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Andrew Wong
Head of Operations
Zuellig Pharma Limited
Supply Chain Collaboration in Hong Kong
Pharmaceutical Industry
Status in 2010
Zuellig Pharma Ltd : Who We Are
Quick Facts:
Privately Owned (80/20)
15
Established over
countries and regions in Asia Pacific
60 years
Sales 2009: US$
8 billion
8,000 employees
Zuellig Distribution Model
Drug supply chain
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High quality products (GMP)
Batch production
High quality logistics and distribution network (GDP)
Monitored and controlled by every government
Full traceability just in case of product recall
More than 90% are import products
What does supply chain collaborate mean?
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•
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•
Report
Data sharing
Operational data integration
Working together for best practices
Supply Chain Collaboration in
Pharmaceutical industry
From upward to downward collaboration
Upward Supply Chain Collaboration
Supplier/manufacturer integration : From Paper based to fully integrated
 ASN
 Goods receipt acknowledge
 Sales order interface
 Order acknowledge
 Picking confirmation
 Inventory movement and inventory holding
 Demand planning
 E-payment
Downward Supply Chain Collaboration
• EDI Purchase order – over 10 year using GS1
exchange standard
• Electronic invoice – over 5 year using GS1 standard
• No operations data exchange
So what are the driving forces?
• Demand driven… just in time…
• Inventory reduction
• Changing of distribution network
Safe and High Quality
Supply Chain
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Patient safety
Drug quality
Counterfeiting drugs
Distribution quality standard
Storage condition monitoring
Total Supply Chain traceability and visibility
Collaboration in 2010
means
• Co-operation
• Communication
• Commitment
Hospital Supply Chain
modernization project
To-Be
Benefits to separate the
Despatch Advice (ASN) &
Invoice message:
Inventory Report
Proposed PO
PO
 Flexibility of Partial Delivery
PO Response
Supplier
HA
ASN
24 hours in advance
goods delivery
INVOICE
 One standard workflow in
both drugs & non-drugs
 Despatch Advice (ASN)
supposed to serve logistics &
tracing function
The Despatch Advice (ASN) should be sent 24 hours before the Physical Goods
Delivery.
The Key elements of Despatch
Advice (ASN):
SSCC (Serial number for Logistics
unit)
§ GTIN (a universal bar code
number)
§ Batch/ Lot number
§ Expiration Date
§ other elements (ie. quantity, country
code, delivery qty, serial #)
SSCC : Serial Shipping Container Code
Frequent communication activities with Department of Health / Hospital
Authority / Industry Players
 Department of Health Visit
and HKAPI
 GS1 Visit
 Hospital Authority Visit
What is the next step?
• Committed to the target
launching date – Q3/2011
• Share the business case to
other suppliers
Thank You