Study On Supply Chain Based Inbound Logistics Model For Phamaceutical Company

Big changes have been taken place in pharmaceutical industry during the past severalyears. Traditional operation model has not been able to support the business developmentto accommodate the challenges from cost pressure. The good practices from otherindustries showed that implementations of supply chain restructure and applications ofsupply chain management are critical to enable the business to achieve and maintain thecompetition advantage. The leading companies such as P&G, GM, and Apple haveimproved their core competition competency through the implementation of supply chainmanagement.Inbound logistics takes an important role in supply chain management. Theeffectiveness and efficiency of inbound logistics will have big impact on the supply leadtime, production cost and the quality of products. The effective inbound logistic systemwill leverage the stability of supply, and improve the customer satisfaction and corecompetition competency as well. This paper firstly describes the theory and principle ofsupply chain management and lean logistics. Then take company A as a example tointroduce the current status of inbound logistics model, analyze the problem and rootcauses. New strategy proposal is developed based on supply chain management practiceto fix the problems. Furthermore, the implementation methodology and process of thisstrategy is introduced in terms of facility plan, pull materials flow system and the pushinformation system roll out, and the inbound logistics organization is developed tosupport this pull and push combination system. Finally a performance indicator system isdeveloped and captures some data to validate the improvement.The inbound logistics model applied in company A features the better compatibility topharmaceutical industry and can be a reference for others to improve their owns.