OPPI and E&Y Report Validates the Core Problem Addressed by Time2Change
Loss of sales due to non-availability of products with chemists has been identified as one of the concern areas facing the pharma industry, according to a study by Organisation of Pharmaceutical Producers of India (OPPI) and E&Y, titled ‘Unlocking the potential of the pharma distribution channel’.
The variation in loss of sales can be attributed to supply chain aspects like its reach, service levels, working capital constraints of stockists, awareness of customers and financial returns to stakeholders, the study said.
The truth that is not very clearly coming out is, ‘there is a trade-off between cost and availability’, which is the central theme of the Book being co-created at Time2Change- the Hub of Operational Excellence. There is a strong and deep rooted belief that a good availability of stocks can be obtained only by higher cost (huge stocks). However, as the discussion of case study at Time2Change reveals, there need not be a trade-off between availability and cost. The BOOK gives a direction and presents a solution to show that both higher availability and lower cost can be obtained simultaneously.
Solution of the problem lies in understanding the logic of operations better and placing a system of production that replenishes stocks based on consumption and not on forecasting.
The summary of the Book is already released and the BOOK itself will hit the book-stands in November, 2012; thanks to the effort of over 130 members of the Hub in co-creating this game-changing book.