INPUT OUTPUT PROCESS

(PROCUREMENT )
Delivered By:
ABDUL FAHIM
BEM/15505
COMPANY INTRODUCTION:
• INTRODUCTION
• Nawan Laboratories (Pvt.) Ltd. Pakistan is a quality
conscious Human & Veterinary pharmaceutical
manufacturer located in Karachi, Pakistan since 1994.

Nawan possesses the expertise, knowledge and technical

know-how to produce and market pharmaceutical
products. Under the modern manufacturing facility, our
experienced and dedicated pharmacists, chemists,
microbiologists, biotechnologists, biochemists & quality
control assurance managers and other skilled personnel
strictly control all processes & ensure quality outcome
of the product.
HISTORY
HISTORY
• Emerging in 1994, with a limited range of health care products is now a W.H.O-G.M.P
certified pharmaceutical unit which has diversified its operations into Human
Pharmaceuticals, Poultry Medicines, Livestock Medicines, and expanded its market to
Middle east & African Countries, Nawan Laboratories (Pvt.) Ltd has come a long way
in its development and progress.
•
Historical Highlights
• 1994
• Construction of W.H.O-G.M.P Standard factory at Korangi Industrial Area Karachi -
Pakistan and earned certification to produce injections, Tablets, Capsules,
Suspensions, Ampoules, Liquid, Powder, Bolus, Granules and Aerosol dosage forms.
• 2000
• Started Veterinary Pharmaceutical export to Middle eastern, African and Far eastern
countries.
• 2005
• Started Human Pharmaceutical export to African and Far eastern countries.
• 2009
• Becoming one of the fastest growing Human and Veterinary Pharmaceutical company
in Pakistan.
A picture is better than 1000 words!!
- A supply chain consists of

Supplier Manufacturer Distributor Customer

Retailer

Upstream
Downstream
Supply Chain Processes
 Traditional Scope of the Supply
Chain Business logistics

Physical supply Physical distribution

(Materials management)

Sources of Plants/
Customers
supply operations
• Transportation • Transportation
• Inventory maintenance • Inventory maintenance
• Order processing • Order processing
• Acquisition • Product scheduling
• Protective packaging • Protective packaging
• Warehousing • Warehousing
• Materials handling • Materials handling
• Information maintenance • Information maintenance

Internal supply chain

UNDERSTANDING PROCUREMENT
AS A CONCEPT
Input SCM Output
Supplier (Procurement) QC/Production
• Procurement steps
• Procurement life cycle in modern businesses usually
consists of 7 steps:
1. Identification of need:
2. Supplier Identification:
3. Supplier Communication:
4. Negotiation:
5. Purchase Orders:
6. Logistics Management: expediting, shipment,
delivery
7. Payment:

SOP (Standard Operating Procedure)

1. Total Amount
2. Delivery Date and Terms
3. Payment Terms
4. Bank Guarantees
Letterhead PO#
5. Currency Fluctuation or Exchange Rates
6. Packaging Terms Vendor Quote
7. Inspection and Quality Ref# Ref#
8. Taxes
Order Delivery
9. Insurance Date
Address
10. Warranty Terms
11. Documentation
12. PO Acceptance
13. General Terms and Conditions

Purchase Order Contents

Vendor Selection
 Vendor evaluation
 Critical decision
 Find potential vendors
 Determine the likelihood of them becoming
good suppliers
 Vendor Development
 Training
 Establish policies and procedures
Vendor Selection
 Negotiations

 Cost-Based Price Model - supplier opens

books to purchaser

 Market-Based Price Model - price based on

published, auction, or indexed price
 SUGGESTIONS
Supply Chain Strategies
 Negotiating with many suppliers
 Long-term partnering with few
suppliers
 Just In Time
Many Suppliers
 Purchasing is typically based on
price

 Suppliers compete with one

another

 Supplier is responsible for

technology, expertise, forecasting,
cost, quality, and delivery
Few Suppliers
 Buyer forms longer term relationships with
fewer suppliers
 Create value through economies of scale
and learning curve improvements
 Suppliers more willing to participate in JIT
programs and contribute design and
technological expertise
 Cost of changing suppliers is huge
impact
Just In Time (JIT)
 “the right material, at the right time, at the right
place, and in the exact amount”, without the
safety net of inventory.

 The philosophy of JIT is simple:

 the storage of unused inventory is a waste of

resources.

 JIT inventory systems expose hidden cost of keeping

inventory.