ATCO

LABORATORI
ES
GROUP -07

Group Members
Anas Iqbal 20221-32806
Ehsan Tamori 20221-32754
Syed John Zaidi 20201-28329 1
Wali ul Islam 20221-32378
 INTRODUCTION

1. ATCO Laboratories Limited is a pioneer in Pakistan's pharmaceutical industry,

with over four decades of service to the country's healthcare system.

2. The company develops, formulates, and markets high-quality generics.

3. ATCO operates from a state-of-the-art cGMP compliant manufacturing facility

located in Karachi, the industrial hub of Pakistan.

4. The company is cGMP certified by the Drug Authority of Pakistan (DRAP).

5. ATCO holds accreditations from various health authorities worldwide,

demonstrating its commitment to meeting international quality and safety
standards.

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 PROCUREMENT PROCESS

1. Requisition

2. Supplier Selection

3. Negotiation

4. Purchase Order Creation

5. Order Fulfillment

6. Goods Receipt and Inspection

7. Payment

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 PROCUREMENT PROCESS

1. Requisition:
• Departments identify needs for materials, equipment, or
services.
• End users create purchase requisitions in SAP with specifics.

2. Supplier Selection:
• Procurement team evaluates requisitions for potential suppliers.
• Conducts market research.
• Sends RFQ to chosen suppliers for quotations.

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 PROCUREMENT PROCESS

3. Negotiations:
• Suppliers respond with proposals including pricing, terms, etc.
• Procurement team evaluates proposals and negotiates terms.
• Negotiations cover specifications, pricing, delivery, and more.

4. Purchase Order Creation:

• Purchase Order (PO) outlines purchase details.
• Sent to supplier for acceptance or suggestions.
• Contract made and signed with chosen supplier.

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 PROCUREMENT PROCESS

5. Order Fulfillment:
• Procurement generates PO and places orders.
• Oversees order fulfillment aligning with terms.
• Suppliers deliver items/services per schedule.

6. Good Receipt & Inspection:

• Quality control team inspects received items.
• Ensures items meet specified quality standards.
• Works with supplier to resolve quality issues.

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 PROCUREMENT PROCESS

7. Payment:
• Invoices verified against PO/contract terms and goods received.
• End user marks "Work Done" on SAP for invoice processing.
• Finance department processes payments per agreed terms (30
days credit).

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 PROCESS
MAP
Shortlisting of Negotiations Supplier Selection
PR creation by
suppliers & regarding price , & Purchase Order
User in SAP
invitation for RFQ. quality , lead time Creation

Passed

Payment to Goods Order Fulfillment

Goods Receipt
Supplier Inspection by Supplier

Fail

Replacement of
Goods
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 IMPROVEMENT
OPPORTUNITY
AND
IMPLEMENTATION
PLAN

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 ADVANTAGES OF USING SUPPLIER PERFORMANCE
FORM

1. Enhanced Performance Monitoring:

• Allow organizations to track supplier performance consistently over time.

2. Improved Supplier Selection:

• Enables informed decision-making in selecting suppliers based on past performance
evaluations.
3. Risk Mitigation:
• Identifies potential risks and weaknesses in supplier performance.
4. Quality Improvement:

• Helps in monitoring quality standards by assessing suppliers' quality performance,

leading to improved product or service quality.

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 SUPPLIER PERFORMANCE REVIEW
Supplier Performance FORM
Performance Evaluation Rating (Scale: 1-5)
Metrics

1. On-Time Delivery (OTD) Delivery of orders on time: [Rating]

2. Quality Performance Defect rate or quality issues observed: [Rating]

Average lead time from order placement to

3. Lead Time [Rating]
delivery:
4. Responsiveness and
Timeliness of responses to queries or issues: [Rating]
Communication

5. Supplier Flexibility Ability to accommodate changes in orders: [Rating]

6. Supplier Collaboration Collaboration with supplier: [Rating]

7. Innovation and
Contribution process improvements: [Rating]
Continuous Improvement
8. Financial Stability and
Assessment of financial stability: [Rating]
Reliability
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 SUPPLIER PERFORMANCE REVIEW
FORM
Overall Evaluation Overall Rating (Scale: 1-5)
Overall satisfaction with the supplier: [Overall Rating]
Areas of Improvement: [List of areas needing improvement]

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 RATING GUIDELIINES
1) On-Time Delivery (OTD):
1. Poor: Delivery late more than 75% of the times.
2. Below Average: Delivery late 50-75% of the times.
3. Average: Delivery late 25-50% of the times.
4. Good: Delivery late less than 25% of the times.
5. Excellent: Consistently delivers on schedule.

2) Quality Performance:
1. Poor: High defect rate or major quality issues >10%.
2. Below Average: Moderate defects or quality issues (5-10%).
3. Average: Acceptable quality with minor issues (1-5%).
4. Good: Few defects (<1%).

5. Excellent: Defect-free.

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 RATING GUIDELIINES
3) Lead Time:
1. Poor: Lead time is 30% more as compared to other suppliers
2. Below Average: Lead time is 20% more as compared to other suppliers.
3. Average: Lead time is 10% more as compared to other suppliers.
4. Good: Lead time is same as offered by other suppliers.
5. Excellent: Short lead time, as compared to other suppliers.

4) Responsiveness and Communication:

1. Poor: No response.
2. Below Average: Responses take more than 48 hours.
3. Average: Responses within 24-48 hours.
4. Good: Timely responses within 12-24 hours.
5. Excellent: Immediate responses within 12 hours.

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 RATING GUIDELIINES
5) Supplier Flexibility:
1. Poor: No flexibility for order changes.
2. Below Average: Resistance to accommodate order changes.
3. Average: Limited flexibility causing difficulties in adjusting orders.
4. Good: Generally adaptable to changes with some limitations.
5. Excellent: Readily adjusts to any order changes.

6) Supplier Collaboration:
1. Poor: No collaboration.
2. Below Average: Transactional collaboration.
3. Average: Cooperative collaboration.
4. Good: Coordinated collaboration.
5. Excellent: Synchronized collaboration.

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 RATING GUIDELIINES
7) Continuous Improvement:
1. Poor: No improvements.
2. Below Average: Resistance to improvements.
3. Average: Some initiatives for improvement.
4. Good: Actively involved in improvements.
5. Excellent: Proactive in continuous improvement.

8) Financial Stability:
1. Poor: High debt levels, consistent losses or negative cash flow
2. Below Average: Moderate debt, fluctuating profitability or slow revenue growth.
3. Average: Acceptable debt levels, stable profitability and steady revenue growth.
4. Good: Low debt, consistent profitability, positive cash flow, and stable revenue growth.

5. Excellent: No debt, consistently high profitability, strong positive cash flow, and sustainable
revenue growth

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 RISK
ASSESSMEN
T

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 RISK MANAGEMENT

1. Hallo Effect

• An evaluator's overall positive or negative impression of a supplier can influence evaluation.

2. Personal Preferences

• Evaluators might favor suppliers they personally like

3. Limited Knowledge

• Evaluators might rely on incomplete if they have limited exposure to the supplier's performance

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 RISK MITIGATION STRATEGIES

1. Rating Guidelines

• Establish clear rating guidelines for evaluation.

2. Multiple Evaluators Involvement

• Involve multiple individuals from different departments mitigate individual biases.

3. Feedback Mechanisms

• Encourage feedback from various stakeholders involved with the supplier,

incorporating different viewpoints into the evaluation process.

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 COST
BENEFIT
ANALYSIS

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COST BENEFIT ANALYSIS

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THANK YOU

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