Sanofi Aventis, a multi-national pharmaceutical company, uses purchasing structures and procedures that aim to cover all activities and all types of purchasing. The structure is based on placing the purchasing responsibility on entities and business units, under the supervision of a central team. There is a group wide procedure which must be closely followed by all entities and business units. Each unit may have its own local rules and procedures to abide by provided they comply with the group procedure. There are specific roles from purchase request to management decision. The role of the purchasing department is to assist the units making the request and to quantify their needs. From specification to supplier selection, the role of the purchasing department is to identify and select potential suppliers. Tendering and negotiations are led by the buyer and should enable a final decision to be made. Regarding contractual commitment to payment of invoice, the role of the purchasing department is to formalize the contractual relationship by preparing and signing purchase contracts and orders. Group level policies such as the Social Charter were distributed to all employees in 20 languages in order to outline the principles that form the common base of human resources within the Group.
[...] ) Square Concentric Diversification This square is a suggested idea of ‘gaps in the market that Sanofi- aventis could fill. On the 1st of October 2008, the European Medicines Agency published the ‘Public Statement on the Current Shortage of Radiopharmaceuticals in the European Union'[20]. Square Horizontal Diversification- This square suggests opportunities for Sanofi-aventis to expand into other fields, like other market leaders such as Pfizer manufacture drugs for animals. This could be a future possibility to increase revenue for Sanofi -Aventis. [...]
[...] Portofolio: procurement positioning The horizontal axis concerns the degree of difficulty associated with sourcing products/services and also the vulnerability of Sanofi-Aventis in the failure of suppliers to deliver right & on time. The vertical axis concerns the profitability/efficiency of the supply in the profit. Leverage- Transport system & ‘Basic' raw material: Sanofi-Aventis gets myriads of suppliers able to supply a quality product, therefore the bargaining power is favorable to Sanofi-Aventis but a mutual relationship will be a benefit because of the sensitivity of the sector (quality, regularity of order) Strategic-R&D Staff & Key Management's positions are vital because fewer people are available in the market. [...]
[...] As well as the internal system for quality control, Sanofi Aventis is also monitored on a regular basis by agencies such as: The French Agency for Sanitary Safety of Health Products (AFSSAPS); European Medicines Agency (EMEA); The US Food and Drug Administration The German agency, Bundesinstitut für Arzneimittel und Medizinprodukte (BfArM); The British Medicine and Healthcare Product Regulatory Agency (MHRA); The Japanese Pharmaceuticals and Medical Devices Agency (PMDA). Kaizen What is it? Why is it required for SA? Global competition requires companies to make improvements continuously to maintain or expand the market shares in the world as well as elevate teamwork spirit. [...]
[...] Excellent turnover in first half of 2008 even with cheaper copies of their top selling drugs Regulations protecting Sanofi-aventis Directives issued by the Organization for Economic Cooperation and Development (O.E.C.D) regarding multinational firms and particularly concerning good business [16]practices, anti-corruption and illegal payments. The "ethical criteria" Professional associations rules (European, American and Japanese) concerning clinical trial transparency Safety In recent times the supply chain in the pharmaceutical industry has experienced a revolution. Threats such as counterfeiting and the increase in requirements of organizations (FDA) (WHO) have created a demand for more ‘rigorous control and traceability on drugs.'[17] In the USA, the FDA requires all drugs shipped by a wholesale distributor to include a pedigree; an electronic ‘statement representing the chain of ownership.'[18] Sanofi-Aventis supports the concept of mass serialization SWOT- Analysis- Macro Environment Opportunities Threats Health Competitors High demand for new treatments, New competitors. [...]
[...] its suppliers experience Example of “stilnox” financial difficulties and to or are unable to meet Dynamit Nobel (since Sanofi Aventis' demands difficulty to supply the market and damage Sanofi' reputation Sanofi markets some of The third party do not Create an adequate its products in keep confidential the confidential agreement collaboration with patterns of a active with the third parties other pharmaceutical ingredients companies Example with Bristol-Myers Squibb for and “Aprovel” In the event of Safety risk If they continue to fail “material quality Product withdrawn from to fix the problem; breach” of any raw the market terminate the outsourcing material problem of reputation agreement and therefore thrust Maintaining multiple sources Quality team working closely with suppliers Counterfeit Safety/ direct impact on Packaging security/ Bar the sales code Single sourcing as a effect on the security supply because the scheduling is simpler Procurement Efficiency of the orders Validation of sales /Wrong quantities forecast and close inventory with communication inter services Animal right activist Animal research is a Open information of the sensitive ethical issues and policies, positive press, abide by policies An interruption to the supply chain or production of Sanofi-Aventis products could put patients at risk and cause hospital shortages. [...]
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