Supply Chain and Risk Management

Topics: Management, Supply chain, Supply chain management Pages: 13 (3282 words) Published: November 19, 2012

Like economies and financial markets, as supply chains grow more global and interconnected, they get more exposed to disruptions and risks. Moreover, the supply chain speed exacerbates the problem. Even minor miscalculations can have major consequences as the impact spreads like viruses throughout the complex supply chain networks. Hence, it is vital to build smarter supply chains and address the issues that pose a challenge to this objective. These risk factors can effect productivity, economy and band image of the company so it is very important to identify and manage these problems on right time. “Risk is a set of unexpected or unpredictable event that directly or indirectly affects the efficient working of an organization.” So to avoid this situation there should be a effective risk management process which can help the company to work efficiently and effectively Risk management can be defined as

Risk management is an important function in business industry. It is an entrepreneurial need which caters all the solution which are needed for the efficient working of an organization to achieve is goals. It helps the management to understand the root cause of the problem and all possible ways by which it can be solved.

Risk management process

About The Company

Cipla is one of the pioneer’s in the Indian Pharmaceutical Industry. The company was first started in 1935 and throughout its long journey of 75years has introduced many life-changing and innovative drugs to serve humanity while supporting, improving and enriching millions of lives worldwide. Cipla has 50 manufacturing plants with its headquarters situated in Mumbai, India. Its current stable has over 1200 products in current production which can cure almost every illness known to man. Cipla boasts the world’s largest range of respiratory medicines, dosage forms and devices for the management of asthma and other respiratory illnesses. The company is well known for providing consistently high quality of medical updates and patient education material to help patients as well as doctors in their respective environments. The company had also setup a dedicated center which carried on research and education on respiration named the Chest Research Foundation (CRF) in Pune, India. The company has also pioneered revolutionary medicines for treatment of cancer, AIDS, hepatitis A, B and C. cardiovascular disease, arthritis, diabetes, weight control, depression and many other health conditions, distributing its product to almost every country. Recently the company had researched and created a medicine called QVIR that can cure AIDS and can be used for both first and second line treatment of HIV-AIDS. Currently, 40% of the worlds HIV patients undergoing anti AIDS therapy are taking Cipla Drugs. Pain Points with QVIR

Cipla is well known for is innovations in the field of pharmaceutical but not so for its supply chain and impeccable delivery. This was also the case with the recently launched QVIR which had not been effectively distributed or consumed at the right time. Every year around 5 -7 % of the patients failed their first line treatment because the dose was unavailable and wasn’t there at the stipulated treatment time. For a drug priced at a paltry sum of $ 3 and the life changing benefits of containing four drugs in one single strip, it never served its intended purpose. From our qualitative data collection method we understood that the pain points facing Cipla in the delivery of QVIR were as follows: * Inventory levels are too high and/or misplaced

* Spending is too high, either indirect or direct categories * Cash-to-cash cycles are too long
* Lean manufacturing and quality goals are not being met – potentially accompanied by excess waste generated or scarce resources used Cipla’s Supply Chain
Cipla has over 180 manufacturing plant across the world out of which 50 manufacturing plants manufacture QVIR. Cipla also manufacturing...
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