Assignment details: Select a company in Oman (excluding Sohar University) and st

Question

Assignment details:

Select a company in Oman (excluding Sohar University) and study the role of purchasing in that organization. You should interview some key employee responsible for purchase. Additionally, you can also refer to primary or secondary data sources such as magazines, books, websites, journal articles. You are required to develop a written report with the following structure:

1. Title (e.g., Purchasing Practices at XYZ company)
2. Introduction
3. Purchasing Types and procedures
4. Critical Analyis of Purchasing process
5. Conclusions and recommendation
6. Bibliography

Your enquiry should reveal answer to the following questions in the body of the report.

? Which organization did you visit?
? Who was the contact point in the organization?
? A brief paragraph introducing the organization.
? A brief description of their major Purchase Types?
? What procedure this organization follows for its major purchase types?
? Who are their major suppliers
? What dominates the decision to purchase? Price, Quality, Reliability, etc.
? A critical reflection of how the organization is doing and where it can improve.

Written coverage for the report should not exceed 10 A4 size typed pages (excluding references).

Explanation / Answer

PROCUREMENT PROCESSES AT NATCO PHARMACEUTICAL LTD., OMAN

Introdcution:- Natco pharmaceutical is a leading pharma company headquartered in Oman. The main business of this company is procurement of Active Pharmaceutical Ingredient (API) from local niche manufacturers, packaging and branding it as their drug under Natco Pharma's brancd name. Purchasing the correct API is the core source of business income for Natco Pharma thus the company lays its maximum emphasis on purchasing and procedures incorporated for purchasing.

In a demanding pharma industry with change in revenue streams by new drug addition, off patent formulas and mergers & aquisitions being the order of the day, companies need to focus more on the purchasing procedures i.e they offload their unwanted processes which are outsourced to cost effective smaller players and they concentrate fully on packaging and branding of thier procurement to increase revenue streams.

Open bidding for API purchasing from generic manufacturers-----------enter into time bound cotract with the lowest bidder----------------------Procure API with the specifications from the bidder company--------------------------packaging of the API into proper medicine---------------------------branding with the parent company's logo and trademarks--------------------------------launch into the markets through distributors, CFAs and retailers.

The purchasing process in very critical to the whole drug manufacturing process for a pharmaceutical comapny. We have visited the NATCO Pharmaceutical Limited headquartered in OMAN and have visited their biggets reaserch plant in OHAIB. We happened to have got in touch with the General Manager of the purchase department of the company. NATCO is a major drug manufacturer in OMAN and commands 35% market capitalisation of the entire pharmaceutical industry in OMAN. After oil, pharma is the second largest industry by consumption basis in this gulf country. NATCO is a well established having existence of over 4 decades. The company has established suppliers of API and Mr. Vishal Ranjan if the G. Purchase for the company who was kind enough to give us an in depth analysis of the purchasing process in the company.

The company has well laid out API types for different different drugs. Either a new drug has to be launched or after patent is offloaded even a generic drug is to be launched, depending on the demand cycle API purchase is done. A well documented demand script reaches the purchase department which immediately informs its suppliers i.e small outsourced niche manufactureres who start their API supply to NATCO. A formal legal time bound contract is laid out between the managments of both the companies to establish purchase trade relations. This contract is very critical to the whole purchase process. There are 3 major suppliers of APIs for the company viz Ratnamani Healthcare Pvt Ltd, Golf Heathcare Remedies and Ajanta Generic Pvt Ltd. who are the regular suppliers for NATCO. The purchase is mainly driven by Quality of molecule, Reliability of meeting contract deadlines on time and also offering a competitive price for the APIs which has

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