Whelan Pharmaceutical Case Summary

The last years of the twentieth century was presented a notable expansion of supply chains into international locations, particularly in the automobile, computer and fashion industries Meixell, M. J. and Gargeya, V. B. (2005). International manufacturing sources have been investigated during the last decades; in order to reduce cost, raise revenues and improved reliability. The main benefits, which International companies set up abroad, are seeking benefit from tariff, trade concessions, low cost director labor, capital subsidies and reduced logistics costs MacCarthy, B.L., Atthirawong, W. (2003).

Selecting qualified suppliers can be a tough job in today's marketplace. There are many organizations that make themselves sound appealing who do not produce the agreed upon terms of service. It can be difficult to find a new supplier and it can be a very time consuming task. Having a good database of resources can make life a lot easier with this part of the job. It also helps to plan visits to a few top potential suppliers to see how they operate internally. It is also useful to request product samples to examine and test. Not only that, it is important to check references. This can shed light on things that the company would not disclose such as poor customer service or frequent delayed deliveries. For a successful and long-ranging collaboration we demand from our suppliers are market-driven Terms, quality, cost transparency,

This paper will review information about the Global Pharmaceutical Industry, and analyze how the Porter’s Five Forces play a role in its industry. The pharmaceutical industry is surrounded by past, present, and current trends, which will change its future operations through regional policy, and government. Moreover, the information collected will be from previous, present-day, and forthcoming data that will help analyze the pharmaceutical stability in the global economy besides that, it will also, explain how a pharmaceutical company stays competitive in the industry. The make up the industry are companies that specialize in “biological, medicinal and pharmaceutical products in various forms, including ampoules, tablets, capsules, vails ointments, powders, etc.” (Turk, IBISWORLD).

Global pharmaceuticals had presence in India since early 80’s and it was not until 1993 that Eli Lilly International decided to establish a Joint Venture with India’s second largest laboratory and exporter, Ranbaxy. This move happened in a very challenging context as both companies have very different profiles and backgrounds. The main differential characteristic was the nature of their products. While Ranbaxy was focused on generics and in other intermediate products, Eli Lilly International core business was the commercialization and development of new drugs through an aggressive R&D strategy. The trigger for Eli Lilly to

The company’s aim is to become world’s most broad- based pharmaceutical companies by manufacturing quality medicines, which regulates the demand of the developed world. Within a short span of time, Maple built a reputable image of excellence by manufacturing quality products and step towards accomplishing its vision of becoming a mainstream Pharmaceutical Company.

A company as large as Medtronic has a large opportunity for international trading. Being that the headquarter is in Dublin, Ireland, this is one advantage to retrieve the same products for a lesser value outside of the United States and receive a higher profit when selling them in the United States at a higher rate. Most of the products are manufactured within the headquarters in Ireland and there are also some products or components of a product purchased from other countries and the finish product is later produced by Medtronic. The opportunity to receive the products internationally is a great advantage for the company to continue their road to success with little to no loss in revenue. These items are usually set at a lower cost outside of the United States with a higher quantity which produce a greater revenue.

Shannon Bennett of Thomson Reuters takes a look at the shifts in active ingredient sourcing

Phil Landgraf, the company’s president for worldwide operations, should structure BioPharma’s distribution network to eliminate inefficiencies at all levels, yet still be flexible to face uncontrollable factors such as fluctuating exchange rates. As shown earlier in the report, certain actions like shutting down the Japanese plant and limiting the German plant to only one chemical are neccessary in order to cut costs. Those two actions alone will save the company millions annually. Also, adjusting the production levels of certain plants in order to most efficiently meet the demand around the world is needed, such as the German plant producing an additional 2 million kg of HighCal to help meet the Japanese demand because it is the only plant with excess capacity and the

India for that case has already established a global footprint, supplying generics to many countries . They are enthusiastic about the direction of their strategy – global expansion. The reason is simple as healthcare systems around the world are pushing for the use of generics. It is desired even in the USA as huge savings have been made in the healthcare system and penalties have been issued when generic prices rise ahead of inflation . Also, there is a positive forecast that generic usage will be increased close to 40% by 2020 . Knowing that exporting of generics is a lucrative part of the business, is also a big reason to why Indian companies and the government are beefing up the standards of pharmaceutical factories within the country . Strategies for global expansion are set out for long term goals, by being loyal to their plans, eventually the quality standards of ‘Pharmerging’ countries will be accepted

Organizations having supply chain world-wide face more risks such as supply disruptions, longer lead times etc. caused by global customs, foreign policy regulations, port delays, political instability, recession in a specific region’s economy etc.

A sourcing strategy, when properly defined, assists an organization by outlining its requirements, mapping of the existing supply market, and the development of a plan for short and long-term sourcing objectives (Duffie & Koester, 2005). A well-defined, clearly stated sourcing strategy significantly improves the quality of performance and the speed needed to accomplish a firm’s sourcing objectives. In order for a sourcing strategy to be truly effective, it must take into consideration the core competencies of the company, in order to create a strategy that will protect and build on these

Damco manages and serves serval advanced supply chains in various locations and in varity range of industries around the world. With a relentless focus on simplifying complex supply chains, they implemented improvements that are efficient which enables their customers to reduce their inventories, cut operating costs, and create significant short-term savings for competitiveness in the long-term. Damco has a global presence with a local touch, their offices around the world have locals who speak the local language and understand the local communities. In key origin markets, particularly China, they offer market-leading capabilities. As one of the world’s leading operators in markets that emerging such as Africa, the Middle East and Latin America, they allow their customers to reach new sourcing areas, customers and business opportunities through their established network.

has also attracted popular and media attention to the industry. The effect of the intense media

The effects of globalization are prevalent in almost all industries world-wide; the pharmaceutical industry is no exception. Through the globalization of markets and production, there has been a dramatic shift in the last several years. Eli Lilly is a leading company in the US and throughout the world, and they’ve had to adapt to the trends that come as a result of globalization including moving operations overseas and capitalizing on advantages present in other markets. The company has done well in this department, as their products are available in over 130 countries. One of their large successes stories was creating a joint-venture with the leading Indian pharmaceutical provider Ranbaxy.

We remain scale to grow with the manufactures and provide innovative, compliant and cost efficient processes to ensure the patient receives the critical drugs used in all types of medical settings supported by the manufacturer. Recently through acquisitions made by AmerisourceBergen such as MWI, the largest veterinary medical products supplier, World Courier Inc, a global specialty distribution logistics provider and strategic joint ventures and partnership with Walgreens the specialty distribution has expanded into global markets. In my role, I have support the financial system integrations in Canada and Australia. We look to build upon this by developing logistical services in countries in Europe and South America.