Supply Chain Management
We have analyzed the supply chain of BioPharma with respect to the costs incurred to meet the global demand. The report finds that the current configuration is not cost effective and is increasing the costs to meet the demand of the two chemicals globally. This is leading to a dip in the profits even when the demand is stable and expected to increase in some markets. The aim of this report is to present an alternative, more effective global network configuration which will reduce the costs for the supply of chemicals globally using only the existing network. Using the constraints of supply production and the minimization of costs, we have presented a optimum configuration by correcting the current production and supply.
We have found that shutting the Japan plant will save some substantial costs for the company while the demand can be served from manufacturing facilities like Germany, India and Mexico. The German plant also has very high production costs, due to which we recommend that it only produce one chemical which is HighCal. Both these recommendations in tandem will ensure demand matching supply at reduced costs.
The future demand in the growing Asia without Japan market can be met by the German plant in the future. The same can be altered if the Indian plant can be improved through some capital investment in the Indian plant which has the lowest costs of production. This will help save costs and also meet the demand in the Asia without Japan market.