The paper "BioPharma Inc Supply Chain Network Analysis" is a perfect example of a business case study. The pharmaceutical Industrial growth has been marked by massive development over the years. This is evidenced by the introduction of medical discoveries that are aimed at improving healthcare in the world. The increasing number of health corporations over the past decades is owed to the global development in research and increasing market. Marketing strategies of the drugs have also advanced to higher levels as the industry grows as both small and large corporations come with great initiatives for medical research.
This may also be a result of the increasing importance of medical needs that directly affects the quality of life. The world has continuously realized the importance of research organizations and pharmaceutical companies like BioPharma, Inc. BioPharma, Inc. is one of the leading chemical bulk manufacturers in the world pharmaceutical industry. With its internal patent ownership of the two chemicals, Highcal and Relax, the company expects substantial growth in sales of these chemicals from its plants in all parts of the world. However, following a decline in financial performance in 2009, the company has put considerable forecast on cutting costs and aims at having an efficient network.
This paper analyses the company’ s supply chain issues and the financial problems that have prompted the company to take some strategic financial decisions. Background Information The 2009 poor financial performance of BioPharma, Inc. was owed to the high cost of production in its plants particularly in plants in Germany and Japan. As a result, the profitability of the company was affected massively making the management to adopt some cost-cutting strategies within these plants without affecting the demand for its products.
Germany and the Japan plants have been manufacturing products at high costs according to evaluations. According to the nature of the products manufactured by pharmaceutical firms like BioPharma, Inc. , there is a high reliance on forecasting and evaluation that informs the company of the financial gaps and performance.
Chopra, S and Meindl, P 2012, Supply Chain Management: Strategy, Planning and Operations, 5th Edition, Pearson Prentice-Hall, Boston, Pages 186-188