Top Supply Chain Challenges in Pharma Industry 2023
Top supply chain challenges in pharma industry

Top supply chain challenges in pharma industry

The pharma industry typically sells through a distribution network of CFAs (clearing and forwarding agents). They are responsible for managing the logistics, maintaining stock, etc. They provide services to the distributors on behalf of the company.  These CFAs are located region wise. Most pharma companies in India have atleast 1 CFA in each state. Typically the network is of about 30 CFAs. With the introduction of GST, this scenario is changing and now the companies have super stockists. 

However, most of the challenges of supply chain remain unchanged. Here are some of the pain areas which are smoothly addressed by Proteus Vision.

Multiple distribution channels

Super stockists and CFAs need different controls, configurations, and GST compliances. Whereas the CFAs are generally company-owned, super stockists are our external partners. 

Automation of transactions between company and super stockist

The sales-purchase transactions between the company and these partners are automated, so as to avoid errors, save time and ensure data integrity. 

Sales & Promotion schemes:

 Different types of schemes can be defined. The scheme items are automatically added to the invoice. Invoicing is done only if the stock of the main product and scheme item is available.

Sales returns of items sold in schemes:

When you get a sales return of an item which was sold in a scheme, the system automatically calculates the rate of the return after considering the scheme item. So you are not providing a credit note of an inflated  value.

Institutional sales:

This is another concern area, as the chargeback amount has to be worked out when selling to institutions through super stockists. 

Shelf life tracking and control:

It is not advisable to sell near expiry products to the retail channels as most likely these will come back after they expire. Better way is to sell these to institutions where they are quickly consumed.

Batch tracking and recall:

In a worse case scenario where you may have to recall a batch, you can lock the stock so that it cannot be sold further. Full tracking of the sales of the batch to ensure easy recall.

Pricing definitions and controls:

It supports  batch and list price, providing customer specific pricing, automated revision of pricing structure, changes the MRP and all the implications automatically reflect in the other prices like PTS & PTR.

Sell only when stock is available:

Stock cannot be created in the system, unless the physical stock reaches the location. Hence sales cannot be booked on ‘expected stock’ 

One click order to invoice:

You just need to punch the order, the invoice will be auto-generated, stock will be reduced, accounting entries passed… all in one click. The stock will be picked up as per FIFO.

Credit check control:

Order execution ensures credit check control, so you do not land up selling further to customers who have defaulted in payments. These principles can be configured in the system.

To know more on how Proteus Vision  can help to smoothen your company’s supply chain process, visit : or Contact us