SUMMARYIntroduction Development of inventories for the Corporate Division Supply Chain Management (CDSCM), were going to be looked at by Dr. Joos who is the head of the division. The results presented seemed fair enough and there was significant improvement. This is due to the Boehringer Ingelheim company had risen higher in their ranking from 17 to 13 since 1999 to 2003, this automatically led to the rise in net sales in the same duration leading to the company making a remarkable profit of 48 million. Since Dr. Joos is a very determined man and does not settle for anything other than the best, he felt that there was more potential in the company and was pushing for tem to improve further.
His target for 2006- 2007 was 12% and 11% and he hoped the trend would be observed even for the rest of the years and saving of 23 million annually on BIVA. He approached the situation by the Throughput Time of the company supply chain. Therefore a lot of energy has been placed in the Supply Chain Process Group on TPT and other concepts.
The company had its vision on introducing new products in the pharmaceuticals industry and they wanted to do so in good management system so as to save on money and produce quality goods. Boeringer IngelheimIts main focus is on health of human beings and animals as well hence focus on the production of new drugs to improve their health. Its name was due to its place of formation that is Ingelheim Germany in 1885. Therefore, giving the company the experience of being able to study the industry and business and also build on loyal consumers.
The company mainly produces drugs to treat internally suffered diseases and improve their functioning such as; urology, cardiovascular and the central nervous system. Their money and revenue is invested on research projects as diseases always pick a new trend and they want to be able to face it on time. Their recent products have proved to be successful and the aid of their flexible supply chain system working on its marketing. Supply Chain Management in the Pharmaceutical industry. The industry was used to the traditional way of doing business and the effect that the economy had on inventories did not seem to receive much attention.
Their main focus was to meet demand of the customers with supply and exceed their expectations. This in turn over burdened the inventory levels. All this brought the importance of the company realising the capacity and producing according to it. Currently the pharmaceutical companies want to supply according to demand and be able to satisfy their customers as well as reduce the waste supply which only leads to unnecessary losses.
The company has been using the local pull system although it has also been looking into other fields, and investing in other fields so as to look at the inventory reduction from different angles as well. Supply Chain Management in Boehringer Ingelheim The supply chain management system is very important as it helps connect the pharmaceutical companies and the customers as well as other parties involved. Therefore, Dr. Joos selected a team to work on it and they introduced the pull system. This system is meant to improve the company in every possible way like covering 32% of dosage forms being produced reducing the inventories and increasing the BIVA.
Although this seems to be a good project there are some risks involved that would lead to the total opposite of the intended function.