Purchase process model of Square Pharmaceuticals Ltd.

Abstract

Square Pharmaceuticals Limited, being the largest pharmaceutical company in the country, has a very intricate supply chain network that helps to deliver life-saving medicine all around the country. One of the most crucial part of the supply chain of SPL is the purchase process of raw materials and packaging materials. This report is written to construct a Purchase Process Model for SPL for raw materials and packaging materials in both local and international purchase. This paper also aims to shed light on the inner departmentalization in SPL and how the whole purchase process is maintained by the coordination among the key departments involved in the process. They maintain a list of approved vendors through vendor evaluation procedures, and only buy from the enlisted vendors and for new materials another department called TSD work on source development process. Automation through usage of SAP software helps to minimize cost along with regular market monitoring, careful packaging and calculating suitable order quantity. Risk is minimized by careful selection of vendor and having insurance coverage and careful shipment. The employees can put their sole focus on one job since the work of SCM is divided into two departments, but can also lead to miscommunication as well. Lastly, the report also shows that the SCM and TSD face few problems in finding suitable materials for new product development and finding vendors who can maintain high quality requirements of SPL or to satisfy price requirements of Marketing department.