Term paper of Operation Management

Submitted to Lovely Professional University

DABUR

Submitted To: Submitted By:

Mr. H.S. Bedi Jairaghuveer
Bawa

Section:
R1903

Roll No. :
RR1903A-03

TABLE OF CONTENTS

SERIAL DESCRIPTION
 NO
1 Company history and profile
2 Product range
3 Transformational process
4 Facility layout
5 Facility location
6 Production planning
7 Quality system
8 Inventory management
9 Model of supply chain management
10 References & bibliography

ACKNOWLEDGEMENT

First of all thanks to almighty god who gave me courage and confidence
hence I completed my term paper. I would like to express my gratitude for
the helpful comments and suggestions by my teacher.

Most importantly I would like to thank my course in charge Mr. H.S. Bedi
for his supervision and support in accomplishment of my study about the
topic. Her critical commentary on work has played a major role in both the
content and presentation of my discussion and arguments about the term
paper and I would thank my parents who supported me all along the study
and friends for their help in making of this term paper.

I have extended my appreciation to the several sources which provided

various kinds of knowledge base and support to me. I would also like to
thank my classmates who helped me in times in completing the study about
the given topic.

Jairaghuve
er Bawa.

Dabur India
Established in 1884 by Dr. S K Burman, Dabur India is the fourth largest
FMCG Company in India with business interests in Healthcare, Personal care
and Food products. Over the years, Dabur India has focused on
manufacturing and selling Ayurvedic products targeted at the mass
consumer segment. A number of personal care products, Ayurvedic tonics
and oral care products that it launched between 1940 and 1970 are leading
brands today. Dabur’s top nine brands had 65% or more market share in
their respective product categories. These included the health tonic
Chyawanprash, Hajmola digestive tablets and candy, digestive Pudin Hara,
Dabur Lal Dant Manjan and Dabur Amla hair oil. Dabur manufactures over
450 products, covering a wide range in health and personal care. Dabur India
has 10 manufacturing locations—seven in India and one each in Nepal, Egypt
and UK. By restructuring its sales force to a zonal structure for better
penetration, Dabur India now has a strong distribution network comprising of
1.5 million retail
outlets, 47 C&F locations and 5,000 distributors. It has five subsidiary
companies— Dabur Foods, Dabur Nepal, Dabur Oncology, Dabur Pharma and
Dabur Egypt. Gearing towards a new system where direct involvement of the
family is limited, the Burmans have formulated a Family Council which acts
as an interface between the family and the Board and management of
Dabur. The family members’ involvement has come in for a qualitative shift
with fresh members being encouraged to develop their own ventures. These
proposed ventures, presented to the Family Council for approval and
funding, present fresh avenues for new talent to bear fruit. Dabur has, over
the past couple of years, completed a significant strategic restructuring
xercise. The company exited from non-core businesses such as merchandise
exports and certain food products
(confectionery, biscuits). Dabur has hived off its other food products (Real
fruit juice and homemade culinary pastes) into a 100% subsidiary known as
Dabur Foods Ltd. Simultaneously, the company had been pruning its low
contribution brands and refocusing on its key brands in family and
healthcare products. Dabur’s R&D is carried out by Dabur Research
Foundation (DRF) employing over 135 scientists. DRF has been instrumental
in providing Dabur with new products from time to time. Some of DRF’s
important achievements have been developing Hajmola candy, validating
Chyawanprash’s immuno-modulation properties thereby paving the way for
its re launch, developing Vatika—a value-added coconut hair oil, discovering
an eco friendly process to isolate taxanes—a class of anti-cancer drugs,
developing Standardization Protocols for a number of Ayurvedic herbs in
order to ensure the quality of raw herbs as well as finished products
manufactured from them.

Dabur India Ltd is one of India’s leading FMCG Companies with Revenues
of about US$750 Million (over Rs 3390 Crore) & Market Capitalisation
of over US$3.5 Billion (over Rs 16,000 Crore). Building on a legacy of
quality and experience of over 125 years, Dabur is today India’s most
trusted name and the world’s largest Ayurvedic and Natural Health
Care Company.

Dabur India is also a world leader in Ayurveda with a portfolio of over 250
Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five
flagship brands with distinct brand identities -- Dabur as the master brand
for natural healthcare products, Vatika for premium personal care, Hajmola
for digestives, Réal for fruit juices and beverages and Fem for fairness
bleaches and skin care products.

Dabur today operates in key consumer products categories like Hair Care,
Oral Care, Health Care, Skin Care, Home Care and Foods. The
company has a wide distribution network, covering over 2.8 million retail
outlets with a high penetration in both urban and rural markets.

Dabur's products also have a huge presence in the overseas markets and are
today available in over 60 countries across the globe. Its brands are
highly popular in the Middle East, SAARC countries, Africa, US, Europe and
Russia. Dabur's overseas revenues stands at over Rs 500 Crore in the
2008-09 fiscal, accounting for about 20% of the total turnover.

The 125-year-old company, promoted by the Burman family, had started

operations in 1884 as an Ayurvedic medicines company. From its humble
beginnings in the bylanes of Calcutta, Dabur India Ltd has come a long way
today to become one of the biggest Indian-owned consumer goods
companies with the largest herbal and natural product portfolio in the world.
Overall, Dabur has successfully transformed itself from being a
family-run business to become a professionally managed enterprise.
What sets Dabur apart from the crowd is its ability to change ahead of others
and to always set new standards in corporate governance & innovation.

PRODUCT RANGE OF DABUR

MEDICINES-
SHILAJEET

PUDIN HARA
Triphla Capsule

Shatavari capsule

HEALTH CARE-

DABUR CHYAWANPRASH

DABUR HAJMOLA

DABUR LAL DANT MANJAN

BODY CARE-
DABUR AMLA HAIR OIL
DABUR VATIKA SHAMPOO
DABUR BADAM OIL

FOOD-
REAL ACTIVE JUICE
BURRST
LEMONEEZ
HOME CARE-
ODOPIC
ODOMOS
ODOPILL

TRANSFORMATIONAL PROCESS OF DABUR AYURVEDIC

MEDICINES
MANUFACTURING PROCESS OF TABLETS
• Dispensing
• Post Hoists
• Blending
• Granulation & Drying
• Tablet Compression
• Containment Interfaces (Hicoflex®)
• Tablet Coating

DISPENDING

The Buck Systems range of modular dispensing solutions provide for

simple ergonomic operation whilst ensuring control of the dispensing
process.

The control system interlocks the process with the recipe management
system to provide batch data security and traceability for validation
purposes. Additional features such as removable hoppers and additional
extraction provide increased safety for operators and simplicity for
cleaning. Solutions range from single level for simple applications to
multiple level, integrated dispensary management systems. Bulk
 ingredient dispensing includes fully automated excipient dosing or
interfacing with big-bag bulk ingredients for high containment.

IBC Post Hoists

IBC Post Hoists are used for many handling applications within the
pharmaceutical manufacturing process. Common applications include lifting
IBCs over the inlet of processing equipment, lifting IBCs up to dock with
filling equipment, and as IBC blenders.

Mixing and blending of pharmaceutical powders and

granules

The extensive process knowledge of GEA Pharma Systems and with continuous
research delivers the most efficient mixing & blending processes. We offer a wide
range of technical solutions and process options to ensure efficient mixing and
blending of pharmaceutical powders and granules.

GRANULATION AND DRYING

EA Pharma Systems' advanced range of Aeromatic-Fielder™ and Collette™ fluid

bed processing, high shear processing and single pot processing
technologies for Granulation and Drying are known throughout the
pharmaceutical industry, for their engineering excellence and technical
innovation. GEA Pharma Systems is committed to delivering optimized solutions to
meet customer requirements. Built-in versatility of system design is achieved
through a wide range of standard options and configurations, for efficient
processing and easy integration with up-and down-stream equipment. As well as
stand-alone equipment and fully integrated plants, the company offers a
complete engineering service from system design to process integration and
optimisation.

TABLET COMPRESSION
GEA Pharma Systems offers a wide selection of highly innovative and reliable
tablet presses for both pharmaceutical and industrial applications, using
GEA Courtoy rotary tablet compression technologies.

Courtoy, has been at the forefront of tabletting technology, having

introduced its first rotary press in 1928 and responding to the increasing
demand for its high-speed tabletting machines, Courtoy establish itself as a
highly respected supplier of tablet presses.

Since its acquisition by the GEA Group in 1999, Courtoy has been able to
expand its worldwide market share and to enhance its position as the true
innovator in tablet compression technology for both single-layer and bi-
layers tablet presses.

With the introduction of the ECM-based (Exchangeable Compression

Module) 'MODUL™' rotary tablet press in 2002, Courtoy revolutionized the
pharmaceutical industry. The ECM-technology succeeds in combining
productivity, flexibility and safety, all in one - setting a new standard
for pharmaceutical tablet production!

Containment Interfaces (Hicoflex®)

Split-valve technology has established itself in the industry as a standard for

contained materials-handling when working with rigid containers. However,
the demands of the pharmaceutical industry have changed yet again. In
addition to containment – which is still
considered to be the most important aspect – the equipment has to fulfil
more and more requirements, such as low investment and production costs,
full prevention of cross contamination, fast project realisation, full yield
discharge capability, and so on. All these additional requirements should
read strongly in one direction: flexible containment solutions.
A new technology from Buck® - Hicoflex® is based on the time-tested
functional principle of split-valve technology but is combined with the simple
locking principle of a snap ring. An example of this principle can be found in
the simple spectacle case; here, just like with the split-valve technology, two
complementary half-locks are docked onto each other. This means that
mutual opening and closing can take place just as if it were a one-piece
locking unit. This process ensures that the product to be transferred is
protected from the environment during the transfer process. The two half-
locks close after the transfer process and can be separated from each other
without any contamination

TABLET COATING

Tablet coating technology in the pharmaceutical industry has remained

fundamentally unchanged for the past 50 years. Until now.

Inconsistent and imperfect, this “standard” practice of tablet coating often

delivers a non-homogenous product. Because the tablets are loaded in large
rotating pans and vented for hot air drying, tablet edges can get grounded
off, intagliations can get filled in by coating material, and edges and corners
may not be coated with the same thickness as the tablet faces.
 FACILITY LAYOUT

PRODUCT LAYOUT

:
:

Product layout are found in flow shops. Flow shops produce high volume,
highly standardized products that require highly standardized repetitive
processes. In a product layout, resources are arranged sequentially, based
on the routing of the products. In theory, this sequential layout allows the
entire process to be laid out in a straight line, which at times may be totally
dedicated to the production of only one product or product version. The flow
of the line can then be subdivided so that labor and equipment are utilized
smoothly throughout the operation. Two types of lines are used in product
layouts: paced and unpaced. Paced lines can use some sort of conveyor that
moves output along at a continuous rate so that workers can perform
operations on the product as it goes by. For longer operating times, the
worker may have to walk alongside the work as it moves until he or she is
finished and can walk back to the workstation to begin working on another
part (this essentially is how automobile manufacturing works).

On an unpaced line, workers build up queues between workstations to allow

a variable work pace. However, this type of line does not work well with
large, bulky products because too much storage space may be required.
Also, it is difficult to balance an extreme variety of output rates without
significant idle time. A technique known as assembly-line balancing can be
used to group the individual tasks performed into workstations so that there
will be a reasonable balance of work among the workstations.
Product layout efficiency is often enhanced through the use of line balancing.
Line balancing is the assignment of tasks to workstations in such a way that
workstations have approximately equal time requirements. This minimizes
the amount of time that some workstations are idle, due to waiting on parts
from an upstream process or to avoid building up an inventory queue in front
of a downstream process.

Advantages of product layouts include:

• Output. Product layouts can generate a large volume of products in a

short time.
• Cost. Unit cost is low as a result of the high volume. Labor
specialization results in reduced training time and cost. A wider span of
supervision also reduces labor costs. Accounting, purchasing, and
inventory control are routine. Because routing is fixed, less attention is
required.
• Utilization. There is a high degree of labor and equipment utilization.

Disadvantages of product layouts include:

• Motivation. The system's inherent division of labor can result in dull,

repetitive jobs that can prove to be quite stressful. Also, assembly-line
layouts make it very hard to administer individual incentive plans.
• Flexibility. Product layouts are inflexible and cannot easily respond to
required system changes—especially changes in product or process
design.
• System protection. The system is at risk from equipment breakdown,
absenteeism, and downtime due to preventive maintenance.

BATCH PRODUCTION -

As businesses grow and production volumes increase, the production process

is often changed to a “batch method”. Batch methods require that a group of
items move through the production process together, a stage at a time.

Batch production is a very common method of organising manufacture. Good

examples include:

• Production of medicines
• Fish and chip shops
• Paint and wallpaper manufacturers
• Cereal farming

Advantages
The batch method can be an advantage for businesses that produce a range
of products. It is cheaper to produce a number of each item in one go
because machines can be used more effectively, the materials can be
bought in bulk and the workers can specialise in that task. There are two
particular advantages of workers being able to concentrate their skills.

• They should become more expert at their tasks, which will in turn
increase productivity (output per worker). This will lower costs, as
fewer workers are needed to produce a set amount.
• Better quality products should be produced as workers are more
familiar with the task and so can find ways of improving it.

Disadvantages

Batch production requires very careful planning to decide what batch will be
produced when. Once a batch is in production it is difficult to change, as
switching to another batch takes time and will mean a loss of output. Batch
methods can also result in the build up of significant “work in progress” or
stocks (i.e. completed batches waiting for their turn to be worked on in the
next operation). This increases costs as it takes up space and raises the
chance of damage to stock.

FACILITY LOCATION-

DABUR INDIA LIMITED

GHAZIABAD
Manufacturers and exporters of AYURVEDIC MEDICINES, COSMETICS,
PHARMACEUTICAL FORMULATIONS, FOOD PRODUCTS.

Company Profile :

Establishment Year 1884

Firm Type public ltd.
Nature of Business manufacturer
Level to Expand export import international
:

Capacity planning:

In addition to capacity planning, C-PORT is a powerful tool for process improvement and
introduction of new therapies. The simulator not only provides an outlook on capacity and
demand-based utilization at Trust level, but it also allows users to model the introduction and
impact of new cancer regimens and drugs, assists the creation of business plans, simulates the
impact of business process changes, and tracks patient waiting times.

C-PORT provides aggregated data from across India and enables performance benchmarking
between units. The National Clinical Director for Cancer indicated that C-PORT should be used
(and now has been implemented) to model the impact of new drugs being submitted for
evaluation by the National Institute for Clinical Excellence.

QUALITY SYSTEM-

We are one of the most trusted names in the market, known for offering
qualitative range of ayurvedic products. All procured high grade raw material
are carefully inspected and supervised by our experts on the grounds of
quality and effectiveness. These are manufactured as per GMP norms which
ensure its quality.

Our team of quality inspector monitors that our gaso capsule , pain relief &
antiseptic ointment and podin hara conforms of the industrial standards.
They also make processing plans at every stage of production, right from
procuring of raw material to the dispatch of final product. Further, the
finished podin hara capsules, health care, glucose d and chyawaprash are
checked by our inspectors, to ensure their high quality standards.
Raw Material Used
The raw material used for manufacturing taila, dandruff powder, bathing
powder and ointment is procured from renowned vendors. Our range of tooth
powder, cough chyawaprash, gaso capsule, pain relief & antiseptic ointment
is manufactured using agriculture product from forest. Further, these are
checked by our team of quality assistant prior to purchase to make sure that
the procured raw material is fresh and is rich in quality for manufacturing our
range.

Manufacturing Unit
To cater to the increasing demands of our clients, we have six robust
manufacturing units that help us to offer quality ayurvedic products.
Spread over a vast area of 20,000 square feet’s, our manufacturing
unit has the installed capacity of 30000 units. Our state-of-the-art
manufacturing units, supported by our in-house designing unit, are
integrated with various latest machines that are managed by a team of
experts.

We use traditional method for manufacturing our range. Some of the

machines and equipment that are installed in our manufacturing unit
include:

• Drying
• Crushing
• Powdering
• Filtering
• Grinding
• Mixing

These machines are regularly checked in order to ensure their effective

performance and hence smooth, uninterrupted production process

Warehouse & Packaging

To ensure proper storage of our taila, dandruff powder, cough tablets, gaso
capsule, pain relief & antiseptic ointment, we have a spacious warehouse. It
is divided into a number of sections to ensure easy and safe accommodation
of various ayurvedic products. Moreover, our warehouse has following
features:

• Fire safety arrangements

• Material handling equipment
• Pest free environment
• Controlled temperature, as per stored tablets and capsules

We give emphasis on the packaging of finished bathing powder, ointment

and tooth powder, to ensure that these reach their destination in their
original condition. Consequently, we use corrugated boxes and big cartons in
their packaging.

INVENTORY MANAGEMENT SYSTEM

The pharmaceutical industry is a very important one in the industrial world

because of its major role in sustaining a healthy nation. Within the industry,
there are various firms or companies engaging in one form of trade or the
other. While some specialize on research and development in respect to
drugs or medicine for curing one existing or new infection or disease, some
are into manufacturing drugs and others are into prescribing drugs,
marketing drugs and the likes. This scene, as if it were stage drama, is been
watched, assessed and controlled by reputation organizations, associations,
bodies, commissions and special committee to ensure that things do not go
beyond normal.

As an experienced store/warehouse manager and later as logistics and

warehouse manager, I have always desired to put some things together for
future individual who may eventual find themselves working in such firm as
pharmaceutical company. Many find it difficult to work as one and those who
had actually worked as one had lots of difficulty times such as lost which
could not be accountable for and they have to pay for, lots of query to
answer on why drugs expired without knowing, damages, supplying wrong
strength or SKU for another, lost in transit if saddled with a bit of logistics
responsibilities and so on.

The store/warehouse is committed to:

i. serving you better via prompt delivery or dispatch of stocks,

ii. handling your complaints with courtesy, absolute care and prompt
response,
iii. proper and accurate documentation(s) for effectiveness and efficiency,
and
vi due process for in-coming, out-going and out-sourcing of stocks.

This is mine and you need something similar to this, not exactly. It all
depends on your organization and what you want to do or achieve. Inventory
management and control thus is a very vital knowledge at a store or
warehouse manager must have in order to perform well on the job.

Practically, inventory management is all about ensuring that everything

about your stock is well planned and organized such that there is easy flow
of stock within and outside the firm. This means that you must have enough
stocks to satisfy all orders and ensure that customers continue to have
stocks at all time. It is a complex things and quite challenging. However,
some programs have helped in reducing the stress of using varieties of
formulas in getting reorder level, maximum and minimum stock level,
warning level, annual demand, etc. This is about INVENTORY OR STOCK
CONTROL.

In managing you stocks in a pharmaceutical company, you must learn first

how to keep proper records. You must be very versatile in this and like
figures especially when you handle over 100 different types of drugs and
some have different strengths e.g. 10mg, 25mg, 50mg, 100mg, 500mg, 1g,
4000iu, 10000iu, 20000iu, etc. Some of the documents you must have and
make use of are:

DELIVERY NOTE (DN): This records all drugs and materials leaving the store
to the customers, REPs, office workers and donations to institutions. It must
have Date, Particular (for drug name, expiry date, batch number and
strength), packaging details (e.g. bottles, vial, PC, etc), Name and Address of
the consignee, serial number, signature space for the store manager and the
receiver. It could be duplicated in pink or be in triplicate.

GOODS RETURN FORM (GRF): It records all goods return and in good
condition.

GOOD RECEIVE NOTE (GRN): It records all imported stocks as they enter the
store i.e. stocks imported from manufacturer and being received into the
store or stocks received from the production department into the store and
ready to be issued out.

PRODUCT REQUSITION NOTE (PRN): It records all requests for order

placement forwarded to the purchasing manager or procurement
department when stocks reach reorder level. It should specify which stock
needs to be replenished and the quantity to be ordered (though the
procurement manager may know the right quantity to procure within the
financial constraint of the organization).

WAYBILL: This is a store document that accompanies stocks being moved out
of the organization which must be presented when stopped on the way
either by the organization's security men or force on the way to the
customer's warehouse or store.

BIN CARD: This is a document showing daily incoming and outgoing of stocks
in and out of the store or warehouse. It must show the consignee's name and
address, batch number, expiry date, quantity, signature and the balance (on
continuous basis). FIFO should be strictly applied so as to avoid loss due to
expiration of drugs.

INVENTORY SOFTWARE: Inventory management and control software could

be installed on the office system for daily posting and accurate report as
generated by the tested and tried program. Good ones include inflow
inventory program, Chronos eStock Card, Inventoria Manager Stock etc.

In managing stock or inventory in a pharmaceutical company, the following

must be put into consideration:

1. The stocks expiry date must be checked and documented. It must be

written on the bin card.
MANAGEMENT ACTION: Ensure that there is proper surveillance on the expiry
date of each drug to avoid loss due to expiration.

2. The Batch number must be noted and document as their may be many
batches of the same class of drug
MANAGEMENT ACTION: FEFO (First Expiry, First Out) should be used here.
The first expiring batch should go out first.

3. The temperature must be well noted and likewise the storage conditions.
Some of such instructions are: store between 2oC and 5oC, store between
15oC and 25oC, protect from sunlight, keep in deep freezer, etc. Adhere to
these instructions.
MANAGEMENT ACTION: The temperature should be properly monitored to
avoid damaged due to over/under temperature.
Others include:

4. Stocks should not be jam-packed in the stock. There should be enough

space and the store should be well organized to allow for easily location and
free movement.

5. Computer data should exist for all stocks in the store which will be
updated daily or almost immediately as the stocks are going out or coming in
to enable the manager to know quantity left for each stock at a glance on
the system in case of urgent demand.

6. Cleanliness is part of proper management of the warehouse.

7. Proper documentation and record updating is also necessary here from

source document to Bin Card.

The stock control strategy is also necessary for effective and efficient
management of the warehouse. Lots of software now exists to remove
difficulties in this area. In controlling the warehouse stocks, the control
measure/software/program should be able to determine the following upon
which right decision should/could be taken:

1- maximum stock level

2- minimum stock level
3- reorder level of stock
4- reorder quantity
5- warning level for stock
6- normal reorder period
7- normal consumption
8- annul demand or quantity

The manual method of stock control is fast fading out though some
organizations still make use of it. However, daily check is needed to ensure
efficiency. Computers these days have helped to save such time because
alert props up when stocks need to be reorder, below minimum level, when
over stock, etc.

In all, stock management and control is an important aspect of warehouse

manager's responsibility which must handled effectively and efficient if
he/she must stay on the job since all what is demanded from him or her is
this function. Therefore, the warehouse manager must endeavour to keep
abreast of development via training and development in the form of further
schooling, workshops, seminars, internet research, etc.
 Supply chain management

Managing extended supply chains is one of the biggest challenges faced by

FMCG companies. Dabur tackled this with a Intelligent Enterprise 2003
award winning project, a secondary SCM solution that it developed in-house

In 2001, Dabur decided to tackle its extended supply chain of over 30

factories, six key warehouses, and 52 stocking points distributing over 1,000
SKUs to 10,000 stockists countrywide. The company needed a system to
accurately control distribution and sales forecasting to reduce inventory in
the pipeline.

Dabur went ahead and built a system using Visual Basic and ASP with SQL
Server 2000 as the database. It decided not to use a packaged SCM solution
due to its high cost and the relative lack of complications in its supply chain.

The initiative

An easy-to-use, Intranet-based data-warehouse developed in-house displays

as-of-yesterday’s sales, stock, receivables and banking. Over 5,000 ASP
pages meet almost all reporting requirements and make this a single source
of information for all levels of decision-makers.

The primary rollout began in April 2001 and took 16 months. The first six
months were spent creating a business model common to all divisions
(family products, healthcare, ayurvedic products, and pharmaceuticals), and
testing and piloting the same.

The innovation

The integrated primary and secondary system has a number of unique

features. The tight integration of schemes, stockist credit limit control,
automated banking of cheques, and online cheque reconciliation are of great
use when it comes to primary distribution. These are basically extensions to
the MFG/PRO ERP system and not core customisations.

Although Dabur’s stockists supply 1.5 million retailers, 70 percent of its sales
are accounted for by the top 500 stockists. The induction of these top
stockists into its supply chain is a first for any Indian FMCG company. The
average sales of each stockist and current stock levels are the two
parameters.

Details are collected from stockists on a weekly basis. In case of primary

distribution points, an incremental backup is sent to the central location after
the CFA closes operations for the day. These are computed at night in a
process called ‘cubing’. And when managers come into office in the morning,
the information is ready for them.

The problems

Internet connectivity had to be provided to secondary stockists and reliable

links were hard to come by. Dabur’s solution was to offer the option of
downloading software, working offline, and connecting later to send in
updates. Power was another issue. The company has laid down stringent
standards. Every stockist needed to install a UPS, and in cases where the
power shortages are chronic, a genset.

The benefits

By integrating its primary and secondary supply chains, Dabur intends to

reduce the number of days of inventory carried in the pipeline by four from
the present 29 days and save Rs 5 crore in the process. Beyond this, the
system lets it forecast seasonal spikes in sales and manufacture accordingly.
The aim is to shift the focus to stockists rather than the CFAs to get a true
picture of what’s happening in the market and react faster.

Future roadmap

Schemes based on secondary volumes help control secondary pipelines and

sales. Primary sales will therefore come from a resultant ‘pull’ from
secondary replenishments. Sales order servicing can be further improved by
taking orders on the Internet, and by setting stocking norms and
replenishing stocks to improve the RoI of stockists. Sales officers’ targets can
be set against a measure of secondary sales and pipelines to further improve
control and avoid pushing stiff targets onto the CFAs.

Dabur pharmaceutical supply chain

 Chart 2: Pharmaceutical
Supply Chain from Factory
to Shelf

There has been a paradigm shift in the supply

chain process of Indian pharmaceutical
industry. Value added tax, consolidation of
pharma companies and emergence of pharma
retail chains are some the factors that are
driving the changes in the distribution cycle.

A report by Ernst & Young entitled, Indian

Pharma Distribution, reveals, "With the
introduction of VAT in most of the states, the
squeeze on domestic margins and increasing
government pressure to contain retail drug
prices, the reform in the Indian pharmaceutical Source: Cygnus Research
supply chain is imminent".

REFRENCES & BIBLIOGRAPHY

www.dabur.com

www.daburindia.com

BOOK-

OPERATION MANAGEMENT “WILLIAM J STEVENSON”