Components of the pharmaceutical industry manufacturing and distribution chain
A pharmaceutical supply chain is made up of the following stages-
• Primary Manufacturing
• Secondary Manufacturing
• Market Warehouses
• Distribution Centre
• Wholesalers
• Retailers /Hospitals.
Primary manufacturing
Primary manufacturing is the process of production of the AI(Active Ingredient) or API (Active Pharmaceutical Ingredient).
This process is comprised of multiple complex chemical synthesis also some separation stages to build the complex modules of AI.
The process could also involve a biochemical process like fermentation and recovery of product for generating the AI Typically, the process of AI manufacturing is a time consuming
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The consequence of such a mechanism is decreased responsiveness and it is one of the main factors that can be attributed to for the poor supply chain metrics displayed by the “Pharmaceutical Industry”
Outsourcing of manufacturing of some of the AI and also intermediaries to contractors is a growing field and has added great level of convenience to the supply chain process. At the same time, it has also contributed to a great deal of complexity. These processes are hugely dependant on research and development and thus the dependence on a third party company can be risky and lead to problems in supply chain co-ordination.
.Secondary manufacturing
Secondary manufacturing involves the addition of the Active Ingredient (AI) produced in Primary Manufacturing to the Inert materials. In addition to this, it also includes further processing and packaging to produce the end product.The final product is usually in the form of SKUs.
Here is a list of typical steps involved in the formation of a pill in a pharmaceutical company:
• Granulation
• Compression
• Coating
• Quality Control
• Packaging.
The sites of primary manufacturing and secondary manufacturing are usually distinct.This is usually done to optimize the outcome of tax and transfer price optimization within the enterprise.
Also, there is a difference in the number of secondary and primary manufacturing sites. Usually, there are many more
A ring stand that was the base to hold everything, including the clamp and the solution calorimeter. 15 effervescent tablets, a styrofoam cup (outer insulator), and a plastic cup (reaction chamber). Plus, a stir plate and bar, and a Lab Quest unit to record the temperature changes. A 250mLs beaker, a
Outsourced almost 87% of production activities involving spare parts while maintaining core competencies like R&D, design, quality control and key trademark
{Build the Supply Base: supplier selection1. supplier evaluation- find potential suppliers, supplier certification (qualification, education, certificationISO 9000,14000). 2. Supplier development- integrate supplier in system, quality require, product specs, schedule/delivery, procurement polices, training, engineer/production help, information transfer procedures. 3. Negotiation- significant element, strategies: Cost based price model (open books to supplier, based on time and materials) Market based price model (based on published, auction, index prices: commodities) Competitive bidding (most common, no longterm relationship, request for rfq). 4. Contracting- share risks, benefits, incentives. Centralized purchasing, E procurement (online catalogs/exchanges, online auctions).} Logistics MGT- obtain efficient operations through integration of all material acquisition, movement, and storage activities. Frequent for outsourcing, allow competitive advantage from reduce costs and improve customer service. 1.Shipping systems: truck(flexible, moves majority manufactured goods) rail( large loads, containers) Airfreight( fast/flexible light loads, expensive) water( used for bulky low value cargo, oldest way of transportation) Pipelines( transport oil, gas,
The company also should consider other factors in choosing the location of the plant including:
The firm also has several branches across different states. This offers a deliberate effort regarding location since the strategy behind this is placing and concentrating the outlets in populations where middle-income households reside. This concept helps to cut implicit transaction price regarding distance and time.
The delay rate in the production will be decreased by outsourcing the assembly fuction near the supplier of the parts.
A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $185 in either case.
The success of any manufacturing company is dependent on its manufacturing system design. The system design concept has been the basic force in manufacturing advancement. Without manufacturing design, all manufacturing would be stuck in the “square wheel” era. The first system design was the invention of the forerunner of the modern factory nearly 200 years ago. New design concepts are continually improving and impacting the worlds manufacturing.
Abstract In lab, luminol was synthesized by reacting 5-nitro-2,3-dihydrophthalazine-1,4 dione with sodium hydroxide, sodium hydrosulfite, and acetic acid. Once synthesized, luminol was added to various mixtures in which a catalyst such as potassium ferricyanide, as well as the addition of hydrogen peroxide caused chemiluminescene to occur. This change in an excited state to a ground state in the product produced a fluorescent blue light, especially in the concentrated solutions of A and B. Introduction The purpose of the experiment was to synthesize luminol and observe its chemiluminescent properties.
Despite the fact that there are better manufacturing technologies to be found in today's modern world, it is still quite difficult for every Tom, Dick and Harry in business to manufacture their own products. This is because the cost of setting up a manufacturing plant is significantly high; in addition, one requires a team of professionals with a high level of expertise in various aspects of manufacturing in order to have everything up and running as smoothly as possible.
Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.
Advanced Manufacturing is a multitude of different things that all fall under the same name. Advanced Manufacturing is using things such as automation, computation, software, sensors, and networks to manufacture products new and old. The advanced manufacturing today is much more than the image of assembly lines and forklifts, with most of the factories today being mostly automated. With most the factories having machines there need to be people who can operate, maintain, and repair the machines.
In pharma industry the raw materials mainly consist of organic chemicals. The need of different organic chemicals depends on the chemical formulae of drug. Pharmaceutical industry depends on various different organic chemicals for the production of end drugs. The chemical industry itself is very competitive and also very fragmented because their products (organic chemicals) are standardized and steps to produce them are also standardized. The chemicals used in pharma industry are commodity as pharmaceutical companies do production on economies of scale to lower the cost. The suppliers have low bargaining power because companies can switch to a new supplier without incurring a high cost. But there is a threat from supplier if it decides to go for forward integration and become a pharma industry
Clear examples of this would be Intel assembly plants in Penang, Malaysia and in Manila, Philippines. Design requires high level scientific, technical and engineering personal, usually in Japanese and American locations, as the chips are light transportation would not affect the location was these industries a great deal. Another key economical factor was the economy of the region, areas such as United States, Japan and Western Europe are key examples of this. The political and financial systems allowed access to the financial capital needed for the development of semiconductor manufacturing.
The company has to decide between the two locations based on their virtues, availability and higher margin of profit.