Introduction
The growing competition in global markets, demands and expectations of customers, as well as innovative products with shorter life cycles have forced today’s businesses to focus and invest on supply chains. Further, the development of technologies and communications has inspired the evolution of supply chain and its techniques for management (LEVI, David Smichi et al., 2008).
Supply-chain management has become the new source of competitive advantage for companies from all over the world. This management is related to managing all the activities related to brining product to the market and satisfying the customers. Thus, the management looks after everything related to manufacturing, purchasing, transportation, distribution, etc.
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The company is also the provider of retail services to customers and pharmacy. The company also provides with products for dental practices as well as distributes medical and pharmaceutical products to the doctors and hospitals. It further purchase and sale of varieties of health, lifestyle and beauty products within Australia. Further, the company manufactures pharmaceutical medicines in Australia. This company also works with New Zealand (AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED, …show more content…
The Australian Pharmaceuticals Industry has the record of employing 40,000 people on 2007 to 2008 while coming up with a turnover of $22 billion in 2009 to 2010. It has been listed that there are over 150 separate firms as suppliers working for the Pharmaceuticals benefit scheme. Pharmaceuticals market in Australia is small as compared to the global demand. The size of population in Australia is what leads to small sales. Though, the population of Australia is 0.3% of the world, yet it consumes around 1% of global pharmaceuticals sales. As a result, Australia has been listed to be the 12th largest pharmaceuticals market in the world in 2009 (ASUTRALIAN GOVERNMENT DEPARTMENT OF INDUSTRY, n.d). Pharmaceutical sector plays a big role in Australian business industry and thus has been considered to be studied for Supply-chain management. API (Australian Pharmaceutical Industries) has been selected for the
In order to sustain the market share in this highly competitive industry, the pharmacies have to establish and maintain strong working relationships with PBMs that have power to divest particular clients from a pharmacy by denying reimbursement privileges to their customers. Buyer Power Strong It is not hard to obtain the same drugs from different sources, so the customer loyalty is virtually non-existent and the pharmacies have to try extremely hard to sustain their consumer base. Threats of substitutes Weak There are very few alternatives to drugs. Alternatives are practically limited to traditional medicine.
In the recent years the drug industry underwent a significant transformation. Many of the big companies generate high revenues, which allow them to expand. Some of them expand on their own others through mergers and the buying of smaller companies.
In America today, many people are in need of medical help. In fact,the Federal Trade Commission estimates that 75% of the population complain of physical problems (Federal Trade Commission 9). They complain, for example, of fatigue, colds, headaches, and countless other "ailments." When these symptoms strike, 65% purchase over-the counter, or OTC, drugs. In order to take advantage of this demand, five billion dollars is spent by the pharmaceutical industry on marketing each year . This marketing, usually in the form of advert...
According to Brand India Equity Foundation, the Indian pharmaceutical market is likely to grow at a compound annual growth rate (CAGR) of 14-17 per cent in between...
The last of these was the merger between Glaxo Wellcome and SmithKline Beecham, which formed the current company of GlaxoSmithKline. GlaxoSmithKline’s business is to discover effective medicines and healthcare products for people throughout the world and create shareholder value. They are one of the world’s leading producers of prescription medicines, vaccines and consumer healthcare products (Toiletries, Drinks). These products include SEROXAT/PAXIL, AUGMENTIN, WELLBUTRIN and ZOTRAN, all of which are pharmaceutical products. AQUAFRESH, LUCOZADE, NIQUITIN CQ and SENSODYNE, these are known as consumer healthcare products.
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
Accounting for 35 percent of the global market, the United States has the largest pharmaceutical industry in the world (“Pharmaceutical and Biotech...”). Direct-to-consumer drug commercialization is one of the main contributing factors of this high percentage. In 2015, the United States $395 billion pharmaceutical corporation spent $5.2 billion on
With the increased cost of manufacturing, pharmaceutical companies have been divesting in their smaller or less profit making operations and focus on large segments. Many Pharmaceutical companies sold their manufacturing sites to contract manufacturing organizations. The dynamics of interfacing with contract manufacturing organization added intricacy in pharmaceutical supply chain network of pharmaceutical companies.
The market players, which in this case are leading pharmaceutical companies, would normally buy supplies, such as active pharmaceutical ingredients (APIs), from major suppliers that form sub-sector of the chemical industry. These are provided on a contractual basis and most pharmaceutical companies face high switching costs if they decide to change suppliers. That is why a number of these companies decided to invest in chemical manufacturing and become partially self- sufficient. Another way in which these market players are able to reduce the supplier power is through purchasing their raw materials from multiple suppliers; since their laboratory equipment and chemical ingredients show little differentiation in between vendors.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
The leading pharmaceutical companies including Cipla is expected to be the part of the governments ‘Jan Aushadhi’ project with the aim of commercialising the project by procuring general drugs from them in bulk. The government plans to the Jan Aushadhi stores to 3000 by 2016.
The pharmaceuticals industry in my country is growing at a fast pace and I am very keen to understand more in depth the reasons behind it. I have decided to carry out the analysis on a local pharmaceuticals company and chosen BPL which is a leading pharmaceutical company in Bangladesh.
The proportion of expenditure needed for a pharmaceutical company to produce a new drug to the market blocks all the companies except for the larger firms. Further more, these larger firms have to spend huge amounts of money to obtain these drugs on the market. The manufacturing and sales costs per unit is relatively small because of pharmaceutical firms average costs keep falling the more the company produces the drug. Also expense and risk have been contributed to pharmaceutical analysis for research to slow down. The university approach may work in more of a private sector.
The traditional outlook of supply chain management only focused on delivery f goods to the customer at the cheapest price possible but the definitions of supply chain has been altered over time.The new supp...