Report on Squire

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Report on Square Pharmaceutical Ltd.

Introduction:SQUARE today symbolizes a name a state of mind. But its journey to the growth and

prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one

of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company,

is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985

and is now on its way to becoming a high performance global player. SquarePharmaceuticals

Ltd: Square Pharmaceuticals Limited is an organization with equal emphasis on Leadership,

Technology, Quality and Passion. Square Pharmaceuticals Ltd. is the leading branded generic

pharmaceutical manufacturer in Bangladesh producing quality essential and other ethical drugs

and medicines. It was established in 1958 and has been continuously in the 1st position among

all national and multinational companies since 1985. And now Square Pharmaceuticals is set on

becoming a high performance global player in the field.

Background:

SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it

has been continuously in the 1st

position among all national and multinational companies since

1985. It was established in 1958 and converted into a public limited company in 1991. The sales

turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15% market share

(April 2003March 2004) having a growth rate of about 16%.

SQUARE Pharmaceuticals Limited has extended the range of services towards the highway of

global market. She pioneered exports of medicines from Bangladesh in 1987 and has been

exporting antibiotics and other pharmaceutical products. This extension in business and services

has manifested the credibility of Square Pharmaceuticals Limited.

Square Pharmaceuticals Limited (SPL) has been honored for being the most successful

entrepreneur at Bankers Forum Award 2005. The award has been given i n recognition to thecompanys ethical and socially-responsible business practices and smooth operations with their

bankers. SPL has never been a bank defaulter over their forty-eight years of business. Over

13,000 people are working in Square Group at present; while the number was only 1,500 ten

years back. The growth of the company is reflected in making more and more peoples life better

and better everyday thus contributing to the development of the nation. She was delighted to
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know that Square being the only local pharmaceutical entity from Bangladesh, which is on the

verge of entering the regulatory markets of UK and the European Union. During its participation

at the 7th SAARC Trade Fair at Karachi, the company has made contacts with some of the most

influential and respected local and global pharmaceuticals entities that are operating in Pakistan.

They have shown great interest in Squares products, especially its huge range of products in

different therapeutic classes to offer to the Pakistan Pharmaceutical Market, and most

importantly, its wide range of newer molecules, combination drugs and some of its specialized

products like inhalers, suppositories that have a very unique demand in the Pakistan

Pharmaceutical Market. The company has already forged ahead to evaluating these potential

prospects for the final selection of partners who would best serve its long-term interest in this

highly lucrative market. Square plans to launch its operation in Pakistan very soon. This world

class facility is housed in a 95,000 sq. feet of covered area and will manufacture Cephalosporin

antibiotics in tablets, Capsules, Dry Syrup and Injectable preparations. The annual capacity per

shift of the plant is 64 million tablets, 47 million capsules, 3.32 million bottle of dry syrps and

10.58 million of injectables. The facility was built by Telstar S.A. of Spain, a world renowned

pharmaceutical manufacturing facility, on a turn key basis. The facility will add new era in

Pharmaceutical export from Bangladesh. Patients in the country will also now get developed

country standard Cephalosporins from the facility.Presidents and Secretary Generals of

Bangladesh Medical Association (BMA) and Bangladesh Pharmaceutical Manufacturers

Association (BAPI) along with many dignitaries from Home and Abroad attended the

inauguration.

We strive for..

We inSQUAREstrive, above all, for top quality health care products at the least cost reaching

the lowest rungs of the economic class of people in the country. We value our social obligations.

We owe to our shareholders and strive for protection of their capital as well as ensure highest

return and growth of their assets.

We strive for best compensation to all the employees who constitute the back-bone of the

management and operational strength of the Company through a pay-package composing

salary/wages, allowances, bonus, profit participation, leave salary and superannuation &

retirement benefits.
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We strive for best co-operation of the creditors & debtors the banks & financial institutions who

provide financial support when we need them, the suppliers of raw materials & suppliers who

offer them at the best prices, the providers of utilities-power, gas & water etc. and the customers

who buy our products & services by redeeming their claim in time by making prompt payment

and by distributing proper product on due dates.

We strive for fulfillment of our responsibility to the Government through payment of entire

range of due taxes, duties, and claim to various public agencies.

We strive, as responsibilities citizen, for a social order devoid of malpractices, anti-

environmental behaviors, unethical and corruptive dealings.

We strive for practicing good governance in every sphere of activities covering inter area not

being limited to, disclosure & reporting to shareholders holding AGM in time, distribution of

dividends and other benefits to shareholders, reporting/dissemination of price sensitive

information, acquisition of share by insiders, recruitment & promotion of staff, procurement &

supplies, sale of assets etc. all that directly and indirectly affect the interest of concerned groups

the shareholders, the creditors, suppliers, employees, government and the public in general.

Vision

MissionOur mission is to provide quality & innovative healthcare relief for people, maintain stringentlyethical standard in business operation also ensuring benefit to the shareholders and otherstakeholders.

We see business as a means to the wellbeing of the investors, employees and the society at large,leading to accretion of wealth through financial and moral gains as a part of the process of thehuman civilization.

Objective

Our objectives are to conduct transparent business operations within the legal & social frame

work with aims to attain the mission reflected by our vision.

Square Quality Policy


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Ensure strict compliance with WHO GMP standards and local regulatory norms in every phase

of sourcing & procuring quality materials, manufacturing, quality assurance and delivery of

medicines.

Ensure all activities through documented Quality Management System (QMS) complying

International Standard requirements of ISO 9001 through continuously developing Human

Resources by regular training and participation.

Square is committed to undertake appropriate review, evaluation and performance measurementof processes, business activities and Quality Management System for continual improvement toensure highest standard, customer satisfaction, developing human resources and company'sgrowth.

Product Category of Square Pharmaceuticals Coated Capsules

Suppositories Injections Liquids Oral Dry Powders Dry Powder Inhalers Metered Dose Inhalers

Export:

Square Pharmaceuticals has invested in state of the art formulation plants aligned to regulatedmarket standards. Four plants based on the Dhaka site can produce pharmaceutical products tothe highest GMP specifications. These plants have been designed by internationally recognisedfirms and equipped with the best machines that can currently be found on the European and USmarkets.Square Pharmaceuticals has also created quality systems and SOPs according to FDA and EUregulatory agencies specifications.These four plants are:

General plant (approved by MHRA)

Cephalosporin plant (quality systems aligned to MHRA requirements, plant being

prepared for EU regulatory agencies and FDA inspections) BFS plant (quality systems aligned to MHRA requirements, plant being prepared for EU

regulatory agencies and FDA inspections)

Biotech (insulin) plant under construction

Highlights

Exports pharmaceutical finished products since 1987


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Offers quality products at competitive price

Offers more than 250 off-patent and on-patent molecules

Offers facilities for contract manufacturing

Provides assistance in product promotion and training in overseas markets

Present Markets:

Asia: Bhutan, Cambodia, Maldives, Myanmar, Papua New Guinea, Nepal, Sri Lanka, Vietnam,

Yemen, Uzbekistan, Iraq

Africa: Ghana, Kenya, Libya, Mauritius, Mozambique, Sierra Leone, Somalia, Malawi, Comoro

Islands

Europe: Kosovo

Markets under Exploration

Asia: Malaysia, Philippines, Laos, Iran, Saudi Arabia, UAE, Qatar, Hong Kong, Singapore,

Thailand

Africa: Tanzania, Sudan, Niger, Nigeria, South Africa, Chad, Algeria

Europe: Ukraine, Russia, England, Denmark

America: Costa Rica, Mexico, Nicaragua

Focus:

Strengthen its position in the present markets

Work is in progress to enter into regulated markets in Europe and United States

Work is in progress for the site approval by UK MHRA

Ace Plus +

We have considered a product of Square and that is Ace Plus +

Ace Plus is the combination of Paracetamol and Caffeine. Paracetamol is one of the safest andmost widely used over the country.

Raw Materials:The major raw materials for the production of Ace Plus are : phenol, acetic anhydride,

acetic acid, sodium nitrite and sodium sulphide.

Indication:Fever, headache, migraine, muscle ache, backache, toothache and menstrual pain.


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Distribution Department at a Glance

ObjectiveSupply Right products in Right place in Right timeHistory : SPL opened first Depot at Barisal in 1995

LocationCentral Depot : Hospital Road, Salgaria, Pabna

Depots

Depot Address Phone

Dhaka 355-356, Tejgaon Industrial Area, Dhaka-1208. (880-2) 8828775

Pabna Hospital Road, Salgaria, Pabna. (880-731) 66580

Bogra877/A, MS Road, Bakshi Bazar, Malati Nagar,Bogra

(880-051) 64747

RangpurSouth Guptapara,Kaminikutir Sub Post OfficeRangpur-5400

(880-0521) 63588

KhulnaAlhamdulillah, 25 Usufe Road, Mirzapur, Khulna-9100

(880-041) 732330,724654

Barisal 502/532 South Alekanda, 1 No. C & B Pool, C &B Road, Barisal.

(880-0531) 53661,56778

Comilla 400/363, Shishu Mangol Road, KandirperComilla.

(880-081) 72320

Mymensingh5/A/04 & 5/A/05, Shaheb Quarter, Kachijuli,Mymensingh

(880-091) 55143
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Chittagong House No-1/C, Baijid Bostami Road, EastNasirabad, Chittagong-4000.

(880-031) 654423

Maizdee 234/B, Hospital Road, Maizdee Court, Noakhali. (880-0321) 61683

SylhetSabina Mohal, 44, Payra, Darshandewry, DorgaMohalla, Sylhet.

(880-0821) 725298

Tangail Biswas Betka, Dhaka Road, Tangail (880-0921) 53488

Rajshahi 106, Ambagan, Senanibas Sarak, Rajshahi (880-0721) 760877

Faridpur Mission Road, Christian Mission, Police Line,Faridpur

(880- 0631) 63561

Naryanganj Holding No. - 5, Khanpur, Main Road 7632990

JessoreHouse-1, Plot-1 & 2, Sector-10, Housing EstateShaikhati, Bablatola, Dhaka Road, Jessore-7400

042163189042162419

Supply Chain Management of Square Pharmaceutical

PART A: Physical Supply ChannelDetermining Supply Requirements:In order to determine the supply Requirements Square satisfies some factors and these are givenbelow:

What is required?The requirement of the product is determined here.

How much is required?The quantity requirements of the product are identified here.When it is required?Within which time period the product is required it is determined here.Where should it be delivered?The expected delivery time is estimated here.How should it be transported?The transport facility is identified here.How should it be quality tested?The quality assurance is satisfied hereWhat other information does my supplier need?

The peripheral information about the supplier is given here.


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Placing Orders:

Check the latest warehouse inventory, products in the pipeline, arrival schedule of the pipeline

products.Check yearly production schedule, quarterly production schedule, monthly production schedule.

Determine quantity to be ordered, delivery schedule and mode of transportation to be used.

Ask suppliers from the approved suppliers list to provide quotations for the product identifying

quantity required, delivery schedule, specification etc.

Check the quotations against requirements. If any confusion arises then talk with representative

of the indenture, resolve the differences and make it documented on the quotations.

Evaluate the quotations against price, delivery schedule and select a supplier for the product.

Ask for indent from selected supplier as per approved quotations.

Select the indent to Technical Services Department to check the specification.

Check specifications of the indent which in-house specification. If the specification is O.K. then

approve the specifications and send the indent to the Supply Chain management.

If any anomaly found in the specification, then solve it with the supplier, collect a new indent

and send it to the Supply Chain Management Department.

Open the L/C for the indent and send a copy of the L/C to the supplier along with a request for

shipping documents including material certificate.

After getting the copy of shipping documents, send a copy of relevant documents to the factory

warehouse.

Inbound Logistics Activities & Parties:

Inbound Logistics represents one of the major business processes in transportation planning.

Beyond excellence in operations, the main challenge is to plan inbound logistics jointly with

outbound transportation volumes to increase consolidation where ever possible.

Inbound logistics does not have an agreed-upon definition in the industry. Several questions arisewhen one attempts to define the term, for example: Where is the "in" in inbound? Is outboundthe opposite of inbound?Clearly the definition of inbound logistics is a matter of perspective. If you are the receiver of ashipment, the shipment is inbound to you; if you initiate or send a shipment as a raw materialssupplier, manufacturer or vendor might dothen it is outbound from you. For inbound logistics


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planning, the focus of transportation management is on planning the receipt of the shipment. Thedefinition of inbound logistics, then, is related not only to the controller of the shipment process,but also to who takes ownership of the goods shipped.

Inbound logistics traffic departments do not simply manage shipments from their own companies(outbound), they plan shipments from other companies "in" to their location. Suddenly thetransportation process becomes infinitely more complex. With this complexity comes moreopportunity to reduce transportation costsif transportation is well-managed.

Our Product is Ace Plus. The major raw materials for the production of Ace Plus are : phenol,

acetic anhydride, acetic acid, sodium nitrite and sodium sulphide.

Supply of Raw Materials:

aw materials that are used for Ace Plus are not producing in Bangladesh.

quare Pharmaceuticals import raw materials for this product from abroad.

henol one of the major raw materials of Ace Plus is imported from Italy and Germany.

cetic anhydride is imported from USA and France.

t imports Sodium Nitrite from India and also it is available in Bangladesh. But collecting from

Bangladesh will incur a huge amount of cost.

odium sulphide is imported from Belgium and Switzerland.

Transportation:

ince most of the raw materials are imported from the abroad so Square Pharmaceuticals brings

it to their plant through by air, by sea and by road.

Square Pharmaceuticals uses air freight which is the most cost effective means of internationaltransportation as Square tries to minimize lead-time and order-to-cash cycle time.
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Square is also using maritime transportation. Depending on the cargo to be shipped, maritime

transportation can be carried out on many different classes of vessels e.g. general cargo,

container vessel.

henever raw materials comes in Bangladesh by air and water then this are shifted to main plant

or factory of Square Pharmaceuticals. In order to do so Square is using road transportation. Road

transportation offers an advantage to allow point to point service. Road carriers offer faster and

reliable services and can operate on a individually scheduled timetable depending on the demand

and needs of the company.

Term & Conditions:

Delivery must be completed within the date mentioned in the requisition or agreed upon lead

time. Part delivery may be acceptable considering extra ordinary constraint. But short delivery

will not be acceptable. Excess supply must be limited to maximum 5% of the requisite quantity.

Payment will be made within a time period of not exceeding one months time from the date of
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submission of clean, complete and authentic cost of bill. Vat Challan (Musak 11) must

accompany the bill. In absence of Musak 11, VAT will be deducted as per Govt. rules and

provision. AIT will be deducted at source as per Govt. rules and provision.

We reserves the sole right to reject the consignment in part of full if any discrepancy found

between the approved specification and the supplied materials as determined by Quality

Assurance Department.

This purchase order will take effect from the date of acceptance by the seller in writing and will

remain valid initially for a period of one year unless any contrary desire is expressed either by

the company or the vendor 60 days prior to do so. This purchase order will automatically be

renewed for further years at the expiration of initial period.

Goods are to be delivered at our Central store at factory site.

Vendor Selection:

Ask the supplier to submit their proposal with detail specification. Supply Chain Management

Department may also ask the supplier to submit the following one or all documentary evidences:

ttested copy of the valid Trade License

eference List

ny other documentary evidence (e.g. financial statement, list of machinery used in production

and quality assurance)

If the specification and documentary evidences found satisfactory, send the specification of the

supplier to Head of Product Management for comments.

Send the specification/proposal to Supply Chain Management department with noted comments.

Arrange to audit( if desired by management) the suppliers premises along with the representative

from PMD/ other concerned department as deemed necessary and conduct the audit as per SOP

for Auditing Local Suppliers and records the findings in Local Supplier ( Packaging Materials).

If the audit report, ( where applicable) quoted price and quality of the specimen found

satisfactory then Supply Chain Management department shall approve the supplier and place the

name of the supplier in Approved Supplier List for that/those products. Share the Approved

Supplier List with Head of Product Management and Head of Quality and Head of PPIC, Pabna.


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PART B: Physical Distribution Channel

Forecasting of Market Demand:

One of the important tasks is to determine how much of a certain product or production input is

required. When planning the quantities to be purchased, a buyer needs to be able to determine the

likely demand over a given period of time. Demand generally changes over time, as a result of

evolving requirements. If a buyer does not try to determine expected demand as carefully as

possible, then the quantities purchased are likely to deviate substantially from what is actually

needed. Buyers will also require long-term estimates of demande.g. for the next 1 year or more

when negotiating long term contracts will suppliers. In addition, stock replenishment systems

require estimates of demand in order to calculate requirements in the supply lead-time to

determine safety stocks and order quantities.

Square Pharmaceuticals has their own research and development department which is an integral

part of supply chain management. From the estimation of market demand logistician of this

company take strategic decision regarding supply chain.

Forecasting:

n some cases, future demand of purchase items will be known as precisely, for instance if it is

based on a companys firm contracts to deliver certain goods or services that it sells over a given

period of time.

n most cases, however, the future demand for an item is not known, and it will be necessary to

use a forecast of one kind or another.

Square Pharmaceuticals has explored different way to forecast demand. These methods can be

used to forecast not only operational requirements for production, but also internal operational

demand as well. The methods to forecast demand that Square follows are given below:

n order to forecast the market demand Square takes expert opinion this involves consulting

people with experience and expertise for their opinions. They analyze the scenario and make


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comments over it.

arket testing is another method that Square follows to predict the demand. This requires

identifying a sample or service is aimed at, and conducting trial sales for a limited period of time

to ascertain likely demand

hrough different types of quantitative analysis like time series analysis, causal methods are used

to forecast the market demand.

hrough using computer based materials planning system like materials requirement planning,

distributed resource planning, enterprise resource planning are used to predict the demand.

hey also determine different market trends of each product and through comparing the trend

line to actual demand they calculate base seasonal variations.

Square Pharmaceuticals follows three main phases in the forecasting cycle process. These are

given below:

The process of forecasting demandPhase 1: Collecting & Analysing the data

Identify the best sources of demand data.Collect and review the dataCleanse the forecasting method that works best.Produce a base statistical forecast

The process of forecasting demandPhase 2: Adding Deterministic Overrides

Identify any factors that may cause forecasted demand to need adjustment, e.g.:Price ChangesCompetitor ActivityTechnological ChangeMarket Research into consumer/user PreferencesDetermine the potential impact of these factorsUpdate the base statistical forecasts taking these factors into account.

The process of forecasting demandPhase 3: Management Action

Regularly check actual demand against forecastsUnderstand the reasons for variancesIdentify and take any required actions e.g.:Remedies to past problemsOpportunities for improving performance or accuracy or forecasts

Take management decisions to improve operations or reducing costs as a result of the improved


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demand forecasts.

Information System & Order Processing:

In tradition logistics operations the focus is on storage and flow of products. The emphasis is

changing to include information flow and accuracy.

Information within supply chain is crucial for performance as it allows manager to make more

informed and better decisions. It includes information customer demand, inventory levels,

production and shipments. Without this information, appropriate decisions affecting supply chain

performance and corrective measures to optimize the flow of materials throughout the supply

chain cannot be made.

quare pharmaceutical has a department called PPIC (Product Planning & Inventory Control)

who estimates market demand according the data from marketing department.rom this data they go for the production and if any shortage of raw materials is there then PPIC

inform the Supply Chain Management department to raise the requisition to the suppliers as

Square has to import it from abroad.

quare pharmaceuticals have a central server through which they transfer information and order

processing from one department to another within the organization.

hey use internal mail to share information among the internal employees within the

organization.

Order Processing

Order processing is another important factor for any company. Due to flexibility of the order

processing and distribution of information many shipments go to postponement. Order

processing is represented by a number of activities like order preparation, order transmittal, order

entry, order filling and order status reporting.

quare pharmaceuticals maintain manual procedures for the order processing for delivering the

product.

hrough a developed framework of paper activities they do the order processing.

hey keep the information in database and also in register book.

quare has not developed yet a system like ERP (Enterprise Resource Planning). So after

receiving the order they check and do all the necessary actions within the organization through


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internal mail.

ince customers of the company are not updated according to technological development so

Square takes manual order from the customer through the paper.

Future Development:

Square has a progressive plan for the future development of their information system.

quare is developing software with oracle system through which they will able to input order

request. Through the software they will do other necessary actions for order processing.

quare has a plan to develop ERP (Enterprise Resource Planning) system which will provide an

immense advantage to minimize the time and reduce risk. Apart from that, it will minimize the

cost also for the company.

Inventory Management & Warehousing:Inventory management is the active control program which allows the management of sales,

purchase and payments.

Inventory management software helps create invoices, purchase orders, receiving lists, payment

receipts and can print bar coded labels. An inventory management software system configured to

your warehouse, retail or product line will help to create revenue for your company. The

Inventory Management will control operating costs and provide better understanding. We are

your source for inventory management information, inventory management software and tools.

A complete Inventory Management Control system contains the following components:

Inventory Management Definition

Inventory Management Terms

Inventory Management Purposes

Definition and Objectives for Inventory Management


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Organizational Hierarchy of Inventory Management

Inventory Management Planning

Inventory Management Controls for Inventory

Determining Inventory Management Stock Levels

Square has a proper inventory management plan which has made the company number one inpharmaceuticals industry. Even well run inventory management operations can benefit fromregular critical reviews. Large inventories management result from having poor supplier orcustomer relations. The arrival of internet technology has accelerated the pace of supply chainintegration and disintermediation and has brought new demands for accurate and timelyinformation to manage the chain effectively.Before establishing and implementing plan Square pharmaceutical follows some steps forinventory management.

easuring Inventory and Warehouse Performance:

Up-to-date measurement of inventory and helps to find the accurate information..

Verify the quality of records. To find the information that how many times in relevant period the

company could not fulfill orders even though the inventory records show that the items should be

in stock.

Then they calculate inventory ratios.

Inventory to purchase

Inventory to sales

Then they analyze the composition of inventory. They try to determine how many weeks or

months supply of each item is being carried in inventory.

After that, they investigate the space utilization and efficiency of storage layout in warehouse.

Then they examine the performance of warehouse processes, equipment and employees.They also consider the scope for reducing the variety of items purchased and stored.

eveloping an Inventory Management Plan:

It is important for every company to periodically review its entire inventory operations in

relation to its overall business strategy and the requirements of its customers and suppliers. They


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follow some steps to do so where they find out the objective, actions, expected benefits and

target date for each and every factors given below:

Confirm that inventory measurements are accurate and timely.

Evaluate operational performance with the logistics manager.

Analyze the composition of inventory.

Evaluate space utilization and equipment requirements.

Examine inventory response times and processes, and employees training needs.

Establish ways of regular interaction with sales, marketing, production and purchasing.

Evaluate the ways of appointing fixed warehousing costs.

Warehousing:

The main plan of Square pharmaceuticals is located in Pabna. There have warehouses of their

own and also they have regional warehouses.

quare pharmaceuticals after manufacturing medicine, will store them in its own finished goods

warehouse. From there they are transported to regional warehouses whose function is to serve as

a distribution point for retail store. When the retail store requires deliveries of medicine, they

will request them from their local warehouse who will arrange for the transportation of these

medicines to retail store.

In order to choose the location of warehouse Square considers the following:

roximity to the main points of supply and or/demand, to minimize transport lead times andcosts.

ood road access, avoiding problems of congestion.

rainage and security

vailability of essential services, e.g. electricity, water and communications.

ize of the site, and its ability to cope with companys future expansion requirements.

he most convenient acquisition option for the company, e.g. purchase of an existing warehouse,

rental.

In order to establish a warehouse design Square considers the following:

stimates of minimum and maximum inventory requirements, in terms of volume and weights.


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aily throughput in number of deliveries, their volumes and their weights.

ackaging sizes and maximum stacking heights.

izes and unit weights for storage racking and other equipment.

tbound Logistics of Produtcs / Transportation:

are Pharmaceuticals one of the largest company in Bangladesh and it has an established supply

chain in all the districts of the country.

are has strong working relationships with specialists in every mode of transportation, allowing usto choose the carriers that will maximize service and drive value for the retailer and customer.

riers are selected based on their ability to maximize service, deliver value and meet specificneeds.

ational carrier infrastructure and highly competitive pricing agreements with premium carriers inall major modes of transportation result in significant cost advantages. Capabilities include:

CAPABILITY DESCRIPTION ADVANTAGE

Logistics Order Management Manage customer logisticsorder lifecycle for shipmentplanning & execution

Effective order managementincluding order consolidatio

Shipment Planning /

OptimizationGlobal, multi-modeoptimization & decisionsupport for rating, routing,consolidation, carrier selection,equipment selection &scheduling

Network integration & costreduction

Shipment Execution Support processes forcustomer-facing & internal

shipment booking / tenders

Eliminate redundant activityStandardized processes to dr

increased service

Freight Payment Manage carrier invoiceauditing, approval, vouchergeneration & cost allocation

Validate information in suppof existing freight paymentprocess

Customer Billing Generate customer bills fortransportation services

Reduce customeradministrative expense


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Supply Chain Event

ManagementAutomate shipment workflowprocesses to supportmanagement by exception forincreased operating efficiency& enhanced customer service

Proactive shipment oversight,ensuring predictableperformance

Reporting Provide internal & externalparties with information tosupport decisions

Presentation of actionablenetwork cost & performancedata

tbound Transportation:

are Pharmaceuticals generally use Highway for their outbound transportation in all over the

country.

are Pharmaceuticals follows Multi-Point delivery plan. In order to move more than one store.

This consolidates smaller loads for each store into a larger shipment, which is more suited to

transport in a larger and more economical vehicles.

t is an appropriate for Square as the destination stores are located in a significant distance away

from the dispatching store, and are relatively close to each other.

Square pharmaceuticals uses enclosed vehicles for their distribution as it forms the outer layer of

protection for goods in transit. These vehicles are weather-proof and also provide greater

security.

ccording to the requirement they use small or big covered vehicle for shipment of the product.

For an instance, within Dhaka city they use small covered van to delivery the product.

overed vehicles are more secure than open vehicles. Enclosed vehicles with roller shutter,

flexible canvas or heavy duty plastic sides.

ometimes they use refrigerated trucks for some sensitive medicines


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The Flow Chart of Supplier Appraisal Process for Square Pharmaceutical

Basic Criterias that Square looking for the vendors appraisal are capability and motivation.

The Performance Equation

Conclusion:Supply chain management is an integral part for any company. A firms needs to establish an

effective supply chain in order to gain competitive advantage.

If we see the total distribution system of square pharmaceuticals, that is perfect for this company.

Warehousing, storage facilities, inventory management, supply chain management, materials

handling, value chain management all those things are cost effective which brings large amount

of profits for Square pharmaceuticals every year.
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