Supply chain solutions for Ranbaxy

A case study on how the kinks in a pharma company's supply chain were ironed out by superior
track-and-trace initiatives

Situation analysis

Ranbaxy is one of the leading multinational companies in India in the area of pharmaceuticals. It
deals with large quantities of exports and imports of pharma products, and hence, required
extensive warehousing facilities. It had to store its consignments and transport them by air, ocean
or combination of both, ie. multi-modal transportation.

Key challenges

Ranbaxy had to face many challenges during the execution of its project. The main challenges
faced by the company were—continuously maintaining critical temperature during storage and
transportation of pharma products, maintaining the delivery schedules and meeting the deadlines.
Besides this, other challenges were setting up of warehouses at important locations and
distribution centres at various overseas and domestic locations by properly identifying them,
ensuring compliance of norms set up by Food and Drug Administration (FDA), complying with
all regulatory requirements such as documentation required for export and import and keeping
track of the current position of the shipment dispatched by it.

Solution

To deal with these problems, Ranbaxy decided to make use of services provided by Aqua
Logistics. Aqua was assigned the task of tracking and tracing the shipments. To accomplish this,
it set up a warehouse located at a central location, which was at optimum distance from the ports.
It also set up effective tie ups with air carriers to maintain cold chains and to improve transit
times.

To transport generic products under optimum temperature conditions, Aqua provided cost-
effective consol solution for LCL sea shipments. Further, Aqua provided consultancy on EXIM,
which assisted in getting various licenses from DGFT and their various finalisations and closures
as well as related customs formalities. It also provided locational implants for better co-
ordination and to carry out mundane documentation procedures including overseas invoicing as
well as EXIM documentation.

Results

With the help of services offered by Aqua, considerable improvement was achieved in the
planning process and on-time delivery of goods. The company could accurately track and trace it
so that it could plan for its future strategies. Due to tie-ups with air carriers, cold storage chains
were maintained properly and it also reduced the
transit time taken by cargo from origin point to the final destination. The company could
anticipate the number of days for which remaining inventory will last. Hence, it did not have to
keep excessive stock of materials, which reduced the inventory carrying cost and also reduced
the loss of goods lying unattended at warehouses for several days. It also controlled the
transportation and administration cost. Besides this, it also led to reduction in costs associated
with holding fixed assets for their warehousing and management. Ranbaxy was able to comply
with the regulatory requirements as per norms set up by FDA. This resulted in easier flow and
exchange of information between Ranbaxy and its trading partners

Ranbaxy Awards Contract to NYK Logistics

Friday, 18 December 2009

NYK Logistics (UK) Ltd has been awarded a major contract with Ranbaxy Laboratories Limited
(Ranbaxy), the global generics company of the Daiichi-Sankyo Group, a leading innovator
pharmaceutical powerhouse, ranked among the top 15 in the world and headquartered in Tokyo.
Ranbaxy has revenues of $1.6 billion.

NYK Logistics is handling all Ranbaxy product destined for the UK market.

The operation is based at NYK Logistics’ Pharmaceutical Centre of Excellence in Northampton,

which provides supply chain solutions for a number of major pharmaceutical customers. The
175,000 sq ft facility provides temperature-controlled, high-security storage in line with the latest
Good Distribution Practice.

NYK’s Healthcare Distribution Centre has a Manufacturers’ Import Authorisation from the
Medicines & Healthcare Regulatory Authority (MHRA), as well as an MHRA Wholesale
Dealer’s Licence. NYK is therefore able to provide storage for product manufactured in Europe,
as well as imports from outside the EU.

NYK receives all Ranbaxy’s product batch released and ready for sale throughout the UK.

NYK is handling 23 million packs per annum on behalf of Ranbaxy, destined for hospitals,
pharmacies and wholesalers.
  

Worldwide Operations

Global Pharma Companies are experiencing an ever changing landscape ripe with challenges and
opportunities. In this challenging environment Ranbaxy is enhancing its reach leveraging its
competitive advantages to become a top global player.

Driven by innovation and speed to market we focus on delivering world-class generics at an

affordable price. Our unwavering determination to achieve excellence leads us to new global
benchmarks. Our people have consistently risen above all challenges maximized opportunities
and positioned Ranbaxy as a leader in the global generics space.

Ranbaxy’s global footprint extends to 46 countries embracing different locales and cultures to
form a family of 50 nationalities with an intellectual pool of some of the best minds in the world.
 Nigeria
An Introduction to Ranbaxy Nigeria

Ranbaxy has a strong presence in Ethical, OTC, Generic & ARV segments through
   
local manufacturing of liquids & other dosage forms in India.
The Company has robust sales, marketing & distribution operations spread across
   
the country.
Key Strengths

  Amongst the leading pharmaceutical companies in Nigeria  

  Has a strong Marketing & distribution network  
  Local manufacturing of liquid formulations  
  Strong presence in Ethical, OTC & Generic segment  
  Leader in the ARV segment  

At a Glance

  Date of Setup May 1987

Team Size 145
Total No. of
Molecules
Ranbaxy + 68
Local tie ups

An introduction to Ranbaxy in South Africa

 Ranbaxy (S.A.) (Pty) Ltd – South Africa, a wholly owned subsidiary of Ranbaxy, was
set up in 1998
 There has been a constant effort to differentiate Ranbaxy from the myriad of other
generic manufacturers by establishing the corporate heritage and the vision of
becoming a research based international pharmaceutical company
 During 2006 Ranbaxy acquired Be-Tabs with the turover US $ ~30 Mn, and thus
became the 5th largest generic company in South Africa
 The product portfolio is divided into three strategic areas: Acute, Chronic and OTC.
 The acute products contribute the majority of the Company’s turnover and include
Anti-Infectives and Anti-fungals
 Ranbaxy's joint-venture with Community Investment Holdings (South Africa),
“Sonke Pharmaceuticals (Pty) Ltd”, (Sonke) markets and sells Ranbaxy’s range of
 Anti-retroviral products in South Africa and other African markets

At a Glance

  Year of Setup 1996

Team Size 52
Total No. of Molecules
Ranbaxy + Local tie 27 Brands
ups

Singapore

An introduction to Ranbaxy in Singapore

Ranbaxy’s initiated its operations in Singapore in 2001. The business is overseen from
Ranbaxy Malaysia, which has a manufacturing plant in Sungai Petani, Kedah, for
   
supplying to the Singapore market. With its excellent sales and marketing team, who are
experienced and well versed with the industry, the company today has strong brand
recognition amongst the General Practitioners, Private and Government Hospitals and
the Retail Pharmacy sector.
At a Glance

  Date of Setup March 2001

Team Size 6
Total No. of
Molecules
26
Ranbaxy + Local
tie ups
An Introduction to Ranbaxy in Thailand

The Thailand operations were set up in 1983 through a joint-venture between RLL &
Thai shareholders.

In 1995, the operations were enhanced with the acquisition of a reputed Thai
pharmaceutical company: Unichem. This strengthened the presence in CVS in addition
to the traditionally strong portfolio of Antibiotics and Anti-infectives and also gave
added reach in the Haematinics, Nutritional and G.I segments.

Marketing and selling is Ranbaxy Thailand’s forte. Ranbaxy Unichem Co. Ltd (as the
  company is known in Thailand) markets and sells ethical pharmaceutical products to  
medical channels (hospitals and clinics) and Drug Store channels throughout Thailand.

Some locally acquired products are also exported to neighboring countries

About 60% products are imported from India and the rest are toll manufactured locally
by OLIC (a subsidiary of DIETHELM Switzerland)

The logistics of distribution and collection is outsourced to Diethelm, considered one of

the best in the Asia Pacific Region.

Key Strengths

 A portfolio of quality generic products

 Significant presence in Antibiotics
 Hands on experience of directly marketing and selling to a large base of about
5,350 customers, including 1,100 hospitals, 2,400 clinics and 1,850 drug stores
   Local market experience and strength in relationship marketing  
 Technology automation – The filed force carries customer history on PDAs, and
is able to book and transmit orders through the PDA in real time
 Logistics by Diethelm, one of the best logistics companies in Thailand

At a Glance

  Date of Incorporation 1983

Total No. of Molecules
Ranbaxy +Local tie 45
ups

An Introduction to Ranbaxy in USA

 Ranbaxy Pharmaceuticals Inc. (RPI), a wholly owned subsidiary of Ranbaxy
Laboratories Limited (RLL), was established in the U.S. in 1994. RPI began marketing
FDA approved generic products in the U.S. in 1998 after receiving its first FDA approval
for Cefaclor, a broad spectrum anti-infective agent.

Ranbaxy Laboratories Inc. (RLI), also a wholly owned subsidiary of Ranbaxy

Laboratories Limited, is the branded prescription division in the U.S. RLI has been
  expanding and growing on the strength of Ranbaxy’s R&D efforts, and continuing  
exploration of novel drug delivery systems (NDDS), licensing activities, mergers and
acquisitions. RLI is increasing the visibility and presence of Ranbaxy by bringing value-
added brand products to the market.

Ranbaxy has positioned itself as a robust and capable player in the U.S. market through
the combined commitment and efforts of RPI and RLI to develop new and innovative
products and a rapidly expanding generic and brand product portfolio.

Key Strengths

RPI has devised a three-fold business strategy to ensure the growth of its generics,
branded and OTC business. It is a combination of:

 Organic Growth
 In-licensing
 Acquisitions

RPI has established growth plans for its generics business with a well-defined pathway
  for ANDA submissions over the next several years. The company is also focusing on  
securing products and services through strategic alliances with other companies and
bringing in products with complex formulations which may present entry barriers for
other companies. This strategy will enable RPI to reach the market with select generic
products well before other competitors.

The company is also executing plans to challenge the intellectual property of several
existing branded products by producing these products using processes that do not
infringe on patents. Using its vertical integration capabilities and continuous market
monitoring, the company is developing "niche" products.

At a Glance

  Year of Setup 1994

Ranbaxy Sales US $ 397 Mn (2009)
 Total No. of Molecules
Ranbaxy + Local tie 241 ANDAs approved by US FDA

n Introduction to Basics GmbH

A wholly owned subsidiary of Ranbaxy, Basics GmbH is located at Leverkusen, Germany.

The German generics market is the largest in Europe.

 In Germany, we have a generic product portfolio of 50 generic drugs in a variety

of dosage forms and strengths covering a wide therapeutic range, including
cardiovasculars, antidiabetes/metabolic disorders, anti-infectives, analgesics/anti-
rheumatics, central nervous system and gastrointestinal drugs which are
   
bioequivalent to the originator.
 Basics puts special focus on serving the needs of patients, pharmacies, physicians
and health funds.

Key Strengths

 Range of standard therapeutics

 Major competence in Cardiovasculars
   Best price strategy  
 A lean organization, savings of which benefit the customers

At a Glance

  Former Generic business of Bayer

Date of Setup
Acquired by Ranbaxy in 2000
Total No. of
Molecules
50 molecules
Ranbaxy +
Local tie ups
 An Introduction to Ranbaxy in United Kingdom ( UK )

Ranbaxy (U.K.) Ltd. (RUKL) is a wholly owned subsidiary of Ranbaxy Laboratories

Ltd. and it plays a significant role in Ranbaxy’s European presence.
 
RUKL has made considerable progress in enhancing its product portfolio and for
securing the product basket by in-licensing products. Deals have been signed with
various companies, for a number of different molecules in different therapeutic areas.
These are over and above the in-house product pipeline and give further impetus to
RUKL's growth in the UK pharmaceuticals market.

Our Key Strengths

 A wide generics portfolio

 Robust product pipeline
 Vertically integrated in major molecules
   Research and Development  
 An experienced, successful, talented team, committed to success and Ranbaxy’s
global values

RUKL at a Glance

  Date of Incorporation November, 1994

Total No. of Molecules
Ranbaxy +Local tie 75
ups
Access to Medicines

In the recent Index 2010 report published by the Access to Medicine (ATM) Foundation, a
Netherlands-based non-profit organization, Ranbaxy has been ranked as the industry leader
under the generics category for improving access to needed medicines.

The ATM is a global initiative to improve access to medicines to the societies in need worldwide. The
project aims to highlight that access to medicine is the joint responsibility of all stakeholders involved in
improving global health with pharmaceutical companies being an essential factor in providing access to
products to those in need. It ranks drug makers on their social responsibility with regard to supplying the
developing markets with key neglected disease medications.