SINDH MADRESSATUL ISLAM

UNIVERSITY

“GlaxoSmithKline Pakistan Limited”

GROUP MEMBERS

Muzammil Abdul Qadir BUS-18F-001

Abdullah Amir BUS-18F-015

Najibullah BUS-18F- 005 1|Page

TABLE OF CONTENTS
ACKNOWLEDGEMENT: .......................................................................................................... 2
INTRODUCTION OF COMPANY AND HISTORY:.............................................................. 3
VISION & VALUES ..................................................................................................................... 3
OBJECTIVE: ................................................................................................................................ 4
PRODUCTS: ................................................................................................................................. 4
FACTORIES LOCATION IN PAKISTAN: .............................................................................. 6
SUPPLY CHAIN OF GSK........................................................................................................... 7
UPSTREAMS: ............................................................................................................................................. 7
MIDSTREAM: ............................................................................................................................................. 7
DOWNSTREAM:......................................................................................................................................... 7
OBJECTIVE OF SUPPLY CHAIN ............................................................................................ 7
PROCESS VIEW OF SUPPLY CHAIN: ................................................................................... 8
CYCLE VIEW ............................................................................................................................................... 8
PUSH/PULL VIEW: ..................................................................................................................................... 8
COMPETITIVE STRATEGY: ................................................................................................... 8
EFFECTIVE SUPPLY CHAIN STRATEGY: .......................................................................... 8
CHALLENGES IN SUPPLY CHAIN: ....................................................................................... 9
DRIVERS OF SUPPLY CHAIN (LOGISTICAL DRIVER) ................................................... 9
LOGISTICAL DRIVERS ........................................................................................................... 9
FACILITIES: .............................................................................................................................. 9
COMPONENTS OF FACILITIES: ............................................................................................ 9
INVENTORY: .......................................................................................................................... 10
COMPONENTS OF INVENTORY: ........................................................................................ 10
TRANSPORTATION: .............................................................................................................. 10
COMPONENTS OF TRANSPORTATION: ............................................................................ 10
REFERENCES: .......................................................................................................................... 11

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ACKNOWLEDGEMENT:
We are very thankful to our honorable Sir Danish for giving us this opportunity. We are also very
thankful to Almighty Allah who helped us in completing this project. Here we begin working for
this project and also sharing the procedure of supply chain. We would also like to thank Mr. Syed
Asif Ali (Planning and logistic Manager) GlaxoSmithKline Pakistan Limited for sharing his
experience, information and supply chain procedures which are followed by Pharmaceutical
Company, who has truly given us detailed knowledge about the supply chain. Because of
compromise and important time, he gave to us for completing the project, we are highly thankful
to him. We hope that our report is very attractive and fulfil the expectation.

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INTRODUCTION OF COMPANY AND HISTORY:
GlaxoSmithKline Pakistan Limited was established on 1 st January, 2001 through the incorporation
of SmithKline and French Of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo
Welcome (Pakistan) Limited and today serve as the largest pharmaceutical company in Pakistan.

In 1951, Glaxo Laboratories Pakistan Ltd first pharmaceutical company which was listed in
Karachi Stock Exchange. Glaxo Laboratories was a legacy company of GlaxoSmithKline.
GlaxoSmithKline is one of the biggest investors in Pakistan.

GlaxoSmithKline consists of two industry segments: Pharmaceuticals (authorized drugs and

vaccines) and consumer healthcare (daily used medicines, oral care and nutritional care). In
Pakistan, GSK deals in Anti-infective, Respiratory, Vaccines, Dermatological, Gastrointestinal,
Analgesics, Oncology, Urology, Central nervous system, Allergy, Cardiovascular and vitamins
therapy areas.

GlaxoSmithKline is one of the leading pharmaceutical company in Pakistan. GSK major

competitors are Pfizer, Novartis, Abbot and Sanofi etc.

Current Employees of GSK in Pakistan are around 2,300. GlaxoSmithKline consists of three
facilities in Karachi; West Wharf, F-268 site and Korangi.

VISION & VALUES

Our Vision is to be one of the world’s most innovative, best performing and trusted healthcare
companies.

GSK values are different from others because they give first priority to their customer, and health
employees and safety.

 Focusing on the patient's and consumer's needs in research

 Ensuring patient/consumer safety is paramount.
 Ensuring product quality and reliability of supply.
 Act legally and fairly, within the spirit of all laws, regulations and policies
 Encourage employees to speak up if something doesn't feel right or doesn't align with
our values.
 Make realistic commitments and keep our promises.
 Look for principles, not loopholes.
 Encourage employees to seek guidance when unable to make decision.
 We ensure our workplace is safe and free of harassment and bullying.
 We actively seek, value and draw on the differing knowledge, perspectives, experience
and styles present in our global community of employees.
 We create an atmosphere of trust, in which concerns can be fully discussed.
 Ensuring what we say or write is fair and honest, and not misleading or incomplete
 Providing timely, relevant, and accurate information.
 Demonstrating conviction and take ownership

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  Escalating important information promptly.

OBJECTIVE:
The opportunity to make a difference to millions of lives every day. GSK mainly focuses on their
customer and their sustainable plan shift from the use of tablets to vaccines.

PRODUCTS:
GlaxoSmithKline is one of the leading industries in pharmaceutical sector. Mostly, their main
focus and domain are the medical stores or hospital where patient needs these products on daily
basis in all over the world. Augmentin is the running product of the company because it contributes
40% of the profit margin. They are dealing with some consumer health products for instance
Pardontax, Sensodyne, Eno, Panadol and Horlicks etc. GSK is also producing vaccines in Pakistan.
It is producing so many products but I have only mentioned few medicines name:

Trademark Generic name

Amikin Amikacin sulphate

Amoxil Amoxicillin

Arixtra Fondaparinux Sodium

Augmentin Co-amoxiclav

Avamys Nasal Spray Fluticasone Furate

Bactroban Mupirocin

Betnovate Betamethasone 17-valerate

Betnovate N Betamethasone 17-valerate +Neomycin sulphate

Calpol Paracetamol

Capoten Captopril

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 Capozide Captopril + Hydrochlorothiazide

Keppra Levetiracetam

Lacticare Sodium Pyrrolidone Carboxylate + Lactic Acid

Lacticare HC Hydrocortisone

Lamictal Lamotrigine

Lotrix Permethrin

Maxipime Cefepime hydrochloride

Polymyxin B Sulphate + Bacitracin zinc +

Polyfax Plus
Lidocaine

Polyfax Skin Polymyxin B + Bacitracin Zinc

Requip Ropinirole

Revitale B Vitamin B Complex

Revitale Multi Time Release Multivitamins & Minerals formula

Septran Co-trimoxazole

Seretide Fluticasone Propionate / Salmeterol

Seroxat & Seroxat CR Paroxetine

Starvits Pediatric Multivitamins / Minerals

Stiemazol Clotrimazole

Stieprox Ciclopirox olamine

Stieproxal Ciclopirox olamine + Salicylic Acid

Theragran Ultra Vitamins, Minerals & Electrolytes

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 Valtrex Valaciclovir

Valuprazole Omeprazole

Velosef Cephradine

Ventolin Evohaler Salbutamol

Wellcodox Doxycycline

FACTORIES LOCATION IN PAKISTAN:

1. F-268 Estate Ave, Labor Colony Sindh Industrial Trading Estate, Karachi, Karachi City,
Sindh.
2. Main Korangi Industrial Road, Jamal Goth Landhi Karachi Mansehra Colony Sector 21
Landhi Town, Karachi, Karachi City, Sindh.
3. Gate# 3, 35 Dockyard Road، West Wharf, Karachi, Karachi City, Sindh

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SUPPLY CHAIN OF GSK
GlaxoSmithKline is a Pharmaceutical industry; its supply chain process is very difficult there is
no need to do any mistake because you could not store raw materials more than six months so there
is main role of marketing department that they should predict the demand of the customer what
they want so company can easily provide any products at any time.

Supply chain process starts from forecasting and then company representer contact with vendor or
give some order which they actually need, then raw material is sent to the factory then where
production or packaging process is carried out after that company distributes finished goods to the
distributor and the customer can purchase those products related to health care from the
distributor/wholesaler.

UPSTREAMS:
In the pharmaceutical industry especially in GlaxoSmithKline raw materials are produced by their
own chemist or pharmacist they do not allow involvement of any other producer, as Multinational
Company GSK just imports raw material from their different factories which is located in all over
the world. GSK has these major upstream supplies:
UK, USA, Belgium and China.

MIDSTREAM:
GSK supply raw materials from one country to another country by ship or sometime in any
emergency by air. After the manufacturing process, GSK should market their products and they
have their own transport system so they can also distribute their finished goods in the market by
their own transport system.

DOWNSTREAM:
In this sector, company manufacture the products by raw materials which they obtain from the
upstream supplier. So, in the downstream sector GSK starts selling or distributing their finished
goods in the market. In Pakistan, raw materials are being distributed in all factories one by one
because all factories are working on different products like in west wharf, they are just producing
consumer health products and in SITE area, they are just dealing with all the prescription medicines
and vaccines.

OBJECTIVE OF SUPPLY CHAIN

The main goal of supply chain department of every organization is to maximize the overall value
but In the GlaxoSmithKline profit ratio is set by the government of Pakistan as done in 2021,
Government allowed to increase the price of their products in pharmaceutical industry because in
the pandemic raw materials prices are recorded high so GSK main focus is to ensure the availability
of all the raw materials at low cost so they can increase the supply chain at a high rate.

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PROCESS VIEW OF SUPPLY CHAIN:
There are two types of process view of supply chain:
1. Cycle view
2. Push/pull view

CYCLE VIEW
There are four cycles of the supply chain those GlaxoSmithKline using on the daily basis:
1. Customer order cycle
2. Replenishment cycle
3. Manufacturing cycle
4. Procurement Cycle
So, first cycle initiates by the customer order because firstly retailer receives order from the
customer then it goes to the distributor/wholesaler after that distributor gives order to manufacture
and the last cycle which is related to supplier. All the cycles are interdependent on each other that’s
why there is the main role of customer if customer could not place order to the retailer how they
can know about the customer demand.

PUSH/PULL VIEW:
Mostly push view used in pharmaceutical industry even in GlaxoSmithKline. Firstly, they forecast
the demand of the customer recent example of the GSK is one tablet which is used for the heart
patient so in the pandemic situation product gets short from the medical stores in the Pakistan.
Maybe the reason is suddenly increasing the demand of that product.

COMPETITIVE STRATEGY:
GlaxoSmithKline strategy is to focus on product because research and development department
working on the innovation or creative ideas. Still, no one compete with Panadol and Augmentin.
These two products serve in monopoly market and this is the big advantage of the company that
competitor does not have similar products in Pakistan.
GlaxoSmithKline is the only one who have constructed three factories in main industrial area of
Karachi. In Pakistan, GlaxoSmithKline is one of the largest Pharmaceutical Company.

EFFECTIVE SUPPLY CHAIN STRATEGY:

According to the manager of the company, they are working on research, innovation and
differentiation. GSK is manufacturing unique products in Pakistan. There is no other company
who can compete with those products and even no one produced alternative of those products like
highly demanding product Panadol and Antibiotic Augmentin.

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CHALLENGES IN SUPPLY CHAIN:
In every organization, there is big role of supply chain so they may also have some challenges on
daily basis which is related to currency devaluation. When company gives order to supplier at $5
but when raw material arrived at the plant suddenly decrease the value of rupee against dollar so
they can face problems at the time of costing so there is need of good decision maker who can
increase the profit margin of the company by reducing the cost of raw material and may also have
knowledge about the Economic condition.

DRIVERS OF SUPPLY CHAIN (LOGISTICAL DRIVER)

LOGISTICAL DRIVERS

FACILITIES:
GlaxoSmithKline is one of the biggest networks in Pakistan. They are more focused towards
responsiveness in their facility driver. They have big warehouses which is nearly located to their
production sites. As we all know the medicines storage places are more different as compared to
other products.
GlaxoSmithKline have three production sites which covers all the area of port, Port is situated in
the center of Karachi. GSK produced 6.5 billion packs or doses in 2019. They are more focused
on the patient’s health so this is mandatory for all pharmaceutical industry that focus on availability
of all the medicines, vaccines or healthcare products at any time that’s why they put effort to amend
the storage facility. This driver plays a main role in supply chain of GlaxoSmithKline.
Production set is totally different from others. They produce millions of capsules in a day and then
these capsules are stored in warehouse but there is also one risk to store any raw material or
finished goods because after six months raw material could not be able to be used for making
medicines, vaccines or healthcare product because its dangerous for human being.

COMPONENTS OF FACILITIES:
GSK have three production units or six big warehouses which is located in the main industrial area
of Karachi so it is also beneficial for the company that can easily be available for labor workforce.
GSK has paid high attention towards responsiveness because they have warehouses near the
production units. There is also main role of capacity because company produces excess finished
goods so these goods can also be stored in warehouses that’s why GSK has also been more prone
to responsiveness in the role of capacity.
The overall trade can be defined in such a way that if GSK increases the costs of facilities and
inventory so dramatically decrease the costs of transportation because company already have
excess stock in their warehouses and their production units are located at different places so this
would also be decrease the cost of transportation.

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INVENTORY:
If GSK wants to start manufacturing Panadol or Augmentin so firstly, they need raw materials
that’s why GSK always have raw materials in excess because sometimes persons need their
products in emergency. There is need of good decision maker who can easily know and fulfil the
demand of customer because mostly patient use their products.
Recent example of GSK; they produced life saving drug which is use for heart patient but
unfortunately in Covid19 situation, product is getting short from the market so Drug Regulatory
Authority called the director of GSK for meeting immediately and asked stop all the production
and only produced that lifesaving drug.
In case of inventory, they have attempted to perform extraordinary because they have big
warehouses for storing their raw materials or finish goods which is too much expensive way for
storing products. GSK always produces goods in a bulk quantity

COMPONENTS OF INVENTORY:
Retailers replenish their products again and again because as you know the usage of these products
in the life. GSK is more focused to stock finish goods in the warehouses because they can’t afford
any type of medicine shortage in the market that’s why they are more than just heedful. There are
three forms of inventory raw material which work in process and finish goods. The main focus of
the company is to store finished goods in their warehouses because raw material has only six-
month storage time after that could not be able to produce goods.
In GSK mostly use the cycle inventory because after 10 or 15 days they reorder the supplier for
the raw material which is larger lots of inventory. They order raw material in a bulk quantity that’s
why they are highly persistent to remain on top in the market. GSK products are used in daily life
of people.

TRANSPORTATION:
GSK has such big warehouses which are located near the production units so finished goods move
from production sites to storage sites in AC container. Transportation plays the most important
role in supply chain for moving products from one place to another place. GSK service level is
very high they are dealing the monopoly products because no one has produced the alternative of
Panadol and Augmentin.

COMPONENTS OF TRANSPORTATION:
GSK sell their products to the distributor that’s why they have intermediate consolidation points
which have been given to the customer because this is very big network in all over the world so
their warehouses are located at near the distributors. They supply their products with full truck
load in a single run.

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 CROSS FUNTIONAL DRIVERS

INFORMATION:
Information driver is very important for the organizations. GSK always follow up with their
distributors about the products on the daily basis. While they are start manufacturing after seeing
the historic data that how much they produced at last month. GSK first priority is to customer
focus because their products are using for patients.

COMPONENTS OF INFORMATION DECISION:

GlaxoSmithKline used push system for making the products because they have big warehouses so
they can easily store their products.

Sales and operation planning also starts with the help of information that what to produced? and
how much produced? On the basis of sales and operations planning GSK know about the future
demand. GSK is using Enterprise Resource Planning (ERP) system for running the organization.
In information trade off is different as compare to others driver. More information is not always
good for the companies.

SOURCING:
GlaxoSmithKline is using own transportation system for providing goods to distributor or hospitals
because their products must be stored in refrigerator or for moving from warehouse to distributor,
they used airconditioned trucks. They don’t use any outsource for selling their products.

PRICICING:
Pricing is one of the most important drivers for supply Chain that how much company charged for
their products. But as I already mentioned, in pharmaceutical industry prices set by the
government.

REFERENCES:

 Home | GSK. Gsk.com. (2021). Retrieved 1 January 2021, from

https://www.gsk.com/en-gb/.

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