Table of contents

 Introduction
 Principal Activities
 Company profile(vision, mission)
 Core values and competencies
 Supply chain mission and process
a) Supply chain integration
b) Supply chain structure
c) Supply chain process

i. Procurement process(including vendor approval

requirements, Bid sheets, vendor approval steps)
ii. Types of purchases
iii. Material classification
iv. Documentation for purchasing(local or imports)

v. Advising banks of Abbott

vi. Shipping companies through which Abbott import
raw material

D) Warehouse storage procedure

 Suppliers of Abbott raw material

 Make or buying decision
  Overview of documents(including presentation of
document and suppliers rates for the month)
 Abbott Distribution
 Distribution channels
 Future outlook of Abbott Pharmaceutical

Introduction
Abbott started operations in Pakistan as a marketing affiliate in 1948; the company has
steadily expanded to comprise a work force of over 1500 employees. Currently two
manufacturing facilities located at Landhi and Korangi in Karachi continue to use
innovative technology to produce top quality pharmaceutical products.

Abbott Pakistan has leadership in the field of Pain Management, Anesthesia, Medical
Nutrition and Anti-Infectives. Our wide range of products is managed and marketed
through three marketing arms.

On June 29, 2005 Abbott Pakistan Achieved Class 'A' accreditation against the Oliver
Wight ABCD Check list. This was an outstanding achievement, which puts Abbott
Pakistan amongst some of the best global companies in terms of operational
excellence.
A continuous process of innovation, research and development at Abbott's worldwide
facilities enables Abbott Pakistan to offer effective solutions for various healthcare
challenges, with products and services that are well focused, within the customer's
reach and contribute to improved health care of the people of Pakistan.

Abbott believes that Corporate Social Responsibility is fundamental to earning and

deepening the trust of the people it serves, an integral part of its commitment to improve
lives has contributed to a number of humanitarian causes and supported various
institutions in various fields including health and education.

The promise of our company is in the promise that our work holds for health and for life

General information
Head Office: Lahore:

Abbott Laboratories (Pakistan) Limited, Abbott Laboratories (Pakistan) Limited,

Diagnostics Division, Diagnostics Division,
Opposite Radio Pakistan Transmission, House No: 123 - A, Ahmed Block,
Hyderabad Road, Landhi, New Garden Town, Lahore.
Karachi. Telephone#: 042 5854141,
Office: +92-21-5015045-49 (111 222 688) Fax#: 042 5844737
Dir: +92-21-5100422
Fax : 92-21-5042952

Islamabad: Peshawar:

Abbott Laboratories (Pakistan) Limited, Abbott Laboratories (Pakistan) Limited,

Diagnostics Division, Diagnostics Division,
House #35,Street #39,I-10/3 University Town,
Islamabad. Karachi Market, Khyber Bazar,
Office 051-4445670 Peshawar.
Fax 051-4445671 Office +92+91-5840252
Fax +92-51-5840252 Islamabad.

Principal Activities

Abbott Laboratories (Pakistan) Ltd. The company’s principal activities are to

manufacture, import and market based pharmaceutical, nutritional, diagnostic, hospital
and consumer products and provides toll-manufacturing services. It operates in two
segments Pharmaceutical and other. Pharmaceutical segment manufactures, import
and markets research based pharmaceutical products registered with the ministry of
health and provides toll-manufacturing services. Other segments includes importing,
manufacturing and marketing diagnosing equipment, testing kits, consumer healthcare,
nutritional and hospital products. The company’s pharmaceutical products include
Kalaricid, Erthrocin, Hytrin, Epival, Brufen, Entamizole, protium and Forane. The other
products include Ensure, Pediasure, Pedialyte, Formance etc.

Company profile (vision, mission)

VISION
 “To be a premier health care company in Pakistan”

MISSION

To deliver consistently superior products and services which contribute significantly to improve the
quality of life of the consumers? This will be achieved while ensuring that the interests of all
stakeholders including healthcare providers, employees, share holders and the communities are
secured. Abbott Pakistan will comply with the highest standards of local cGMP/EHS and adhere to the
corporate code of Business Conduct and Ethics.

DEDICTATED TO

 Employees
 Customers
 Share holders
 Suppliers
 Public

Core values and competencies

CORE VALUES OF ABBOTT

ENDURING
 ABBOTT
PIONEERING CARING

ACHIEVING

CAPABILITIES OF ABBOTT

INTEGRITY QUALITY

AGILITY OF

INTEGRITYY EXECUTION
CORE COMPETENCIES OF ABBOT

PRODUCTS &

SERVICES

CUSTOMER

INTIMACY
OPERATIONAL

EXCELLENCE
PEOPLE
SUPPLY CHAIN MISSION

ABBOTT’s SCM mission is to configure, coordinate and improve all the

sequentially related activities and set of operations with the idea of satisfying the
entire chain of suppliers’ suppliers and customers’ customers by providing right
product, at the right time, in the right quantity and becoming highly recognized by
our employees, customers and shareholders and abiding by Government
regulations by adhering to strict ethical and moral standards”.
SUPPLY CHAIN INTEGRATION
CUSTOMER

N RETAILERS/ WHOLESELLERS

F
DISTRIBUTORS
O
WAREHOUSE ( F O) PR
R O
Manufacturing D
M
U
A WAREHOUSE (M O)
CT
T TRANSPORTATION
I
SUPPLIER F
O
MARKETING L
N
O

ABBOTT’S SUPPLY CHAIN STRUCTURE W

F

L SUPPLY CHAIN MANAGER

W
CAPAPCITY
MASTER MASTER
PLANNER
SCHEDULER SCHEDULER

PRODUCTION PRODUCTION
PLANNER PLANNER

MATERIALS MANAGER

WAREHOUSE LOCAL/ IMPORTED

MANAGER PURCHASE EXPORTS
MANAGER MANAGER

SUPPLY CHAIN PROCESS

Marketing

( Demand Generated)

Manufacturing Planning

(Demand Generated)
 Material Planning

Vendors

(Quotations asked)

LC

Follow up ---import &

dispatches

Clearance Transit Time

Material in Warehouse

Material Available For

Production

Production

QA

Released by QA
 Satellite Depot’s

& Distribution

Institutions Wholesalers

Retailers

PROCUREMENT
ABBOTT Pakistan has two purchasing departments. One is for local purchases and the other one
is for imports.
The procurement function is divided in two categories:
 Direct Product Related Purchases
 General Purchases

There is a clause imposed by ABBOTT Int. Chicago on ABBOTT Pakistan that if the amount of
requisition value is above $ 1000, then at least 3 quotations must be taken.

GENERAL PURCHASES
General Purchases include routine items such as stationery, office equipments, transportations
and other minor items which are not directly related with production activities.

DIRECT PRODUCT RELATED PURCHASES

This includes each and every raw material that is required to make end products

MATERIAL CLASSIFICATIONS
ABBOTT Pakistan classifies its materials according to the values or the cost of materials,
basically they have allotted three grades or types to their materials:
 Grade A (very costly materials, e.g. erythromycin)
 Grade B (moderate cost, e.g. clathromycin)
 Grade C (least cost, e.g. bubble gum and artificial flavors like mint)

LOCAL PURCHASING

Local purchasing department of Abbott Laboratories Pakistan deals with local vendors concerning:
  Designing –FP Plastics, Al-Ahad Plastics, Thermoplas (Korangi) > Lead Time 30 Days

 Printing–Ammara Commercial Printing (Memon Goth, Malir) > Lead Time 30 Days

 Packaging – Saima Packaging (Korangi Industrial Area) > Lead Time 30 Days

 Slicing Aluminum foils - Muhammad Corporations, Gulshan -e- Iqbal

 Cartons – Sultan Packages (Dalmiya, Karachi) > Lead time 7 Days

 Cartons – King Packages (Lalukhait, Karachi) > Lead Time 7 Days

 Cartons - Decent packages (S.I.T.E Area) > Lead time 7 Days

 Dextrose – Rafhan Industries (Faisalabad)

 Pseudo - Alpha Chemicals – (Lahore)

 Essential Chemicals – (Lahore)

IMPORT PURCHASING
ABBOTT Pakistan has indenters through which they place their orders to the respective manufacturers
of raw materials

Some of the Indenters of ABBOTT Pakistan are:

 Rasheed sons - KHI

 Munico Associates - KHI
 S. Aijazuddinn - KHI
 Arfeen - KHI

INDENTER
An indenter is a local supplier or the middle party, we also call them as an agent who gives
information to the manufacturer and tells then to arrange the material. They have link with
the manufacturer and paid commission by them.

IMPORTED RAW MATERIALS

 Dy Red – Sencient UK
 Potassium chloride – Merck, Germany
 Sodium Citrate – Sanfu, Taiwan
 Sodium chloride – Dominon salt, New Zealand
 Acid Citric – Jungvuzlaur, Austria
 Aluminum Seals and PV– Vaasen, Flexible Packaging Holland
 Artificial bubble gum – IFF Holland
 Supplier for Sugar - Malayam Malaysics, Malayasia
 Sodium Sulphate – Merck, Germany
IMPORTED MATERIALS’ AVERAGE LEAD TIME
 By sea is approximately 75 days
 By air approximately 45 days

DOCUMENTS REQUIRED FOR IMPORT

 Invoice

 Picking List

 Form 3 and 7 (Imposed by Ministry of Health which contains Batch Certificate, name of
the manufacturer, raw material to get a Drug Import License from MOH)

 Bill of Lading / Air Label

 Certificate of Analysis

 Certificate of Origin

ADVISING BANKS OF ABBOT PAKISTAN

  Detuche Bank
 Standard Chartered Bank
 ABN AMBRO
 HSBC
Then after this process the LC is send to the concern suppliers and indenters and then they
set the raw material to be shipped, shipment is done through different shipping company and
this part is dealt by the imports department.

FEW SHIPPING COMPANIES THROUGH WHICH ABBOT

PAKISTAN IMPORTS RAW MATERIALS
 P&O NEDLLOYD
 MAERSK SEALAND
 HOPAG LLOYD

Warehouse storage procedure

WAREHOUSE
FIFO Checking of raw material on the
bases of check list

Received through MRR & kept in

quarantine for QA approval

Storage of raw/packaging
material after acceptance

Handling of non acceptance Wastage Warehouse

material

Storage of control/locater system

Storage of temperature sensitive Cold Storage

material
(Refrigerators 2C- 8C)

Issue of raw material

MO

Hazardous drug labeling

Washing of utensils, containers

Material requisition return

Manufacturing
The process of warehousing starts when a consignment enters the premises of ABBOTT and
starts unloading. An actual physical cont is taken first and only then is the consignment allowed
to be fully offloaded. Two separate warehouse facilities exist: one for finished orders and one for
material orders.

While offloading material orders, if any individual packet is found to be damaged or exposed, it
is straight away placed in the Rejection Room which is located separately so that there is no
possibility that it might get mixed and be used up in the production process. Also, there are
certain raw materials which require a temperature range of 2-8°C. In order to ensure that this
temperature range is maintained throughout its long journey, each packet has a temperature seal
attached to it and if, at any point in time during transportation, the temperature exceeds the said
limit, it changes color.

Suppliers of Abbott raw material(International)

Direct Material Suppliers
 Agilent Technologies
 August Faller KG
 Colbert Packaging
 Graham Packaging Company, L.P.
 Nosco
 Palladio Zannini
 Pratt Industries
 Precision Wire Components
 Robinson Printing
 Sigma-Aldrich Inc.
 Sonoco
 Sumitomo Seika Chemicals Co., Ltd.
 Tekni-Films, A Tekni-Plex Company
 The Tech Group
 Thoro Packaging
 Toyobo Co., Ltd.
 Zeus Industrial Products, Inc.

Indirect Suppliers
 Cognizant Technology Solutions  Quantum
 Dell  Staples
 ManpowerGroup Solutions TAPFIN  Verizon Wireless
 Mindshare  VWR International
 PHH Arval

Contract Manufacturers

 Besins Healthcare
 Bionostics, Inc.
 Catalent Pharma Solutions
 RR Donnelley Global Turnkey
Solutions

Overview of documents & supplier rates

 Supplier rates and date of consignment data from pral software abbott
work\Attachments_2012_12_20\CH 29 DRY FEB 2012.xls

 Bill of Lading / Air Label abbott work\Attachments_2012_12_31\BL.jpg

 Invoice

 Picking List

 Custom clearance and forwading agent document

 Bank contract for consignment registration and letter of credit

 Application for permission of purchase of foreign exchange