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Case 14-3 Sarin Pharmaceuticals Ltd. Alan Mannik, director of procurement for the Sarin Phar- maceuticals Ltd. (Sarin) Animal Health Division plant in Vancouver, British
Case 14-3 Sarin Pharmaceuticals Ltd. Alan Mannik, director of procurement for the Sarin Phar- maceuticals Ltd. (Sarin) Animal Health Division plant in Vancouver, British Columbia, was planning for the trans- fer of eight products from the company's plant in France. He had a conference call with Francois Simpson from the Sarin facility in Arras, France, on June 11 to discuss details of the transfer. It was Monday, June 2, and Alan needed to prepare for the meeting, which was set up to review pur- chasing transition issues. He was particularly concerned with the supply of raw materials and packaging. SARIN PHARMACEUTICALS LTD. Founded in 1865, Sarin was headquartered in New York and had a reputation for excellence and innovation in the discovery, development, and manufacturing of medicines for people and animals. In the most recent year, company revenues were $12 billion, with net income of $1.4 billion. The company employed more than 45,000 people who worked in 60 countries. Sarin was organized into four segments: pharmaceuticals, vaccines, consumer health, and animal health. The Pharma- ceutical Division accounted for approximately 70 percent of company revenues, while the Vaccine, Consumer Health, and Animal Health Divisions represented 13 percent, 10 percent, and 7 percent of Sarin's revenues respectively. The Pharmaceutical Division developed and manufactured medicines for the treatment of a variety of serious and chronic diseases, such as cancer, epilepsy, and heart disease. The Vaccine Division produced pediatric and adult vaccines to prevent a range of infectious diseases, including hepatitis A and B, polio, and influenza. The Consumer Health Divi- sion focused on a wide range of consumer health products in the areas of skin care, wellness, oral care, and nutrition. The smallest division, Animal Health, developed and produced medicines for livestock, poultry, and pets. Sarin focused on its strategic mission of discovering, developing, and bringing to market health care prod ucts in an effective manner that fulfilled unmet medical needs. As a result, the company had recently divested a number of operations that did not align with the com- pany's strategy. A number of businesses that comple- mented Sarin's strategy had recently been acquired, and By late May, it had become apparent that the French plant would not be able to increase production for sufficient inventory to last for the phase-in period due to low-produc- tivity rates and morale issues. Also, French regulations re- stricted the ability of the plant to run overtime. It was clear that the transition to the Vancouver plant would have to be achieved earlier than planned to avoid product shortages. The approximately 300 approved suppliers for the French plant consisted of both large and small operations that were located all over Europe. A sample of some of the suppliers were as follows: Company name: E. Durand Location: Metz, France Size: Approximately 400 employees Product: Chemicals Company name: P.J. Laurent Location: Metz, France Chapter 14 Global Supply Management 431 Size: Family firm, 3 employees Product: Printing barrel syringes Company name: Union Plastics Location: St. Didier-En-Valley, France Size: Approximately 100 employees Product: Syringe barrels and plungers for syringes Company name: Loffler AG Location: Freyung, Germany Size: Approximately 500 employees Product: Chemicals As Alan contemplated his moves over the next six months, he wondered how he could ensure that the Vancouver plant had all the necessary supplies for production in an efficient and timely manner. 1.. what is the problem and (2) Suggest any 3 alternatives for the problem 3. Decision Criteria(what goals to achieve out of the solution) and (3) Recommendations and (4)ACTION PLAN. Explain in brief.
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1 Identifying the Problem The primary problem Alan Mannik faces is to ensure a seamless transfer of production of eight products from the Sarin plant in France to the plant in Vancouver This involves ...Get Instant Access to Expert-Tailored Solutions
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