Laura Garcia Rivera (case FARMALIN)

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As in all organizations, FARMALIN has a supply chain that includes all activities and logistics that are made in it. Thus, activities that are repeated along the flow channel, obtained from raw materials to make drugs that are developed as follows: First, FARMALIN makes a supply logistics, as it has with foreign suppliers, since not only make their products with Colombian materials, but also with imported materials have different characteristics and properties. In addition, the same company produces primary supplies for the manufacture of their medicines. The department of planning and buying is responsible for concrete suppliers. The imported raw material is transported by sea and then stored in the warehouse of raw materials.Second, the company conducts internal logistics begins with the transformation of raw materials in vitamins, pills for headaches, muscle aches, gastritis, diabetes, antibiotics, birth control, infant milk and other specialized drugs. Before the manufacture of products, there are two departments that are involved in the marketing, sales and finance, which are vital to the production estimate of the company. Finally, the company operates a distribution logistics, so that the finished products are distributed by major market channels of distribution of medicines, ie, hospitals and private clinics and public sector, distributors and large chain drugstores. Despite this structure as complete supply chain, FARMALIN, presents many problems during its course of how it is put into play the effectiveness of business processes and thereby maximizing benefits for her.In my opinion, this company has two fundamental problems that prevent him from properly handle the sales forecast information to be as accurate as possible. The first is the lack of effective communication between different units of the company and, consequently, the second, disruption of the activities included in the supply chain. The case shows these shortcomings through certain specific problems that obstruct the mission of the direction of the supply chain. These issues are described below: The company must make a delivery of 3500 units of Vitamin 1, to comply with the contract 310 and avoid a fine of 200 million pesos. The problem is that the amount is equivalent to 3 months of sales and therefore there will be an inventory of Vitamin two months, reducing the level of service. Furthermore, bringing the product to comply with the order quantity, increased transportation costs.There was no coordination between imported product planning and account executive who did not inform the planner of his contract. 300,000 Mejor n product that claimed to be extra sales of the month, the market will not by quality problems, which involve estimates of future load, affecting the level of inventories and the rotation of the line. There was no communication between the head of planning and procurement planning and the chief imports. We just closed a deal, which will be sold monthly gauze 200 000 Military Hospital of the Child Jesus. The problem is that the company only has capacity for 70,000. They are in charge of the Product Manager and Business Manager. Finally, the Sales Manager of Medellin, makes a claim about the lack of inventory in their warehouses of Vitamin 2.This is because in Bogot do not yet have information about the new business with the Clinic of Antioquia and therefore the goods has never been moved to there.

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