Practice of SCM Performance Drivers and Procurement Process: Case Study on Globe Pharmaceuticals Limited

Abstract

This paper presents a descriptive research which addresses a case study on Globe Pharmaceuticals Limited., Bangladesh. The main objective of this study is to identify and demonstrate the practices of Supply Chain Management (SCM) upon the organization. The study is conducted by in-depth interviewing of the personnel working in the commercial department of the organization as well as secondary data. Globe Pharmaceuticals Limited has been manufacturing medicines since 1986 with a view to provide high quality medicines throughout the country. They are not only distributing medicines in the country but also exporting to international market. Till now, they have expanded their overseas marketing coverage in Singapore, Vietnam, Philippines, Srilanka, Myanmar, Yemen and Cambodia. The company is now in the process of receiving regulatory approvals for start its business in various countries of Africa, Middle East and Latin America. This has been possible by effective implementation of supply chain management performance drivers. The author has thoroughly analyzed SCM performance drivers and procurement process of Globe Pharmaceuticals Limited, to explore innovative ideas regarding SCM practices in pharmaceuticals industry. The performance of the supply chain of Globe Pharmaceuticals Limited is evaluated based upon the six supply chain performance drivers; Facilities, Inventory, Transportation, Information, Sourcing, Pricing. These drivers are utilized to create the balance between responsiveness and efficiency. The right combination of efficiency and responsiveness increases the performance of the supply chain and reduce inventory and operating expense simultaneously. Globe Pharmaceuticals Limited, practices all the six drivers of supply chain performance and tries constantly to improve its performance. There are certain aspects of their supply chain where they can bring improvements which will improve the performance of the whole supply chain.