Supply chain solutions for Ranbaxy A case study on how the kinks in a pharma company's supply chain were

ironed out by superior track-and-trace initiatives Situation analysis Ranbaxy is one of the leading multinational companies in India in the area of pharmaceuticals. It deals with large quantities of exports and imports of pharma products, and hence, required extensive warehousing facilities. It had to store its consignments and transport them by air, ocean or combination of both, ie. multi-modal transportation. Key challenges Ranbaxy had to face many challenges during the execution of its project. The main challenges faced by the company were²continuously maintaining critical temperature during storage and transportation of pharma products, maintaining the delivery schedules and meeting the deadlines. Besides this, other challenges were setting up of warehouses at important locations and distribution centres at various overseas and domestic locations by properly identifying them, ensuring compliance of norms set up by Food and Drug Administration (FDA), complying with all regulatory requirements such as documentation required for export and import and keeping track of the current position of the shipment dispatched by it. Solution To deal with these problems, Ranbaxy decided to make use of services provided by Aqua Logistics. Aqua was assigned the task of tracking and tracing the shipments. To accomplish this, it set up a warehouse located at a central location, which was at optimum distance from the ports. It also set up effective tie ups with air carriers to maintain cold chains and to improve transit times. To transport generic products under optimum temperature conditions, Aqua provided costeffective consol solution for LCL sea shipments. Further, Aqua provided consultancy on EXIM, which assisted in getting various licenses from DGFT and their various finalisations and closures as well as related customs formalities. It also provided locational implants for better coordination and to carry out mundane documentation procedures including overseas invoicing as well as EXIM documentation. Results With the help of services offered by Aqua, considerable improvement was achieved in the planning process and on-time delivery of goods. The company could accurately track and trace it so that it could plan for its future strategies. Due to tie-ups with air carriers, cold storage chains were maintained properly and it also reduced the

The company could anticipate the number of days for which remaining inventory will last. . Besides this. The 175. Hence. The operation is based at NYK Logistics¶ Pharmaceutical Centre of Excellence in Northampton. NYK Logistics is handling all Ranbaxy product destined for the UK market. a leading innovator pharmaceutical powerhouse. destined for hospitals. This resulted in easier flow and exchange of information between Ranbaxy and its trading partners Ranbaxy Awards Contract to NYK Logistics Friday. NYK is handling 23 million packs per annum on behalf of Ranbaxy. NYK is therefore able to provide storage for product manufactured in Europe. as well as imports from outside the EU.000 sq ft facility provides temperature-controlled. which provides supply chain solutions for a number of major pharmaceutical customers. high-security storage in line with the latest Good Distribution Practice. Ranbaxy has revenues of $1. pharmacies and wholesalers.6 billion. the global generics company of the Daiichi-Sankyo Group. It also controlled the transportation and administration cost. NYK¶s Healthcare Distribution Centre has a Manufacturers¶ Import Authorisation from the Medicines & Healthcare Regulatory Authority (MHRA). Ranbaxy was able to comply with the regulatory requirements as per norms set up by FDA. 18 December 2009 NYK Logistics (UK) Ltd has been awarded a major contract with Ranbaxy Laboratories Limited (Ranbaxy). as well as an MHRA Wholesale Dealer¶s Licence. which reduced the inventory carrying cost and also reduced the loss of goods lying unattended at warehouses for several days.transit time taken by cargo from origin point to the final destination. NYK receives all Ranbaxy¶s product batch released and ready for sale throughout the UK. ranked among the top 15 in the world and headquartered in Tokyo. it did not have to keep excessive stock of materials. it also led to reduction in costs associated with holding fixed assets for their warehousing and management.

Worldwide Operations Global Pharma Companies are experiencing an ever changing landscape ripe with challenges and opportunities. Our people have consistently risen above all challenges maximized opportunities and positioned Ranbaxy as a leader in the global generics space. Our unwavering determination to achieve excellence leads us to new global benchmarks. Driven by innovation and speed to market we focus on delivering world-class generics at an affordable price. . In this challenging environment Ranbaxy is enhancing its reach leveraging its competitive advantages to become a top global player. Ranbaxy¶s global footprint extends to 46 countries embracing different locales and cultures to form a family of 50 nationalities with an intellectual pool of some of the best minds in the world.

was set up in 1998 y There has been a constant effort to differentiate Ranbaxy from the myriad of other generic manufacturers by establishing the corporate heritage and the vision of becoming a research based international pharmaceutical company y During 2006 Ranbaxy acquired Be-Tabs with the turover US $ ~30 Mn. y The acute products contribute the majority of the Company¶s turnover and include Anti-Infectives and Anti-fungals . a wholly owned subsidiary of Ranbaxy. of Molecules Ranbaxy + 68 Local tie ups An introduction to Ranbaxy in South Africa y Ranbaxy (S.Nigeria An Introduction to Ranbaxy Nigeria Ranbaxy has a strong presence in Ethical.) (Pty) Ltd ± South Africa. The Company has robust sales. marketing & distribution operations spread across the country. OTC. and thus became the 5th largest generic company in South Africa y The product portfolio is divided into three strategic areas: Acute. Key Strengths Amongst the leading pharmaceutical companies in Nigeria Has a strong Marketing & distribution network Local manufacturing of liquid formulations Strong presence in Ethical. Generic & ARV segments through local manufacturing of liquids & other dosage forms in India.A. OTC & Generic segment Leader in the ARV segment At a Glance Date of Setup Team Size May 1987 145 Total No. Chronic and OTC.

of March 2001 6 26 . the company today has strong brand recognition amongst the General Practitioners. who are experienced and well versed with the industry. of Molecules 27 Brands Ranbaxy + Local tie ups Singapore An introduction to Ranbaxy in Singapore Ranbaxy¶s initiated its operations in Singapore in 2001. Private and Government Hospitals and the Retail Pharmacy sector. At a Glance Date of Setup Team Size Total No. for supplying to the Singapore market. With its excellent sales and marketing team. The business is overseen from Ranbaxy Malaysia. which has a manufacturing plant in Sungai Petani. Kedah. ³Sonke Pharmaceuticals (Pty) Ltd´.y Ranbaxy's joint-venture with Community Investment Holdings (South Africa). (Sonke) markets and sells Ranbaxy¶s range of Anti-retroviral products in South Africa and other African markets At a Glance Year of Setup Team Size 1996 52 Total No.

In 1995. the operations were enhanced with the acquisition of a reputed Thai pharmaceutical company: Unichem. Ranbaxy Unichem Co. of Molecules 45 Ranbaxy +Local tie ups .I segments. Key Strengths y y y y y y A portfolio of quality generic products Significant presence in Antibiotics Hands on experience of directly marketing and selling to a large base of about 5. considered one of the best in the Asia Pacific Region. 2. Some locally acquired products are also exported to neighboring countries About 60% products are imported from India and the rest are toll manufactured locally by OLIC (a subsidiary of DIETHELM Switzerland) The logistics of distribution and collection is outsourced to Diethelm. one of the best logistics companies in Thailand At a Glance Date of Incorporation 1983 Total No. Nutritional and G.100 hospitals.400 clinics and 1.350 customers. including 1. Marketing and selling is Ranbaxy Thailand¶s forte.Molecules Ranbaxy + Local tie ups An Introduction to Ranbaxy in Thailand The Thailand operations were set up in 1983 through a joint-venture between RLL & Thai shareholders. This strengthened the presence in CVS in addition to the traditionally strong portfolio of Antibiotics and Anti-infectives and also gave added reach in the Haematinics. and is able to book and transmit orders through the PDA in real time Logistics by Diethelm. Ltd (as the company is known in Thailand) markets and sells ethical pharmaceutical products to medical channels (hospitals and clinics) and Drug Store channels throughout Thailand.850 drug stores Local market experience and strength in relationship marketing Technology automation ± The filed force carries customer history on PDAs.

also a wholly owned subsidiary of Ranbaxy Laboratories Limited. It is a combination of: y y y Organic Growth In-licensing Acquisitions RPI has established growth plans for its generics business with a well-defined pathway for ANDA submissions over the next several years. branded and OTC business. was established in the U. and continuing exploration of novel drug delivery systems (NDDS). This strategy will enable RPI to reach the market with select generic products well before other competitors.An Introduction to Ranbaxy in USA Ranbaxy Pharmaceuticals Inc. (RPI).S. RPI began marketing FDA approved generic products in the U. in 1998 after receiving its first FDA approval for Cefaclor. Key Strengths RPI has devised a three-fold business strategy to ensure the growth of its generics. in 1994. Using its vertical integration capabilities and continuous market monitoring. mergers and acquisitions. a broad spectrum anti-infective agent. Ranbaxy has positioned itself as a robust and capable player in the U. The company is also focusing on securing products and services through strategic alliances with other companies and bringing in products with complex formulations which may present entry barriers for other companies. the company is developing "niche" products. RLI has been expanding and growing on the strength of Ranbaxy¶s R&D efforts.S.S. licensing activities.S. market through the combined commitment and efforts of RPI and RLI to develop new and innovative products and a rapidly expanding generic and brand product portfolio. (RLI). Ranbaxy Laboratories Inc. At a Glance . RLI is increasing the visibility and presence of Ranbaxy by bringing valueadded brand products to the market. is the branded prescription division in the U. The company is also executing plans to challenge the intellectual property of several existing branded products by producing these products using processes that do not infringe on patents. a wholly owned subsidiary of Ranbaxy Laboratories Limited (RLL).

y y In Germany. pharmacies. of Molecules 241 ANDAs approved by US FDA Ranbaxy + Local tie ups n Introduction to Basics GmbH A wholly owned subsidiary of Ranbaxy.Year of Setup Ranbaxy Sales 1994 US $ 397 Mn (2009) Total No. we have a generic product portfolio of 50 generic drugs in a variety of dosage forms and strengths covering a wide therapeutic range. anti-infectives. Key Strengths y y y y Range of standard therapeutics Major competence in Cardiovasculars Best price strategy A lean organization. savings of which benefit the customers At a Glance Former Generic business of Bayer Acquired by Ranbaxy in 2000 Date of Setup Total No. The German generics market is the largest in Europe. including cardiovasculars. Germany. central nervous system and gastrointestinal drugs which are bioequivalent to the originator. of Molecules Ranbaxy + 50 molecules Local tie ups . analgesics/antirheumatics. physicians and health funds. Basics puts special focus on serving the needs of patients. antidiabetes/metabolic disorders. Basics GmbH is located at Leverkusen.

(RUKL) is a wholly owned subsidiary of Ranbaxy Laboratories Ltd. Our Key Strengths y y y y y A wide generics portfolio Robust product pipeline Vertically integrated in major molecules Research and Development An experienced. These are over and above the in-house product pipeline and give further impetus to RUKL's growth in the UK pharmaceuticals market. talented team. RUKL has made considerable progress in enhancing its product portfolio and for securing the product basket by in-licensing products. of Molecules 75 Ranbaxy +Local tie ups . 1994 Total No. and it plays a significant role in Ranbaxy¶s European presence.K. successful. for a number of different molecules in different therapeutic areas. Deals have been signed with various companies.An Introduction to Ranbaxy in United Kingdom ( UK ) Ranbaxy (U.) Ltd. committed to success and Ranbaxy¶s global values RUKL at a Glance Date of Incorporation November.

Ranbaxy has been ranked as the industry leader under the generics category for improving access to needed medicines. The project aims to highlight that access to medicine is the joint responsibility of all stakeholders involved in improving global health with pharmaceutical companies being an essential factor in providing access to products to those in need. The ATM is a global initiative to improve access to medicines to the societies in need worldwide. It ranks drug makers on their social responsibility with regard to supplying the developing markets with key neglected disease medications. a Netherlands-based non-profit organization.Access to Medicines In the recent Index 2010 report published by the Access to Medicine (ATM) Foundation. .

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