Supply Chain

Management Project

PROJECT REPORT

Guided by: Dr. Rohit Singh

Submitted by:

GROUP - 12

NAME REGISTRATION NUMBER

AVIK BISWAS 20PGDM

SHAMIK SENGUPTA 20PGDM

SAUMADEEP GUHARAY 20PGDM069

SHOUVIK DUTTA 20PGDM075

Pharmaceutical Industry
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Current SCM Design in Pharmaceutical Industry
Any health system's first priority is to supply medicine as a strategic product. Pharmaceutical
supply chain management has become more complex in the current context of a health-conscious
society because it involves the life-saving interests of humans and requires the participation of
various stakeholders such as pharmaceutical manufacturers, wholesalers, distributors, customers,
information service providers, and regulatory agencies. In the field of pharmaceutical supply
chains, there is a scarcity of study. Pharmaceutical businesses, as a major player in the
medication supply chain, face numerous threats. These dangers jeopardise the amount and
quality of drug supplies, as well as their timely delivery to the precise location and customers.
Following the launch of a drug, a new set of objectives, drivers, and restrictions takes hold. The
essential players in the final product of the Main Issues in the Pharmaceutical Supply Chain.
Multiple government agencies, hospitals, clinics, drug manufacturers, drug distributors,
pharmacy chains, merchants, research groups, and the FDA are all part of the pharmaceutical
supply chain. To make matters worse, the same supply chain is in charge of distributing
prescription prescriptions, over-the-counter (OTC) medicines, generics, and biologics, all of
which have different handling requirements and operating goals. Indeed, there are countless
other businesses that add to the complexity, such as insurance companies, healthcare
management organisations, and GPOs. The work of controlling the supply chain is made even
more complex by these firms' very distinct business objectives. Furthermore, many
pharmaceutical supply networks have evolved in an unregulated manner rather than being
planned for maximum performance due to the industry's regulatory nature and multiple mergers
and acquisitions to gain more R&D experience.

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Drivers of Performance Measurement of Pharmaceutical Industry
Pharmaceutical Key Performance Indicators (KPIs) and metrics quantify a biotech company's
medication development performance, cost, quality, and efficiency for healthcare services and
patient consumption. Research, development, production, marketing, and distribution functions
all contribute to pharmaceutical KPI reporting. These can track key, real-time pipeline issues like
drug and patient mortality rates, as well as something as minor as drug packaging costs over
time. A Top 5 List of Examples
● R&D Expense per New Drug Developed.
● Takt Time.
● Prescriptions Filled per Pharmacy.
● Number of New Drugs Developed.
● Non-Prescription Sales as a Percentage of Total Sales.

The Most Important Issues in the Pharmaceutical Supply Chain

i. Counterfeiting Issues
ii. The drug's unfavorable effect on the patients.
iii. Issues arose as a result of supply chain operations entities.

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iv. Producing difficulties such as incorrectly combining input raw materials, cross contamination
from manufacturing multiple drugs in the same facility, or inaccurate final product labelling.
v. Issues with retailers, such as faulty temperature controls and handling.
vi. Mishandling, inappropriate temperature controls, and the use of an incorrect shipping mode
all contribute to transportation concerns.
vii. Issues with storage and warehousing, such as incorrect temperature controls, warehouse
management, and mixing goods with raw materials.
viii. Issues with raw material suppliers, such as inadequately prepared raw material, raw material
with excessive impurity levels, and raw material shipments that are mislabeled

Solution
Pharmaceutical businesses' success as a major actor in the supply chain has a significant impact
on supply chain management efficiency. Identifying and preventing risk in pharmaceutical firms
can lead to process optimization, increased productivity, and reduced business risk, as well as
assisting health systems in meeting supply chain management goals of accessibility, quality, and
affordability. To develop the proper quality for the product and services, supplier qualification
through a complex procedure is critical. Every step in this procedure is crucial and must be
followed exactly. The sharing of information between the supplier and the end user is a good
information practice that can lead to satisfactory supplier certification.

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FMCG Industry
Current SCM Design in FMCG Industry
Supply Chain 4.0 revolves around making supply chain management faster, more flexible, finer,
more accurate, and more efficient, all using digitalization. FMCG companies have many ways to
improve supply chain performance, including automated manufacturing in factories, automated
warehousing, automated warehousing, predictive transportation, detouring customer
transportation, and last mile delivery by automated vehicle or drone. We are developing new
innovations and initiatives. However, there are concerns and challenges in supply chain design
decisions that can only be resolved by adopting evolving best practices.

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Digitization is growing and companies need to rethink how they design their supply chains. At
the same time, customer expectations are rising. The latest online trends have raised expectations
for the service and greatly refined orders. In addition, further customization and a clear trend
towards customization drive strong growth and constant change in the SKU portfolio. Online-
based transparency and easy access to a wide range of shopping and shopping opportunities drive
competition in the supply chain. To build on these trends, meet changing requirements, and
enable many new technologies, supply chains need to be much faster and more accurate.
While the focus of supply chain management has shifted to advanced planning processes such as
analytical requirements planning and integrated sales and operations planning (S & OP), many
companies have established themselves as business processes, but operations logistics is external

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logistics often. Supply chain capabilities provide good integration of supplier-to-customer
operations and make cost, inventory, and customer service decisions from an end-to-end
perspective rather than being separated from individual capabilities.

Drivers of Performance Measurement of FMCG Industry

FMCG KPIs or metrics are measurable values that help you monitor and achieve your predefined
business goals. Key performance indicators in the FMCG industry take into account industry-
specific characteristics such as fast pace, high consumer demand, and short sales cycles.

 Out of Stock Rate: Measures the ability to meet customer demand

 Delivered On-Time & In-Full: Monitors the delivery chart and performance
 Average Time to Sell: Tracks how long it is needed to sell the products
 Sold Products Within Freshness Date: Takes care of expiry dates of products
 Cash-to-Cash Cycle Time: Analyse the cash cycle time in details
 Supply Chain Costs: Understand supply chain costs by category
 Carrying Cost of Inventory: Assess the costs the inventory that is being held

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The Most Important Issues in the FMCG Supply Chain
Managing availability in the complex distribution Set Up
India's FMCG sector needs to work with highly complex distribution systems, including
multiple shifts of from numerous small retailers between businesses and end customers.
For example, a company like Marico needs to reach 1.6 million retailers across countries.
As the number of Stock Keeping Units (SKUs) increased exponentially, the became a
nightmare for companies simply to ensure availability at the final sales stage.
Entry of National Players in the Traditional Fresh Products sector
FMCG companies across the country want to sell "fresh" products traditionally traded by
local players in each region. For example, ITC wants to enter the market for `ATTA` and
Nestle yogurt. For these items, product freshness is an important requirement from the
consumer's point of view.

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 Dealing with complex taxations structures
Due to the complex tax system, it is difficult to treat India as a market. The local tax
structure in different states encourages traders to indulge in smuggling goods between
states and creates a gray market. Experts assume that smuggled goods make up about 15
percent of the total flow of goods. Such activities distort the plans and activities of the
fast-moving consumer goods company.
Infrastructure
Rough roads and unreliable transportation systems negatively impact costs and
uncertainties. The lack of infrastructure, such as the cold chain, has a significant impact
on certain product categories. Most Indian cities suffer from electricity problems in the
summer, and manufacturers have to deal with these problems in their distribution
networks. In general, FMCG companies need to consider these aspects when planning
their supply chain.

Solution
In order for Indian companies to compete globally, the Indian economy as a whole, especially
manufacturing, needs to significantly improve supply chain performance. Indian companies need
to learn from progressive companies in developed countries that have succeeded in significantly
improving supply chain performance. Companies, whether domestic or global, value supply
chain management systems to improve their businesses and become competitors and market
leaders.
Performance management is also changing dramatically as some of the leading food companies
are leading the way in providing dashboards that are constantly updated with details throughout
the organization and can be easily customized. Creating dashboards is an important task, and the
days when performance metrics were only available at the aggregation level are over. Instead,
performance management becomes a true operational process focused on real-time exception
handling and continuous improvement, rather than monthly or quarterly retroactive exercises.
Using data mining and machine learning techniques, this type of overhauled performance
management system compares the root cause of exceptions with a predefined set of underlying
metrics or performs big data analysis. It can be identified by doing. The system can then

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automatically initiate action, for example by enabling replenishment orders or changing the
safety stock or other parameter settings in the planning system.

Ecommerce Industry
Current SCM Design in Ecommerce Industry
Enterprise supply chains have seen huge changes as e-commerce has evolved, which is
increasingly reflected in supply chain management based on e-commerce. With the widespread
use of computer networks, communication technology, and the internet, e-commerce has become
fashionable all over the world as an advanced transaction technique based on the computer
network. In an e-commerce scenario, supply chain management is a combination of e-commerce
and supply chain management. It focuses on customers, integrates the entire supply chain
process, fully utilizes external resources, achieves swift and sharp response, and drastically
reduces stock levels. Electronic supply chain management will actually become the major format
of enterprise supply chain management, and will be acknowledged and utilized by an increasing
number of businesses, thanks to the growth of e-commerce. Supply chain management has
emerged as a significant means for businesses to improve their agility and competitiveness, as
well as a key direction and field in international business management.

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Sourcing:
In business, the term word sourcing refers to a number of procurement practices, aimed at
finding, evaluating and engaging suppliers of goods and services
Procurement:
Procurement is the acquisition of goods, services or works from an external source. It is
favorable that the goods, services or works are appropriate and that they are procured at the best
possible cost to meet the needs of the acquirer in terms of quality and quantity, time, and
location. Corporations and public bodies often define processes intended to promote fair and
open competition for their business while minimizing exposure to fraud and collusion
Inventory:
Inventory or stock refers to the goods and materials that a business holds for the ultimate purpose
of resale. Inventory management is a science primarily about specifying the shape and
percentage of stocked goods. It is required at different locations within a facility or within many

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locations of a supply network to precede the regular and planned course of production and stock
of materials.
Logistics:
Logistics is the management of the flow of goods between the point of origin and the point of
consumption in order to meet some requirements, of customers or corporations. The resources
managed in logistics can include physical items, such as food, materials, animals, equipment and
liquids, as well as abstract items, such as time, information, particles, and energy. The logistics
of physical items usually involves the integration of information flow, material handling,
production, packaging, inventory, transportation, warehousing, and often security. The
complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated
simulation software. The minimization of the use of resources is a common motivation in
logistics for import and export
Distribution:
With a distribution management solution that streamlines everything from staff hiring to
inventory management, packaging, reverse logistics and value-added services, you have the
technology, expertise and team you need to keep your products flowing. There are variety of
distribution center models including:
- Mixing and Consolidation Centers (MACC)
- Dedicated and multi-client customer sites
- Cross dock
Drivers of Performance Measurement of Ecommerce Industry
The activities mentioned above use a variety of infrastructure and tools. The following are the
major infrastructure elements and tools:
Electronic data interchange (EDI)
Electronic data interchange (EDI) is an electronic communication system that provides standards
for exchanging data via any electronic means. By adhering to the same standard, two different
companies, even in two different countries, can electronically exchange documents (such as
purchase orders, invoices, shipping notices, and many others)
Extranets
An extranet is a computer network that allows controlled access from outside of an organization's
intranet. Extranets are used for specific use cases including business-to-business (B2B). In a

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business-to-business context, an extranet can be viewed as an extension of an organization's
intranet that is extended to users outside the organization, usually partners, vendors and
suppliers, in isolation from all other Internet users. It is in context of that isolation that an
extranet is different from an intranet or internet. In contrast, business-to-consumer (B2C) models
involve known servers of one or more companies, communicating with previously unknown
consumer users. An extranet is similar to a DMZ in that it provides access to needed services for
channel partners, without granting access to an organization's entire network.
Intranets
An intranet is a computer network that uses Internet Protocol technology to share information,
operational systems, or computing services within an organization. This term is used in contrast
to extranet, a network between organizations, and instead refers to a network within an
organization. Sometimes, the term refers only to the organization's internal website, but may be a
more extensive part of the organization's information technology infrastructure, and may be
composed of multiple local area networks. The objective is to organize each individual's desktop
with minimal cost, time and effort to be more productive, cost efficient, timely, and competitive
Corporate portals
A Corporate Portal is basically a secured website used by employees, manufacturers, alumni and
even customers. The portal is the perfect starting point for everyday tasks that usually would
consist of using many different types and sources of information and tools. By gathering all
necessary information and tools in one environment, users save huge amounts of time
Groupware and other collaboration tools
Collaborative software or groupware is application software designed to help people involved in
a common task to achieve goals. One of the earliest definitions of collaborative software is
'intentional group processes plus software to support them. The design intent of collaborative
software is to transform the way documents and rich media are shared to enable more effective
team collaboration. Collaboration, with respect to information technology, seems to have several
definitions. Understanding the differences in human interactions is necessary to ensure that
appropriate technologies are employed to meet interaction needs.
Identification and tracking tools
An e-commerce site is an investment which must ensure a return by securing a certain number of
sales. It is necessary to compare a measurable and realistic return objective to electronic sales

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operations and at the same time, meet customer expectations. For these very reasons, it is
important to analyze in detail, using the E-Commerce module, how users behave when making a
purchase, how they use their shopping cart, which products fuel the purchase of other products,
and how each category and each product contribute to total sales volumes. The E-Commerce
module allows for the identification of how each product contributes to the overall turnover and
delineates the sales potential of the overall site. The module provides complete reports and
specific insight for those managing electronic sales sites and evaluates the return on investment.
The main purpose of this study is to investigate the relationship among e-commerce benefits and
supply chain management.

The Most Important Issues in the Ecommerce Supply Chain

In order to take the firm to newer heights, the parallel railway lines of supply chain management
and E-commerce must work together and assist one another. However, with the quick changes in
technological, structural, and law enforcement factors that occur every day, it is impossible to
maintain track of both of these sectors. As a result, distinct obstacles cause the downturn, which,
if not adequately controlled in the early phases, might result in substantial downsides. These
difficulties emerge for a variety of causes and must be addressed as soon as possible. The nature
of supply chains is such that everything—processes, methods, and various phases of the product
journey from raw material to commercial entity—is structured and well-connected. As a result,
any flaws or problems that arise in one component of the supply chain can swiftly spread
throughout the entire network. Modern supply chains must constantly evolve and present
practical paths that lead to the complete elimination of the concerns and problems that E-
commerce administrators confront. The parts that follow throw light on several supply chain
management issues that today's E-commerce companies face: -

Inadequate Supply Chain Management Infrastructure: For long-term success,

suitable infrastructure must be in place to aid in the surveying of various supply chain
management methods in E-commerce contexts. Visibility, mobility, and flexibility are the
three key characteristics of any scalable warehouse, and they influence how customers
engage and communicate with a company's end-products. Smaller order quantities, as
well as increasing frequency and volume of orders, deliveries, and other elements, exist

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in the realm of e-commerce. This necessitates a redesign of the organizational structure to
make better use of space. Companies that conduct business with multi-disciplinary sales
fulfillment of their promoted items from a single physical facility face a greater barrier.
With the occasional increase in single-order deliveries, businesses must focus on utilizing
the Warehouse Management System (WMS), a database for tracking product routes. This
clever software can be used with automated tools as well as mobile phones. The
employment of remorse devices assists managers and E-commerce workers with
streamlining warehouse spacing and task assignment to their subordinates. As a result of
such complex approaches, orders are consistently delivered on time. These infrastructure
deficiencies are essential variables that can make or destroy E-commerce enterprises, and
they can be a major roadblock to success and growth. Visibility, mobility, and flexibility
are the pillars of infrastructure in warehousing settings, as previously said. Managers
must guarantee that these three drivers are all moving in the same direction in order to
achieve success in this domain.
Inaccurate Inventory Levels: In the field of inventory management, there has been a
shift in demand. With the development in global customer demand for purchasing
products, proper stock keeping units for specific commodities, services, and products
offered by companies are required. Furthermore, there may be concerns with high-value
electronic items and maintaining a lesser buffer stock in the event of an urgent delivery or
on rare occasions when stock replenishment takes longer. Furthermore, when a
distributor or supplier does not have adequate stock in their inventory, complications
develop. If supply chain managers have a clear grasp of the stock's exact state, net stock
available, and other indicators, it can help them make better decisions. It can assist
organizations avoid losing money by preventing them from losing profitable consumers.
The ever-changing fashion, sports, and other trends create a difficult position because
today's best seller could easily become tomorrow's special offer. Stock replenishment
serves as a true trail for unexpected policies that can lead to little or no turnover
predictability in such instances. Regardless of the nature of the business or the clientele, a
larger number of stocks keeping units equals more precise inventory tracking. As a result,
the essence of inventory management is managing high-end products offered by huge and
leading organizations that can wreak havoc on budgets if stocks aren't correctly managed.

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Apart from that, stock replenishment is another area where E-commerce solution
providers fail to anticipate the number of things necessary. With technological
advancements, there are a variety of instruments and software that may assist with
improved stock management and ensuring that adequate things are accessible in the event
of a shortage.
Not Investing in Proper Transportation and Logistics: It should go without saying
that once stocks are available and things need to be delivered and transported to different
locations, they must be delivered and dispatched on time. However, many small
businesses are being forced to outsource their fulfillment to third-party service providers
due to a lack of E-commerce knowledge and the rising expense of technology tools
(3PLs). Third-party logistics that have been carefully synthesized and specialized
typically demonstrate skill in material handling and its equipment, knowledge of many
systems, and the ability to pinpoint issues that go overlooked by organizations. Each
third-party logistics provider has its own set of strengths when it comes to product
delivery and other distribution points like hubs or warehouses. Given the advantages of
outsourcing transportation and logistics, however, there is a fundamental question as to
whether one or more dedicated third-party logistics are required. With organizations that
are cash-strapped and have limited turnover, the issue above can be difficult to answer.
Furthermore, given the multiple risks involved, such as the variety of delivery providers,
greater idle time might result in an increase in prices and other arrears. On the other hand,
it assures that a backup service is available in the event that the chosen ones do not go as
planned. However, the advantages are numerous, with one of the most notable being that
retailers who master the art of logistics and identify their best suppliers can improve their
bottom lines and generate more income for enterprises trying to expand their E-
commerce business. When both supply chain management and enterprises lack
experience working with E-commerce practices, identifying the proper logistics that run
smoothly can be a huge difficulty. In this instance, it's best to look for a retailer,
wholesaler, or supplier who is familiar with the E-commerce business and can provide
consistent product delivery.
Increased Costs of the Supply Chains: It's difficult to attain high profit margins across
diverse supply chain networks—the intrinsic costs, arrears, and other budgets that make

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 up a given supply chain environment—in the current context, where economies are
declining and prices are falling. Furthermore, a lack of transparency and responsibility for
price reductions might expose E-commerce businesses to risks and other consequences.
The rising price of fuel and petroleum for transportation of commodities by sea, road, and
other means is one of the key factors to rising expenses. Commodity prices rise, causing
raw material prices to rise as well. Suppliers, manufacturers, producers, and other
collaborators will face higher labor costs. Apart from that, the complexity of supply
chains in terms of logistics and inventory results in greater storage, transportation, and
total product management charges and overhead costs.

Solution
 Meeting customer expectations and delivering things on time is an important feature that
can help you build a large customer base. Certain organizations, such as Amazon and
Zappos, are setting new standards in terms of product delivery to their customers.
 Another factor is to create less complex supply chains by utilizing appropriate tools and
software that aid in the precision and finesse of tasks.
 Finally, investing in risk management can be helpful to businesses. To deal with
unanticipated supply chain changes and their interactions with E-commerce practices.
Hiring a logistics software development firm on board might assist in the successful
resolution of challenges and improve company outputs. A good working connection with
partners, 3PLs, and suppliers can assist in the delivery of high-quality products to clients.

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