An Overview of the functional

activities of the International

Procurement wing of SCM Deptt.
May 7, 2009
Presentation prepared by
Clement Partha Ghosh (Executive)
SCM - Departmental Overview

Introduction
At

this era of globalization and with the scope of free

market economy, Commercial functions had to be
diversified by the companies foreseeing their growth
opportunity globally.

Though

the elements of commercial functions are of

some similar nature that of Supply Chain management
but SCM has been able to prove that mere procurement,
goods delivery and record keeping for calculation of
profit are not sufficient to support reaching the
companys ultimate goal.
SCM - Departmental

Introduction
Strong

negotiation, useful analytical inputs

into the deals, timely supply, adding value to
the supply chain by diversifying risks and
effectively managing the scarcity of resources
in order to ensure customer satisfaction thus
strengthening the organizations position in
the long run are the key points that SCM
deals in..
SCM - Departmental

Our Internal Clients

Square

Pharmaceuticals Ltd., Pabna

Square Pharmaceuticals Ltd., Dhaka Unit
Square Cephalosporins Ltd.
Square Pharmaceuticals Ltd., Unit-3
Square Pharmaceuticals Ltd., Chemical Div.
Square Herbal & Nutraceuticals Ltd.
Square Pharmaceuticals Ltd., Agrovet Div.
Square Pharmaceuticals Ltd., Pesticide Div.
SCM - Departmental

Our Internal Clients

Square

Pharmaceuticals Ltd., Pellets Div.

Square Pharmaceuticals Ltd., PET Bottle Div.
Square Informatix Ltd.
Pharma Packages Ltd.
Aegis Services Ltd.

SCM - Departmental

Classification of Inputs A broader view

Pharmaceuticals

Raw Materials (Act. & Exc.)

Non-Narcotic
Narcotic
Explosives
Acids

Pharmaceuticals

Packing Materials
Chemical Reagents/ Laboratory Reagents
Pharma Capital Machineries
Strengths

Your strengths relative to competitors

Weaknesses
Your weaknesses relative to competitor

SCM - Departmental

Classification of Inputs A broader view

Spares

for Pharma Capital Machineries

Laboratory Equipments & Apparatus
Pesticides/Insecticides/Herbicides
Ground Fertilizers, Poultry Premixes
Basic Chemicals for producing intermediate raw materials
Other materials and accessories covering all items required for any of the
concern of Square Group

Strengths

Your strengths relative to competitors

Weaknesses
Your weaknesses relative to competitor

SCM - Departmental

Procurement of Pharma Raw and

Packing materials: Ideal Situation
Receiving

requisitions from Production

Planning and Inventory Control (PPIC)
department scheduled to meet the
production plan as per market demand, sales
forecast. The mode of transport is usually
advised from historical data and based on
desired lead time. (0 days)
Interpreting the requisition(s) into formal
offer asking quotations from Approved
Vendors of the desired item. (10 days)
SCM - Departmental

Procurement of Pharma Raw and

Packing materials: Ideal Situation
Upon

receipt of formal quotations,

concerned personnel carries out the price &
delivery negotiation and comparison based
on negotiated price, delivery period,
packing, payment terms etc. Also, obtains
management approval for awarding business
to the competent bidder. (02 days)
The principal/Agent is then asked for
submitting Pro-Forma Invoice/Indent as per
approved quotation. (01 days)
SCM - Departmental

Procurement of Pharma Raw and

Packing materials: Ideal Situation
Meantime,

the concerned personnel prepares

the application giving details of the offer
received: the name (approved by the Drugs
Administration at the time of registering the
material and product recipe approval),
quantity to be imported, unit price, country
of origin, yearly consumption, finished
products produced using the raw/packing
item. This application signed by a qualified
Pharmacist is termed as BLOCK LIST.
SCM - Departmental

10

Procurement of Pharma Raw and

Packing materials: Ideal Situation
This

completed Block List is submitted along

with a treasury chalan to the Drugs
Administration with the help of Regulatory
Deptt. for obtaining approval. (01 days)
Here, it should be noted that without a
proper, approved Block List Banks are not
allowed to transmit the LC. This process of
obtaining Block list is often very lengthy. (20
days on average).
SCM - Departmental

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Procurement of Pharma Raw and

Packing materials: Ideal Situation
Upon

arrival of the approved Block list, it is

attached with the PI/Indent and forwarded
for checking PI terms and conditions as per
industry standard. Also, concerned
personnel, with the directions and
information from A&F Div., determines the
appropriate banker to request for opening LC
and sends the PI/Indent to Insurance
company for obtaining insurance cover note.
This is another essential document for
opening LC. (02 days)
SCM - Departmental

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Procurement of Pharma Raw and

Packing materials: Ideal Situation
While

the Insurance cover note arrives, the

PI is accompanied with an LC application, an
LCAF set, an IMP form which are sent for
filling up by typing. The filled up forms, PI,
copy of approved & compliant Block List,
insurance cover note, a request letter to
issue pay orders to the insurer, any other
specials instructions (if any) are submitted to
the banker for opening LC. (01-02 days)
SCM - Departmental

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Procurement of Pharma Raw and

Packing materials: Ideal Situation
The

LC is established and gets advised to the

supplier usually by 03 days. The copy is
shared with SCM for necessary records and
actions. (02-03 days)
All the related documents, communications
along with the LC are stitched into a file and
all the related information are updated into
the LC Management Systems (LCMS) by the
SCM team members. The LCMS generates an
office no. for that particular transaction
which is termed as HO No. or file mark.
SCM - Departmental

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Procurement of Pharma Raw and

Packing materials: Ideal Situation
The

concerned personnel follows up the

shipment status with the supplier and
communicates to other users of the
information. Meantime, the supplier, while
advised to ship the goods, if confronted with
any sort of difficulty in complying with the
LC terms and conditions, requests for
amendments to the LC. If it is allowable,
then SCM members arranges for amendment
and advise supplier with the same.
SCM - Departmental

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Procurement of Pharma Raw and

Packing materials: Ideal Situation
Meantime,

the supplier arranges for

shipment and prepares necessary documents
evidencing shipment and by practice, share
the copy documents for intimation to the
customer.
With the help of these documents SCM can
track down the shipment status and arranges
for necessary actions to release the goods
when it arrives at the port of entry.
SCM - Departmental

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Summary of Standard time to

procure Pharma Raw and Pack items
Sl No

Activities

No. of Days
req.

1. Receiving requisitions from

PPIC.
2. Asking quotations from
approved vendors
3. CS and Management approval

10

4. Obtaining PI/Indent

01

SCM - Departmental

02

17

Summary of Standard time to

procure Pharma Raw and Pack items
Sl No

Activities

No. of Days
req.

5. Arranging Block List

01

6. Obtaining BL from DA

20

7. Obtaining Insurance &

checking

02

8. LC typing

01-02
SCM - Departmental

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Summary of Standard time to

procure Pharma Raw and Pack items
Sl No

Activities

9. Receiving transmitted LC and

advising the Supplier
Total Days Req.

SCM - Departmental

No. of Days
req.

02-03
39-41

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The Clearance of Imported items

Via

Air and Road

Receive copy documents

Track the consignment status
Obtain Shipment Guarantee
Send documents set via post/hand
Obtain Delivery Order (D/O)
Preparation of B/E & Submission
to customs
SCM - Departmental

0
01
02
01-02
01-02
01
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The Clearance of Imported items

Duty assessment and notifying

01
Check money requisition and approval 0.5
Issuance of Cheque and Pay Order 01
Examination (if required)
03
Obtaining Delivery gate pass
0.5
Receipt confirmation from Factory 02
Total No. of days
11- 16
SCM - Departmental

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The Clearance of Imported items

Via Sea
Receive copy documents
0
Track the consignment status 01-02
Obtain Original Documents with endorsement

02-07

Send documents set via post 02

Obtain Delivery Order (D/O) 01-02
Preparation of B/E & Submission
to customs 01
SCM - Departmental

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The Clearance of Imported items

Via Sea
Duty assessment and notifying

02
Check money requisition and approval 0.5
Issuance of Cheque and Pay Order 02
Examination (if required)
03-05
Obtaining Delivery gate pass 0.5
Receipt confirmation from Factory 02
Total No. of days 14- 26
SCM - Departmental

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