product is passed through many hands.
However, use of technology can provide a viable solution to this problem as use of barcoding and RFID tags during every stage of supply chain from receipt into and out of inventory to the picking, packing and shipping processes. Track and trace capability from product recalls and product quality. Bar coding and RFID proves to be very effective method for a greater control over product recalls and product quality, and most importantly, pedigree and serialization capabilities can be used with aligning the standards and norms.
Subscribe to the comments for this postRecord production of Grain in India, in 2007-08
Agriculture secretary of India, PK Mishra while inaugurating two day workshop on supply chain management for agricultural commodities in Coimbatore told that India achieved a record food grain production of 227 million tonne in 2007-08, 10 to 12 million tonne from previous years.
He further stated that agriculture sector registered growth of more than of 4% continuously for previous four years if compared with 2% from 1994 to 2004. He stated this growth is not only registered in food grains, however, the production has gone up for cotton and sugarcane as well during last two years.
He was also positive for double production of horticulture sector by the end of the 11th plan period, at the same time; he was concerned for search of suitable markets for the surplus production and strengthening/development of supply chains to avail tangible benefits out of this development.
As in India farmer gets very low share of the final price paid by consumers because of long value chain. Mr Mishra said,
“We need to shorten those long value chains and encourage their vertical integration and consolidation for ensuring a remunerative price to our farmers,”
So agriculture sector in India for proper growth requires well functioning markets to drive growth, generate employment and economic prosperity in rural areas of the country. Therefore for an effective process, the large investment is required for post harvest and cold chain infrastructure near to the farmer’s field. In present scenario India needs competent supply chain management instead of market driven production for effective delivery of food grains in the market.
Smaller Player is the weakest supply chain link - said a Recent Report
The recently released report by European consumer affairs minister’s Meglena Kuneva on 5th June 2008 entitled as Evaluating Business Saftey Measures in the Toy Supply Chain, in Brussels has pointed out that Small European Importers and Chinese manufactures are the most potent safety threat in manufacturing sectors.
This report is presented as European Commission’s follow up to its Stocktaking review, in autumn 2007. This need for the review aroused after the evaluating, the strength and weakness of the existing mechanisms as to ensure product safety in Europe.
This report which is generated after a five-month long analysis of safety measures in the toy supply chain has highlighted many areas which are felt to be considered and pondered over to reach at credible policy and standard for safety cautions. The research and thus appropriated report has finally outlined that it is not the final testing of the product but also a quality culture through out the entire product supply chain is guarantee for good quality assurance. And this report, however, has significant results as for the progress made by Chinese authorities and manufactures.
As mentioned in the report, the small European importers and traders and small Chinese manufacturers have become weak link in the product safety chain due to there inability to cope up with the compliance in regard to applicable legislation and standards. The other weak point that has been noticed is the variation of expertise that is presented at member states enforcement practices and testing laboratories.
The other important reason as for being deviated from the security norm is following US market Standards and failing to comply with the European norms and standards. However, in this report nearly more over 50 recommendations are provided to strengthen the current system for ensuring toy safety.
Response Management Solutions - Solution To Tame The Volatile Nature Of The Market
Nothing is sure in the market, and especially, in terms of the Sales & Operations Planning as it pays a very vital role for executives in meeting corporate objectives like forecasting, planning and alignment of supply and demand. The S&OP planning sometimes can play reversal role when met with ground realties of the modern market.
With the expansion of time and ever-increasing unpredictable behavior of consumer preference supply chains have become rather complex and business environments more risky. And sometimes it happens to the extent that a plan boomerangs as soon as it is forced upon for implementation. The companies are constantly seen as struggling to deliver metrics and plans as discussed in S&OP to meet the best accomplishment in the market. But contrary, the staff in supply and demand chain faces the unplanned events on the daily basis in the market, finally making a reversal impact over company’s performance.
In order to sideline risks of daily businesses and unpredictable marketing scenario, companies are found to use many types of S&OP software to develop a better plan. So in order to check market volatile forces, the company employs response management as a strategy to meet out good response from the market. Response Management software’s helps in such a way that they provide daily decision makers with tools to sideline the volatile nature of the unpredictable market.
Need For Market Responsiveness: As for the successful implementation of the S&OP strategy, the complex modern day market scenario led a staff to capture and consolidate disparate forecasts from different systems for an accurate and complete view of the market demand. And as in a reverse process, the companies S&OP have started projecting weekly forecasts instead of monthly one and it is sooner becoming a practice among companies.
The traditional S&OP models cater to demand and supply scenario separately, thus makes the process rather slow. All the traditional solutions like ERP, demand planning or supply chain systems have failed to provide desired results matching the need of the modern market.
Thus in such a situation, it is the Response Management Services, which are playing an important role and evolved as a problem solver for the companies. Response Management services offer broad, real-time visibility as based on collaborative analysis among stakeholders. Response Management Solutions can be customized within S&OP process to provide more accurate and comprehensive data with adjustments to daily changes in supply, demand and product.
Business Intelligence And Data Mining, The Latest Trend For Business Forecasting
In a latest trend as observed by the US market, the SMBs (Small and Medium Businesses) are looking at and have started adopting BI (Business Intelligence) method and software tools in planning the business strategy for enhancing performance of the areas like sales and business forecasting thus for increasing revenue and profits. The use of Business intelligence thus has helped them to better understand the positive driving forces for their businesses.
In United States there are nearly 6.3 million SMBs of which 98% are SB (Small Businesses, with staff up to 99 members). This projection came into the focus after a recent survey done by New York- based Access Markets International (AMI) Partners, Inc on United States SB & MB IT assessment. Companies, in order to reach at some decisive node go through extensive data mining process.
The survey report also projected that about 9% SB companies that are pc intensive using Business Intelligence in form of packaged software in comparison to the 37% of Middle business companies.
“PC-enabled SBs in the US are interested in running BI on their consumer data to drive and monitor performance against the competition,” says Nichelle McKenzie, New York-based Research Analyst at AMI-Partners. Further on according to this report about nearly 16% of SBs and 22% of MBs in the America uses Business Intelligence or data mining for generating revenue. The most of the BI is used by SB companies as in ERP/CRM module.
The other factor that lets a company to use BI is the consideration that existing software may not be able to work adequately. BI and data mining software help in statistical forecasting, predictive modeling and problem solving methods to provide strategic information about business positioning.
DHL Express plans to restructuring its operations in United States
In a very crucial move in international logistics and supply chain management, the Deutsche Post World Net, the parent body of the DHL express announced in a press conference on 28th May at its headquarter in Bonn, Germany that the significant reduction in DHL Express’ US operations is in its plans. This announcement at the press conference put an end around all the speculation as about the future of DHL in United States. However, DPWN denied that it is not in mood, completely, closing down operations in US market.
In a series of initiative announced at DWPN press conference for improving infrastructure of DHL one is to jointly work with UPS ( United States Parcel Service) on $10 billion contract to airlift capacity and reduce costs in its ground infrastructure operations, though contract is still undergoing through progress.
DPWN informed that under this contract UPS will provide airlift for DHL Express U.S. domestic and international shipments from airport-to-airport within North America. Presently, DHL is using ABX Air and Astar Air Cargo for these services. This change will help DPWN in a way that it would have from now onward s single airline partner in the United States.
As about the far reaching impact of this restructuring DPWN told that this will reduce aviation costs through outsourcing to UPS thus help to streamline infrastructure by reducing and closing down U.S stations in low density and remote areas and reducing pick up and linehaul delivery routes and ground linehaul sectors by 17 and 18 percent, respectively.
The other benefit of this partnership as expected by DPWN is its deliverance of services to more rural part of the United States with the Help of United States Postal Service. As for its operations and expansion the DHL has invested more than $ 3 billion into the America since 2003 including $ 1.2 billion in infrastructure and distribution, however, according to a Dow Jones report the total loss for previous four years for DHL was $ 3 billion.
Supply Chain Innovation Networks- The Strategy for a Company to Follow Select One
While in their yearning for better methods of supply chain management, the companies in surge of better sources of creativity are now looking for talent beyond their customized Research & Development labs. They have started seeking and sharing information with networks of independent investors, scientists, academic researchers and intermediaries who work as contact person between researcher and companies. This pool of talent is known as supply chain innovation networks.
These networks as an intellectual asset work as linking with companies to solve problems and find ideas thus becomes an integral part of the organization to bring about new thought and product ideas into the market.
There are many reasons for the companies to go for outsourcing intellectual pool for the purpose of research and new growth ideas and seek assistance from pool of networks. One of the most exciting trends which have been witnessed recently is that 35% of the patents in the world are now attributed to small entrepreneurs. This means that small group of researcher and scientist are now getting due recognition after collaborating with small group of companies.
However, a company needs to follow a certain steps and measures to design, develop and run a participatory innovation network. First answer for the question why a company is looking for external participation and collaboration form an external research firm could be for seeking answer to a problem or to build an idea or to develop new innovative ideas.
After seeking answer to the problem why a company is looking for the intellectual pool of network, the next step is to reconstruct and design architecture to tap the potential of these intellectuals. The design architecture depends on a companies need for searching for strategic intent of the company and the level of control that it seeks over an outsider pool of intellectuals.
Here a company can adopt for any of the models for control like highly centralized network, a community oriented network or a democratic type of network. After the control model, the next important step in this system is infrastructure model. It includes the clear budgets for commercializing those ideas, which come through tying up with pool of intellectuals to bring about new ideas in productivity and world culture.
Thus supply chain innovation networks are emerging as very successful pattern for new ideas in industrial growth.
Sernam to deploy RFID
Sernam, a French shipping company, with the assistance of IBM is deploying RFID system to improve efficiency.
This system would be utilized to track shipments and consequently notify customers about the exact status of their package. The entire process would be automated.
Sernam has large consignments and transports more than 14 million parcels a year, this undoubtedly calls for employing the latest technology so that the company can grow further.
The market is highly competitive and to create a niche, it is important for all service providers to gear up. Taking the example of the effort undertaken by Sernam, I would advise other companies to spruce up as well. Consumers are becoming more demanding and there is no scope for error any more, RFID ensures that most loopholes that can lead to errors are eliminated.
Effective utilization of resources leads to a more efficient supply chain
Supply chain efficiency can be enhanced if the available resources are used effectively. And this effort increases the profitability of the organization. An ideal example of this is the way in which Australian manufacturers are using transport and freight services. These manufacturers are setting up loading and unloading systems that would work in collaboration with transport company services. This reduces storage time so the warehouse costs can be largely negated. By proper planning, these manufacturers have significantly reduced the warehouse costs. As a result, this has enhanced overall efficiency of the organization. In my opinion, manufacturers across the globe should take inspiration from this effort and look at their supply chains to determine where can costs be cut.
ERP System with Warehouse Management
Infor, the largest global enterprise software provider is developing solutions for the manufacturing and distribution industries. Its warehouse management technology will be available for an enterprise resource planning (ERP) system. Infor professional-service experts are hoping to integrate it into Infor’s Microsoft.NET based ERP system for manufacturers. With the new service, Infor will continue to implement the highly valued applications across its product lines.
The Infor Distribution Centre Management System (DCMS) added warehouse management functionality to the Infor SyteLine ERP system. It will enable manufacturers to keep fewer inventories in the plant. DCMS supports manufacturers who are storing and shipping products directly to customers. It will also improve the third-party logistics operations. “Manufacturingtalk reports”
This Infor technology, which can be used for single or multiple warehouses, allows manufacturers and distributors to visualise the location of specific items within the facility. It also enables them to determine the size and weight of incoming shipments to establish the best way to transport and position them in the warehouse.