Table of contents

Introduction

Principal Activities

Company profile(vision, mission)

Core values and competencies

Supply chain mission and process

a) Supply chain integration

b) Supply chain structure

c) Supply chain process

i. Procurement process(including vendor approval

requirements, Bid sheets, vendor approval steps)

ii. Types of purchases

iii. Material classification

iv. Documentation for purchasing(local or imports)

v. Advising banks of Abbott

vi. Shipping companies through which Abbott import

raw material

D) Warehouse storage procedure

Suppliers of Abbott raw material

Make or buying decision

Overview of documents(including presentation of

document and suppliers rates for the month)

Abbott Distribution

Distribution channels

Future outlook of Abbott Pharmaceutical

Introduction

Abbott started operations in Pakistan as a marketing affiliate in 1948; the company has

steadily expanded to comprise a work force of over 1500 employees. Currently two

manufacturing facilities located at Landhi and Korangi in Karachi continue to use

innovative technology to produce top quality pharmaceutical products.

Abbott Pakistan has leadership in the field of Pain Management, Anesthesia, Medical

Nutrition and Anti-Infectives. Our wide range of products is managed and marketed

through three marketing arms.

On June 29, 2005 Abbott Pakistan Achieved Class 'A' accreditation against the Oliver

Wight ABCD Check list. This was an outstanding achievement, which puts Abbott

Pakistan amongst some of the best global companies in terms of operational

excellence.

A continuous process of innovation, research and development at Abbott's worldwide

facilities enables Abbott Pakistan to offer effective solutions for various healthcare

challenges, with products and services that are well focused, within the customer's

reach and contribute to improved health care of the people of Pakistan.

Abbott believes that Corporate Social Responsibility is fundamental to earning and

deepening the trust of the people it serves, an integral part of its commitment to improve

lives has contributed to a number of humanitarian causes and supported various

institutions in various fields including health and education.

The promise of our company is in the promise that our work holds for health and for life

General information

Head Office: Lahore:

Abbott Laboratories (Pakistan) Limited, Abbott Laboratories (Pakistan) Limited,

Diagnostics Division, Diagnostics Division,

Opposite Radio Pakistan Transmission, House No: 123 - A, Ahmed Block,

Hyderabad Road, Landhi, New Garden Town, Lahore.

Karachi. Telephone#: 042 5854141,

Office: +92-21-5015045-49 (111 222 688) Fax#: 042 5844737

Dir: +92-21-5100422

Fax : 92-21-5042952

Islamabad: Peshawar:

Abbott Laboratories (Pakistan) Limited, Abbott Laboratories (Pakistan) Limited,

Diagnostics Division, Diagnostics Division,

House #35,Street #39,I-10/3 University Town,

Islamabad. Karachi Market, Khyber Bazar,

Office 051-4445670 Peshawar.

Fax 051-4445671 Office +92+91-5840252

Fax +92-51-5840252 Islamabad.

Principal Activities

Abbott Laboratories (Pakistan) Ltd. The company’s principal activities are to

manufacture, import and market based pharmaceutical, nutritional, diagnostic, hospital

and consumer products and provides toll-manufacturing services. It operates in two

segments Pharmaceutical and other. Pharmaceutical segment manufactures, import

and markets research based pharmaceutical products registered with the ministry of

health and provides toll-manufacturing services. Other segments includes importing,

manufacturing and marketing diagnosing equipment, testing kits, consumer healthcare,

nutritional and hospital products. The company’s pharmaceutical products include

Kalaricid, Erthrocin, Hytrin, Epival, Brufen, Entamizole, protium and Forane. The other

products include Ensure, Pediasure, Pedialyte, Formance etc.

Company profile (vision, mission)

VISION

“To be a premier health care company in Pakistan”

MISSION

To deliver consistently superior products and services which contribute significantly to improve the

quality of life of the consumers? This will be achieved while ensuring that the interests of all

stakeholders including healthcare providers, employees, share holders and the communities are

secured. Abbott Pakistan will comply with the highest standards of local cGMP/EHS and adhere to the

corporate code of Business Conduct and Ethics.

DEDICTATED TO

Employees

Customers

Share holders

Suppliers

Public

Core values and competencies

CORE VALUES OF ABBOTT

ENDURING

CAPABILITIES OF ABBOTT

PIONEERING

CARING

ACHIEVING

ABBOTT

AGILITY

INTEGRITY

INTEGRITYY

QUALITY

OF

EXECUTION

CORE COMPETENCIES OF ABBOT

PRODUCTS &

SERVICES

CUSTOMER

INTIMACY

OPERATIONAL

EXCELLENCE

PEOPLE

SUPPLY CHAIN MISSION

ABBOTT’s SCM mission is to configure, coordinate and improve all the

sequentially related activities and set of operations with the idea of satisfying the

entire chain of suppliers’ suppliers and customers’ customers by providing right

product, at the right time, in the right quantity and becoming highly recognized by

our employees, customers and shareholders and abiding by Government

regulations by adhering to strict ethical and moral standards”.

SUPPLY CHAIN INTEGRATION

ABBOTT’S SUPPLY CHAIN STRUCTURE

MARKETING

TRANSPORTATION

SUPPLIER

WAREHOUSE (M O)

Manufacturing

WAREHOUSE ( F O)

CUSTOMER

RETAILERS/ WHOLESELLERS

DISTRIBUTORS

I

N

F

O

R

M

A

T

I

O

N

F

L

O

W

P R

O

D

U

C T

F

L

O

W

SUPPLY CHAIN MANAGER

SUPPLY CHAIN PROCESS

MASTER

SCHEDULER

CAPAPCITY

PLANNER MASTER

SCHEDULER

LOCAL/ IMPORTED

PURCHASE

MANAGER

EXPORTS

MANAGER

WAREHOUSE

MANAGER

MATERIALS MANAGER

PRODUCTION

PLANNER

PRODUCTION

PLANNER

Marketing

( Demand Generated)

Manufacturing Planning

(Demand Generated)

Vendors

(Quotations asked)

LC

Follow up ---import &

dispatches

Material Planning

QA

Released by QA

Material in Warehouse

Clearance Transit Time

Material Available For

Production

Production

PROCUREMENT

ABBOTT Pakistan has two purchasing departments. One is for local purchases and the other one

is for imports.

Wholesalers

Satellite Depot’s

& Distribution

Retailers

Institutions

The procurement function is divided in two categories:

Direct Product Related Purchases

General Purchases

There is a clause imposed by ABBOTT Int. Chicago on ABBOTT Pakistan that if the amount of

requisition value is above $ 1000, then at least 3 quotations must be taken.

GENERAL PURCHASES

General Purchases include routine items such as stationery, office equipments, transportations

and other minor items which are not directly related with production activities.

DIRECT PRODUCT RELATED PURCHASES

This includes each and every raw material that is required to make end products

MATERIAL CLASSIFICATIONS

ABBOTT Pakistan classifies its materials according to the values or the cost of materials,

basically they have allotted three grades or types to their materials:

Grade A (very costly materials, e.g. erythromycin)

Grade B (moderate cost, e.g. clathromycin)

Grade C (least cost, e.g. bubble gum and artificial flavors like mint)

LOCAL PURCHASING

Local purchasing department of Abbott Laboratories Pakistan deals with local vendors concerning:

Designing –FP Plastics, Al-Ahad Plastics, Thermoplas (Korangi) > Lead Time 30 Days

Printing–Ammara Commercial Printing (Memon Goth, Malir) > Lead Time 30 Days

Packaging – Saima Packaging (Korangi Industrial Area) > Lead Time 30 Days

Slicing Aluminum foils - Muhammad Corporations, Gulshan -e- Iqbal

Cartons – Sultan Packages (Dalmiya, Karachi) > Lead time 7 Days

Cartons – King Packages (Lalukhait, Karachi) > Lead Time 7 Days

Cartons - Decent packages (S.I.T.E Area) > Lead time 7 Days

Dextrose – Rafhan Industries (Faisalabad)

Pseudo - Alpha Chemicals – (Lahore)

Essential Chemicals – (Lahore)

IMPORT PURCHASING

ABBOTT Pakistan has indenters through which they place their orders to the respective manufacturers

of raw materials

Some of the Indenters of ABBOTT Pakistan are:

Rasheed sons - KHI

Munico Associates - KHI

S. Aijazuddinn - KHI

Arfeen - KHI

INDENTER

An indenter is a local supplier or the middle party, we also call them as an agent who gives

information to the manufacturer and tells then to arrange the material. They have link with

the manufacturer and paid commission by them.

IMPORTED RAW MATERIALS

Dy Red – Sencient UK

Potassium chloride – Merck, Germany

Sodium Citrate – Sanfu, Taiwan

Sodium chloride – Dominon salt, New Zealand

Acid Citric – Jungvuzlaur, Austria

Aluminum Seals and PV– Vaasen, Flexible Packaging Holland

Artificial bubble gum – IFF Holland

Supplier for Sugar - Malayam Malaysics, Malayasia

Sodium Sulphate – Merck, Germany

IMPORTED MATERIALS’ AVERAGE LEAD TIME

By sea is approximately 75 days

By air approximately 45 days

DOCUMENTS REQUIRED FOR IMPORT

Invoice

Picking List

Form 3 and 7 (Imposed by Ministry of Health which contains Batch Certificate, name of

the manufacturer, raw material to get a Drug Import License from MOH)

Bill of Lading / Air Label

Certificate of Analysis

Certificate of Origin

ADVISING BANKS OF ABBOT PAKISTAN

Detuche Bank

Standard Chartered Bank

ABN AMBRO

HSBC

Then after this process the LC is send to the concern suppliers and indenters and then they

set the raw material to be shipped, shipment is done through different shipping company and

this part is dealt by the imports department.

FEW SHIPPING COMPANIES THROUGH WHICH ABBOT

PAKISTAN IMPORTS RAW MATERIALS

P&O NEDLLOYD

MAERSK SEALAND

HOPAG LLOYD

Warehouse storage procedure

WAREHOUSE

Checking of raw material on the

bases of check list

Received through MRR & kept in quarantine for QA approval

Storage of raw/packaging

material after acceptance

Handling of non acceptance

material

Storage of control/locater system

Storage of temperature sensitive

material

Issue of raw material

M O

Hazardous drug labeling

Washing of utensils, containers

Material requisition return

Cold Storage

(Refrigerators 2C- 8C)

Wastage Warehouse

Manufacturing

FIFO

The process of warehousing starts when a consignment enters the premises of ABBOTT and

starts unloading. An actual physical cont is taken first and only then is the consignment allowed

to be fully offloaded. Two separate warehouse facilities exist: one for finished orders and one for

material orders.

While offloading material orders, if any individual packet is found to be damaged or exposed, it

is straight away placed in the Rejection Room which is located separately so that there is no

possibility that it might get mixed and be used up in the production process. Also, there are

certain raw materials which require a temperature range of 2-8°C. In order to ensure that this

temperature range is maintained throughout its long journey, each packet has a temperature seal

attached to it and if, at any point in time during transportation, the temperature exceeds the said

limit, it changes color.

Suppliers of Abbott raw material(International)

Direct Material Suppliers

Agilent Technologies

August Faller KG

Colbert Packaging

Graham Packaging Company, L.P.

Nosco

Palladio Zannini

Pratt Industries

Precision Wire Components

Robinson Printing

Sigma-Aldrich Inc.

Sonoco

Sumitomo Seika Chemicals Co., Ltd.

Tekni-Films, A Tekni-Plex Company

The Tech Group

Thoro Packaging

Toyobo Co., Ltd.

Zeus Industrial Products, Inc.

Indirect Suppliers

Cognizant Technology Solutions

Dell

ManpowerGroup Solutions TAPFIN

Mindshare

PHH Arval

Contract Manufacturers

Besins Healthcare

Bionostics, Inc.

Catalent Pharma Solutions

RR Donnelley Global Turnkey Solutions

Quantum

Staples

Verizon Wireless

VWR International

Overview of documents & supplier rates

Supplier rates and date of consignment data from pral software abbott

work\Attachments_2012_12_20\CH 29 DRY FEB 2012.xls

Bill of Lading / Air Label abbott work\Attachments_2012_12_31\BL.jpg

Invoice

Picking List

Custom clearance and forwading agent document

Bank contract for consignment registration and letter of credit

Application for permission of purchase of foreign exchange