sanofi aventis vaccines supply chain process

7/23/2019 Sanofi Aventis Vaccines Supply Chain Process

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MATERIAL MANAGEMENT REPORT

SUBMITTED TO: MR.ARSALAN ZAHID

SUBMITTED BY: ASAD JAMAL& ZULFIQAR ALI



Table of o!"e!"#

• Introduction of Company• History of Pharmacy

• Sanofi Aventis Product line

• Swot Analysis of the company

• Vaccination Department (Sanofi Pasteur)

• Planning

• Procurement

• anufacturing

• !uality Control and Assurance• Distri"ution Channels

• #arehousing and Storage

• a$or Distri"utors of Sanofi Pasteur

• a$or competitors of Sanofi Pasteur

• %he &verall Supply Chain Process of Sanofi Pasteur Pa'istan

• ecommendations



$o"e Of T%a!#

It was a learning eperience for us to carry out our term pro$ect on *%hesupply chain process of Vaccination Department of Sanofi Aventis+ which was

assigned to us "y our respected teacher r,Arsalan-ahid, #e would li'e to

than' you for providing the guidance and the s'ills that helped us in

preparing the report,

It was an educational eperience to carry out such a term pro$ect on a topic

so informative and practical,

.ours sincerely/

Syed -ulfi0ar Ali 1a0vi

Asad 2amal,



E'e()"*+e S),,a-

In this report we have discussed "rief introduction of Sanofi Aventis, %his

multinational pharmaceutical firm was founded in 3445 having its head office in

Paris/ 6rance, It has various products top "rands includes 6lagyl/ Claforan/ Amaryl/Vaccines/ 7antus/ and many more etc, However/ we have also mentioned Swot

Analysis of Company, a$or strengths which includes li'e strong and recogni8e

"rand name and socially responsive, a$or #ea'nesses li'e/ slow decision ma'ing

process and less employee "enefits and per's, &pportunities which company should

have to avail "y utili8ing their strength and 'ey environmental threats,

%he procurement of the finished vaccines from 6rance Sanofi 7yon company their

storage in a cold temperature environment and the wide distri"ution networ'

channel/ planning of forecasting techni0ue/ manufacturing process cycle of the

vaccines/ warehousing inventory controlling system/ ma$or distri"utors/ ma$or

competitors and some final recommendations are "riefly discussed in this report ,



Sa!of* A+e!"*#

I!"-o/)("*o!

Sanofi Aventis/ multinational pharmaceutical is having its head office in Paris/

6rance, %he company was founded in 3445/ when Aventis was ac0uired "y Sanofi9

Synthela"o/ however "oth the company "asically emerged in :;;;,Sanofi9Aventis

Pa'istan limited (<Sanofi<) has a strong presence in Pa'istan, #ith over :444

employees wor'ing every day with the commitment to improve health and wellness

across the country/ Sanofi ran's amongst the top ten pharmaceutical firms in

Pa'istan,

=y wor'ing in colla"oration with sta'eholders/ it is ensured that patient9centric

approach yields tangi"le "enefits to the common man through provision of 0uality

medicines that cater all age groups, %he company is in the "usiness of improving

lives and alleviating suffering/ "ecause when the world has its health/ it will have

everything,

%he manufacturing facilities of Sanofi9Aventis are among the most modern and

environmentally friendly facilities in the country/ maintaining the demanding

standards of c>P, %here is great emphasis on 0uality/ professionalism and high

ethical standards, %he rich product portfolio of the company includes life9saving

drugs/ several of which are leaders in their respective classes,

THE OMPANY0S HISTORY

%he company was incorporated in :;?@ as Hoechst Pa'istan 7imited, anufacture of

pharmaceuticals and specialty chemicals "egan in :;@, In :;@@ the company went

pu"lic and was listed on the Barachi Stoc' change,

=y virtue of several mergers/ ac0uisitions and divestitures the company underwent

several reincarnations over the years, %oday/ the company is Sanofi9AventisPa'istan limited while the corporate identity is simply Sanofi,



H*#"o- of P%a-,a(

%he earliest drugstores date "ac' to the middle ages, %he first 'nown drugstore

was opened "y Ara"ian pharmacists in =aghdad in @5/ and many more soon "egan

operating throughout the medieval Islamic world and eventually medieval urope,

=y the :;th century/ many of the drugstores in urope and 1orth America had

eventually developed into larger pharmaceutical companies, ost of todayEs ma$or

pharmaceutical companies were founded in the late :;th and early 34th centuries,



Sa!of* A+e!"*# P-o/)(" L*!e

Sanofi9Aventis focuses its activities on following product lineF

• Cardiovascular

• %hrom"osis

• &ncology

• Central nervous system

• eta"olic disorders

• Internal medicine

• Vaccines

• &ral anti dia"etic

• Pain management

• Allergy management

• Anti "iotic

• Diarrhea

• >astric disease

• Cough and cold

• Anti malaria

• Sleep disorder



S1OT A!al#*#:

INTERNAL STRENGTHS

:) Strong and recogni8ed

"rand name,3) esearch G development,

) Socially responsive,

5) Patent Protection

) Huge and strong product

portfolio/ catering different

segments,

?) State of the art

manufacturing plants, (&nly

"lood plasma technology inAsia)

@) P system "eing used/

to see' improvement in

processes,

WEAKNESSES

:) Slow decision

ma'ing process due toelongated hierarchy

structure,

3) Decreasing mar'et

share,

) 7ess employee

"enefits and per's,

5) %ough Credit Policy

(CashCredit

J;K::K)

EXTERNAL OPPORTUNITIES

:) Pa'istan has a population

growth rate of :,?K per

annum, Higher population

growth means that therewould "e a larger mar'et

availa"le for the

pharmaceutical industry,

3)Customers interest and

preference for "uying

foreign medicines rather

than local medicines

) merging disease

5) Ac0uisition of localcompanies,

) Increased awareness

a"out allopathic mode of

medicine

THREATS

:) %he sale of 6AB

A1D SL>>7D

DICI1S at low

prices3) 6inancial crisis is

"ecoming an o"stacle

for development

opportunities,

) Lse of her"al and

homeopathic

medicines,

5) >overnment fiing

prices of pharmaceutical

products, Difficult to

eit the industry,

) perienced

wor'force fleeing out

to other nations for



"etter employment

opportunities,

$AINATION DEPARTMENT 2SANOFI PASTEUR3:

Sanofi Pasteur/ the vaccines division of Sanofi/ is the largest company

in the world devoted entirely to human vaccines, %heir driving goal is

to protect people from infectious /*#ea#e# "y creating safe and

effective vaccines,

%heir company offers a "road range of vaccines in the world/ providing

protection against 34 "acterial and viral diseases, %hey distri"ute morethan : "illion doses of vaccine each year/ ma'ing it possi"le to

vaccinate more than 44 million people across the glo"e,

A 4lobal (o,5a!:

• Head0uartersF 7yon/ 6rance

• evenueF6789; ,*ll*o! in 34:5

• Al,o#" <;8=== e,5loee# worldwide

• ore than >=? of #"aff devoted to *!/)#"-*al o5e-a"*o!#

<; 5-o/)("*o! a!/@o- R&D #*"e# located in arcy lEtoile/ Val de

euil and 1euville in 6ranceM in Swiftwater (Pennsylvania)/ Cam"ridge

and Canton (assachusetts)/ &rlando (6lorida) and oc'ville

(aryland)/ LSAM in %oronto/ CanadaM in Pilar/ ArgentinaM in Shen8hen/

ChinaM in Hydera"ad/ IndiaM in &coyoacac/ eico and in

Chachoengsao/ %hailand



VaccinesF A 'ey strategic focus

Sanofi Pasteur/ the vaccine division of Sanofi group/ is the largest

company in the world devoted entirely to human vaccines, %o prevent

diseases in children/ adolescents and adults around the world/ theSanofi Pasteur GD team is developing new generations of vaccines,

Sanofi Pasteur offers the widest range of vaccines for 34 diseases,

#ith tomorrowNs health challenges in view/ the GD team of Sanofi

Pasteur/ the >roupNs Vaccines division/ is wor'ing on "oth innovation

and improvement of vaccine delivery and modes of administration,

ither alone or in partnership/ the research team is attac'ing such

ma$or diseases as dengue/ pneumococcal infections/ cytomegalovirus/

malaria/ tu"erculosis/ Chlamydia and %ype = meningitis, In addition/sanofipasteur remains at the forefront of influen8a pandemic

preparedness,

Vaccines provide an effective response to ma$or diseases/ generally as

a preventive measure "ut sometimes as a therapeutic solution,

Seasonal influen8a/ for eample/ is a constant concern for health



authorities throughout the world/ and Sanofi Pasteur is the undisputed

leader in the field of influen8a prevention, Sanofi Pasteur continued to

"ring innovative/ effective and easier9to9use vaccines to mar'et,

VaccinesF

%oday/ according to the #orld Health &rgani8ation (#H&)/ vaccines are

availa"le to protect against more than *!fe("*o)# /*#ea#e#,

Sa!of* Pa#"e)- %a# "%e b-oa/e#" a+a*lable -a!4e of +a((*!e#8

5-o"e("*!4 a4a*!#" = *!fe("*o)# /*#ea#e#

• #orldNs largest producer of influen8a vaccinesF over <= ,*ll*o!

/o#e# 5-o+*/e/ *! ==C

• 1o-l/0# lea/*!4 5-o+*/e- of poliomyelitis vaccine

• B-oa/e#" -a!4e of modern pediatric com"ination vaccines for

children throughout the world



• #orldNs largest provider of meningococcal vaccines with

an )!fal"e-*!4 (o,,*",e!" to provide meningococcal vaccine to

fight epidemics in Africa

• La-4e#" 5o-"fol*o of +a((*!e# for travelers and people living in

tropical areasF typhoid/ ra"ies/ yellow fever/ 2apanese encephalitis/meningococcal meningitis/ cholera/ hepatitis A/ hepatitis =

During 344J/ a new "usiness unit was set up in Sanofi9Aventis

Pa'istan to handle the vaccines "usiness in Pa'istan, Sanofi Pasteur

has a product portfolio that offers protection against 34 infectious

diseases that includeF



PLANNING:

!uantitative forecasting techni0ue is "eing used "y the Sanofi Pasteur for the

seasoned vaccines li'e typhoid/ influen8a that have past data trend availa"le to

Sanofi Pasteur and for some new emerging diseases li'e dengue the product

forecasting in still in the pipeline in which 0ualitative techni0ue is used in which

epertise opinions thorough out the world are held under consideration for the

forecasting of the dengue vaccines,

&n glo"al level scale there are certain limitation faced "y the Pa'istan for the

vaccines as it is a third world country and glo"al manufacturing is very sensitive,

%he regional manufacturing ta'es up to to ? months for producing vaccines

related to any disease, If the first world country has fluctuation in demand the

higher demand of those countries are met "y the rd world countries inventory,

%he supply chain planning team of LSA/ Canada usually sits in Singapore with in

touch of 7yon company in 6rance, Pa'istan Sanofi doesnNt have access into the

planning of the vaccines production,

Some vaccines are "eing produced on level "ased strategy depending up on the

nature of demand of those vaccine is constantly sta"le original forecasts of the

country and some speciali8ed vaccines li'e yellow fever vaccine is produced on

chase strategy "ased upon the demand of African countries,

If some 'ind of epidemic disease occurs in any region of the world the Sanofi lyon

(6rance) usually enhances its vaccines production schedule with proper

concentration according to the demand re0uirements of the victimi8ed countries,

Sanofi Pa'istan "enchmar's the forecasting of the competitors li'e >SB, If the

competitors forecasting of the vaccines is a"out :44444 of typhoid vaccines then

the sanofi Pasteur Pa'istan would decrease its forecasting to 4444 typhoid

vaccines and in some special case if the >SB fails to launch the vaccines of :44444

than sanofi Pasteur Pa'istan gra"s that opportunity and enhances its forecast up to

:4444 vaccines,

P-o()-e,e!":



%he vaccines are imported in finished form from 6rance 7yon the parent company

with credit term of ?4 days with the parent company, %he lead time consist of ?

months from the process of "eginning till finishing of the final product to the related

companies orders unless they have ecessive inventory of the vaccines in their

pipeline,

%he supplier of multinational pharmaceutical company is usually a parent company

so therefore they face allegation of transfer pricing as if one thing costs :44 will "e

a"out :444 to Sanofi Pa'istan Company, %here are no certain financial ris' dealing

with the parent company supplier "ut Sanofi Pa'istan usually faces the commitment

ris' of the parent company as they are the only sole manufacturers and suppliers of

the vaccines product,

%he parent company gives priority to the :st world countries orders rather than the

rd world countries hence therefore some of the speciali8ed vaccines are still not

availa"le in the Asian region in Pa'istan,

VACCI1 DV7&P1% C.C7 (A1L6AC%LI1> P&CSS)

Vaccine research is long/ comple and costly, =ecause a vaccine is a "iological

product made from living microorganisms/ its development cycle is 0uite different

from that of a pharmaceutical productF

SEED VIRUS:

%he first step in developing a vaccine is o"taining a seed virus, %he seed virus is a

specially modified version of the virus designed to produce a vaccine in mass

0uantities, After world health officials analy8ed and identified the dominantcirculating strain/ they selected virus strains and su"mitted them to contracted

la"oratories for preparation of the seed virus,

PASSAGING PROCESS OF SANOFI PASTEUR:

Lpon receipt of the seed virus/ Sanofi Pasteur "egan the development process

called *passaging/+ to prepare a *wor'ing seed,+ Passaging is the process for

acclimating virus to grow in an egg9"ased production environment at optimumyield, illions of specially prepared chic'en eggs are used to produce the vaccine,

%he eggs are delivered to Sanofi Pasteur and each one is in$ected with the wor'ing

seed, %he eggs are then incu"ated allowing the virus to multiply, After incu"ation/

the virus9loaded fluid is harvested followed "y multiple purification steps to ensurethe virus in inactivated,

APPROVAL OF FDA REGULATORY

%he 6DA will determine the clinical trial protocols for testing all pandemic vaccines,

Since people may respond differently to epidemic viruses/ it is important to

determine safety and dosage prior to implementing a large9scale immuni8ation

program,



QUALITY CONTROL DEPARTMENT:

!uality control tests are performed on all "atches for purity/ sterility and potency in

each step of the production process, Doses of the vaccine are formulated and filled

in vials and syringes that must "e properly pac'aged and la"eled, Samples of every

lot of formulated vaccine are sent to the 6DA for release, Shipments of pandemicvaccines "egin once health authorities authori8e it and esta"lish recommendations

for immuni8ation,

DISTRIBUTED HANNELS

GOODS FLO1S HART



In Pa'istan there is a cold chain warehouse of the Sanofi Pasteur located in Barachi

through which the inventory is "eing stored in properly controlled temperature of 3

to J degree centigrade and are further distri"uted to all over the Pa'istan from the

warehouse,

%here are : distri"utors in Pa'istan who generally purchase the vaccines from the

company and further distri"ute it to the wholesaler and retailers and the

institutional distri"ution is "eing handled "y the Sanofi Pa'istan itself they usually

transmit the vaccines "y the air mode of transportation "ecause the orders of the

institution are generally shorter than the large distri"utors of the company,

#hen they usually sell the vaccines to the distri"utor they maintained the

temperature of 3 to J degree through cold chain containers that are design for

these cold chain supply items, Distri"utors are maintaining the temperature with

their speciali8ed cold chain vans ,

%here is a ris' of non payment "y the customers of Sanofi which includes the

distri"utorsN as well, So to tac'le this pro"lem/ the company sells their products on

cash "asis to the distri"utors which comprise approimately J;K of the companyNs

sales,

%he reversal flow of the product is properly "eing managed "y the Sanofi Pasteur in

two ways, 6irstly/ the ecessive inventory is returned "y the distri"utor "ac' to the

company which is in turn supplied to another distri"utor who has demand for

supplies, Secondly/ the epired and nearly epired inventories returned "y the

distri"utors to the company are disposed of "y the company "efore "eing used,

1a-e%o)#*!4 a!/ S"o-a4e:

%here is only one cold chain warehouse consist of 544444 inventory capacity of

vaccines located in Barachi sometime when there is large consignment received "y



the company they usually rent the cold chain container to cater the higher

inventory demand,

%he whole setup of maintaining and storing inventory is usually computeri8ed "ased

on P system in which the company monitors the inventory level up to : to 3

months of the distri"utors directly and distri"utors do not have access to see' thecompanyNs inventory level, %he sales out are "eing monitored "y the company in

which the inventory that has "een sold "y the distri"utor to the retailers and

wholesalers comes in the record of the company,

#hereas they canNt monitor the inventory level of the institutions due to the

inaccessi"ility given "y the institutions,

%he pac'aging of the insulin is usually solely produced "y the company itself in

accordance with instructions of government of Pa'istan Sanofi Pasteur has "een

la"elling the pac'aging in Lrdu version for administration of dose use safety,

Mao- /*#"-*b)"o-# of Sa!of* Pa#"e)-:



Mao- o,5e"*"o-# of Sa!of* Pa#"e)-:

:, P6I- I1C,3, CB G C& I1C,

, >7AO&SI%H7I1 P7C5, 1&VA%IS

T%e O+e-all S)55l %a*! P-o(e## of Sa!of*

Pa#"e)- Pa*#"a!



%he supply chain process is distri"uted in to three phases i,e, manufacturing of

finished product in 6rance shipment of that finished product to Pa'istan "y air and

second storage at optimal temperature level and rela"eling of the product in Lrdu

and third final stage consist of distri"uting the vaccines to the medical institutions

and distri"utors in cold chain containers and cold chain vans distri"ution networ' till

it reaches the final consumer,

Shipment of the product to Pa'istan depends upon push and pulls strategy, In pushstrategy view 6rance anticipates the demand of vaccines from Pa'istan and in pull

view orders from Pa'istan are made to the manufacturing unit "ased in 6rance to

the 7yon Company,

REOMMENDATIONS:



• %he company should rela its tough credit policy for the time9tested and

reputa"le customers in the mar'et, J;K of sales are made on cash "asis,

%here are reputa"le doctors in the medical industry who if given the vaccines

on credit terms/ can enhance the share of the company ensuing greater

mar'et share, =y relaing tough credit policy only for reputa"le distri"utors

and renowned doctors/ the company can give tough competition to its

competitors as a result of increased sales, %he time9tested distri"utors in the

mar'et donNt create pro"lems li'e delayed payments or default,

• %he company needs to enhance its storage capacity of 544444 inventories of

vaccines relying on the single cold warehouse unit "ased in Barachi "y

ac0uiring some new geographical location or a unit to cater the higher

demand of disease li'e dengue and other dia"etic insulins, =y doing that the

ma$or pro"lem of renting a cold chain container will get dissolved once for

all,

• %he parent company of 6rance 7yon needs to provide e0ual priorities to the

rd world countries orders li'e they are providing for the :st world countries

orders as they are the only solely producer in the vaccines field and the

diseases which are life threatening are dependa"le upon them so for

minimi8ation of the causalities in the rd world country concentration and

priority level should "e to same etent li'e :st world countries orders,

• 6ocusing on untapped mar'ets li'e Cancer/ HIV/ and new disease to increase

mar'et share,

• Conducting seminars and A%7 (A"ove the line) advertising activities to create

awareness a"out emerging diseases,

• %hey should monitor the inventory level of the institutions li'e they are

monitoring for distri"utors,

sanofi aventis vaccines supply chain process

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