Inventory Management A Pharma Centric View - Indonesia

Harjanto HeriAnugrah Argon Medica (AAM)

2

In Glance : PT Anugrah Argon Medica

• Established in 1980 in Palembang

• 1 NDC, 36 Branch WH

• 35k+ outlet coverage

• More than 8k skus, 1,8 mn trx

• Multi-channel order management

• CDOB, GSDP WHO 2010, ISO 9001:2015

Indonesia Pharma Characteristics

• Highly Regulated and Fragmented Industry• Huge Investment Cost (R&D, Manufacture & IT systems)

• GDP Enforcement : Mandatory• Compliance across Indonesia archipelago

territory

• Implementation of National Healthcare Systems• Business vs Social Obligation

Regulation…………….Regulation……………….. Regulation

Indonesia Trend Drugs Market and Price

Source: Kemenkes 2018

US$ 4,8 bn

US$ 1,4 bn

Drug Market

Drug Financing Drug Price

Drug Price - Oncology

Indonesia Pharma Value Chain

Manufacturer Outlet/MarketDistributor

Raw MaterialManufacturer/Supplier

Manufacturer Distributor / Wholesaler

Health Care Facilities

Patient / Customer

• Import 90%

• 239 Manuf• MnC 32%• 20 k Products

• 2500 PBF• 15 National PBF

• 9 K Clinics• 2,5 K Hospitals• 17 K Pharmacies• 8 K Drugstores

• 199 mn JKN • 266 mn Population

1. Building & Facilities2. Process Equipment3. Material management4. Production & in process controls5. Lab controls6. Validations7. Change controls8. Contract manufactures9. Repacks, etc10. Specific guidance11. APIs for use in clinical trials

1. Organization & mgt2. Vehicles & equipment3. Shipment containers & container labeling4. Transportation & product in transit5. Documentation6. Repackaging & relabeling7. Complaints8. Counterfeit pharmaceutical product9. Importation10. Contract Activities11. Self-inspection

GSPGDPGMP

1. Personnel2. Premises & facilities3. Storage requirement4. Returned goods5. Dispatch & transport6. Product recall

Indonesian GDP / CDOB

Regulated Market (GDP)

Over-The-Counter / Free Medicines

Indonesian Drug Classification

Limited free medicines

Prescription drugs

Narcotic drugs

Standardized Herbal Medicines

Phytopharmaca

Jamu / Traditional Herb Medicines

Indonesian Traditional Medicines

Quality “CDOB” Control

Objectives:To deliver the• Right Product• Right Quantity• Right Time• Right Customer

Quality Compliance

Products Distribution / SCM : Indo GDP/CDOB

Demand Planning & Transport Mgmt

Warehouse, Inventory & Return Mgmt

Order & Fulfillment Management

ProcurementInbound

ManagementIn Storage Activities

Outbound Management

Returns and Recalls

Supply Chain - Factor and Constraints

• Availability of Product• PO Placement

• Stock Mix - Aging analysis• Saleable – Non Saleable

• Accuracy of Forecast• Sales Pattern

• Safety Stock Level• Processing – Transport

Lead time

• Packaging• Pick-Pack Task

• Service Selection• Geographical Limitation

• WH Readiness – Layouts – Restrictions

• Quarantine Status

Stock Level

Purchase Strategy

WH resources & output

Inbound Process

Replenishment

Strategy

Delivery

Capacity of

Storage

Demand & Sales Pattern

Inventory Managements

SourcingCounterfeit

Inventory & Replenishment

Product Specific Req GDP ComplianceCounterfeitCompliance

SECURITY & TRACEABILITY

Warehouse , Inventory & Return Management (GDP)

Warehouse Management

• CDOB Certification = Mandatory• 1-2 Dedicated Pharmacist

• Approved layout by Authorities

• Segregation : • Pharma : Psychotropic, Precursors,

Medical Devices ; Consumer Products ; Saleable – Non Saleable

Temperature Controlled• Cold Room : 2-8 deg C• Ante Room : 8-15 deg C• Cool Room : 15-25 dec C• Ambient Room : 25-30 deg C

• Documentation : track & trace

Inventory Management

• Number of Products• Demand Type • Geographic• Batch Record • Fraud• Tax Implications• Working Capital

Product Recall (GDP)

Recall Instruction From MAH

Formal Letter

Recall Instruction From Manufacturer

Email /Phone

Prod Tracking Report

Product, Batch No

Recall ProductsShip back to Manufacture

Recall Form

Report to Authorities

Recall Report

A

cBv

ccv

D

24 hours

Next Wave : Digitalization

• 2D Barcode :

Track & Trace

• E-Farmasi,

• E-Consultation

“It will affect the

way we work and

manage

inventory and

transportation”

Source: Kemenkes 2018

How to Match Efficiency and Quality

INDUSTRY-ENG PHARMACIST

Match Supply and Demand, profitably for products and services

SUPPLY SIDE DEMAND SIDE

Quality MgmtSupply Chain Mgmt

Be Efficient

or Die !

THANK YOU