2023

SUPPLY CHAIN
MANAGEMENT
Supply chain Operations
Supply chain management is an essential part of business success. The journey from idea
creation to end product is a complicated process with many moving parts. How well a
company manages this process can directly translate into increased revenues

JLOOK
HILTON PHARMA PVT LIMIED
11/1/2023
SUBMITTED BY:
• JOCELYN ANGELO 48483

• OMER BIN ASIF 53673

• KINZA RAFIQ 53632

• LYDIA ABIGAIL 53610

• OSAMA KHAN 41991

Acknowledgement:
Up and Above anything else, all praise to Almighty Allah alone, the Omnipresent
and the most Merciful and compassionate. The words are bounded, knowledge is
limited and time is short to express His dignity. It is one of the infinite blessings of
Allah that he bestowed us with the potential and ability to contribute towards the
deep ocean of knowledge already existing.

At very outset, we would like to express our heartiest and sincerest sense of
gratitude to our worthy teacher of Supply Chain Management course Mr. Aamir
Rashid for his inspiring guidance and constructive criticism. We are pleased to
submit you this term report that focuses on the Supply chain Management
Department of Hilton Pharmaccutical Pvt Limited for the course of Supply chain.
In order to have a better insight knowledge of the contemporary Supply chain
practices.

We are highly thankful for the cooperation of Mr. Kamran Yousuf (Human
Resource Officer) and Mr. Faisal ur Rahman (Executive Warehouse) at Hilton
Pharmaccutical Head office and Factory, for providing us with adequate
information required for this report. We might not be able to complete our report
without their cooperation and kind assistance.

In accordance with the guidelines and directions provided by you, we have put in
all our efforts to make this report a complete and comprehensive piece of work for
you.
TABLE OF CONTENT
S. NO DESCRIPTION P NO.

01. Executive Summary

02. Introduction

03. SWOT Analysis

04. Overview of Supply Chain

05. Functions of Supply Chain

06. Organizational Strategies

07. Warehouses

08. Distribution Channels

09. Logistics

10. Problem

11. Recommendations
1) Executive Summary:

H
ilton Pharma is one of the leading pharma companies of Pakistan. Since
its inception, Hilton Pharma has mainly promoted research based
pharmaceutical products. Company’s innovative marketing strategies
together with its strong marketing base have helped their products to be
significantly positioned in their respective therapeutic areas.

The purpose of this project is to analyze the supply chain policies and practices
held at Hilton Pharmaccuticals and develop a report.This report helped us to
understand the course better by having an insight into the Supply chain activity at
Hilton Pharmaccuticals Factory.

2) Introduction:
Hilton Pharma has emerged as one of the leading pharmaccuticals in Pakistan
within a span of 25 years. It is one of the major national pharmaccutical
companies in Pakistan and is determined to bring the best and new innovative
health care products to Pakistan for masses at affordable rates. Hilton Pharma
also serves the international demand by providing top of line health care
products to vastly demanding international market. The company has managed
to effectively build its pharmaccutical marketing and manufacturing base. Hilton
Pharma has delivered the blend of finest organizational values that is comprised
of best entrepreneurial skills along with employment moral values. The
company is strivingwithin the market to maintain its position by constant
development in Supply Chain, effective team building and new marketing
approaches. Hilton Pharma has the most advanced and up-to-date production
facilities designed to conduct the production of utmost quality products. The
production plant is situated in Karachi’s main industrial area and korangi
industrial area.

Amongst almost 688 pharmaccuticals companies operating in Pakistan, including

313 multinational firms, Hilton Pharma is ranked 7thamong local pharmaccutical
companies.

History:
 Vision:
To improve quality of life by providing
quality health care solutions and be a learning
company.

Mission:
• To provide innovative health care products and
solutions.
• To be an admired and respected company in the
eyes of our customers, team members and
society.
• To be always on the forefront of innovation and
research.

Principle:
In this era of global competitiveness, Hilton Pharma continues to focus on the
quality of our products, to introduce new innovative healthcare products, strong
work ethics, mutual trust, close teamwork, professionalism and continuous
endeavor for improvement of quality are some of the other guiding principles of
our corporate philosophy.
 3) SWOT ANALYSIS:

Strengths:
Work force:

The work force of Hilton pharma comprises of almost 900 to 1000 workers.
They have an exceptional marketing system involving 250 competent and
skilled medical representatives covering entire Pakistan. They hold a good
relationship with the medical professionals and government institutions.

Noticeable market presence:

The pharmaceutical industry has quite an impressive presence in the market.
They have 40000+ pharmacies all over Pakistan which is one of the largest and
intimidating aura, often scares away potential competition and lures in many
customers.

Weaknesses:
Non availability of modern technology:

This industry lacks modern machinery. This makes it rather outdated and dull as
customers are always searching for new and improved health care materials.
Not to mention with modern tech support the production could be a lot faster.

Lengthy decision-making process:

This industry is quite vast and widespread. So, when taking a new and/or
revolutionary decision, it may take a while before it is properly executed. This
slows down the whole process. The main cause is the lengthy decision-making
process of the industry. As the companies have their own board of directors and
chairman’s they can hardly agree on anything in a short period.

Opportunities:
Government support:

This industry is often favored by the government. So, they get all the support
and help they need from the government. It is also the factor for which the
industry is flourishing to this day. The laws and taxes are often in their favor.

Growing space:

This industry is still in its growing phase, So, it can still go a long way and
spread its wings further apart. So, it can still take control over the market, given
the right marketing and advertising.

Threats:
Inflation:

The inflation of prices is an undeniable evil that is ever present. Especially in a

sector is where raw materials are pricey to begin with, inflation of price just
adds salt to the wound. Suddenly the necessities are out of reach for many
companies in the industry. This causes the production cost to skyrocket and
suddenly the profits are lower than ever.

4) Overview of Supply Chain:

One of the ways that prescription medicines are made and shipped to patients is
through the Hilton Pharma supply chain. However, the majority of their supply
chain network is extremely complicated, necessitating a number of steps to
ensure that patients have access to medications.

The Hilton supply chain also involves a wide range of stakeholders, such as
manufacturers, wholesale distributors, and pharmacy benefit managers.

The stakes are high for Hilton pharmaceutical in such a complicated procedure.
Distribution errors of drugs have an impact not only on the potential profit but
also on the company's reputation and customer satisfaction. An inefficient
supply chain could also hinder patients' healing and harm public health.

Supply chain visibility, drug counterfeiting, cold-chain shipping, and rising

prescription drug prices—which can significantly raise out-of-pocket costs for
patients—are just a few of the issues that plague the Hilton pharma supply
chain.

Demand management, inventory management and distribution, secondary

production planning and scheduling, and primary manufacturing are the four
steps that Hilton pharma with an effective supply chain follow for overcoming
the most common challenges and ways to get patients consistent access to their
medications.

5) Functions of Supply Chain:

The Role of Hilton pharma primarily contains five functions;

Purchasing:
One of the first aspects of Hilton supply chain management is purchasing.
Hilton Pharma started manufacturing Diazine Tablets as a pioneer manufacturer
of one of the 1st Chinese Pharma Products in Pakistan. They started with getting
the raw materials and other resources needed to make the goods. It required
cooperation with suppliers to ensure prompt delivery of the materials as buying
things is not a simple process. When purchasing raw materials or other items
needed to produce finished goods, there are a number of factors that they have
to consider. Hilton pharma sales and profitability can be significantly affected
by any purchase activity.

When looking for raw materials, Hilton pharma makes sure they purchase the
best quality for their company. Hilton pharma's Supply Chain Management is
responsible for ensuring that only the best materials are purchased. A single
check is insufficient for them . To ensure consistency, they test their items on a
regular basis. Production of finished goods may be harmed by raw materials of
poor quality. As a result, the medicine may lose some of its most distinctive
features. Hilton pharma's reputation can be harmed by a minor purchasing
oversight.

To guarantee that their every order is fulfilled according to customer

requirements, they make sure materials arrive on time. Buying more than you
need can waste money and space in the long run so purchase managers are
aware of the most recent information regarding orders and the materials that
will be required to complete them on time.

Operations:
Demand forecasting and planning are carried out by the operation team in
Hilton Pharma. This team also initiates shipping, production, and inventory
management. They know how many units of a product there might be demand
for before issuing a raw material purchase order. The business would lose
money if it was unable to meet customer demand if demand was not met as
anticipated. Therefore, Hilton Pharma focuses on the operation as an essential
part of the supply chain department's job.

Production planning in relation to demand is the responsibility of operation

managers here. In order to guarantee the prompt delivery of goods to customers,
these officials arrange for raw materials and ensure that manufacturing will be
completed on time. In order to finish producing goods on time, the operation
team in Hilton pharma ensures that all machines work properly. They also make
certain that all of the other things, like stickers, labels, and packaging materials,
are always prepared for the products that need to be delivered to customers.

Logistics:

This is a function of supply chain management that is treated with great

coordination. The production of products has begun. It requires storage space
until it is shipped to be delivered. All arrangements for the local warehouse are
made. For instance, For the medicines that have to be delivered outside of the
city. Transportation enters the loop as a result of this. Medicines are delivered
without hiccups with logistics in place.

According to a Hilton Pharma’s employee It is not an easy job to arrange for

goods to be transported. They make sure that all staff members complete all
documentation correctly if this involves shipping to other cities. If there's any
mistake from their side it might result in product delivery delays for customers.
When sending goods to another city, the logistics manager is familiar with the
formalities that businesses must adhere to.

Everything in Hilton Pharma’s is not perfect, Sometimes there are Unexpected

issues arising during material transportation on a local level and Mechanical
issues can cause delays in vehicles too. But Hilton Pharma’s Managers quickly
arrange for a different mode of transportation. The customer or vendors are
made aware of this information and arrange for the timely delivery of the goods.
Customers are informed about the status of their orders via a reliable tracking
system.

Resource Management:

Time, labor, technology, and raw materials are all necessities for Hilton Pharma
However, each process must be effective and efficient. The resource
management team handles this phase here.They determine how to allocate
resources to the appropriate activity at the appropriate time in order to reduce
costs while maximizing production. In order to guarantee that all work is
completed on time, the proper allocation of personnel for various tasks is a
major responsibility. The workforce is crucial for moving goods and ensuring
that orders are carried out appropriately.

Information Workflow:

Hilton Pharma’s Supply chain management's other functions are kept on track
by information sharing and distribution. Their entire chain could be torn apart
and mismanaged if information workflow and communication are lacking. In
terms of logistics, data must flow in both directions. In their processes, both
external and internal entities regularly exchange information for effective
functioning.

6) Supply Chain Management Strategy:

A well-developed supply chain execution strategy is more important than ever
to Hilton pharma’s short- and long-term plan in light of constantly shifting
customer demands. To maintain customer satisfaction in today's market, Hilton
pharma supply chains are adaptable and agile.

Utilizing the appropriate strategy for supply chain planning can assist them in
achieving your business objectives, including cost reduction, enhanced
customer service, and cost savings. Additionally, it assists them in
comprehending their historical data, locating your inventory, and adapting to
shifting demand. Their supply chain strategy is made up of several different
parts, including:

Sourcing: Managing relationships with suppliers to ensure that they can meet
the organization's requirements in terms of quality, cost, and delivery is a part of
this process.

Logistics: From the point of origin to the point of consumption, this includes
managing the movement of goods and materials through the supply chain.
Transportation, storage, and inventory management are all examples of this.

Production: This includes the technologies and procedures utilized to transform

raw materials into finished goods. It might also include controlling how goods
move through the company's own manufacturing facilities.

Distribution: Getting the finished goods to the customers is part of this. It

might entail managing the company's own distribution centers as well as
collaborating with partners.

Service to customers: This includes handling returns and complaints, taking

orders, and managing the relationship with customers and vendors after the sale.

Efficient Supply Chains:

One type of supply chain that a company may have is an efficient supply chain.
The primary goal of an effective supply chain is to maximize efficiency. A
supply chain that is effective tries to accomplish more with less. In the end, an
effective supply chain aims to minimize input while maximizing output.

Outsourcing and cutting costs helps Hilton pharma become more efficient. In
their case, a cost-effective supply chain aims to cut some number of costs as
well as hours, effort, and resources. An effective supply chain often benefits
them because it provides customers with immediate gratification and
contentment. Additionally, Hilton Pharma with an effective supply chain is
more likely to keep in touch with suppliers.

Supply Chain Efficiency in Action:

Hilton pharma's efficient supply chain can be especially beneficial to the bottom
line, but efficiency saves money and boosts profits throughout their business.

Their products are transported to their destinations in the most cost-effective

manner through an effective supply chain. This is crucial in the global
marketplace of today. The prices they ultimately offer to their customers reflect
the costs of their supply chain, which make up a significant portion of their
overhead. their ability to successfully compete with other Pharma companies
offering the same products is effectively hampered if their supply chain adds
unnecessary costs to your final products.

It all comes down to this: Hilton pharma's rivals will be able to offer the same
products at a lower price if they have supply chains that are more effective than
theirs.

Characteristics of Hilton pharma effective supply chain:

Management of the inventory: It costs a lot to buy, handle, store, and track too
much inventory. Additionally, a lack of inventory can be costly. It could result
in lost production time, costly last-minute orders, or even irate customers. When
it comes to inventory, Hilton Pharma’s good supply chain finds the right
balance.

Optimization: To get the most out of your existing infrastructure, They

optimize shipping routes, warehouse locations, personnel, and even your
computer network. However, It is simply a waste of their assets to have half-
empty trucks, unused warehouses, and redundant computer systems.

Customer contentment: Customer satisfaction is directly related to supply

chain efficiency. It helps them to get their products to the people who need them
quickly and at the lowest possible cost.

Partners of a high caliber: The best third-party logistics partners are essential
for Hilton pharma. Their third-party logistics provider (3PL) ought to have
access to cutting-edge technologies, a transparent policy, and a track record of
success.

Responsive Supply Chain:

A responsive supply chain, also known as an effective supply chain, is another

kind of supply chain that Hilton pharma uses. One way to look at production
and distribution from a holistic perspective is an efficient supply chain. While
efficiency is a component of an efficient supply chain, it is not the entire
system's focus. A responsive supply chain, on the other hand, is more adaptable
and operates in response to changes in the surrounding environment, which may
include both anticipated and unanticipated occurrences like natural disasters. A
responsive supply chain's ultimate objective is to satisfy customers and satisfy
consumer drug demand. This is accomplished by being attentive to the
requirements of customers and adapting the production process as necessary to
achieve these goals.
There are two things Hilton pharma's responsive supply chain does. It
accommodates both their and their customers' requirements.

Accuracy of order fulfillment: their real selling point in today's highly

competitive market is a guarantee of prompt delivery. Hilton Pharma will have
wasted time, money, and possibly even a customer if that order arrives quickly
but is incorrect or incomplete.

Scalable success: Every business has its ups and downs. The economy, the
season, and the weather can all have an impact on sales. The supply chain of
Hilton Pharma can adapt to shifting sales volumes and is responsive.

Communication: they maintain open lines of communication whenever they or

their customers have questions, issues, or concerns.

This strategy helps Hilton Pharma speed up product launches, extend the life
cycle of existing products, enter new markets more quickly, and be more
responsive to changes in demand and new business opportunities.

Medicines distribution System:

Hilton Pharma's pharmaceutical supply chain consists of five basic steps to
ensure that drug inventory is readily available for distribution to providers and
patients.
These are the five steps:
● Pharmaceuticals start to begin in manufacturing sites
● Are moved to wholesale distributors
● Stocked at retail and other types of pharmacies
● Subject to price negotiations and processed through quality and
utilization management screens by pharmacy benefit management
companies
● Dispensed by pharmacies; and ultimately delivered to and taken by
patients
But this fundamental structure of Hilton pharma supply chain is subject to
numerous variations, largely as a result of the supply chain's constantly evolving
players.
Their pharmaceutical supply chain network operates smoothly and effectively
thanks to its key players who are the Manufacturers, wholesale distributors,
pharmacies, and PBMs.The role of pharmacy benefit managers in Hilton
pharma is to ensure that a manufacturer supplies the right amount of its products
to meet the needs of patients and consumers. The actual distribution of the drugs
from the facilities to drug wholesalers or directly to retail, mail-order, specialty,
hospital, and some health plans is managed by these manufacturers.

PLANNING:
Then to produce all the forecasted demand Hilton Pharma go for resource
planning, that how much its production takes the available resources which are
time and labour. In resource planning the company plans for all the resources
that are required to make the medicine right from beginning of documentation
till the completion of documentation. If a single product takes 12hrs to complete
than how many days it will take to produce the required batch and how many
labour is required to produce it. After resource planning they will do
procurement planning and manufacturing planning.

MANUFACTURING:
After procurement Raw material stored in warehouse and then it is issued to
production floor. The percentage of normal loss i.e., 2 - 3 % and if in case it
excessed then enquiry is generated against it. In manufacturing operation again,
the quality assurance performs according to quality parameter and process
checking separately of each item and ingredient after different intervals to
prevent the further manufacturing losses. Because if there is bad quality
material exists in the beginning so it will damage the overall production in
process. Then after checking through all quality parameters, product comes in
finish forms and then it goes to warehouse for storage and for further
distribution.

7) Warehouses:
In Hilton pharmaceutical the use of warehouse starts from the process of
procurement when purchase orders are placed to the vendors by the company
then this raw material is stored in Hilton’s warehouse. Then the process of
manufacturing starts and raw material from warehouse are sent to the
manufacturing floor, after the completion of work finished goods are again sent
back to warehouse for their storage till the time they are distributed at their
potential pharmacy stores.

Hilton Pharma has their own warehouses for finished and semi-finished
products to get the better hold and security. In warehouse materials are in
different forms like raw material, packaging material, semi-finish, and finish
good. Every material has its own requirement in the warehouse, like raw
material has its own requirement of temperature and moisture. Likewise
packaging material has certain optimum temperature and humidity level of
environment. Finish good has its own requirement that it must be protected
from light and keeping it in room temperature. Their warehouses have specific
areas according to the sensitivity of different products. They have the capacity
to store products of 1 month at different stages. They work on 1+1+1 formula
means they keep 1 month finished goods, 1 month raw material or packing
material, 1 month work in process or semi-finished goods. So all these
inventories are store in warehouse.After manufacturing process, finished goods
are delivered to warehouse, where it goes to quality assurance checking and
after final release from the quality assurance than it goes to distribution channel
from the warehouse. Then distribution channel ensures the in-market
availability that every potential chemist has got the required product.

8) Distribution Channels:
Hilton Pharma has outsourced it distribution to qualified forty distributors
positioned all over Pakistan. They signed an settlement with their distributors to
continue certain volume of shares all time. Their profits are proper now
monitored by using Marketing Intelligent title IMS Health (Index of Medical
Statics). Based on the document generated via way of the utilization of way of
software, Hilton pinnacle off department function stock replenishment of their
distributors.

All spherical the world, sale of all the pharmaceutical agencies are show
through capacity of IMS Health. It generates quarterly file of in-market profits
of all pharmaceutical companies, in accordance to which ranking of earnings
and market shares is performed.

They have to maintain 2-8 diploma temperature when it reaches in to

customers’ hand. Courier offerings are in addition employed for the cause of
distribution and typically dispatching of cargo are carried out at in nights only,
so that the capsules are protected from photo voltaic mild as temperature is
excessive at some stage in day light. Hilton cold chain hold temperature for
about 18 hours, places like Sibbi the region it takes generally eight hours to
furnish the merchandise can besides troubles be grant at tightly closed
temperature.

9) Logistics:
Distribution:
Hilton Pharma has outsourced it distribution to qualified 40 distributors located
all over Pakistan. They signed an agreement with their distributors to hold
certain amount of stocks all time. Their sales are directly monitored through
Marketing Intelligent name IMS Health (Index of Medical Statics). Based on
the report generated by software, Hilton replenish department perform stock
replenishment of their distributors. All around the world, sale of all the
pharmaceutical companies are monitor through IMS Health.

It generates quarterly report of in-market sales of all pharmaceutical companies,

according to which ranking of sales and market shares is performed. They have
to maintain 2-8 degree temperature when it reaches in to customers' hand.
Courier services are also hired for the purpose of distribution and normally
dispatching of shipment are performed at in nights only, so that the medicines
are safe from sun light as temperature is high during day light. Hilton cold chain
sustain temperature for about 18 hours, places like Sibbi where it takes normally
8 hours to deliver the products can easily be deliver at stable temperature.
However, many of the distribution concerns are related to the potential
distribution of potential vaccines or drugs that could help treat COVID-19.
Once a vaccine is developed, there are concerns about managing the logistics to
quickly ship bulk numbers around the world. This could potentially be managed
by the private sector and/or government as there may be public health funds to
support this rapid mass distribution. Not only that, but the sales force may be
more limited due to financial implications, illness and measured social
distancing.

REVERSE LOGISTIC:

Hilton pharma does reverse logistics in a very formalized and organized way.
For reverse logistic it is the responsibility of distributor to send their stock
report 6 month prior to expiry date. For the near to expiry medicines, sales team
got message and they activated to enhance the sales through doctors by
generating prescription to consume it early. If they are not able to sell those
products within the 3 month prior to expiry date, then company lift that stock
from distributor and destroy it. Distributors receive their payment or
replenishment of new stock in place of it and then the expired product got
incinerated by the Government of Pakistan and Hilton Pharma receives
Certification of Incinerate. This is the policy of Hilton to lift up the near expiry
product(s) before 3 month to control the miss use of the products.

RETURN PROLICY:

It is the responsibility of distributor to send their stock report 6 month prior to

expiry date. For the near to expiry medicines, sales team got message and they
activated to enhance the sales through doctors by generating prescription to
consume it early. If they are not able to sell those products within the 6 month
prior to expiry date, then company lift that stock from distributor and destroy it.
Distributors receive their payment or new stock in place of it and then the
expired product got incinerated by the Government of Pakistan and Hilton
Pharma receives Certification of Incinerate. This is the policy of Hilton to lift up
the near expiry product before 6 month to control the miss use of the product.
10) Problems:
1. Warehouse:
The first problem which was faced by them is that their production is very high
and they don’t have a proper warehouse to keep their finished goods. They
produce almost 500 lakh units per day. They have two types of warehouses: a.
Internal b. External In Internal they have three categories of warehouses the
first one is for the raw materials, the second one is for the packaging stuff and
the third one is for the finished goods, it has almost a capacity of 500 pallets
which can easily store a minimum of 10 to 15 lakh of their inventory. And the
external warehouse which is outside of their factory (site Area) is basically on
the rent for their finished products, it has almost a capacity of 2000 pallets
which can easily store a minimum of 4 to 5 million of their inventory at a time.

2. Transportation:
The second problem which was faced by them is transportation. They are
dependent on courier services like TCS for their distribution. They issue faced
with the 3PL is this, when the weather changes and it gets foggy there is a lot of
traffic, or any other hurdle during the delivery period due to which they are not
able to deliver their product by air or by road, so their consignments get hold, or
they return it to the company. Because some of the consignments are
temperature sensitive and which not be kept outside for more than 24 hours
below 25° degree temperature, and for medicines like vaccines they have to

maintain 2-8 degree temperature . Hilton is dependent on the TCS for their
delivery and because they don’t have their medium of transportation sometimes
their commitment with the customers cannot be fulfilled on the time.
11) Recommendation:
1. Solution for the warehouse:
Nowadays they are overcoming this problem by making their new warehouse
for their finished goods which is in process and it is of 40 square feet and has
total space for almost 3,500 pallets. By making their new warehouse they can
save their transportation cost and rent expense which is in the millions.

2. Transportation:
Hilton can overcome their problem if they will make their own transportation
instead of depending on others for their distribution. Or else they can add more
courier companies like leapords. And if they have their own transportation than
they can easily maintain the requirements of temperature according to their
products and their commitment with their customers can also be fulfilled on the
time.