Some Demonstration of Commercial & Planning Activities

1. Commercial &
Planning Activities
Presented by:
Emdadul Huq, MBA, PGDSCM
Trained on SCM, Inventory Management & CCA

2. My Planning Work at a Glance
Production
(I send Product
Requirement to
both Factories
for production)
Procurement
(I send MRR
for Import or
local purchase)
Sales &
Marketing (I do
forecast as per
sales demand
(pull process)
Distribution
(I ensure short
product & minimum
stock level, also
advice supply for
IB or GMD)
Central Planning
(HO) (Coordinate
by Emdadul Huq,
MBA, PGDSCM)
Primary Functions of Organization for SCM Process
1. Sales & Marketing
2. Procurement
3. Production
4. Distribution

3. Demand Analysis &
Production Planning

4. Daily Sales Monitoring

5. DEMAND FORCASTING

6. Product Requirement for Next Month Production

7. Capacity vs. Demand

8. Material Requirement
Analysis & ABC Classification

9. Reorder Level & Stock Monitoring

10. Material Requirement Planning based on Lead Time

11. Material Requirement
Requisition
Material Requirement Requsition for the month of August- 2014 13/08/14
Active
SL # Material Name
Stock
Qty
Next Month
Reqmnt
Pipeline
Qty
ReOrder
Point
Reorder Qty
(as per Exsting
Lot
Priority Remarks
1 Aceclofenac 123.43 122.70 0.00 101.51 500.00 2nd 314
8 Aripiprazole INN 2.24 0.52 0.00 1.97 10.00 3rd 5
13 Azithromycin Dihydrate Compacted.258.38 215.72 0.00 603.36 500.00 1st 473
18 Beta Caroten USP 35.21 22.12 0.00 27.01 100.00 2nd 52
19 Biotin USP 0.12 0.07 0.00 0.08 0.50 3rd 1
21 Bromazepam BP 1.67 0.00 0.00 2.12 10.00 2nd 4
28 Cefixime T/H Compacted USP 107.27 45.80 0.00 138.36 250.00 2nd 186
29 Cefixime T/H Micronized USP 67.87 36.41 0.00 103.58 150.00 1st 175
31 Cefuroxime Axetil (DC Grade) 16.60 60.98 300.00 387.28 300.00 2nd 366
33 Cephradine M/H Compacted BP 335.37 56.14 0.00 305.52 500.00 3rd 275
43 Ciprofloxacin Hcl USP 1,368.53 303.00 0.00 1,123.17 1,000.00 3rd 837
49 Clonazepam 1.46 0.00 0.00 11.61 25.00 1st 23
55 Copper (Cupric Oxide) 11.19 4.86 0.00 7.76 50.00 3rd 37
56 Cyanocobalamin (Vita-B12) 0.1% 32.80 14.43 0.00 24.13 75.00 3rd 64
61 Diclofenac Sodium Powder 8.17 0.00 0.00 18.10 25.00 1st 85
70 Erythromycin Ethyl Succinate 0.06 0.00 0.00 41.85 200.00 1st 99
73 Etoricoxib INN 193.67 97.10 0.00 255.42 300.00 2nd 320
78 Ferrous Sulphate (Dried) 109.42 76.02 0.00 100.62 250.00 2nd 404
83 Flupenthixol hydrochloride 5.96 1.24 0.00 6.05 8.00 3rd 7
85 Flurazepam Monohydrochloride 0.73 0.00 0.00 30.37 50.00 1st 56
93 Glucosamine Sulfate 1,076.16 1,302.88 0.00 643.24 1,000.00 2nd 1,698

12. Yearly L/c Planning
Issue in
Jan
Issue in
Feb
Issue in
Mar
Issue in
Apr
Issue in
May
Issue in
June
Issue in
July
Issue in
Aug
Issue in
Sept
Issue in
Oct
Issue in
Nov
Issue in
Dec
Avrge
Monthly
Consump
No. Of
L/c
204.00 - 204.00 - 204.00 - - 204.00 - - 204.00 - 1,020.00 5
- - - - - - - 99.00 - - - - 99.00 1
- - - - - - - - - - - - - 0
- - - - - - - - - - - - - 0
#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0
78.00 78.00 - - - - 78.00 - 78.00 - 78.00 - 390.00 6
- - - - - - 34.00 - - - - - 34.00 1
1,296.00 432.00 432.00 864.00 432.00 864.00 432.00 432.00 432.00 432.00 864.00 432.00 7,344.00 12
- - - - - - - - - - - - - 0
416.00 - 208.00 - 208.00 - 208.00 208.00 - 208.00 - 208.00 1,664.00 7
- - 4.00 - - - - 4.00 - - - - 8.00 2
- - - - - - - - 49.00 - - - 49.00 1
- - 101.00 - - - 101.00 - - - - 101.00 303.00 3
14.00 - 14.00 14.00 - 14.00 - - 14.00 - - - 70.00 4
273.00 91.00 182.00 182.00 91.00 182.00 91.00 182.00 91.00 91.00 182.00 91.00 1,729.00 12
- - - - - - - - - - - - - 0
1,770.00 1,180.00 590.00 590.00 1,180.00 590.00 1,180.00 590.00 1,180.00 590.00 1,180.00 590.00 11,210.00 12
- - - - - - - - - - - - - 0
- - - - - - - - - - - - - 0
- - - - - - - - - - - - - 1
- - - - - - - - - - - - - 0
- - - - - - - - - - - - - 0
- - - - - - 32.00 - 32.00 - - 32.00 96.00 4
- 1.00 - - - - - - - - - - 1.00 0
- - - - - - - - - - - - - 0
- - - - - - - - - - - - - 0
- 19.00 - - - - - - - - - - 19.00 1
271.00 - - - - - 271.00 - - - 271.00 - 813.00 4
- 5,794.00 - - - - 5,794.00 - - - - 5,794.00 17,382.00 3
- - - - 87.00 - - - - - - 87.00 174.00 2
Item

13. EOQ Define & ABC Analysis
ABC Analysis (based on forecasted demand)
(Above- 40L=A, Above-10L=B Above-0=C & Rest=Inactive) EOQ
consumtion accuracy tester
Yearly
Demand
Demnd Value
BDT
% of
Value Category EOQ EOQ Value
Number of
Order
ACECLOFENAC 624.000 850512.00 0.22% C 272.00 370,736.00 2.294
ALBENDAZOLE 624.000 1201824.00 0.31% B 103.00 198,378.00 6.058
ALPRAZOLAM 1.000 22500.00 0.006% C 2.00 45,000.00 0.500
ALUMINIUM HYDROXIDE POWDER 0.000 0.00 0.00% Inactive 0.00 0.00 #DIV/0!
AMINOPHYLLINE 0.000 0.00 0.00% Inactive #DIV/0! #DIV/0! #DIV/0!
AMITRIPTYLINE HCl 432.000 1313280.00 0.34% B 108.00 328,320.00 4.000
AMLODIPINE BESYLATE 65.000 302120.00 0.08% C 34.00 158,032.00 1.912
AMOXYCILLIN T/H COMPACTED (250mg) 7625.000 20587500 5.36% A 482.00 1,301,400.00 15.820
AMOXYCILLIN T/H COMPACTED (500mg) 0.000 0.00 0.00% Inactive 0.00 0.00 #DIV/0!
AMOXYCILLIN T/H MICRONISED 1311.000 3539700 0.92% B 200.00 540,000.00 6.555
ARIPIPRAZOLE 7.000 286104.00 0.07% C 4.00 163,488.00 1.750
ASPIRIN 54.000 103680.00 0.03% C 49.00 94,080.00 1.102
ATENOLOL 275.000 548075.00 0.14% C 107.00 213,251.00 2.570
ATORVASTATINE CALCIUM 62.000 1426000.00 0.37% B 15.00 345,000.00 4.133
AZITHROMYCIN (COMPACTED) 2501.000 36264500 9.45% A 119.00 1,725,500.00 21.017
AZITHROMYCIN (MICRONISED) 578.000 8381000 2.18% A 58.00 841,000.00 9.966
BACITRACIN ZINK 3.000 186000.00 0.05% C 2.00 124,000.00 1.500
BACLOFEN 10.000 170250.00 0.04% C 7.00 119,175.00 1.429
BENZOIC ACID 130.000 34450.00 0.01% C 201.00 53,265.00 0.647
BENZOYL METRONIDAZOLE 143.000 165022.00 0.04% C 101.00 116,554.00 1.416
BENZYL BENZOATE 0.000 0.00 0.00% Inactive 0.00 0.00 #DIV/0!
BETA CAROTENE 204.000 2362728.00 0.62% B 39.00 451,698.00 5.231
BIOTIN 1.000 250000.00 0.07% C 1.00 250,000.00 1.000
BORON CITRATE 61.000 240828.00 0.06% C 36.00 142,128.00 1.694
BROMAZEPAM 7.000 328531.00 0.09% C 4.00 187,732.00 1.750
BROMHEXINE HCl 20.000 70900.00 0.02% C 22.00 77,990.00 0.909
CAFFINE(ANHYDROUS) 952.000 928200.00 0.24% C 283.00 275,925.00 3.364
CALCIUM CARBONATE 15644.000 547540 0.14% C 6,055.00 211,925.00 2.584
CALCIUM PANTOTHENATE 183.000 268095.00 0.07% C 102.00 149,430.00 1.794

14. ABC Classification & Stock Value

15. Classification wise material availability analysis

16. INVENTORY ANALYSIS

17. Remarks% of Total Stock
46%
29%
26%
100%
Packing Materials 31901078.64
Stock of Raw & Packing Materials as on 29.10.13
Particular
Raw Materials (Excipients)
Grand Total
Raw Materials (Active)
Stock Value BDT
57355845.14
35583987.63
124840911.4
Present Inventory Value BDT Raw Materials
(Active)
45%
Packing Materials
26%
Raw Materials
(Excipients)
29%
INVENTORY ANALYSIS

18. Average Sales Target- 2013 BDT 263506690
Stock Required as per Production Lead Time (35 Days) 307424472
As per COG RM & PM Reqired in Hand BDT 92227342
Cosidering RM & PM Lead Time Stock Required in Hand 156786481
Average Stock (Raw & Packing Materials) 150315481
% of Stock Availability 96%
Under Stock of Raw & Packing Materials -4%
Average Lead Time of Raw Material 60 days (2 months)
Raw & Packing Materials Availability
Monthly Fund Required for
Smooth Product Supply
Monthly Fund Required for
Smooth Product Supply
INVENTORY ANALYSIS

19. Jan Feb March April Average
257060640 232414490 257772279 264003401
May June July Aug
285861671 215404196 246897569 222549769
Sep Oct Nov Dec
273749413 299447077.4 333438620.2 342573936.5
Average Sales Target- 2013 BDT: 263506690
Production Lead Time (days) 35
Total Stock Reqired in Hand BDT 307424472
Avg CDO Stock up to September- 13 269264422
% of Stock Availability 88%
Under Stock of Raw & Packing Materials -12%
Finished Product Stock- 2013 in BDT
269264422
Finished Products St ock Required (as per target )
Number of 60 Products Minimum Production Qty= Avg 3months stock
INVENTORY ANALYSIS

20. Price Trend &
Cost Analysis

21. L/c Date Q ty Mfger. Unit Price
20/05/2012 250.00 KG Glenmark Pharmaceuticals Ltd. 204.000 $
14/08/2012 300.00 KG Cadila Health Care Ltd. 201.000 $
13/11/2012 300.00 KG Glenmark Pharmaceuticals Ltd. 195.000 $
18/12/2012 300.00 KG Glenmark Pharmaceuticals Ltd. 185.000 $
30/12/2012 300.00 KG Cadila Health Care Ltd. 185.000 $
204.0
0
201.0
0
195.0
0
185.0
0
185.0
0
175.000
180.000
185.000
190.000
195.000
200.000
205.000
20/05/2012 14/08/2012 13/11/2012 18/12/2012 30/12/2012
Int’l Price Trend Analysis

22. Cost Analysis for Lot Size
20% Fixed Based on ROL Based on EOQ Based on Existing Lot
Holding
Cost (U)
Ordering
Cost (U)
Annual
Holding Cost
Annual
Ordering Cost
Annual
Holding Cost
Annual
Ordering Cost
Annual
Holding Cost
Annual
Ordering Cost
Total Annual
Cost
ACECLOFENAC 273 8,200 40,754 17,113 37,074 18,812 68,150 10,234 57,867
ALBENDAZOLE 385 8,200 57,587 17,113 19,838 49,678 38,520 25,584 74,700
ALPRAZOLAM 4,500 8,200 450 41,000 4,500 4,100 11,250 1,640 41,450
ALUMINIUM HYDROXIDE POWDER 32 8,200 ( 2) 0 0 #DIV/0! 0 #DIV/0! ( 2)
AMINOPHYLLINE 0 8,200 0 #DIV/0! #DIV/0! #DIV/0! 0 #DIV/0! #DIV/0!
AMITRIPTYLINE HCl 608 8,200 30,400 35,424 32,832 32,800 60,800 17,712 65,824
AMLODIPINE BESYLATE 930 8,200 6,972 35,533 15,803 15,676 11,620 21,320 42,505
AMOXYCILLIN T/H COMPACTED (250mg) 540 8,200 259,470 65,062 130,140 129,720 270,000 62,525 324,532
AMOXYCILLIN T/H COMPACTED (500mg) 540 8,200 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! #DIV/0!
AMOXYCILLIN T/H MICRONISED 540 8,200 54,270 53,484 54,000 53,751 54,000 53,751 107,754
ARIPIPRAZOLE 8,174 8,200 8,174 28,700 16,349 14,350 20,436 11,480 36,874
ASPIRIN 384 8,200 1,920 44,280 9,408 9,037 9,600 8,856 46,200
ATENOLOL 399 8,200 13,154 34,167 21,325 21,075 19,930 22,550 47,320
ATORVASTATINE CALCIUM 4,600 8,200 32,200 36,314 34,500 33,893 46,000 25,420 68,514
AZITHROMYCIN (COMPACTED) 2,900 8,200 929,450 31,994 172,550 172,338 725,000 41,016 961,444
AZITHROMYCIN (MICRONISED) 2,900 8,200 214,600 32,024 84,100 81,717 290,000 23,698 246,624
BACITRACIN ZINK 12,400 8,200 3,720 41,000 12,400 12,300 6,200 24,600 44,720
BACLOFEN 3,405 8,200 3,405 41,000 11,918 11,714 42,563 3,280 44,405
BENZOIC ACID 53 8,200 292 96,909 5,327 5,303 1,325 21,320 97,201
BENZOYL METRONIDAZOLE 231 8,200 3,000 45,100 11,655 11,610 40,390 3,350 48,100
BENZYL BENZOATE 42 8,200 ( 2) 0 0 #DIV/0! 0 #DIV/0! ( 2)
BETA CAROTENE 2,316 8,200 56,752 34,139 45,170 42,892 115,820 16,728 90,891
BIOTIN 50,000 8,200 7,500 27,333 25,000 8,200 25,000 8,200 34,833
BORON CITRATE 790 8,200 5,527 35,729 14,213 13,894 39,480 5,002 41,256
BROMAZEPAM 9,387 8,200 9,387 28,700 18,773 14,350 93,866 2,870 38,087
BROMHEXINE HCl 709 8,200 1,418 41,000 7,799 7,455 8,863 6,560 42,418
CAFFINE(ANHYDROUS) 195 8,200 22,133 34,389 27,593 27,584 48,750 15,613 56,522
CALCIUM CARBONATE 7 8,200 15,778 28,456 21,193 21,186 35,000 12,828 44,234
CALCIUM PANTOTHENATE 293 8,200 6,593 33,347 14,943 14,712 14,650 15,006 39,939
Cost Analysis

23. COG Analysis
Total COG Total Target Total Sales % of Ach % of TS % of Invest Category % of Profit
9886005 19221885 13063195 68% 0.68% 1.11% A 32%
3146984 10932924 5193171 48% 0.27% 0.35% B 65%
8942588 3713189 3815925 103% 0.20% 1.01% B -57%
10390324 14583894 17545135 120% 0.91% 1.17% A 69%
62410095 29035766 27247500 94% 1.41% 7.01% A -56%
10580713 7004080 5050304 72% 0.26% 1.19% B -52%
22046055 11788140 14177959 120% 0.73% 2.48% A -36%
118761250 66890354 50798033 76% 2.63% 13.35% A -57%
1688951 2057249 1311298 64% 0.07% 0.19% C -22%
1977646 2882803 1581419 55% 0.08% 0.22% C -20%
41202936 52347703 33786408 65% 1.75% 4.63% A -18%
15773688 17155403 12507607 73% 0.65% 1.77% A -21%
46084422 93936692 52183667 56% 2.70% 5.18% A 13%
4112154 11380727 5346980 47% 0.28% 0.46% B 30%
2422947 3731702 2449364 66% 0.13% 0.27% B 1%
6358947 7037940 2520395 36% 0.13% 0.71% B -60%
0 0 0 #DIV/0! 0.00% 0.00% Inactive #DIV/0!
11788731 4640628 3979686 86% 0.21% 1.33% B -66%
386841 799855 282399 35% 0.01% 0.04% C -27%
16038518 16458807 11960190 73% 0.62% 1.80% A -25%

24. Sales Trend Analysis &
Demand Forecast

25. 0
20
40
60
80
100
120
140
160
180
200
Millions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales Trand- 2012
0
50
100
150
200
250
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Millions
Sales Trand between- 2011-12
Trend Analysis

26. Sale
Jan'13
Sale
Feb'13
Sale
Mar'13
Sale
Apr'12
Sale
May'12
Sale
June'12
Sale
Jul'12
Sale
August'12
Sale
Sept'12
Sale
Oct'11
Sale
Nov'12
Sale
Dec'12
Average
% of Average
Achieve
A
v
e
Avg Sales-
2012
% of Sales
Growth
12 11 10 9 8 7 6 5 4 3 2 1
4,002 13160 5048 7622 8525 8,115 8949 9416 8,965 9,326 10,571 8,545 8,520 68.54% 9349 -9%
1,092 3044 1679 1878 1893 2157 2038 2503 2,459 2,175 2,393 2,066 2,115 47.84% 2174 -3%
6,424 7931 6313 8095 15310 13,416 21258 14900 6,115 7,990 6,448 4,523 9,894 101.32% 9674 2%
5,850 7100 3724 6249 14796 8,319 20499 14919 6,343 6,906 7,244 4,991 8,912 112.99% 8851 1%
56,272 67915 71947 73910 76893 68,300 80643 77105 70,203 77,312 63,994 44,821 69,110 108.13% 64229 8%
5,275 7072 7055 5947 6719 8,801 9851 7954 7,506 7,980 6,432 4,250 7,070 90.73% 6668 6%
3,220 3201 39350 36399 2333 2,037 30394 2456 4,616 2,810 3,372 2,989 11,098 127.26% 7865 41%
5,431 8703 5767 8280 5774 8,498 8092 6577 6,661 6,457 6,291 4,766 6,775 76.25% 7148 -5%
752 716 906 1105 1119 1,028 1022 1063 1,072 928 951 576 937 61.03% 926 1%
456 789 461 937 638 954 1047 837 835 640 672 436 725 48.58% 800 -9%
22,728 27621 28010 26220 24595 20,351 23117 24133 25,635 25,309 27,052 21,013 24,649 72.82% 24680 0%
5,238 5626 4007 6135 4986 4,475 5431 5472 5,669 5,651 5,652 4,494 5,236 76.34% 5449 -4%
21,532 14707 23924 25301 26532 25,019 27830 26238 25,277 24,476 24,827 17,663 23,611 60.72% 22450 5%
2,328 2185 2818 2657 2747 2,826 4782 2908 3,159 2,705 2,693 2,211 2,835 55.02% 2753 3%
1,585 1414 1522 1504 1850 1,584 653 435 2,046 1,633 1,788 1,049 1,422 69.34% 1405 1%
5,081 1959 3601 32 64 46 9 3 9,759 6,822 5,421 3,782 3,048 36.92% 2651 15%
1,650 1729 1576 2026 2314 2,515 1310 2856 2,742 2,043 1,917 1,530 2,017 75.38% 2089 -3%
10 455 8 488 527 429 309 121 69 36 21 14 207 34.13% 289 -28%
10,074 10772 9749 11500 10877 9,424 10824 11797 11,830 11,152 11,320 9,062 10,698 78.84% 10796 -1%
#N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A
494 831 1239 733 791 720 653 669 820 674 758 580 747 50.30% 749 0%
4,877 7921 4611 3194 3582 5,517 4635 4347 4,760 4,622 4,526 4,522 4,760 59.96% 4641 3%
426 389 256 124 85 404 287 268 231 114 13 414 251 52.44% 246 2%
775 933 768 823 468 701 2750 743 738 633 808 547 891 74.99% 890 0%
3,988 6391 4245 3666 9905 3,667 3810 3738 3,940 4,005 5,132 4,070 4,713 56.55% 4608 2%
9,438 19577 10726 8055 13486 9,519 8021 8119 8,892 9,275 9,903 7,906 10,243 86.20% 9934 3%
2,442 3034 2430 2459 5770 2,069 2113 2142 2,401 2,560 2,423 2,228 2,673 45.17% 2613 2%
430 445 492 517 460 488 532 460 478 562 503 397 480 48.50% 485 -1%
173 188 108 170 200 161 207 196 171 195 255 149 181 26.06% 188 -4%
2,874 2345 3256 2754 2654 2,487 3177 2606 3,023 2,928 3,038 2,444 2,799 49.02% 2704 4%
1,470 1519 1514 1694 1608 1,441 1441 1349 1,446 1,487 1,600 1,107 1,473 49.59% 1474 0%
935 685 1062 813 906 771 810 697 823 1,132 926 796 863 34.85% 818 5%
Sales Trend & Growth Analysis

27. Sales & Revenue Classification

28. Linear Trend Line Forecasting

29. Forecasting vs. Actual Demand
Analysis (Error of Forecasting)

30. THANK YOU ALL