1.

General Operations:

Q) What your company is manufacturing? (details about the products being made in your company)

We are a leading pharmaceutical company in Pakistan operating in 28+ countries throughout ASIA. We
provide a versatile product range from Nutraceutical products to hepatology and oncology. We are the
leading importers in Pakistan.

Q) How does the supply chain operate within your company (supply chain process)? What are the key
components or stages of your supply chain (principal)?

The pharmaceutical supply chain is complex and highly regulated due to the nature of the products
involved. Below are the key stages:

 Research and Development (R&D and NPD)

 Raw Material Sourcing (API, Excipients and packaging materials)
 Manufacturing
 Packaging and Labeling
 Warehousing (both temperature controlled and normal)
 Distribution and logistics
 Wholesalers and Distributors
 Pharmacies and Healthcare Providers:
 Regulatory Compliance
 Recalls and Returns
 Technology and Data Management

Our supply chain is highly regulated and we comply all rules and regulations of DRAP.

Q) Can you describe the flow of materials/products from suppliers to customers?

 Suppliers provide raw materials (APIs, excipients, packaging) to pharmaceutical companies.

 Manufacturing facilities process raw materials into finished pharmaceutical products, adhering
to quality standards.
 Finished products undergo packaging and labeling to meet regulatory requirements.
 Products are distributed to wholesalers/distributors who act as intermediaries.
 Wholesalers deliver products to pharmacies and healthcare providers.
 Patients receive medications from pharmacies or healthcare facilities.
 Systems manage returns, recalls, and expired products throughout the supply chain.
 Adherence to regulatory guidelines at every stage ensures product safety and quality.
 Technology facilitates real-time tracking, inventory management, and data analytics.
 Ongoing initiatives optimize supply chain processes for efficiency and cost-effectiveness.

Q) Which supply chain strategy is followed and why? (push, pull or hybrid)
Hybrid Strategy is followed in our company. Since we have both short shelf life and long shelf life
products and strategies differ for both categories. A hybrid strategy allows companies to tailor their
approach to different product characteristics within their portfolio. Critical or high-demand products are
produced and pushed into the supply chain based on forecasts, while other products (seasonal one)
follow a pull strategy based on actual orders.

2. Procurement and Sourcing:

Q) How do you select suppliers? What criteria do you use to evaluate potential suppliers? How do you
manage relationships with your suppliers?

We have a strict criteria due to the industry's regulatory demands. We prioritize suppliers with
impeccable compliance to Good Manufacturing Practices (GMP), relevant certifications, and approvals
from health authorities like DRAP. We assess the supplier's quality management systems, conduct on-site
audits for facilities and processes, and evaluate their track record in delivering reliable and compliant
products. We ensure their capacity, scalability, and resilience in managing supply chain risks. Look for
technologically advanced and innovative suppliers with a commitment to ethical and socially responsible
practices and establish clear contractual agreements with terms, conditions, and performance
expectations, and maintain ongoing monitoring and evaluation for sustained supply chain integrity.

3. Inventory Management:

Q) How do you handle inventory control and optimization?

We have inventory policy for local and imported materials. Through MRP and MPS we manage our
inventory.

Q) What methods or technologies do you use for inventory tracking and management?

MRP and MPS

Q) How do you forecast future demand? How do you manage demand forecasting and planning?

From market trends, seasonal factors and sales data.

4. Logistics and Transportation:

Q) How are products transported from one point to another? What strategies do you employ for
transportation optimization? How to you handle stock allocation to meet varying demand across
different region? How these warehouses are strategically positioned to optimize distribution?

We have a third party logistics company (3PL) on board for all our logistics and distribution related
activities.

Q) How many warehouses does your company have locally and internationally?
We, have 3 warehouses in total.

5. Technology and Automation:

Q) What technological tools or software are used in supply chain management?

 ERP (SAP HANA S4)

 MS Office
 Power BI and dashboards
 Warehouse management system (WMS)

Q) Have you implemented any innovative technologies recently to improve efficiency?

Yes, we have recently implemented distribution management system portal. It is an automated portal
which allows distributors to directly place orders to our distribution team. It’s a real time dashboard
which allows distribution team to monitor their stocks at different locations and trigger on time product
shortages on depos.

6. Lean

Q) How does your company integrate lean principles into its supply chain operations?

We have integrated lean principles into our supply chain operations by employing methodologies such as
Kanban systems, and standardized work procedures, total Productive Maintenance (TPM) practices
optimize equipment performance, while robust quality management and Six Sigma methodologies
identify and eliminate defects early in the production process. Collaborating closely with suppliers and
implementing lean supply chains ensures responsiveness, and visual management tools enhance real-
time visibility into key performance metrics. Cross-functional collaboration, employee training, and
involvement foster a culture of continuous improvement, ultimately streamlining processes and
enhancing efficiency in compliance with industry-specific regulatory and quality requirements.

Q) Are there specific lean methodologies (like kanban, JIT) implemented in your supply chain process.

Yes we follow Kanban on production floor for SFGs. Standardized working procedures for all activities
from material handling to quality control.

Q) What are the types of waste identified within your supply chain operations? (like over production
defects, waiting time etc.)

We had over production of certain products due to irrationalized demand which resulted in product
expiries. Currently we are working on demand forecasting to mitigate this issue.

Q) How do you ensure product or process quality to minimize defect and rework?
We 100% follow DRAP rules and regulations. Moreover we have an audit departments which make sure
all activities are under compliance with drap regulations

7. Sustainability and Ethics:

Q) What initiatives are taken to ensure sustainability in your supply chain? Are there any efforts to
minimize packaging waste or use sustainable material in packaging?

Yes, we have initiated a Go green carbon free packaging for few of our products. And in near future this
will be implemented to other products as well.

Q) Have you adopted any environmentally friendly practices or green logistics strategies?

Yes.

8. Improvement:

Q) In which area of the supply chain do you see the most potential for improvement and why?

Our supply chain is pretty organized and well established. Although there is always a room for
improvement. We are currently working on our service levels which is a bit lower than other competitors
due to some operational issues.

Q) How do you plan to adapt your supply chain strategies to meet changing market demand or trends?

We have already adapted new models of aggressive supply chain strategies. We are penetrating into new
markets and conquering old markets with new product developments. Rebranding and extending our
product ranges.

9. Performance Measurement:

Q) How do you measure the effectiveness and efficiency of your supply chain? What key performance
indicators (KPIs) are tracked to assess performance?

On time in full deliveries of material throughout the month. OEE percentages. Managing minimum
number of defects during production.

Q) How do you use these metrics to improve operations?

We have quarterly review meetings in which KPIs are measured and corrective actions are taken on the
basis of findings.

10. Risk Management:

 Q) How do you identify and mitigate supply chain risks?

We use a diverse strategy to detect and reduce supply chain risks. This entails comprehensive
evaluations of suppliers, taking into account aspects such as geopolitical unrest and financial stability, in
addition to diversification tactics aimed at reducing dependence on certain suppliers and geographical
areas. Proactive risk management involves working together with suppliers, utilizing technology and data
analytics for real-time monitoring, and include contracts with risk mitigation measures. Flexibility is
further increased by strategic inventory management, scenario preparation, and regulatory compliance.
To ensure flexibility in a changing business environment, we have made heavy investments in
cybersecurity, frequent supplier audits, and staff training on risk awareness.

Q) What contingency plans do you have in place for unexpected disruptions?

It is a situational based question, whenever we encounter any unexpected disruption our teams sit
together and propose a way forward by collaborating and communicating with each other. We work as a
team and solve our issues as one unit.