BAHRIA UNIVERSITY KARACHI CAMPUS

DEPARTMENT OF MANAGEMENT SCIENCES

“Operation Planning in DELL COMPUTER”

MUHAMMAD QASIM 02-111192-029

USMAN MAHMOOD 02-111192-327
FAIZAN ALI 02-111192-221
AHMED ZAIN 02-111192-097
FURQAN-UL-MUJTABA 02-111192-183
KHADIJA 02-111182-258
RAJA WAQAR 02-111191-088
ABDUL AZIZ 02-111192-262
AMBREEN ISHAQ 02-111192-331
 Letter of Transmittal
Dated: 28 Dec 2020
Sir Arsalan Ahmed Siddiqui
(Course Instructor)
Operation planning BBA–6B

Subject: Report Submission

Respected Sir,

concerning the course of instruction, we now apply as this one product to the whole operation
planning process it must be a similar link between the regular supply chain perspective have
choose the product related to which supply chain has a vast experience in their expertise one
more thing is that we should be able to deal with the current scenario of this particular field that
depends upon how it’s going to that field our product is dell computer.

My name is MQ and currently I study in Bahria university Karachi campus and I almost at the
end of university life, my next year is the last year and my hobbies is to play online games and I
little bit know the video editing as well I just learn from different website and see different types
of video tutorial as well right now I will try to improve my English as well so I just used
different kind of social app that help me to improve my intermediate level to advanced level
when I enroll in university I was stage fear at that time and now at the end of six semester I see
that after I enroll in university and now today that is a big changing see in my gesture and one
thing I want to share with you that I also make my page on Facebook initially I just make it for
fun and now on my page I almost cross like and followers 1000 plus and its being make my
motivation level up now today I am not posting any kind of post related to gaming because that I
see that take too much time for being there why I choose this time to make a specific thing.

2
BOSCH PHARMACEUTICALS
 Acknowledgement
At the very beginning we would like to express my deepest gratitude to Almighty Allah for
giving us the strength and the composure to complete this report on Inventory Management in
Bosch Pharmaceuticals. We also like to thank Sir Arsalan Ahmed Siddiqui, our course instructor,
and Bahria University as a platform to give us the chance to get corporate exposure. The
opportunity we had was a great chance for learning and professional development. Therefore, we
consider ourselves as very fortunate.

Bearing in mind previous we are using this opportunity to express our special thanks to Mr.
Farhan Chawla (Director) who despite being extraordinarily busy with his duties, took time out
to hear and guide us. We choose this moment to acknowledge his contribution gratefully.

3
BOSCH PHARMACEUTICALS
Contents
Letter of Transmittal........................................................................................................................2
Acknowledgement...........................................................................................................................3
Introduction......................................................................................................................................7
Vision Statement..........................................................................................................................7
Mission Statement........................................................................................................................7
History..........................................................................................................................................7
Achievements...............................................................................................................................7
Activities at Bosch.......................................................................................................................8
Organogram of the Company:......................................................................................................9
Placement Strategy........................................................................................................................10
Five Channel of Service Output....................................................................................................12
Establishing Objectives and Constraints.......................................................................................13
Identifying Major Channel Alternatives........................................................................................14
Channel Members of Bosch...........................................................................................................15
Manufacturer..............................................................................................................................16
Warehousing..............................................................................................................................16
Distributor..................................................................................................................................17
Retailers.....................................................................................................................................17
Segmentation and target market of Bosch.....................................................................................17
Demographic..............................................................................................................................17
Psychographic............................................................................................................................17
Packaging...................................................................................................................................18
Gap Analysis..................................................................................................................................20
Breaking bulk.............................................................................................................................20
Spatial convenience....................................................................................................................20
Assortment.................................................................................................................................20
Information provisions...............................................................................................................20
Physical possession....................................................................................................................20
Ownership..................................................................................................................................21
Promotion...................................................................................................................................21
Power and conflicts characteristics................................................................................................21
Challenges Faced in Inventory Management in SCM...................................................................22
Logistics.....................................................................................................................................22

4
BOSCH PHARMACEUTICALS
 Material Flow time.....................................................................................................................22
Detail of Project / Steps Taken By Company to Resolve Challenges Issues................................23
Outsourcing Logistics................................................................................................................23
Material Flow time Restored......................................................................................................23
New Policy for Supply and Demand..........................................................................................23
Change of Procurement Policy..................................................................................................23
WHO’s New Regulation............................................................................................................23
Data/ Results Showing Comparison between Present and Past Performance...............................24
ABC Analysis................................................................................................................................26
Learning from the Report..............................................................................................................28
Conclusion.....................................................................................................................................29

5
BOSCH PHARMACEUTICALS
Introduction
Vision Statement

“To provide high quality medicines to everyone”

Mission Statement

Bosch is one of the fastest growing national pharmaceuticals that find its place in the top ten
pharmaceutical manufacturing organization of Pakistan. It is proud of its current market share
and revenue share in the market that it has gained based on trust of its customers in the past
decades. Bosch provides a unique range of medicines in the health care system. The company
undergoes a continuous change and development to cope up with the market and add more to its
existing portfolio. Bosch aims to serve the nation for it to turn disease free.

History

The company origins from a very long time but it laid its foundation in 1994, with its main office
and one manufacturing plant in Karachi and now it has been more than two decades of trust from
doctors, medical staff, and healthcare professionals.

Bosch Pharmaceuticals is built on a solid foundation of talented people, unparalleled research

and development platform, a strong clinical and commercial presence and trust of its loyal
quality conscious prescribers. These factors have enabled Bosch, in just 21 years, to grow from a
bold young startup to a leading pharmaceutical company in Pakistan. The group was originally
established in early 1970’s as Munico Associates International (MAI Group of Companies),
participating in counter trade and transactions for pharmaceutical goods with multinational
companies all over the world. In 1988 Munico ventured into pharmaceutical packaging through
Pakistan International Packages, involved in manufacturing of high-quality glass ampoules and
aluminum closures under German collaboration.

Achievements

6
BOSCH PHARMACEUTICALS
Bosch Pharmaceuticals established in 1994 owns a world class, latest and state of the art
manufacturing facility situated in Korangi Industrial Area- Karachi, which stands amongst the
top Six (6) pharmaceutical manufacturing facilities in Pakistan. Bosch also has the honor to be
the first pharma plant in Pakistan to have seven separate sterile manufacturing facilities, along
with two separate manufacturing plant for oral and parenteral penicillin formulations and
separate manufacturing areas for cephalosporin, quinolones, ophthalmic and aminoglycosides
Penicillin.
Bosch is also having the honor to be the first Lyophilized manufacturing unit in Pakistan. Bosch
having its partners in quality with world renowned names as Sandoz – Austria, Asahi Kasei-
Japan, ACS Dobfar- Italy, Klockner Pentaplast- Germany, VAW-Germany, Saint Gobain-
France, Color Con UK, Helvoet Pharma Belgium and Capsulit Italy is proud to be the pioneer
and the largest producer of Cephlosporin specialties and amongst the largest producers of
penicillin’s, aminoglycosides, and quinolone specialties in Pakistan.
Activities at Bosch

Bosch has 3 dedicated manufacturing plant with 6 different manufacturing facilities, Bosch
contributes to the market with multiple sections of medicines such as cephalosporin specialties,
anti-Ulcerant, fluoroquinolones, antihistamine, biotech, and antiviral, anti-malarial, ophthalmic,
penicillin specialties, aminoglyscides, macrolides, anti-rheumatics / analgesics, cardio care and
other specialties.

7
BOSCH PHARMACEUTICALS
Organogram of the Company:

8
BOSCH PHARMACEUTICALS
Placement Strategy
Placement is the method in marketing that plays a fundamental role in marketing products and
services. It also helps in identifying and outlining the ways of a firm that can place its products
and services to gain market share and a pool of consumer. This method from the 4Ps is also
known as the distribution strategy. This method can be used by physical and online existing
stores or any other means that help the company to reach the customer, to recognize the need of
the customer the company should provide the best avenue to reach out to the potential buyer. The
role played by the physical retail stores is that they provide a wide range of products on-shelf
that are settled according to the physical reach of the customer.

Placement of a product is a vast topic it covers a lot of aspects that can help from the perspective
of supply chain to the marketing topic. Placement can be how to place an object physically in a
store or it can be mentally in the minds of the consumer. But that is not enough, if we consider
the Visual Merchandising that comes within the domain of supply chain management refers to
how to manage the distribution on a particular floor of a retail store, however, this is different
from the positioning in the supply chain because that is just transportation of the goods or
services from the point of initiation to the end market where it is stored. Therefore, the marketing
goes a bit deeper in this thought of positioning a goods. Marketing defines itself as providing the
right good, to the right place at the right time in the most appropriate price. Furthermore, the
marketing also concerns on how to display a product when it is concerned to as displaying in the
shelves to the displaying in the advertisement. What small sachets of shampoos and juice powder
are hanging over the counter to display for the consumer to see and buy them? The psychological
pricing strategy and providing discounts on different occasion sale is to attract consumer towards
a particular brand. If someone approaches a retail outlet of any brand to purchase such products,
they will witness that the very wall in front of the door is dedicated to the very latest and
fashionable products a brand is selling, however, the discounted product that we need to buy is
all placed in a very corner or at a small desk that we won’t be motivated to buy when we see
them. This all refers to the placement of the product. The strategy is used to grab the attention of
the consumer and intend them for different products to purchase.

The placement strategy is also used for how products are shown in the supermarket. Vegetables
and fruits are always very accessible and not placed above the normal human height for them to
easily access, so is the fragile good such as wine, soft drinks, and beer bottles for them not to
spill or slip when someone grabs them, things that take a lot of space like big plastic jars of
detergent and other washing chemicals are kept at a higher place. Children related goods such as
toys and other items that includes children milk, cornflakes and biscuits as well are kept below
an average human height so that they can be easily access by kids for them to purchase or hold
and pursue their parents or guardians to buy them.

This does not end here the placement is also spread over the area of promotion, how posters and
billboards are published over a certain area also matters, it is really bizarre for McDonalds to
make a big size billboard and place it in a rural area for people to see. In order for any fast-food
chain to target the right audience they need to find the fast-moving people to sell fast food. Fast
moving people are found in the cities and in fact the most commercial and industrial cities,
where people can only catch a glimpse of a product while driving their car and they see that there

9
BOSCH PHARMACEUTICALS
is a person eating a ham burger, chicken burger or cheeseburger so that it can grab it on its way.
Digital advertising boards are huge investment for such people who can look at these
advertisement bill boards from their office window, house or while driving their through
somewhere. Times Square in New York is hub of digital advertising, you could view a hundred
products in a minute. An estimate of 2018 says that the daily average of visits to Times Square is
390,368 and a 2017 estimate say that the number of tourist visits on a yearly basis is 50 million,
which makes is quite a busiest tourist attraction in the world. It cost in between $1 to $4 million a
year to buy an advertising space in the Times Square. The question is why do companies
purchase such locations? Why do they even invest so much on their product advertisement? The
answer is that they place it in the hearts of the busiest cities for most of the crowd to witness their
products.

The placement is also known as a non-technical advertising strategy that is used in the movies or
shows to display a product. This advertising is one of the most potential sort of advertising to
promote a product because it grabs the most attention of a consumer such as in the movie Fight
Club there is Starbucks coffee in almost every scene except for the ones where there is
destruction or a really negative plot, moreover, the famous actors Brad Pitt and Edward Norton
even smashed the headlights of a Volkswagen beetle. Another very famous example is the movie
The Truman Show, the movie is played by a very renown actor Jim Carey where the plot is based
upon his life being telecasted 24/7 since his birth to his adulthood, however, the real marketing
plot is that the number of products advertised in this movie during the broadcasts are immense
such as Chef Pal’s Knife and many others. There are many movies that chose to place many
products in their movie intentionally or inevitably.

Bosch pharmaceuticals has decided to create its own unique image and its strength by
positioning their products in the market as well as in the consumers’ minds. The unique selling
point of Bosch Pharmaceutical is quality. They believe in quality, quality people, in quality
material and in quality marketing. They think that no matter what happens their product should
not compromise in the quality. They should provide high quality products to the consumers all
over the world.

Bosch Pharmaceutical has and intensive distribution network for its products in the market the
product is available all over Pakistan in terms of distribution there simultaneously distributed
among the 20 cities across Pakistan. The launch has been ambitious in currently Bosch
pharmaceuticals products are available across Pakistan. It reflects the company's intention to
become a big player in the market board on national and international level. Additionally, the
distribution network all across the Pakistan is divided into 5 regions that is:

 Lahore
 Islamabad
 Peshawar
 Karachi
 Multan

10
BOSCH PHARMACEUTICALS
Five Channel of Service Output
Channel literal meaning is the directing towards a particular object or subject, in marketing, it is
known for directing a particular good or service from the point of production to the point where
it can be finally consumed. The channel involves the interaction of the people, organizations, and
other activities that helps lead to the end of the channel. 
 
There are certain service outputs that this channel produces; Desired Lot Size; refers to how
many units of a product can a consumer purchase on a single occasion, Bosch Pharmaceuticals
tends to have no limit to what lot size to order, they sell a million packs to civil institutions and
hospitals, therefore, Bosch only provides on how much they can produce in the limitations of
time. Waiting and delivery time; is the average time the firm takes for its delivery to take
process; Bosch Parma outsources its delivery system through leopard courier cutting down on
the lead time of delivering orders to the customer. Spatial convenience: is the degree of easiness
or leverage the firm provides to its customer to make the customer purchase better. Bosch
Pharmaceuticals' prime objective is that the products reach the market on time for the use of
consumers and they are easily available for the patients or attendants to purchase, the market is
responsive in hospitals, and the availability of the product is given more credit than the cost
charged for the product. Bosch tries to keep its product as available to the nearest pharmacist and
clinics as possible. Product Variety; is the collection of products at a particular marketplace.
This is also known as product offering is the variety of series of products within a particular set.
Bosch provides a series of products from Cephalosporin to Penicillin products that can go against
Gram-negative to Gram-positive bacteria to provide a series of offerings to all its
customers. Service Backup; this is the aspect that is a delight to the customer, it can also be
categorized as one of the crucial needs of a customer that helps them stay actively loyal to a
brand, furthermore, Bosch Pharmaceuticals help its customer through an after-sales service that
is Pharmacvigilance, this is a new concept to the pharm industry that deals in adverse drug
effects that can help its customer to complain if any product has any reaction other than on the
leaflet to see if there is the problem associated to the product. 
 
Therefore, the more addition there is to a channel, the more hectic and costly it gets which
eventually raises the prices of the end consumer goods. 
 E-free. 

11
BOSCH PHARMACEUTICALS
Establishing Objectives and Constraints
No marketing strategy or tactic is followed until they are certain aims attached to it, therefore,
going away out for the customers to provide them with a delighted service channel is not easy.
These channel measure of service provide can help seller make customers full use of it. From a
glass opener to a high-tech machine there are different intermediaries and ways of providing the
most appropriate service output to the customers. The service provider should try that they do not
exceed a basic cost that they could not cover later and stay within the competitive range in
response providing the best they could.

How a service should be provided to a certain customer varies from product to product. Thus, to
ensure how these are used certain examples are used to make this clear; Bulky products logistic
transportation method is choosing on the dependency of demand, if the products has a responsive
demand than the product is to be transported through air or if it has a casual demand than it can
be shipped through sea trade. This does not always depend on the requirement of the customer,
but it is also correlated to the supplier’s perspective who chose between a speedy supply and a
cost-effective method. The mutual consent makes the most appropriate service method but often
the supplier and customer have their hands tied because if it turns out to be a perishable or fragile
good than the most appropriate option is the air which makes trade faster and easier (but costly).
Service output is not restricted to the transportation, but it also is how to make the relation
between the product and customer easy. Companies that sell generators or cars have a record of
the sales made and they are obliged to provide a maintenance and repair service from 1 to 3
months’ time span till the product is being used. This helps keep a record if the product exists to
a place it was meant to sale, it helps the firm record what are the main problems that occur in a
certain product to eradicate that issue and pursue the customer to purchase the updated model.

If a firm is new in the market and they want to succeed the way possible is not only they make as
low-price product with an equally quality product in the market, but it also consists the level of
after sale and service output dedication provided by that term. When Apple Co. launched its
stores in 2001, the business magazine told Steve that it is going to be a disaster but what was
named as a disaster turned to out to be an immense success. By 2013 Apple had almost 400 of
these so-called disastrous stores that generated minimum of $ 1,776 to maximum of $35,000
from Coach’s to Fifth Avenue location in US. However, the whole story behind this success is
that the Apple hired to around 30,000 to 40,000 employees on these stores whose purpose was
not at all to generate any commission but to give product-oriented presentation and the plus point
was that the customers could hold, see, and feel their product before purchase that helps them
make a relation before purchase.

Bosch has made its transportation constraints and selling channels easy by having a decentralized
system and adding those intermediaries that can help the products to reach in the market as soon
as possible, Bosch being a pharmaceutical require temperature-controlled transportation mode
especially trucks that can help deliver the product at the best quality possible. The raw material
that is imported from FDA approved sources is that they get it through shipment that takes more
than a 15 to 20 days to deliver.

12
BOSCH PHARMACEUTICALS
Identifying Major Channel Alternatives
Product offering are the variety of products within a set of brands that helps chose between the
best alternative, however, in service sector the most crucial alternative is to select the best
channel alternative, which clearly does not limit to which transportation mode, but it includes the
people, the outsourcing member, the market intermediaries, the influential sources and also the
supply chain management.

Every one of these turns out to have their own drawbacks and positive impact on the product. A
technician who helps install the generator or an air conditioner in a home or commercial area can
tend to make the life of the customer easy but adds on the cost of the supplier who has to pay the
extra bonus. The sales team help present the product to certain customer with an effective and
efficient manner but hiring them is cost again. In most malls there are salesgirls who help women
apply make up for multiple brand such as Loreal, MAC, and Revlon etc. Internet is hub to
tutorials, but we don’t take risk of how to set up an electronic motor based on a tutorial or how to
drive a Porsche 918 Spyder while driving and watching the tutorial, these brands and products
have no choice but to hire an effective sales team. Companies cannot just perceive that the more
they add between them and their customer, the best fit it is for the. The worst part is the more
people in between the reliability of data is at stake and the customer connection is loss. The
management of the forecast of how much products should be sold are also very inaccurate
because of the Bull Whip Effect on the sales. The bull whip effect is exaggerating and placing
false orders to the back of supply chain, which means if a customer ask for 2 jeans from Levi’s
from the retail store, the retail store will order 4 from the distributor and the distributor will ask 8
from the wholesaler and the wholesaler will ask for 16 from Levi’s (the manufacturer). Now the
manufacturer assumes that the actual sales is between 10 to 15 perceiving that the wholesaler
asked for a little more, but the sales were only restricted to 2 or may exceed to 5 but not more.
The reason that in 21st century companies have their own online stores and retail outlets is that
they have cut down on the false orders and make accurate forecast with respect to direct contact
with customers.

There are multiple channel alternatives that differ from each other and those are types of
intermediaries are those as discussed earlier that helps make a product sell easily, these can be
agents, wholesalers, distributors, retailers, and customers. Customers are not necessarily end
consumers such as a guardian buying medicine for their patient who is admitted in hospital, now
the customer is an intermediary who does not ask for any payment later but helps in providing to
the end user to consume. The intermediary’s purpose is to carry on the channel work, they are
also known as the middlemen and distribution intermediaries. BMW in Pakistan does not
assemble nor do any sort of manufacturing process; however, it sells BMWs across Pakistan
through Dewan group of companies’ subsidiary Dewan motors who are an essential intermediary
and an authorized dealer to BMW. Dewan here are the Distributors and Retailers as well. Dewan
Motors provide BWMs to the end consumer for purchase and to other showrooms for further
sale. But what if BMW set up its own retail outlet where it allows its consumer to have a test
drive, car for rents and cars on installments that Dewan does not provide, moreover, it sells its
car on factory price plus duty and tax which will still cut down the commission that Dewan was
enjoying. The question is why BMW don’t set up its own retail outlet? The reasons are PESTAL,

13
BOSCH PHARMACEUTICALS
macro-economic factors and other measures of instability that demotivates it (they are discussed
in detail in the Market Analysis).
Daraz is also an online marketplace and retail store that helps selling between C2C and B2C.
Netflix lately has started making its own shows because they have noticed that they are
dependent on the production of others. HBO and Amazon buy a book series (buys patent to make
its TV series) such as Game of Thrones which was bought by HBO, but the strategic part is that
they are streamed by Netflix. However, HBO has its own channel that is HBO Go and Amazon
has its own channel of Amazon Prime which produce and stream their own TV shows and
movies that leaves Netflix at a stake. Netflix has planned around 250 new series from all genres
in the coming years and starting to become independent by becoming its own producer.
However, Netflix is still in widespread in the market and highly recognized but in the future,
there will be a division amongst those who want to watch Netflix content and those who want to
watch HBO or Amazon content. An example of Netflix’s success is the TV series Stranger
Things that has been a grossing sci-fiction TV shows. Netflix have also started to stream
Bollywood TV series such as Sacred Games to increase its customer pool and following the
footsteps of Netflix, Amazon streamed a Bollywood TV series named Mirzapur that was also an
immense success.

Bosch pharmaceuticals uses almost all the levels of channels there are in the distribution
management. Bosch does not directly silent to its customers it believes in delivering their
products through a distributor through which a wholesaler, agent and retailers can be added for
their final product to be distributed among the consumers. So, Bosch uses channel level 1,
channel level 2 and channel level 3 as its distribution strategy in delivering the product to its
consumers.

Channel Members of Bosch

Integration refers to the connection between links between multiple things, therefore, channel
integration refers to interlinking the all the marketing channels in constructing a multichannel
that helps provide customer through different sources with a common goal. These channels can
also be created in vertical and horizontal marketing systems and conventional.

The next comes number of intermediaries that are needed to set the limitation of people that are
required within a particular channel to provide the service output, this can vary from exclusive
distribution to selective distribution and intensive distribution. The exclusive distribution deals
in making an exclusive deal between the supplier and the retailer that they can sell under certain
circumstances and, thus, they cannot breach the contract. The reason this level of intermediary
system is used is to for the seller to keep a track of the service levels and the service outputs that
it is offering. The exclusive intermediary system is required in products that need information or
make some certain assertations. The examples could be Rolex watches to tell its worth or a
Mercedes showroom to detail about the system installed. The next kind of intermediary system is
selective distribution system that allows selective products sold under selective retail shops. The
number of intermediaries providing these certain products are provided with these products only
and the reason is to track sale of each sort of product offering accordingly by the seller. This sort
of distribution is helped for the products that brands know are customized and the customers are
more interested in window shopping than purchasing the product. These are most likely to be

14
BOSCH PHARMACEUTICALS
branded perfumes that are set out in kiosks in shopping malls to test or they can be different skin
care creams or multiple FMCG items for the customers to enthrall and produce a need. The next
and last intermediary system is the intensive distribution system which is not any complex in fact
far most the easiest and convenient way to use to distribute a certain product, the examples could
be bread, vegetables, fruits, stationary and many other commonly sold consumer item. Multiple
channels and people are involved in selling of these items such as convenience stores, service
stations, supermarkets, and discount stores. The availability of these products matter more than
what channel is used to sell them. These goods should be made easily available to the nearby
stores to the consumers.

Following channel members which provide the product to the end user's; it consists of
manufacture, distributor, retailer, and customer.

Manufacturer

Manufacturers are the producer of the products. Bosch pharmaceuticals has two manufacturing
plants across Karachi both are in Korangi industrial area. The first plant is named as plant 1 and
the second is named as plant 2. There are also others in Pakistan, and some are being
constructed. These plants are engaged in working of taking orders purchase in Raw materials,
produce finished goods, for selling finished goods. If all the process of manufacturing goods has
been completed and goods are supplied to the distributor, who supplies goods to the retailers and
then will be available to the final consumers. Not only do they manufacture medicines and other
Pharmaceutical goods they also have a warehouse in which there is controlled temperature
according to the use of different Pharmaceutical products

Warehousing

The company has two warehouses in two different locations which are officially considered by
the company. Both are in Karachi, Korangi. These warehouses are huge in size. They have up to
9 to 10 rows in which there are numerous shelves according to the size of the carton. Now when
we talk about the Cartons. There are different sizes of cartons. They are marked with different
color of tapes and there are three colors that the use that are green, orange and red. The green one
is the finished good, the orange one is quarantine, that means it's in process and the red one

Hospitals

Distributor / Pharmacies /
Agents Clinics

Civil Medical
Manufacture Warehouse
Institutions Institutions

Donations

15
BOSCH PHARMACEUTICALS
means that it is rejected. The warehouse is temperature controlled which means that the average
temperature of the warehouse should be 26 to 29 degree centigrade. The temperature is
maintained by different people who write the temperatures in a list two times a day. The list is
then inspected by the officials of the warehouse. The warehouse is humidity free. They also have
controlled HVAC. There is a complete air duct in the warehouse that means that whenever
person enters the warehouse there is an amount of air that is blown to the person through which
all the organisms that he is coming with are taken by the air system. That means that it sucks all
the different particles that can be transferred from one place to another and are harmful for every
product in the warehouse. The response team is on duty 24/7 to stop any unnecessary problems.
Their response is very rapid.

Distributor

Bosch Pharmaceutical does not do distribution themselves. They have numbers distributors
across Pakistan of which Noor distributors and premier distributors are two of them. They also
use hospitals as distributors. By hospitals we mean, the doctors. They try to convince them about
their products and by doing this they make their products available in the local pharmacies or at
the pharmacy in the hospitals.

Retailers

Retailers are the people who receive the products from distributors and then supply to the
consumers has its distribution across Pakistan which distributes all its products through the
retailer’s profit. The retailers supply to the final consumers and through this the cycle is
completed Bosch does not directly serve to retailers, it sells to the distributors through which
they sell it to the local pharmacies or the local retailers.
Segmentation and target market of Bosch
The Pharmaceutical market plays a vital role in the health sector of Pakistan. As we know that
most of the medicines that we buy, can be fake or not officially created, so it is the duty of the
pharmaceutical companies to provide authentic medicines or a pharmaceutical product to its
consumers. The segmentation and targeting of the market play a vital role in the pharmaceutical
industry. We will be discussing about the segmentation and the target market of Bosch
Pharmaceutical below.

Demographic

Demographic segmentation helps in understanding how different demographic groups see and
perceive the product offerings. When a company segments a group based on demography, they
consider the characteristics such as age, income, occupation, family size, gender, marital status
etc. When we talk about gender so different genders have different needs and they so the
perception toward shopping is different. Bosch pharmaceuticals products are not particular to
any age and gender. The product is for all users and are suitable for all the ages according to the
given prescriptions by the doctors.

16
BOSCH PHARMACEUTICALS
Psychographic

With psychographic segmentation, marketers learn how they can position the product offerings
in the eyes of the customers and how to offer the right product to the right customer. This
segmentation focuses on different psychographic elements such customer attitudes and lifestyles,
what their values and opinions are and how these elements affect the buying and consumption
behavior of the customer. Bosch Pharmaceutical is normally B2B and B2C. By B2B we mean
Bosch provides its medicines to hospitals and as well as military based on the requirements. Now
when we talk about B2C it means that Bosch does not directly seller towards consumers but
through the doctors. They try to convince the doctors to prescribe the medicines that are being
manufactured by Bosch themselves. Or use as many as Bosch’s products as possible.

Packaging

Packaging of a product is one of the finest elements that helps define us that product. Packaging
plays a great role in differentiating between a product and a brand. Packaging does not only deal
with the outer appearance of a product, but it also concerns with the creating an identity,
creating a description that defines the product, it helps in displaying and also distinguishing it
from others, and moreover the part where it helps promote. But this is not easy, to make a
product sound well to the ears of a consumer is quite hard. People do not just buy goods and
services based on how they look appealing to them. How is it made possible for a consumer to
pick on of a thousand choices? The point where he chose a product over other product is when
the consumer of today develops trust. Switching to a few decades ago the people didn’t seem to
have many choices, the reason was not that the makers lack knowledge of what to make, the
problem was that the people lack knowledge on what to get made, a standard shoe size was made
back in the age for every person to wear, not all can fit in the same shoe. When people start to
realize that they need to get things made according to their needs and not what the producers like
they start demanding, this is the part where trust is developed. When a person who wants a shoe
size of 10 and he gets a 10 instead of a standard size of 8 or any other number but 10, he trusted
that good. Now when a product is out in the shelves in the market, a consumer wants to apply all
its five senses to it to build its trust on that product. An ordinary consumer in the market goes to
buy beer, they guy is told that it’s the best one in town, but he doesn’t believe it. The only way
possible for him is to apply all his senses to it. In order to ensure he buys one and he find it
appealing from the outer appearance of the can, he pours it in a glass and what he sees next is
the apple juice kind of brown color but a bit light tone which sets an identity to the beer, he
listens when that beer is poured, and he is fascinated by the sound those bubble made when it
poured that displayed a differentiating effect to it. He drinks a sip and the level of satisfaction he
gets is immeasurable, but he missed out on the sense of speaking, so he says cheers as a sign of
happiness, the packaging was all from what it looked to what it tasted like in the end. Packaging
is what helps a brand position itself within the minds of the consumer. But how does this theory
of packaging apply on services, how can services look appealing or sounds catchy? A global
definition for a service packaging is that to transport one good from the other point to make the
consumers’ life easy, but this sounds vague, because the part of it attracting consumers and
looking appealing is missed out. A service is presented in a series of action or activities. The
service is compared to other services to understand the quality of packaging.

17
BOSCH PHARMACEUTICALS
Labelling is the part of packaging that packaging is usually mistake for, the normal perception of
lay man is that packaging and labelling are almost the same or even if they have some
knowledge, they seem to give packaging importance in the design of the whole product.
Labelling is used to name something or someone, labelling can also be used to associate an
adjective with someone or something. However, in marketing the labelling means ‘to give a
name’. There are billions of FMCG products made by P&G and Unilever sold by Walmart and
Primark and other big stores. What if everything was sold in a white box with no colors or name
to it? What is the possibility that we recognize what we used the last time and what we are using
is the most appropriate product? What if the pizza delivery service and plumbing service were
just called services and no one can understand what we want? Labels play such a big role in the
market, without a label there is no brand, they all are just products. Labels are not even what
marketers chose to give a name to a certain product and expect it to generate revenues in the
market, the consumer decides what name please them the most and then marketers associate the
names. This is not the case in major, but this is the scenario that marketers need to perform
market research and analyze what they consumers perceive.

Labelling should be within the confinements of the Competition and Consumer Act 2010,
according to the FDA if it is an FMCG product, the Federal Trade Act states that the cheating of
logos, names and colors is not appreciated and is considered as an offence that has an outcome of
unjust competition.

Recently in this month, Pakistan renowned brands of mattresses Molty foam sued Diamond
supreme foam for using one of their highly popular tagline parts “Papa Jaani”. This was a jibe
to Molty foam where the whole case purpose of advertisement was to show that the girl who has
been playing the role of a daughter who is getting married and leaving for her in-laws sticks the
same Molty foam but then Diamond foam continued the strategy and taunted Molty foam that
the daughter has switched to Diamond foam. Molty foam later sued them because of the
copyright infringement.

Furthermore, if we talk about how McDonalds operate in India, so when they entered within the
premises of Indian territory they got to know that the whole place is filled with people who
condemn the act of slaughtering meat, so before they could even think of promoting their beef
patty filled Big Mac, they had to face certain challenges such as; how not to hurt religious
sensitivity and how to avoid any confrontation with the local activist group and also the
government, McDonald’s strategy was gain the trust of the Hindus because they were 80 percent
of the population and the other chunk of ethnic group was Muslims and Sikhs, so McDonald
introduced the Maharaja Mac that was mutton-based and later it introduced McAloo Tikki
Burger that was enriched with break potato and pea patty. Indians are attached to their artifacts
and they trust what gives them the sound of their culture and past, so the McDonald’s strategy
worked out and 75% of the McDonald’s menu in India is Indianized.

The importance of what labelling can do is to no end, so from the very dawn of time when the
products were made to the modern era of information technology and that e commerce is moving
towards the top of line industry, the market is getting dynamic and the concept of labelling is
getting complex, now the labelling should be attractive and to do this there are 3 types of
labelling; brand labelling that gives information about the brand, descriptive labelling that

18
BOSCH PHARMACEUTICALS
defines the usage of a product and grade labelling it deals in the describing the features and
benefits of the products.

Bosch pharmaceuticals has two types of packaging for us is outsource and insource. The first one
we talk about is the outsource packaging. They use aluminum Foils, plastic, glass, and Rubber
based on the products.

The objective that Bosch pharmaceuticals need to keep in mind when they are packaging their
goods are:

 To minimize the weight and volume of the package while maintaining its quality
 Consider the packaging material data using is environment friendly and has no unnecessary
problem to its consumers
 They avoid the use of substances that can be dangerous for the environment as well as hard to
dispose
 Use recyclable products in the packaging
 The packaging is stored in a dry and temperature-controlled place

When we talk about insource packaging is that they usually do the printing on the packaging
themselves. They have installed printing machines in their factory.

Gap Analysis
A gap analysis is a method of assessing the differences in performance between a business'
information systems or software applications to determine whether business requirements are
being met and, if not, what steps should be taken to ensure they are met successfully.

Breaking bulk

Their products are available in all kind of sizes and packages.

Spatial convenience

The transportation is done through air as well as by sea. By air it takes up to 7 days and by sea it
takes up to 21 day. They use different companies for transportation.

Assortment

They provide a variety of products for all kind of people. As well as different categories.

Information provisions

They provide information about their product through the manual inside the packaging.

19
BOSCH PHARMACEUTICALS
Physical possession

They have physical possession of the good they provide in their warehouses.

Ownership

They provide their products through their distributors, so they don’t have to pay a lot of
inventory cost.

Promotion

They have a marketing dept. that does all the promotions and selling strategies.

Power and conflicts characteristics

Channel conflict is a state of opposition or discovered among the organizations comprising a
marketing channel when an individual’s personal relationships conflicts is almost invariably
viewed as something to avoid a sign of trouble. L channel conflicts is a behavior of a channel
member that is in a position to its channels counterpart. Channel conflict occurs when one
member of the channel views it's upstream and downstream partner as an adversary and as an
opponent. The key is that interdependent parties at different levels of the same channel attempt to
block each other.

As such no conflicts occur in their channel members as all of them run their operations smoothly
and according to the rules and regulation provided by the company itself.

20
BOSCH PHARMACEUTICALS
Challenges Faced in Inventory Management in SCM
The modern supply chain must evolve to meet new demands and supply chain challenges, and
supply chain managers need to plan to keep everything flowing smoothly. A combination of
consumer expectations, more routes to market, international complexities and other factors
creates significant challenges throughout the supply chain network. As we know that the Corona
Virus entered different parts of the world in February and weakened the economies of many
countries. This was mainly due to the stoppage and the regulations caused in the import and
export. When we visited Bosch Pharmaceutical, we got to know some challenges faced by them
in inventory management in the supply Chain Management. We will be discussing some of them
below:

Logistics

After discussing about the logistics of Bosch we got to know that the logistics of Bosch Pharma
is 60 percent In house and 40 percent outsourced. Now the challenge faced by them were that the
vehicles are owned by Bosch, but the labor is outsourced. This caused a problem in the COVID-
19 as they had to sanitize everyone and most of the people weren’t available. This caused Bosch
to face a big challenge.

Material Flow time

Material flow, a model used in supply chain management, represents the transportation of raw
materials, parts, work-in-progress inventory, and final products as a flow. There were a lot of
problems that occurred during this process. Due to the above logistic challenge, they faced, this
caused the material flow time to decrease.

Mismatch between supply and demand

The mismatch between supply and demand is the most common challenge faced by any
company. During COVID-19, this challenge had started to occur more. Sometimes there were
more demand less supply and sometimes more supply less demand. The chances of spoilage
increased.

Procurement Policy

The procurement policy before the COVID-19 were feasible. But after COVID-19 they were not.
This caused a great problem to the company.

WHO Regulations

After the COVID-19, the World Health Organization changed most of its policies and regulation.
This became a great challenge for many companies.

21
BOSCH PHARMACEUTICALS
Detail of Project / Steps Taken By Company to Resolve Challenges
Issues
Due to the challenges faced by many companies, they had to take the possible steps to resolve
these challenges as soon as possible. Because these challenges are making the company
operations very hard. Most of these challenges are resolved and they are listed below:

Outsourcing Logistics

Due to the regulation and new policies, Bosch started to outsource some of their work to TCS
and LCS. Both are reputable logistics provider in Pakistan. They were also working according to
the regulations.

Material Flow time Restored

After outsourcing their Logistics service, the material flow time was restored but they also had to
Quarantine those material for 14 days so that they were tasted and were free of any virus.

New Policy for Supply and Demand

New policies for supply and demand were made. They were made by the Production department.
They started satisfying their demand though the FIFO method. The supply was totally was based
on demand so it could satisfy the demand whenever it came.

Change of Procurement Policy

As we know that the procurement policy before COVID-19 were quite different. After the
COVID-19 the purchasing had stopped or slowed down. Due to this the supply and demand was
totally damaged. Most of the raw materials were procured form china. But since the import
export were stopped, it was a great challenge. Secondly a new regulation was passed that if the
company purchased 100 units before COVID-19. It can only purchase 30 units. This put pressure
on the company.

WHO’s New Regulation

Many new Regulations were presented by the WHO. Some of them are sanitizing the Goods and
putting them on Quarantine. The also regularized the possible amount of goods purchased before
COVID-19 and decreased that amount. So according to this regulation Bosch made Quarantine
units to fulfill these regulations and they started increasing the safety stocks.

22
BOSCH PHARMACEUTICALS
Data/ Results Showing Comparison between Present and Past
Performance

Growth Rate Progress

650.0%

640.0% 6.42
6.36 6.37
6.34
630.0%
6.27
Growth Percentage

6.24
620.0% 6.18
6.14
610.0%
6.04
600.0%

590.0% 5.91
5.86
580.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2019 2020

Growth Linear (Growth)

The growth rate shows that there is a constant increase in the growth on Bosch Pharmaceuticals
from the year 2018 to 2020. Although the pandemic COVID-19 affected companies severely but
the companies don’t start having a negative growth especially if they are in the top tier such as
Bosch and other local and international player. It is a very rare case for those that are startups or
having a very poor market performance that falls in the negative growth criteria. Hence this
graph represents there has been a halt in the growth in the Q1 of 2019 this was the period of US
and China trade war that affected many countries that were dealing in exports and imports from
both the countries and dollar and from February 2019 the dollar rate started to pace up. Whereas
the second biggest fall as also represented clearly through the linear growth that from the Q1 of
2020 to the Q2 of 2020 the growth rate decreased. Just to be clear the revenue for the firm never
decreased but the rate that it was increasing slow down and from what is predicted from the end
of Q3 of 2020 is that the growth rate is pacing up again.

23
BOSCH PHARMACEUTICALS
As far as the revenue for Bosch is concerned the graph below indicates how the company have
progressed over the years.

Bosch Revenue 2018 to 2020

Rs 12,736,600,000
Rs 16,000,000,000

Rs 11,941,836,160
Rs 11,181,141,197
Rs 10,463,311,932
Rs 14,000,000,000

Rs 9,797,845,293
Rs 9,183,520,393
Rs 8,619,652,241
Rs 12,000,000,000

Rs 8,086,957,732
Rs 7,598,505,485
Rs 7,149,433,811
Rs 6,730,476,990

Rs 10,000,000,000

Rs 8,000,000,000

Rs 6,000,000,000

Rs 4,000,000,000

Rs 2,000,000,000

Rs -

Q1 Q2 Q3 Q4

As shown above in none of the years the bar seems to go down as compared to previous quarters
of same or any years representing that the revenue grew constantly but the rate of revenue
growth slow down as show in Graph 1

24
BOSCH PHARMACEUTICALS
ABC Analysis

Bosch has a product portfolio of around 90 products. The above mentioned chart shows total
revenue earned or the brand equity of each product since the dawn of its existence. In altogether
the total sum is the actual worth of the company based only on the revenue (not considering
assets). The data has been summoned from IQVIA 3rd Quarter 2020. Although the ABC analysis
is done on the cost of the product and the inventory is valued based on the worth of the brand and
quantity of item in warehouse but it was hard to maintain that data. Therefore, Bosch medicines
are usually based around different categories of products such as vials, injections, blister
packaging and unit cartons etc. The pricing of each unit is based differently and hence the
products measurement can vary, thus, the traditional ABC analysis does not comply here.
The ABC analysis Bosch follows is based on the worth of the brand. The more the brand is sold
the better it is categorized. Now the traditional ABC analysis would suggest that the highest in
unit should be less in price but the ABC followed here would differ to this. The product can that
is sold the most and sold the least both can have same pricing.
The above mentioned graph represents 90 plus products. Only the top 10 products that are;
Calamox, Cebosh, Cefxone, Tanzo, Omezol, Penro, Bofalgan, Cefotax, Olinc and Somezol
contribute to almost 65% of the total revenue. Now the ABC analysis criteria at Bosch is that any
product above RS 100 million is an A, between RS 25 to 100 million is a B and less than RS 25
million is a C. According to this criteria the data generated is that almost 27 products are A
category that contribute to 89% of the company’s total revenue, moreover, 20 products are those

25
BOSCH PHARMACEUTICALS
that contribute to 8% of the total company’s revenue and are B category products while the rest
44 are C category products that combined altogether only contribute to just 3 % of the total
company’s revenue. The graph also represents the cumulative revenue percentage generated by
each product on the right hand side while the total revenue rest on the left hand side. Bosch takes
deep care of the top 10 products’ market share and the rest is looked after well enough. Whereas,
Bosch new approach is to maximize the use of other brands that have potential. An overview is
evaluated in the table below;

Products Values Revenue Percentage ABC

Calamox Rs 2,787,883,000 21.89 A
Rova Rs 98,973,000 0.78 B
Orthofenac Rs 97,977,000 0.77 B
Vinjec Rs 91,161,000 0.72 B
Lizobal Rs 24,883,000 0.20 C
Tezox Rs 23,285,000 0.18 C
Boschcam-B Rs 20,870,000 0.16 C
Aloc Rs 20,452,000 0.16 C
Zerica Rs 19,073,000 0.15 C
Difam Plus Rs 16,188,000 0.13 C

Learning from the Report

26
BOSCH PHARMACEUTICALS
In organizational studies, resource management is the efficient and effective development of an
organization's resources when they are needed. Such resources may include the financial
resources, inventory, human skills, production resources, or information technology (IT) and
natural resources. Resources can be anything from people to machinery to facilities. They are
whatever you need to complete your project or task. For a construction company, a resource can
include a special piece of equipment or tools. There are several different types of resource
management. There’s scheduling, planning, and management itself. Benefits of resource
management can be Maximizing resource efficiency, getting a bird's eye view of your project,
Preventing miscommunication mishaps, Predicting the future and Taking Control. After visiting
Bosch, we saw all these techniques practically and the way they managed to overcome these
issues was brilliant. The experience for us was useful and we learnt a lot of new ways through
which we can overcome challenges that we can face in the future.

Conclusion

27
BOSCH PHARMACEUTICALS
Concluding, Bosch has very effectively used resource management. For a development
organization, it takes a lot to figure out the issues and being able to overcome them. After the
background and history of the company, this report briefly explains all the difficulties faced by
the company which included logistics, material flow time, mismatch between supply and
demand, procurement policy and WHO’s regulation. In facing all these issues, the company had
a hard time, especially due to the mismatch between supply and demand. Every one of these
procedures were essential and the way the company figured out how to conquer these issues was
splendid. Bosch Pharmaceuticals is established with the help of brilliant people, incredible
product development framework and commitment about its dedicated result-oriented healthcare
providers. To cope with the demand and add more to its current portfolio, the company is always
focusing and concentrating on change and growth. Bosch tries to improve the community to
make it free of sickness. A variation of customer preferences, more product networks, external
uncertainties, and other variables creates major challenges across the supply chain network, and
it is the responsibility of the company to accept the change. The logistics of the company is 60 %
in house and 40 % outsourced. The changes occurred in the company after the pandemic as the
company had was very much affected as the WHO organization changed its policies. The
company came up with different steps to reach the solutions of these problems and it got
successful because of the hard work and dedication of every individual. They have set an
example for many companies in the future. Currently, Bosch has become one of the strongest
national pharmaceutical firms, assured of its medicines' current market share. In the health care
system, Bosch goods have useful applications. By designing, manufacturing, and selling high-
quality pharmaceutical products, Bosch Pharmaceuticals is committed to improving human life.
Bosch thanks to physicians, pharmacists and health care agencies who have put their faith in the
quality and effectiveness of Bosch products.

28
BOSCH PHARMACEUTICALS