GROUP MEMBERS:MUSTAFA JUZER(1996)MAHGUL DURRANI (2210)SYED HASSAN ULLAH(1692)RAMSHA EJAZ(2264)SYED TURAB ALI(1678)

TABLE OF CONTENT: Introduction Mission Vision Product line PEST Analysis PORTER’S Five Forces Supply chain strategy Conclusion

INTRODUCTION:

Abbott is a global, broad based health care company devoted to discovering new medicines, new technologies and new ways to manage health.

With over 70,000 employees worldwide and a global presence in more than 130 countries.

Started operations in Pakistan as a marketing affiliate in 1948.

MISSION AND VISION:

"To improve lives by providing cost-effective health care products and services.“ (Mission)

"Abbott's vision is to be the world's premier health care company”.

PRODUCT LINE:

Abbott Product line divided into four types: Pharma Nutrition Diagnostics Diabetes care

PEST ANALYSIS Political * Political stability * Legal framework for contract enforcement * Pricing regulations

* Taxation - tax rates and incentives* Wage legislation - minimum wage and overtime* Work week* Mandatory employee benefits* Industrial safety regulations* Product labeling requirements

Economical* Unemployment rate* Inflation rate* Interest rates* Economic growth rate* Labor costs* Exchange rates & stability of host country currency* Efficiency of financial markets* Infrastructure quality* Type of economic system in countries of operation

Social * Demographics

* Class structure* Education* Culture (gender roles, etc.)* Entrepreneurial spirit* Attitudes (health, environmental consciousness, etc.)* Leisure interests

Technological * Recent technological developments

* Technology's impact on product offering* Impact on cost structure* Impact on value chain structure

PORTER’S FIVE FORCES ANALYSIS

Bargaining Power of Suppliers:  High level of competition among suppliers Diverse distribution channel Volume is critical to suppliers

Bargaining Power of Customers Buyers require special customization Limited buyer choice Product is important to customer

Intensity of Existing Rivalry Large industry size Fast industry growth rate

Threat of Substitutes Substitute product is inferior High cost of switching to customer Limited number of substitutes

Threat of New Competitors Strong brand names are important High capital requirements Advanced technologies are required

SUPPLY CHAIN PROCESS OF ABBOTT:

Target market: Diabetic patients. Around 220 million. Capable to do Coronary artery disease(CAD), heart disease, drug

eluting stent(DES).

SUPPLY CHAIN STRUCTURE:

INVENTORY MANAGEMENT TECHNIQUE:

DETERMINATION OF SAFETY STOCK: Maintains 6 weeks safety stock.

AGING SCHEDULE OF INVENTORY categorizes the inventory of a particular material/Finished product

according to its expiry date

LOT SIZING TECHNIQUES uses POS (periods of supply) technique

DISTRIBUTION OF PRODUCTS

Mainly outsourced Depots in various cities 6% commission scenario Linking through sattelite

DISTRIBUTERS OF ABBOTT:

Following are the main distributes of Abbott: Premier Agency Muslimabad, Karachi Babar Medicine, Lahore Nadeem Traders, Peshawar. Baloch Enterprise, Multan D.S Pharma, Rawalpindi.

VENDORS:

Following are the main vendors of abbott:

Designing –FP Plastics, Al-Ahad Plastics, Thermoplas (Korangi) Printing–Ammara Commercial Printing (Memon Goth, Malir) Packaging – Saima Packaging (Korangi Industrial Area) Slicing Aluminum foils - Muhammad Corporations, Gulshan -e- Iqbal Cartons – Sultan Packages (Dalmiya, Karachi) Cartons – King Packages (Lalukhait, Karachi) Cartons - Decent packages (S.I.T.E Area) Dextrose – Rafhan Industries (Faisalabad ) Pseudo - Alpha Chemicals – (Lahore) Essential Chemicals – (Lahore)

APPROVAL OF VENDORS:

On the bases of material sample Vendor provides certificate of analysis Quality Assurance test Quality Assurance department do the Stability Testing Materials are sent for Batch Manufactured End Product is made.

DIRECT PRODUCT RELATED PURCHASES: Abbott Pakistan imports its raw material

Abbott classifies its products according to its costs1. Grade A Very Costly Products2. Grade B Moderate Costs Products3. Grade C Least Cost Products

LOCAL SUPPLIERS Following are the main local suppliers of Abbott: Designing: FP Plastics (Karachi, Korangi) Printing:(Karachi, Malir) Packaging: (Karachi, Korangi) Aluminum foils: (Karachi, Gulshan -e- Iqbal) Cartons:(Karachi,Dalmiya, Lalukhait, S.I.T.E Area) Dextrose: (Dextrose is a sterile solution injected intravenously)

(Faisalabad) Chemicals: (Lahore)

SUPPLIERS OF IMPORTED MATERIALSFollowing are the main suppliers of Abbott (imported materials) Dye Red, UK Potassium chloride, Germany Sodium Citrate, Taiwan Sodium chloride, New Zealand Acid Citric, Austria Aluminum Seals and PV, Holland Artificial bubble gum, Holland Supplier for Sugar, Malaysia Sodium Sulphate, Germany

LEAD TIME FOR IMPORTED MATERIALS

45 days for air transport 75 days for ship transport

JIT / LEAN MANUFACTURING:

JIT concept: There is no concept of JIT in Abbott.

Lean manufacturing: production plan is based in MPS MPS is made by the supply department which is forwarded to the

MMD. They arrange the raw materials for the production department MMD is using MRP2

DISTRIBUTION PROCESS:

 DISTRIBUTION STRATEGY

The distribution is to some extent selective

Most pharmaceuticals products require special storage conditions to be maintained at manufacturer’s warehouses, channels of distribution, and the point of sale.

Many products need not supply at the pharmacies but to the hospitals only like cancer medications.

TRANSPORTATION NETWORK

Following are the main transportation network of the Abbott: Lahore Naulakkah Transport Bashir Siddique Trasport Fast Track Cargo Service Leopard Courier Services Courier Per emergency

 DISTRIBUTION CHANNEL:

CONCLUSION