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    Supply Chain Management

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    Ajakumbi Ajax Baba
    GlaxoSmithKline (GSK) is one of the world's largest pharmaceutical companies with operations in over 160 countries. GSK discovers, develops, manufactures and markets branded human health products. The company aims to grow through diversifying into new areas, deliver more valuable products through increased R&D, and simplify its business model. GSK manages a complex global supply chain using various strategies like vendor managed inventory and outsourcing to enhance efficiency while facing challenges like counterfeit drugs and post-merger integration issues.

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    Supply Chain Management

    Uploaded by

    Ajakumbi Ajax Baba
    1K views17 pages
    GlaxoSmithKline (GSK) is one of the world's largest pharmaceutical companies with operations in over 160 countries. GSK discovers, develops, manufactures and markets branded human health products. The company aims to grow through diversifying into new areas, deliver more valuable products through increased R&D, and simplify its business model. GSK manages a complex global supply chain using various strategies like vendor managed inventory and outsourcing to enhance efficiency while facing challenges like counterfeit drugs and post-merger integration issues.

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    GlaxoSmithKline (GSK) is one of the world's largest pharmaceutical companies with operations in over 160 countries. GSK discovers, develops, manufactures and markets branded human health products. The company aims to grow through diversifying into new areas, deliver more valuable products through increased R&D, and simplify its business model. GSK manages a complex global supply chain using various strategies like vendor managed inventory and outsourcing to enhance efficiency while facing challenges like counterfeit drugs and post-merger integration issues.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1K views17 pages

    Supply Chain Management

    Uploaded by

    Ajakumbi Ajax Baba
    GlaxoSmithKline (GSK) is one of the world's largest pharmaceutical companies with operations in over 160 countries. GSK discovers, develops, manufactures and markets branded human health products. The company aims to grow through diversifying into new areas, deliver more valuable products through increased R&D, and simplify its business model. GSK manages a complex global supply chain using various strategies like vendor managed inventory and outsourcing to enhance efficiency while facing challenges like counterfeit drugs and post-merger integration issues.

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    At a glance
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    The key takeaways are that supply chain management involves material, information and financial flows between suppliers and customers to meet market demand. GSK is a large pharmaceutical company with a global presence that produces medicines, vaccines and consumer healthcare products.

    The components of a supply chain include material flow, information flow and financial flow.

    GSK's mission is to grow by diversifying into new areas, deliver more valuable products through R&D, and simplify their business model.

    SUPPLY CHAIN MANAGEMENT

    GlaxoSmithKline By: Ajakumbi Baba Usman

    What Is Supply Chain?


    Supply chain is the system by which organizations source, make and deliver their products or services according to market demand. Supply chain management operations and decisions are ultimately triggered by demand signals at the ultimate consumer level. Supply chain as defined by experienced practitioners extends from suppliers suppliers to customers customers.

    Supply Chain Includes


    Material Flow Information Flow Financial Flow

    GlaxoSmithKline Profile
    GlaxoSmithKline (GSK) is one of the worlds largest research-based pharmaceutical corporations that discovers, develops, manufactures and markets branded human health products. Headquarters: UK, with additional operational headquarters in the USA Global presence: about 160 countries Primary markets: USA, France, Germany, UK, Italy and Japan Employees: approximately 103,000

    BRIEF HISTORY
    Year Merger/Acquisition New Company Name

    1989

    Beecham merged with SmithKline Beckman Glaxo acquires Burroughs Wellcome & Co. Glaxo Wellcome merged with SmithKline Beecham GlaxoSmithKline acquires consumer health care company Block Drug Co.

    SmithKline Beecham

    1995

    Glaxo Wellcome

    2000

    GlaxoSmithKline

    2001

    GlaxoSmithKline

    GSK Mission Strategy


    Grow: to diversifying into vaccines, consumer healthcare and biopharmaceutical areas and expanding into India, Brazil, Russia, and China. Deliver: to delivering more products of value from increased growth in the core pharmaceutical business with a stronger pipeline of research and development to ensure a continuous flow of new products. Simplify: is short for simplifying the business model to include reducing working capital, streamlining processes and evolving the commercial model

    GSK Products
    GSK produce medicines for major diseases such as asthma, anti-virals, infections, mental health, diabetes, cardiovascular and digestive conditions. In addition, we are a leader in the important area of vaccines and are developing new treatments for cancer.

    Other Products
    Over the counter(OTC)medicines: Gaviscon and Panadol dental products such as Aquafresh and Sensodyne smoking control products Nicorette/Niquitin nutritional healthcare drinks such as Lucozade, Ribena and Horlicks skincare products marketed by Stiefel Laboratories

    Operational Characteristics
    Glaxo has been profiled in some areas; i. Quality Functions. ii. Supply Base management. iii. Manufacturing Process Ownership. iv. Quality in R&D. v. Best Purchase- Supplier Collaboration.

    Some Problems Faced By GSK


    THREAT OF COUNTERFEIT DRUGS: Some counterfeit drugs from Underdeveloped Countries are now in Europe,Japan, and the USA. SOLUTION: RFID tags, spectroscopic ink and full-color graphics.

    GSK SUPPLY CHAIN


    VMI (Vendor Managed Inventory. Outsourcing Ethics

    VMI (Vendor Managed Inventory


    Supplier decides on inventory levels of products. Monitors buyers inventory levels. Replenishes buyers inventory according to sales forecast.
    The goals of VMI is to eliminate buyer oversight. VMI focuses on information sharing on product sales,forecasts and inventory levels.

    VMI IN GSK
    Upsteram and Downstream -Central system via intranet for acces to sales forecasts stock level at distribution centers,production & purchasing plans and deliveries in transit. Each supplier network member can access info about other members in the network. Performance monitoring system (VMI vs CMI)

    OUTSOURCING
    Glaxo has set up cross-functional teams in a sourcing group management. Seperate team for each commodity. Team Responsible for short term and long term procurement.
    GSK outsourced to Enhance efficiency, Increase flexibility, and obtain expertise and skill not available to them

    Ethics
    Glaxo spends 8.4 billion pounds among 90,000 suppliers. New suppliers are audited against GSK standards Those not audited are trained to meet the standards.

    CHALLENGES
    Post merger Integration Issues Complex product portfolio Regulatory and operational challenges Outsourcing/supplier challenges Finding alternate/multiple suppliers Operational/production challenges Paperless labelling/electronic leaflets

    THE END THANK YOU

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