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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 • • • • • • 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? • • • • 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 • • • • • • 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