Arsons Report Final

ARSONS PHARMACEUTICAL INDUSTRIES (PVT) LTD
SUPPLY CHAIN APPLICATIONS
FINAL PROJECT
DISTRIBUTION DESIGNING & GLOBALIZATION
ID FULL NAME
MBA1Y02181046 KHADIJA FIAZ
MBA1Y02181047 MAHNOOR ZUBAIR
MBA1Y02181010 HADIA TAHIR
MBA1Y02181016 MUAZ RASHID
SUBMITTED TO: SIR ARSLAN HAIDER
DATE OF SUBMISSION: 07-05-2019
SESSION: SPRING (2018)
FOR GRADING:
COMMENTS: MARKS SECURED:
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In the name of Allah, the most Merciful

& Beneficial,
The Master of Liberality & Beneficence,
The Gracious & Obligor,
The Granter of Peace & Security,
The Holy & above all Defects,
The Master of Wisdom & Manifestation,
The Master of Mercy & Satisfaction,
The Master of Argument & Proof,
The Master of Grandeur & Royalty,
The Kind & Helpful,
The Pardoner & Forgive
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Table of Contents
1. Executive Summary................................................................................................6
2. Introduction.............................................................................................................7
3. Vision.................................................................................................................8
4. Mission..............................................................................................................8
5. Objectives………………………………………………………………………………………………………….8
6. Departments.....................................................................................................9
7. Organizational Structure……………………………………………………………………………………11
8. Detail of Products...............................................................................................12
9. Customers.................................................................................................................12
10. Competitors………………………………………………………................................................12
11. Supply chain management......................................................................................13
11.1 Planning……………………………………………………………………13
11.2 Sourcing………………………………………………………………...…13
11.3 Making…………………………………………………………………….14
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11.4 Deliver………………………………………………………………………14
11.5 Return……………………………………………………………………....15
12. Efficient supply chain strategy…………………………………………………………………………...15
13. Distribution Channel & Networks............................................................................16
14. Distribution Channels & Networks of Arson’s Pharmaceutical Pvt. Ltd……......19
15. End-to-End Supply Chain Distribution network Flow Chart……………………..20
16. Global Reach…………………………………………………………………………..22
17. Arson’s Pharmaceutical Pvt. Ltd Global Reach……………………………….……23
18. Role of technology in industry & the business perspective…………………………24
19. Distribution management Environment……………………………………………..28
20. Arson’s Pharmaceutical Distribution Management Environment…………………29
21. Supply Chain Distribution Format……………………………………………………30
22. Gap analysis…………………………………………………………………………….32
23. Recommendations……………………………………………………………………...33
24. Conclusion………………………………………………………………………………34
25. References………………………………………………………………………………35
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Executive Summary
It’s the Distribution Management report on Arsons Pharmaceutical Pvt. Ltd. The purpose of the
report is to elaborate the Distribution process of organization Arsons Pharmaceutical Pvt. Ltd.
This project report supposed to gain working experience in a real-world workplace environment,
diverse learning experience, integrate theory and practice, and to understand limitations of our
current knowledge, how to work in a team and to collaborate with people with diverse
background, to broaden our social and cultural experience, development of our social and
cultural values, preparation for our lifelong career. Keeping all these things in mind, we
completed the project phase and able to present this report that would be highlighting the
experience in Arsons Pharmaceutical Pvt. Ltd by following points.
The Arsons story is a tale of unprecedented success due to unwavering dedication,
uncompromising attitude and never ending hard work. A great unusual example as it is, in only
period of less than a decade, the organization has gained repute available in the market which is
synonymous with ultimate quality and a principle strategy to business.
In the initial phase, we have given the introduction of the Arsons Pharmaceutical Pvt. Ltd that:
 How it works and what are the product and services provided by the customers.
 What is the organogram currently of Arsons Pharmaceutical Pvt. Ltd and the departments
involved in making the services and products to the final destination.
The knowledge that was gained i.e. technical, soft skills and professional during project also
elaborated in this report. The report also contains the, SCM management, Distribution
management, and Distribution channels etc.
At the end we have come up with the recommendation that were driven after the brainstorming,
and discussions with the group members and can be helpful if executed in real sense as they have
been written down after a quite consensus.
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Introduction
Company ARSONS PHARMACEUTICAL INDUSTRIES (PVT) LTD.
Year Established 1986.
CEO Dr. Arshad Javed.
Director Mr. Muhammad Shahid Mukhtar.
Business Type Manufacturer, Trading Company.
Products & Services Medicine, Surgical Products.
Total Employees: 100 - 300 People.
Total Annual Revenue US$5 Million - US$10 Million.
Official Website www.arsonspharma.com.
Address 22-K.M.-Defence Road, Off Multan Road, Lahore Pakistan.
Arsons Pharmaceutical prescription opened by a medical doctor with the only purpose of
providing better healthcare products to the public. Through research this individual developed a
particular and advanced know-how in this field. Arsons Pharmaceutical is renowned and leading
manufacturer of Adhesive Surgical Tape and Medicated Plasters and a brand leader in Textile
Bandage segment with Arsoplast.
Arsons Pharmaceuticals (Pvt). Ltd. is a family owned or operated enterprises. The principal and
philosophy of "To serve Humanity" were ingrained in this family business and are still fresh and
alive today. At Arsons Pharmaceutical, we are constantly planning to provide quality products
while simultaneously maintaining our distinguished occurrence in Pakistan.
Arsons Pharma is a member company of PPMA, Pakistan Prescription Manufacturers
Association, which are engaged in the research, development, production, and marketing of
prescription and healthcare products. They are pursuing an encouraging pipeline of recent
medications through internal research & development and strategic industry partnerships.
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Mission
Our task or objective stems from our motto "To Server Humanity". In Arsons Pharmaceuticals
we are committed to manufacturing high quality pharmaceuticals and surgery products that
would boost the health and well being of individuals.
Vision
.
Our perspective is to be at the forefront of our industry in Pakistan and become a transnational
Pharmaceutical company through Research and Development of branded and generic products in
key markets.
Ethics & Core Values
“Our core values are driven by a desire to improve life, achieve scientific excellence, operate
with the highest standards of integrity, expand access to our products and employ a diverse
workforce that values collaboration.”
Objectives
 Excel in meeting customer needs.
 Maintain leadership in national pharmaceutical industry.
 Gain confidence of Doctors, Pharmacists and Consumers who use our products.
 Seek employee involvement, continuous improvement and enhanced performance goals.
 Enhance export business.
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Departments
 Production
Each of our production is overseen by expertise making ARSONS, a committed organization to
provide the goods on time. This is an certain proof that as soon as the buyer is engaged around
we built and maintain an everlasting association. The repeated demand is one of our aspects and
very pleased to fulfill certain requirements made by our respective customers time to time.
 Quality Control (Q.C)

Task and objectives are uncompromised maintenance of quality with relevant prospective. They
match the International Standard masking optimizing facts and up-to-date procedures. Were
conscientious in respect of Quality Handles. There team of Top quality Control Department has
always proved their determination towards strengthening the products quality resulting the
company repute as one of the leading Drug Manufacturers in Pakistan.
 Quality Assurance (Q.A)

Among our concern and in depth maintenance of Goods from the raw materials, packaging
materials, in process, labeling and finally to the finished products, the supervision of experienced
and skilled staff has produced their best skills to give you the Quality Assurances through the
year.
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 Marketing & Sales

At Arsons The Marketing Department key goal, has been to establish to help pharmaceuticals as
a “Highly scientific pharmaceutical company, with top-quality medicinal products” for the Greek
health care professionals & the patients.
 Research & Development (R &D)
Arsons objective of R&D is to obtain new knowledge applicable to the company's business
needs that eventually will result in new or improved products, processes, systems or services that
can increase the company's sales and profits.
 Human resource Department
Human asset administration (HRM) is the act of enlisting, contracting, sending and dealing with
an association's workers. HRM is often referred to simply as (HR). The long term
accomplishment of the Company relies upon its ability to attract, hold and create workers ready
to guarantee its development on a proceeding with premise. This is an essential obligation
regarding all administrators.
At Arsons pharmaceuticals there is no appropriate sorted out Human Resource (HR) department
there lies an implicit shortcoming in HR Management.
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Organizational Structure
CEO
Director
Production Quality Control Marketing HR Operational

Finance Manager
Manager Manager Manager Manager Manager
Quality Assurane R&D

Chief Accountant
Manager Department
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Products
Surgical Products Medicine Products
First Aid Bandages. Analgesic & Nsaids.
Dressings & Gauze. Anti-Biotic/ Quinolones.
Medicated Plaster. Anti-Ulcers.
Zinc Oxide Adhesive Plaster. Anti-Diarrheal.
Alcohol Swab. Psychotropic.
Customers
Arsons Pharmaceutical Industry export products to different countries like Afghanistan,
Bangladesh, Tajikistan and supply their medicines and surgical products locally through
distributors to various pharmacies which include:
 Dukes & Dukes Pharmacy.
 Rite Aid Pharmacy.
 Jinnah Pharmacy.
Competitors
Arsons Pharmaceutical Industry in commercial or economic competition with these Rivals.
 BSN Medical (PVT) LTD.

 Dr Sethi Pharmacy.
 Cotton Craft.
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Supply Chain Management
Arsons Pharmaceutical Industry is a manufacturer of Adhesive bandages (Plastic and fabric),

plasters of various kinds, tablets and capsules.
Levels of SCM:
 Planning
 Sourcing.
 Making.
 Deliver.
 Return.
 Planning:
Before making our product, we Plan “what resources, information, products, and/or services are
needed to support the supply chain of our company”. While planning, we also have backup plan
which we consider in a way if demand certainty and competition of time horizon occurs.
 Sourcing decisions:
Sourcing is used for purchasing raw materials and services required for completing and
finalizing the product. Procurement should be purchase lowest priced raw materials and services
of highest quality. It involves creating relationships between the supplier and the manufacturer.
Suppliers (International vs. Local)
 Local Customers
Arsons Pharmaceutical Industry supply their medicines and surgical products locally through
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 International Customers (Export)

We export our products to different countries like Afghanistan, Bangladesh, Tajikistan.
Our worldwide exchange has dependably invited from various purchasers internationally. We
keep up chance free manages our particular clients empowering to assemble the certainty
between us. We are resolved to serve the humankind in that capacity; the long haul success
between our purchasers and us is our primary destinations.
Our part of trading procedure has the capacities taking care of the universal standard requests.
We at "Arsons" never bargained the nature of our items and the aggressive International market
costs. This makes us more chances to improve our investigation of International exchange
convincingly.
We are adaptable if there should be an occurrence of satisfying the necessity of our purchaser's
FDA principles and directions. We do our best to meet on time conveyance. We generally
welcome to our intrigued Companies and we guarantee our best collaboration's constantly.
 Making:
Making of all the surgical products and medicines vary product to product.
 Deliver:
They deliver their finish goods through trucks in boxes.
Transportation network of the company
At Arsons pharmaceuticals they don’t have their own transportation department but, they have
small transportation system which includes some trucks for trading locally. Mostly they import
from china, Germany, India, and Korea and export to various countries like Afghanistan,
Tajikistan, and Bangladesh by air and sea. Trade locally from Attak (usually turbulent fluid or
Zinco solvent) through their own trucks. In trading locally they transferred their products to third
party logistic by their own trucks. They have a agreement with Third party logistic “Salem Raza”
and than further they distribute their products in pharmacies.
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 Return:
Involves creating a network for receiving defective and excess products back from consumers.
Unfortunately, if defected finish product sent to the customer then they can return or exchange it.
Efficient Supply chain strategy
Strategies Efficient
Primary goal Providing finished goods at lowest cost.
Product design strategy Maximize performance at minimum product cost.
Pricing strategy Lower Margins because price is a prime customer driver.
Manufacturing strategy Lower cost through high utilization.
Inventory strategy Minimize inventory to lower cost.
Lead-time strategy Reduce, but not at the expense of costs.
Transportation strategy Greater reliance on low cost modes.
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Distribution Channels & Networks
Distribution:
Distribution refers to the steps taken to move and store a product from the supplier stage to a
customer stage in the supply chain. In contrast to the role of the distributor, distribution refers to
a process and not a channel entity.
The Council of Supply Chain Management Professionals (CSCMP) similarly defines a

distributor as
“A business and industry that acts as a third party local representative and distribution point for a
manufacturing firm. These firms may perform some light assembly or kitting of goods, but
generally provides a buffer for finished goods. Distributors typically purchase the goods in
quantity from the manufacturer and ship to customers in smaller quantities.”
To begin with, it is important to separate the term distributor from the term distribution.
Distributor:
An entity that buys noncompeting products or product lines, warehouses them, and resells them
to retailers or direct to the end users or customers. Most distributors provide strong manpower
and cash support to the supplier or manufacturer's promotional efforts. They usually also provide
a range of services (such as product information, estimates, technical support, after-sales
services, credit) to their customers.
Classically, distributor refers to the channel entities that act as intermediaries between
manufacturers and end-user customers. The essential role of a distributor is to facilitate the flow
of finished goods from channel producers to end-use customers.
The APICS Dictionary, for example, describes a distributor as “A business that does not
manufacture its own products but purchases and resells these products”
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Distribution Network:
A distribution network is the system a company uses to get products from the manufacturer to
the retailer. A fast and reliable distribution network is essential to a successful business because
customers must be able to get products services when they need.
There is, realistically, no ‘true’ name or ‘true’ definition that should be applied, because products
differ, companies differ and systems differ.
Widely accepted definition:
Logistics = Materials management + Distribution
Distribution Channel
A distribution channel is a chain of businesses or intermediaries through which a good or service
passes until it reaches the final buyer or the end consumer. Distribution channels can
include wholesalers, retailers, distributors, and even the internet.
Distribution channels are also known as marketing channels or marketing distribution channels.
A distribution channel, also known as placement, is part of a company's marketing strategy,
which includes product, promotion, and price.
Understanding Distribution Channels:

A distribution channel is the path by which all goods and services must travel to arrive at the
intended consumer. Conversely, it also describes the pathway payments make from the end
consumer to the original vendor. Distribution channels can be short or long, and depend on the
amount of intermediaries required to deliver a product or service.
Direct vs. indirect distribution channel:
Channels are broken into two different forms—direct and indirect. A direct channel allows the
consumer to make purchases from the manufacturer. A company that sells directly to consumers
through direct mail, a catalog of its own products, or its own ecommerce site represents a
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business that uses a direct distribution channel. An indirect channel allows the consumer to buy
the good from a wholesaler or retailer. Intermediaries between the manufacturer and the
consumer in an indirect distribution channel might include:
 Wholesaler/distributor
 Dealer
 Retailer
 Consultant
 Manufacturer’s representative
 Catalog
There might be just one intermediary; there might be many.
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Goods and services sometimes make their way to consumers through multiple channels—a
combination of short and long. Increasing the number of ways a consumer is able to find a good
can increase sales. But it can also create a complex system that sometimes makes distribution
management difficult. Longer distribution channels can also mean less profit each intermediary
charges a manufacturer for its service.
Generally, if there are more intermediaries involved in the distribution channel, the price for a
good may increase. Conversely, a direct or short channel may mean lower costs for consumers
because they are buying directly from the manufacturer.
Distribution Channels & Networks of Arson’s Pharmaceutical Pvt. Ltd
Arsons Pharmaceutical Company uses a multi-tier (two-tier), indirect distribution channel and
network.
Manufacturer sells to distributors, who sell to retailers, and then who sell to consumers.
Distribution channels and Network is part of the downstream process, answering the question
"How do we get our product to the consumer?" This is in contrast to the upstream process, also
known as the supply chain, which answers the question "Who are our suppliers?
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End-to-End Supply Chain Distribution Channel & Network

Flow Chart
Focal
R 2nd Tier 1st Tier 1st Tier 2nd Tier 3rd Tier
A
Firm
W A
Woven Fabric
Company NG APPARELS R
M India
IMPOTER S Dukes &
A Manufacturer
O Dukes
Pharmacy
C
T N O
E Life Pharma Saleem Raza S
Saleem Raza
Goods N
R Transportation
Medicated Distributor Rite Aid S
I fluid maker
P Company
Pharmacy U
A H (Distributor)
M
L d A
E
R
Jinnah R
M
Pharmacy
A .
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Arson’s Pharmaceutical Pvt. Ltd import from china, Germany, India, and Korea by air and sea.
They Trade locally from Attak (usually turbulent fluid or Zinco solvent) through the distributor.
In trading locally they transferred their products to third party logistic by their own trucks. They
have a agreement with Third party logistic “Salem Raza” and than further they distribute their
products in pharmacies.
Customers (International vs. Local)
 Local Customers
Arsons Pharmaceutical Company supply their medicines and surgical products locally through
And then these pharmacies (retailers) sell to consumers.
 International Customers (Export)

They export their products to different countries like Afghanistan, Bangladesh, Tajikistan
through air and sea medium. A manufacturer has a distribution network to serve distributors,
who ship to retailers, who at the last link of the supply chain would sell the goods in their retail
stores.
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Global Reach
Globalization:
The process by which businesses or other organizations develop international influence or start
operating on an international scale. Globalization is the spread of products, technology, and
information, across national borders and cultures. In economic terms, it describes an
interdependence of nations around the globe fostered through free trade.
The worldwide movement toward economic, financial, trade, and communications integration.
Globalization implies the opening of local and nationalistic perspectives to a broader outlook of
an interconnected and interdependent world with free transfer of capital, goods, and services
across national frontiers.
The Impact of Globalization on Supply Chain Networks:
The only constant in global supply chain management seems to be uncertainty.
Over the life of a supply chain network, a company experiences fluctuations in demand, prices,
exchange rates, and the competitive environment.
A decision that looks good under the current environment may be quite poor if the situation
changes.
Uncertainty of demand and price drives the value of building flexible production capacity at a
plant. If price and demand do vary over time in a global network, flexible production capacity
can be reconfigured to maximize profits in the new environment.
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Arson’s Pharmaceutical Pvt. Ltd Global Reach:
IMPORT:
Arson’s Pharmaceutical Pvt. Ltd import raw material and surgical products from china,
Germany, India, and Korea.
China: Advanced Machinery for bandages and guaze.
India: Raw material of bandage and gauze from Woven fabric Company of India.
Korea: Surgical products chemicals and liquid bandages.
Germany: Advance machinery for mixture and filling.
Outsourcing by companies brings technology to developing countries. Trade initiatives increase

cross-border trading by removing supply-side and trade-related constraints.
Export:
They export their medicines and surgical products to different countries like Afghanistan,
Bangladesh, and Tajikistan through air and sea medium.
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Role of technology in industry & the business perspective
Technology in Industry:
 SAP: Systems Applications and Products in Data Processing.

 Oracle
 3D printing
 Utilization of supercomputers to make complex decisions
 Medical surgical gauze bandage making machine
 Medical Bandage Rolling Machine Used for Gauze
 Water jet loom.
Technology in Arson’s Pharmaceutical:
Oracle: Information System

Oracle module is used in Arson’s Pharmaceutical Pvt. Ltd to keep any type of record related to
sales, Procurement, Production, and Warehousing.
Separate module has been designed for every single department. Record related to Inventory or
issuance of raw material etc to production and the record related to finished goods is maintained
in oracle module prepared for warehouse.
Logistic department keep its record updated about of the delivery of products to retailers in
separate module.
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Medication Therapy Management:

The MTM services include drug use review, drug dose adjustment, comprehensive medication
reviews, order and review lab tests, immunizations etc. The medication therapy management will
enhance medication use and patient outcomes in patients suffering from chronic diseases. It will
cut the cost and improve the quality of care and patient safety.
3D printing:
3D printing builds the pill by spreading layers of the drug on the top of one another until it
reaches to the right dose. It allows the pill to deliver a higher dose of medicine up to 1000 mg. It
is porous enough to dissolve quickly. It is beneficial for patients who have difficulty swallowing
their medication.
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Medical surgical gauze bandage making machine:
 Using central air supply

 high speed, saving energy
 Can make cotton gauze bandage
Medical Bandage Rolling Machine Used for Gauze / Bandage Rolling:
 Medical Bandage Rolling Machine Used for Gauze Bandage Rolling

 Automatic function for rolling and cutting
 Easy operate
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Textile weaving machine surgical cotton bandage making air jet loom:
An air-jet loom is a shuttle less looms that uses a jet of air to propel the weft yarn through the
warp shed. It is one of two types of fluid-jet looms, the other being a water-jet loom, which was
developed previously. The success of the model greatly reduces the equipment cost, do some
simple cloth with low price equipment, can greatly reduce weaving cost, and can be applied to
cotton, chemical fiber and blended fabric.
It can use for cotton bandage making. Its technological level reaches leading in country and
advanced in international.
Blender Mixture Machine:
It is used to mix or blend the different

chemicals.
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Arson’s Pharmaceuticals is working hard for the introduction of new technology. Arson’s
mission is to develop new cost effective and quality products for the community and for the
betterment of patients.
Distribution Management Environment
Distribution Management:
Distribution management refers to the process of overseeing the movement of goods from
supplier or manufacturer to point of sale. It is an overarching term that refers to numerous
activities and processes such as packaging, inventory, warehousing, supply chain, and logistics.
Distribution management is an important part of the business cycle for distributors and
wholesalers. The profit margins of businesses depend on how quickly they can turnover their
goods. The more they sell, the more they earn, which means a better future for the business.
Having a successful distribution management system is also important for businesses to remain
competitive and to keep customers satisfied.
Understanding Distribution Management:

Distribution management is critical to a company's financial success and corporate longevity.
Executing it successfully requires effective management of the entire distribution process. The
larger a corporation or the greater the number of supply points a company has, the more it will
need to rely on automation to effectively manage the distribution process.
Modern distribution management encompasses more than just moving products from point A to
point B. It also involves gathering and sharing relevant information that can be used to identify
key opportunities for growth and competitiveness in the market. Most progressive companies
now use their distribution forces to obtain market intelligence which are vital in assessing their
competitive position.
There are basically two types of distribution: commercial distribution—commonly known as

sales distribution—and physical distribution—better known as logistics. Distribution involves
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diverse functions such as customer service, shipping, warehousing, inventory control, private
trucking-fleet operations, packaging, receiving, materials handling, along with plant, warehouse,
store location planning, and the integration of information.
The goal is to achieve ultimate efficiency in delivering raw materials and parts, both partially and
completely finished products to the right place and time in the proper condition. Physical
distribution planning should align with overall channel strategy.
Arson’s Pharmaceutical Distribution Management Environment
Distribution Function:
The role of the distributor, distribution refers to a process and not a channel entity.
Echelon-delivery system:
Arson’s Pharmaceutical Pvt. Ltd Company is based on Echelon-delivery system. In an echelon-

delivery system, the product is moved and stored using a hierarchical channel structure
consisting of various levels of company-owned or independent distribution centres, warehouses,
and retailers before it is delivered to the customer. This approach to distribution is often
employed by manufactures pursuing a make-to-stock strategy.
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Supply chain distribution format:
Arson’s Pharmaceutical Company comes under a Basic Supply chain Distribution Format.
Channel Based: The manufacturer (normally with large amounts of finished goods) seeks to
manage the distribution process by forming alliances with wholesalers and retailers.
Distribution is basically activities associated with the movement of material, usually finished
goods or service parts, from the manufacturer to the customer.
These activities encompass the functions of transportation, warehousing, inventory control,

material handling, order administration, site and location analysis, industrial packaging, data
processing, and the communications network necessary for effective management.
It includes all activities related to physical distribution, as well as the return of goods to the
manufacturer. In many cases, this movement is made through one or more levels of field
warehouses.
The major components of distribution and logistics will include:

 Transport
 Warehousing
 Inventory
 Packaging
 Information
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 Transportation
Dispatch the finished goods from warehouse through outbound logistics to distributors or
suppliers.
Inbound Logistics:
These include receiving the basic raw materials required for the products making process, from
China, India, Korea, and Germany through NG Apparel Importer, DHL agency and they Trade
locally from Attak (usually turbulent fluid or Zinco solvent) through the distributor “Saleem
Raza”. In trading locally they transferred their products to third party logistic by their own
trucks. They have a agreement with Third party logistic “Salem Raza” and then further they
distribute their products in pharmacies or to retailers.
Outbound-Logistics:
These include planning and dispatch, distribution management, transportation, warehousing, and
order fulfillment. In trading locally they transferred their products to third party logistic by their
own trucks. They have a agreement with Third party logistic “Salem Raza” and then further they
distribute their products in pharmacies or to retailers. The products supplied all over the Pakistan
through distributor as well as exported to the countries like Afghanistan, Bangladesh, and
Tajikistan through air and sea medium. Company deliver the finished goods to the port through
their own transportation system or trucks and than shaheen agency and DHL agency carry
forward the finished goods.
 Warehousing
Arsons pharmaceuticals product is facilitated in warehouses. They have their own Warehouse so
it also reduces the logistic cost. Only logistic cost we bear into move final product to distributor.
Finished goods are stored in warehouse after packing in cartons.
 Inventory
Arson’s Pharmaceutical Pvt. Ltd inventory cost is very less because of aggregation of
inventory at warehouse which is located in the boundary of factory. So there is no need
to open other facility which increases the inventory cost.
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 Packaging
Packaging vary product to product as there are different medicines and surgical products
of the company.
Surgical Products:
Pouching:
Surgical products like Zinc oxide adhesive plaster, Bandages, gauze etc. is packed in plastic tin
or paper. Plastic cover offer additional security away, which is called pouching.
Packaging:
After pouching, surgical products are packed in paper sleeve tin or printed box.
Simple packing: 6rolls/box, 12rolls/box, 24rolls/box.
Size Packaging details Carton size

1.25cmx5m 24rolls/box,30boxes/carton 36x36x36cm
2.5cmx5m 12rolls/box,30boxes/carton 36x36x36cm
5cmx5m 6rolls/box,30boxes/carton 36x36x36cm
7.5cmx5m 6rolls/box,30boxes/carton 35x35.5x45.5cm
10cmx5m 6rolls/box,30boxes/carton 35x36x57cm
 Information
Arson’s Pharmaceutical Pvt. Ltd information infrastructure is quite good because the retailers
belong to Arson’s Pharmaceutical and much of the information handled by the Arson’s
Pharmaceutical itself. So there is no need to do significant investment in information
Infrastructure to integrate Arson’s Pharmaceutical Pvt. Ltd and its retailers
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Gap Analysis
 At Arsons pharmaceuticals there is no proper organized Human Resource (HR)
department. There lies a built-in weakness in HR Management. Human Resource
department not fully functional, and there is less flexibility in employment or hiring
terms.
 Retention, employees leave the industry early because there is no proper existence of HR
department and they do not delight staff by benefits such as incentives, pay, pension
plans, bonuses, empowerment, training etc.
 Lack of advanced infrastructure, high levels of operational cost and various safety
regulations and strict polices during manufacturing as well as distribution.
Recommendations
 They should develop fully functional Human resource department which involves
developing and administering programs that are designed to increase the effectiveness of
an organization or business. It should include the entire spectrum of creating, managing,
and cultivating the employer-employee relationship.
 Developing and overseeing employee benefits and wellness programs.
 Improve information system and adapt SAP.
 The human resource management team recruits potential employees, oversees the hiring
process (background checks, etc.), and provides new employee orientation.
 Effective HR teams encourage company employees to do their best, which contributes to
the overall success of the company. Their work often involves rewarding employees for
good performance and creating a positive work environment.
 Organize orientation programs.
 Show a high level of interest and concern for your employees which results in higher
level of motivation and performance. One of the most powerful ways to do this is to have
a conversation specifically about how to maintain or improve their current level of job
satisfaction.
 Help your employees connect their efforts to the mission and purpose of your business.
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Conclusion
Arsons Pharmaceutical Industry is a manufacturer of Adhesive bandages (Plastic and fabric),

plasters of various kinds, tablets and capsules. Arson’s Pharmaceutical Pvt. LTD is well organized
and well establish company in comparison to other surgical manufacturing companies, and also
have high market share, just because of its commitment, quality assurance, just in time
delivery, on-time production, full fill requirements of customers, using best machinery as
compare to its competitors, there are some facts which company must have to keep in mind for
future,
 What if any of competitor bring new technology for production?

 What if competitors hired skilled labor?
 What if competitors gain high market shares?
 What if demand of customer’s decrease?
We choose Arsons pharmaceutical to visit and have a detailed analysis of the Distribution
management of the company. In this report we discussed the Company’s Distribution process,
distribution channels and networks, supply chain flow chart, and it’s of flow information,
business technology, as well as distribution management process in detail. We record a short film
and have a detailed analysis of distribution management of the company and collected
information for our research project by taking interview of production manager and Chief
Accountant, which includes: Company objectives, different department and functional areas,
supply chain strategy, modes used for transportation, customers, suppliers, competitors,
problems in the supply chain which is affecting overall performance of the company etc. Over all
company object is to better serve the customer in competitive environment make the packaging
according to their demand to make his good repute in the market and also get financial benefits.
Company can improve its departments and processes by focusing on recommendations
recommended by us.
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References
http://www.arsonspharma.com/index.html
Interview Guideline for data collection
 Objectives of Company.
 Detail of different departments and functional areas.
 Detail of customers & competitors.
 Supply chain management of the company.
 Detail of technology they used.
 Sourcing decisions of the company, and detail of suppliers.
 Distribution channel and network.
 Distribution Management.
 Transportation network of the company, detail of modes of transportation
and distribution network design of the company
 Problems that affect the supply chain performance.
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Detail of contact person in the company
Contact Person MR. Muhammad Shahid Mukhtar (Director)

Muhammad Ali Arshad (Chief Accountant)
Phone Number +92-42-35340491, +92-42-35340492
Official Website www.arsonspharma.com
Email arsons@arsonspharma.com
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Arsons Report Final

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ARSONS PHARMACEUTICAL INDUSTRIES (PVT) LTD

SUPPLY CHAIN APPLICATIONS

MBA1Y02181046 KHADIJA FIAZ

MBA1Y02181047 MAHNOOR ZUBAIR

MBA1Y02181010 HADIA TAHIR

MBA1Y02181016 MUAZ RASHID

SUBMITTED TO: SIR ARSLAN HAIDER

DATE OF SUBMISSION: 07-05-2019

SESSION: SPRING (2018)

In the name of Allah, the most Merciful

11. Supply chain management......................................................................................13

12. Efficient supply chain strategy…………………………………………………………………………...15

13. Distribution Channel & Networks............................................................................16

14. Distribution Channels & Networks of Arson’s Pharmaceutical Pvt. Ltd……......19

15. End-to-End Supply Chain Distribution network Flow Chart……………………..20

16. Global Reach…………………………………………………………………………..22

17. Arson’s Pharmaceutical Pvt. Ltd Global Reach……………………………….……23

18. Role of technology in industry & the business perspective…………………………24

19. Distribution management Environment……………………………………………..28

20. Arson’s Pharmaceutical Distribution Management Environment…………………29

21. Supply Chain Distribution Format……………………………………………………30

22. Gap analysis…………………………………………………………………………….32

Company ARSONS PHARMACEUTICAL INDUSTRIES (PVT) LTD.

Year Established 1986.

CEO Dr. Arshad Javed.

Director Mr. Muhammad Shahid Mukhtar.

Business Type Manufacturer, Trading Company.

Products & Services Medicine, Surgical Products.

Total Employees: 100 - 300 People.

Total Annual Revenue US$5 Million - US$10 Million.

Official Website www.arsonspharma.com.

Address 22-K.M.-Defence Road, Off Multan Road, Lahore Pakistan.

Ethics & Core Values

 Excel in meeting customer needs.

 Maintain leadership in national pharmaceutical industry.

 Seek employee involvement, continuous improvement and enhanced performance goals.

 Enhance export business.

 Quality Control (Q.C)

 Quality Assurance (Q.A)

 Marketing & Sales

 Research & Development (R &D)

 Human resource Department

Production Quality Control Marketing HR Operational

Quality Assurane R&D

Surgical Products Medicine Products

First Aid Bandages. Analgesic & Nsaids.

Dressings & Gauze. Anti-Biotic/ Quinolones.

Medicated Plaster. Anti-Ulcers.

Zinc Oxide Adhesive Plaster. Anti-Diarrheal.

Alcohol Swab. Psychotropic.

Arsons Pharmaceutical Industry in commercial or economic competition with these Rivals.

 BSN Medical (PVT) LTD.

Supply Chain Management

Arsons Pharmaceutical Industry is a manufacturer of Adhesive bandages (Plastic and fabric),

Suppliers (International vs. Local)

 International Customers (Export)

They deliver their finish goods through trucks in boxes.

Transportation network of the company

Efficient Supply chain strategy

Primary goal Providing finished goods at lowest cost.

Product design strategy Maximize performance at minimum product cost.

Pricing strategy Lower Margins because price is a prime customer driver.