Glaxo after integration from upstream suppliers and downstream distributors and sale terminals gradual improvement throughout the supply chain, value chain, from supply chain to change the desire are being gradually
Dongli District in Tianjin Cheng Lin Zhuang Road and the intersection of the outer ring, a white factory and the whole body is being renovated roadside cottage and set off the dust from vehicles, in sharp contrast, can not help but some bright spots. This is the United States in Tianjin Smith Kline.
"In the future, etc. When you go to Shanghai and Suzhou, where you can look at our factory, but also beautiful than here." Chai Weidong sitting in the large desk with a smile. December 2000, Glaxo Wellcome and SmithKline Beecham merger of two multinational companies, global pharmaceutical giant GlaxoSmithKline (hereinafter referred to as GSK) was born. Glaxo is now a total of four factory in China, located in Tianjin, and Shanghai and Suzhou, Tianjin, two of them, Tianjin Sino-US is Glaxo's GSK in China specialized in producing OTC (OTC) in the plant.
GSK China as a logistics manager, Chai Weidong more willing to talk about supply chain integration, supplier, channel control and marketing. "We have from the original supply chain (supply chain) into a value stream (value chain)." Chai Weidong hope that their functions are also into the value chain, supply chain through the control of each node to reduce costs and enhance profits .
Supply Chain Integration
International companies merged, usually the most critical is the supply chain integration. Chai Weidong introduction, the integration of Glaxo continued until 2004.
Integration began, Glaxo changed the factory name changed LOGO (corporate image logo). Glaxo products for both companies and factories were sorted, identified the overlap between the two parts of the chaff, to retain the essence. A few years ago, GSK has had a production plant in Chongqing, but the production is not much profit is less than satisfactory, the combined Glaxo resolutely sold to the factory.
In the supply chain integration, Glaxo Wellcome and SmithKline Beecham have to adjust the existing sales team. Before the merger, Glaxo Wellcome and SmithKline Beecham are two supply chain systems, respectively, supplied to the market, but after the merger, Glaxo became the two vendors in the market, the only export. How to avoid the confusion caused by the merger and the loss of customers as the most important issue facing Glaxo.
With the shortest possible time to establish system interfaces, as Glaxo pride in China's integration move. Interface completed, Glaxo Wellcome and SmithKline Beecham factory market, SmithKline Beecham and Glaxo markets factory timely, accurate docking and quickly bring products to market. Now about this, Chai Weidong interest still quite thick: "This was a very important project, called 'cross trading project (cross-market programs), which was the establishment of a temporary supply chain solutions, significant, is more than ERP software companies, consulting firms and Glaxo strength for the group. "
Throughout the integration process, GlaxoSmithKline has a principle that only the select Glaxo Wellcome or SmithKline Beecham supply chain the most essential part of the system, to build new supply chain Glaxo. Glaxo is now in production and management systems with PeopleSoft, sales order and financial management system with JDE. "We may not choose one of the most powerful system, but hope that each part of the system chosen is the strongest." The benefits of this integration is self-evident, Chai Weidong told reporters that the plant will enable several levels of flat supply chain, effective sharing of resources. Before such integration, U.S. GSK's supply chain management than some of the other two, but after integration, Shanghai and Suzhou plant to enhance the level of the supply chain.
Glaxo is trying to establish a standardized supply chain management system, including supply chain management processes, principles and performance evaluation. Cost, speed, quality and operation of hedge (sustain), is the Glaxo evaluation of supply chain strengths and weaknesses of the indicators. Chai Weidong said that if only the good quality and speed, not preserved, then it means that may be doing very well this year, next year might do well, that instability in the supply chain is meaningless.
Measure the speed, Glaxo has a special indicator, door to door time (door to door time). Products from raw materials to the total time to send to the market, is the evaluation of supply chain Glaxo important basis for the speed, the data reflects the Glaxo responsiveness to customer needs. Chai Weidong most worried about than one kind of drug for 30 days this should be produced, and Glaxo can not be delivered on time, it can be competitors to get this list, or customers have no need of the time.
Glaxo's requirements for speed-demand and change. For different products or different market, Glaxo's door a relatively big difference. For OTC products, door to door time is very short, from the receipt of customer orders to all of the shortest delivery may be completed within a week. But for new products, the longer, such as one month, two months or 3 months, because the materials would be difficult access, the production process will be very complicated.
Understanding of the Chai Weidong, the supply chain should be divided into 3 steps. The first step, by reducing costs, improving the company's viability and, secondly, through the supply chain response time to meet the changing needs of the Chinese market, including competitors and changes in national policy, "so that there is a very flexible needs supply chain ", the third to open up untapped markets, to grasp the upstream and downstream, and control channels.
Cost control nodes
Six Sigma, supply chain management has gradually become the core of GSK tool. Chai Weidong is most concerned about is how things in the supply chain cost for each node. GSK China as a logistics manager, Chai Weidong responsible for coordinating the production and supply of China, the factory manager responsible for four.
Chai Weidong had noticed the laboratory testing process. After the drugs produced in the past, should get laboratory testing, usually spend one day in time to produce results, but Chai Weidong found drugs in the test device takes only 2-3 hours, that test time is only effective work processes several hours. To avoid wastage, re-planning of the laboratory layout Glaxo. Inspection process under the previous 5 points Guilong process in a unit, so that each test items are closely linked, like income from the entrance until the final exit-like linear arrangement, this can improve the efficiency of mass. Glaxo hopes to become Six Sigma corporate culture, but to make lean thinking into the mindset of each employee cure is a long process. To this end, Glaxo has also set up the team of Six Sigma, a full-time, "Black Belt" lecture tour in four factory.
Glaxo's logistics sector is set up only this year. Although no direct command line staff, but Chai Weidong and logistics department spent most of my colleagues in the coordination and supply chain-related work of the various nodes and process control, maximize use of resources and to ensure supply chain performance. "For example, the logistics sector is also involved in quality control, drug quality is definitely not alone guarantee the quality department, but everyone should bear responsibility."
Supplier Management
Chai Weidong laptop a few times before the operation, and then adjust the screen turned to reporters: "This is our supplier evaluation and selection of the five." In his view, the pharmaceutical industry supplier management is a very strict thing.
Glaxo supplier evaluation system based on a total of five, first, to ensure the supply is only good if a supplier price and quality, but can not guarantee supply, it does not make any sense for Glaxo ; and secondly the quality of products to meet global standards, Glaxo's own standards and local regulations, a supplier to join Glaxo a necessary condition for the supply system; third, customer service levels, that can give customers added value, such as whether the supplier can do JIT; Fourth, procurement costs, if a supplier does not cost advantages, the supply system can not join Glaxo. Fifth, innovation, suppliers should be able to with the development of GSK's development - including the products and capabilities - to be continued to emerge.
Chai Weidong introduced them in this five-part, ensure the supply of basic, quality, customer service and cost are based on the guaranteed supply of this premise. Glaxo to supplier innovation as the icing on the cake thing. Glaxo is now the core of suppliers among the 10 to 20.
For a change of supplier, Glaxo also cautious. "Medicine is a very strict regulatory barriers to trade, a pharmaceutical company if you want to replace the raw materials or supplies, must go through a very strict approval system." Chai Weidong said. Glaxo ready to change whenever the suppliers have to do a lot of preparatory work, such as evaluation of the supplier production process and quality management system is able to meet the Glaxo and local regulations. Development of a supplier's time may be very long, some even 2-3 years. "Any change, a supplier of pharmaceutical companies like Motorola are not as simple as replacing a tube."
Chai Weidong placed behind the windows of about two feet long with a photo, a "supplier of the association, GlaxoSmithKline." Since 2004, GSK held every year this Symposium to promote the emotional and suppliers, and to deepen mutual understanding.
Channels to expand and deep plowing
Expansion in the channel, many pharmaceutical companies tend to choose a lot of distributors to quickly promote products and penetration. But Glaxo does not want to follow the example, only 1-2 in the provincial capital cities to cover distributors do. Choosing too many distributors may be difficult to bear the risk of payment, and only 1-2 at home in the provincial capital to select the better qualified distributors can avoid this from happening. "China now has 6,000 medical distributors, what strategy should be used in collaboration with the distributor, is a very important issue." Chai Weidong said that because China's current system, pharmaceutical companies do not sell power directly to the terminal, such as pharmacies, supermarkets, etc., only through the implementation of distributors, which makes pharmaceutical companies do not have control over the channel, but must also rely on this channel. Therefore, the choice of Glaxo in the channel have been relatively cautious, or even say "conservative." At the same time
Sales channels is dependent on sales strategy and development, such as Glaxo a particular focus on drug coverage area in South China, which is chosen.
Although the use of 1-2 in the provincial capital city of distributors can reduce the risk, but inevitably encounter problems like jump up goods. However, such a situation Chai Weidong to be understood as purely market behavior. Hopping goods in theory can be effectively managed, but only if their product is a seller's market, it can effectively bind distributors.
The management of the sales staff, Glaxo also very stringent. Whether low-level operations staff, or senior management to the hospital the doctor kickbacks and commissions is unacceptable. "If not finish the task, it is a reprieve on the sales staff or no period, then the event of a kickback or commission of such things is death." Chai Weidong said. Glaxo has a special "code of conduct" to restrain sales, while internal audit is also very strict. "Now GlaxoSmithKline has a 6 person audit team is American GlaxoSmithKline."
Glaxo on the 23 markets for the rural market even more attention, but in the past, the primary market is the GlaxoSmithKline headquarters. Chai Weidong told reporters that the interest in 23 markets, first, because the relative easing of competition in the market place a number, second is such a market in the future there may be considerable room for development. Future Glaxo will invest more effort in 23 markets.
In the pharmaceutical market in the process of how to pharmacies through a significant, or where the clerk's description, is Glaxo hopes to do. Chai Weidong that, if the pharmacy is valued Glaxo's product, first of all because the product can bring good returns for the pharmacy, the second, GlaxoSmithKline support the market activities, such as promotion of your store, or came to light degrees influence consumer choice. GSK currently divided into prescription drugs in China, OTC and vaccines three blocks, so every piece of marketing efforts are not the same.
For market information feedback, Glaxo also very seriously. Market information comes mainly from two sources, one distributor or pharmacy to provide the data directly, and second, specialized staff rely on GSK to collect 23 market information, as well as hospitals, pharmacies sales. Now, Glaxo can clearly grasp the hospital or pharmacy sales, inventory, purchasing and inventory precipitation channels. Based on these data, GSK made a further analysis of the situation Invoicing, so as to predict sales trends and make production plans.
Glaxo after integration from upstream suppliers and downstream distributors, sales last until end of the whole supply chain is gradually improving. Chaiwei Dong and his colleagues from the supply chain to the aspirations of the value chain is also changing gradually.
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