Table of contents

Introduction
Principal Activities
Company profile(vision, mission)
Core values and competencies
Supply chain mission and process
a) Supply chain integration
b) Supply chain structure
c) Supply chain process
i. Procurement process(including vendor approval requirements, Bid
sheets, vendor approval steps)
ii. Types of purchases
iii. Material classification
iv. Documentation for purchasing(local or imports)
v. Advising banks of Abbott
vi. Shipping companies through which Abbott import raw material

D) Warehouse storage procedure

Suppliers of Abbott raw material

Make or buying decision
Overview of documents(including presentation of document and suppliers
rates for the month)
Abbott Distribution
Distribution channels
Future outlook of Abbott Pharmaceutical
Introduction
Abbott started operations in Pakistan as a marketing affiliate in 1948; the company has
steadily expanded to comprise a work force of over 1500 employees. Currently two
manufacturing facilities located at Landhi and Korangi in Karachi continue to use
innovative technology to produce top quality pharmaceutical products.

Abbott Pakistan has leadership in the field of Pain Management, Anesthesia, Medical
Nutrition and Anti-Infectives. Our wide range of products is managed and marketed
through three marketing arms.

On June 29, 2005 Abbott Pakistan Achieved Class 'A' accreditation against the Oliver
Wight ABCD Check list. This was an outstanding achievement, which puts Abbott
Pakistan amongst some of the best global companies in terms of operational
excellence.

A continuous process of innovation, research and development at Abbott's worldwide

facilities enables Abbott Pakistan to offer effective solutions for various healthcare
challenges, with products and services that are well focused, within the customer's
reach and contribute to improved health care of the people of Pakistan.

Abbott believes that Corporate Social Responsibility is fundamental to earning and

deepening the trust of the people it serves, an integral part of its commitment to improve
lives has contributed to a number of humanitarian causes and supported various
institutions in various fields including health and education.

The promise of our company is in the promise that our work holds for health and for life
 General information
Head Office: Lahore:

Abbott Laboratories (Pakistan) Limited, Abbott Laboratories (Pakistan) Limited,

Diagnostics Division, Diagnostics Division,
Opposite Radio Pakistan Transmission, House No: 123 - A, Ahmed Block,
Hyderabad Road, Landhi, New Garden Town, Lahore.
Karachi. Telephone#: 042 5854141,
Office: +92-21-5015045-49 (111 222 688) Fax#: 042 5844737
Dir: +92-21-5100422
Fax : 92-21-5042952

Islamabad: Peshawar:

Abbott Laboratories (Pakistan) Limited, Abbott Laboratories (Pakistan) Limited,

Diagnostics Division, Diagnostics Division,
House #35,Street #39,I-10/3 University Town,
Islamabad. Karachi Market, Khyber Bazar,
Office 051-4445670 Peshawar.
Fax 051-4445671 Office +92+91-5840252
Fax +92-51-5840252 Islamabad.

Principal Activities

Abbott Laboratories (Pakistan) Ltd. The companys principal activities are to

manufacture, import and market based pharmaceutical, nutritional, diagnostic, hospital
and consumer products and provides toll-manufacturing services. It operates in two
segments Pharmaceutical and other. Pharmaceutical segment manufactures, import
and markets research based pharmaceutical products registered with the ministry of
health and provides toll-manufacturing services. Other segments includes importing,
manufacturing and marketing diagnosing equipment, testing kits, consumer healthcare,
nutritional and hospital products. The companys pharmaceutical products include
Kalaricid, Erthrocin, Hytrin, Epival, Brufen, Entamizole, protium and Forane. The other
products include Ensure, Pediasure, Pedialyte, Formance etc.
Company profile (vision, mission)

VISION

To be a premier health care company in Pakistan

MISSION

To deliver consistently superior products and services which contribute significantly to improve the
quality of life of the consumers? This will be achieved while ensuring that the interests of all
stakeholders including healthcare providers, employees, share holders and the communities are
secured. Abbott Pakistan will comply with the highest standards of local cGMP/EHS and adhere to the
corporate code of Business Conduct and Ethics.

DEDICTATED TO

Employees
Customers
Share holders
Suppliers
Public
 Core values and competencies

CORE VALUES OF ABBOTT

ENDURING

ABBOTT
PIONEERING CARING

ACHIEVING
 CAPABILITIES OF ABBOTT

INTEGRITY QUALITY

AGILITY OF

INTEGRITYY EXECUTION

LEADERSHIP COMUNICATION

CORE COMPETENCIES OF ABBOT

PRODUCTS &

SERVICES

CUSTOMER

INTIMACY
OPERATIONAL

EXCELLENCE
PEOPLE
SUPPLY CHAIN MISSION

ABBOTTs SCM mission is to configure, coordinate and improve all the

sequentially related activities and set of operations with the idea of satisfying the
entire chain of suppliers suppliers and customers customers by providing right
product, at the right time, in the right quantity and becoming highly recognized by
our employees, customers and shareholders and abiding by Government
regulations by adhering to strict ethical and moral standards.
SUPPLY CHAIN INTEGRATION
CUSTOMER

N RETAILERS/ WHOLESELLERS

F
DISTRIBUTORS
O
WAREHOUSE ( F O) PR
R O
Manufacturing D
M
U
A WAREHOUSE (M O)
CT
T TRANSPORTATION
I
SUPPLIER F
O
MARKETING L
N
O

W
F

L
 ABBOTTS SUPPLY CHAIN STRUCTURE

SUPPLY CHAIN MANAGER

CAPAPCITY
MASTER MASTER
PLANNER
SCHEDULER SCHEDULER

PRODUCTION PRODUCTION
PLANNER PLANNER

MATERIALS MANAGER

WAREHOUSE LOCAL/ IMPORTED

MANAGER PURCHASE EXPORTS
MANAGER MANAGER
SUPPLY CHAIN PROCESS
Marketing

( Demand Generated)

Manufacturing Planning

(Demand Generated)
Material Planning

Vendors

(Quotations asked)

LC

Follow up ---import &

dispatches

Clearance Transit Time

Material in Warehouse

Material Available For

Production
 Production

QA

Released by QA

FO Batches

Packing line

FO Quarantine

(Sampling test by QA)

Central Depots

Dispatches Satellite Depots

& Distribution

Institutions Wholesalers

Retailers
PROCUREMENT
ABBOTT Pakistan has two purchasing departments. One is for local purchases and the other one
is for imports.

The procurement function is divided in two categories:

Direct Product Related Purchases
General Purchases

There is a clause imposed by ABBOTT Int. Chicago on ABBOTT Pakistan that if the amount of
requisition value is above $ 1000, then at least 3 quotations must be taken.

GENERAL PURCHASES
General Purchases include routine items such as stationery, office equipments, transportations
and other minor items which are not directly related with production activities.

DIRECT PRODUCT RELATED PURCHASES

This includes each and every raw material that is required to make end products

MATERIAL CLASSIFICATIONS
ABBOTT Pakistan classifies its materials according to the values or the cost of materials,
basically they have allotted three grades or types to their materials:
Grade A (very costly materials, e.g. erythromycin)
Grade B (moderate cost, e.g. clathromycin)
Grade C (least cost, e.g. bubble gum and artificial flavors like mint)
LOCAL PURCHASING

Local purchasing department of Abbott Laboratories Pakistan deals with local vendors concerning:

Designing FP Plastics, Al-Ahad Plastics, Thermoplas (Korangi) > Lead Time 30 Days

PrintingAmmara Commercial Printing (Memon Goth, Malir) > Lead Time 30 Days

Packaging Saima Packaging (Korangi Industrial Area) > Lead Time 30 Days

Slicing Aluminum foils - Muhammad Corporations, Gulshan -e- Iqbal

Cartons Sultan Packages (Dalmiya, Karachi) > Lead time 7 Days

Cartons King Packages (Lalukhait, Karachi) > Lead Time 7 Days

Cartons - Decent packages (S.I.T.E Area) > Lead time 7 Days

Dextrose Rafhan Industries (Faisalabad)

Pseudo - Alpha Chemicals (Lahore)

Essential Chemicals (Lahore)

IMPORT PURCHASING
ABBOTT Pakistan has indenters through which they place their orders to the respective manufacturers
of raw materials

Some of the Indenters of ABBOTT Pakistan are:

Rasheed sons - KHI

Munico Associates - KHI
S. Aijazuddinn - KHI
Arfeen - KHI

INDENTER
An indenter is a local supplier or the middle party, we also call them as an agent who gives
information to the manufacturer and tells then to arrange the material. They have link with
the manufacturer and paid commission by them.

IMPORTED RAW MATERIALS

Dy Red Sencient UK
Potassium chloride Merck, Germany
Sodium Citrate Sanfu, Taiwan
Sodium chloride Dominon salt, New Zealand
Acid Citric Jungvuzlaur, Austria
Aluminum Seals and PV Vaasen, Flexible Packaging Holland
Artificial bubble gum IFF Holland
 Supplier for Sugar - Malayam Malaysics, Malayasia
Sodium Sulphate Merck, Germany

IMPORTED MATERIALS AVERAGE LEAD TIME

By sea is approximately 75 days
By air approximately 45 days

DOCUMENTS REQUIRED FOR IMPORT

Invoice

Picking List

Form 3 and 7 (Imposed by Ministry of Health which contains Batch Certificate, name of
the manufacturer, raw material to get a Drug Import License from MOH)

Bill of Lading / Air Label

Certificate of Analysis

Certificate of Origin
ADVISING BANKS OF ABBOT PAKISTAN
Detuche Bank
Standard Chartered Bank
ABN AMBRO
HSBC
Then after this process the LC is send to the concern suppliers and indenters and then they
set the raw material to be shipped, shipment is done through different shipping company and
this part is dealt by the imports department.

FEW SHIPPING COMPANIES THROUGH WHICH ABBOT

PAKISTAN IMPORTS RAW MATERIALS
P&O NEDLLOYD
MAERSK SEALAND
HOPAG LLOYD
Warehouse storage procedure

WAREHOUSE

FIFO Checking of raw material on the

bases of check list

Received through MRR & kept in

quarantine for QA approval

Storage of raw/packaging
material after acceptance

Handling of non acceptance Wastage Warehouse

material

Storage of control/locater system

Storage of temperature sensitive Cold Storage

material
(Refrigerators 2C- 8C)

Issue of raw material

MO

Hazardous drug labeling

 Washing of utensils, containers

Material requisition return

Manufacturing

End Product

Quality Assurance of Finished

Good

Warehouse FO

The process of warehousing starts when a consignment enters the premises of ABBOTT and
starts unloading. An actual physical cont is taken first and only then is the consignment allowed
to be fully offloaded. Two separate warehouse facilities exist: one for finished orders and one for
material orders.

While offloading material orders, if any individual packet is found to be damaged or exposed, it
is straight away placed in the Rejection Room which is located separately so that there is no
possibility that it might get mixed and be used up in the production process. Also, there are
certain raw materials which require a temperature range of 2-8C. In order to ensure that this
temperature range is maintained throughout its long journey, each packet has a temperature seal
attached to it and if, at any point in time during transportation, the temperature exceeds the said
limit, it changes color.

Suppliers of Abbott raw material(International)

Direct Material Suppliers
Agilent Technologies Sigma-Aldrich Inc.
August Faller KG Sonoco
Colbert Packaging Sumitomo Seika Chemicals Co., Ltd.
Graham Packaging Company, L.P. Tekni-Films, A Tekni-Plex Company
Nosco The Tech Group
Palladio Zannini Thoro Packaging
Pratt Industries Toyobo Co., Ltd.
Precision Wire Components Zeus Industrial Products, Inc.
Robinson Printing

Indirect Suppliers
Cognizant Technology Solutions Quantum
Dell Staples
ManpowerGroup Solutions TAPFIN Verizon Wireless
Mindshare VWR International
PHH Arval

Contract Manufacturers

Besins Healthcare
Bionostics, Inc.
Catalent Pharma Solutions
RR Donnelley Global Turnkey
Solutions
Overview of documents & supplier rates

Supplier rates and date of consignment data from pral software abbott
work\Attachments_2012_12_20\CH 29 DRY FEB 2012.xls

Bill of Lading / Air Label abbott work\Attachments_2012_12_31\BL.jpg

Invoice

Picking List

Custom clearance and forwading agent document

Bank contract for consignment registration and letter of credit

Application for permission of purchase of foreign exchange