S Vasudevan
Purchase and Logistics, Genetix Biotech Asia Pvt. Ltd.Explain the purchasing process?
Our central warehouse in Delhi do inventory
for all expected orders. Most of our products are
imported from our more than 30 principal
companies, and mostly we get stock orders. We try to
save freight cost and meet the principal’s
requirements. We remain in regular contact with
customers on availability of frequently used products
and stock these products in our warehouse for timely
delivery.
We also move the product from our warehouse to
the client’s warehouse. Whenever the client wishes
to retrieve the product, he or she takes care of the
custom clearance. We are registered for sales tax
at few of our branches, including Bengaluru. So,
we are entitled to do billing with customers within
and sometimes outside Karnataka. Some customers
prefer procuring materials from our Delhi office
because of CST but we charge VAT. So, it depends on
customer’s convenience.
Crucial criteria for choosing suppliers
Our principals such as Neptune, Toyobo,
Hyclone, Amresco and others are particular about
their products and price. We have to manage things
well.
What is risk management?
We do get complaints from customers that a
particular product is not working. This might occur
due to negligence at the shipping side. We maintain
three conditions while shipping a product from our
side — at room temperature, with ice packs or withdry ice. There are times
when precautions are
overlooked. We try to be
careful but it does happen.
So, we need to manage
things accordingly.
Any change in the process in five years?
The company is more than 20 years old. From
one office in Delhi, we have expanded to Bengaluru,
Hyderabad, Mumbai, Lucknow and Chennai. The
process has been the same throughout.
Your role over the last five years?
I was previously working with a company in
Kolkata and statutory side has been my field of
expertise. I was transferred to Bengaluru 20 years
back. Later, I met Genetix CEO Arun Prakash and he
expressed his desire to open more offices beyond Delhi
and I joined their Bengaluru office. My role at Genetix
has been the same over the years.
How do you deal with delays from
suppliers and delivery of orders?
Delays happen as our principals are very
particular about the R&D aspect. They thoroughly
check products before sending it across to us. So, we
keep customers in the loop. The principal companies
do not always tell the reason for delay but it is our duty
to inform the customers. We have to deal with it.
How much buffer stocks are maintained
considering delays?
We maintain buffers in our warehouse all the
time.What changes have happened in
procurement processes over the last few
years?
Twenty years back it was the price that was
driving the business. Now it is the quality and
compliance of the vendors that is driving the business.
Now Indian FDA also wants everything in line with
US FDA. This is a major change that has happened.
How technology has aided in the
changes that have happened?
Even technology has also advanced. Now the
API brands are more or less PSC controlled. There isTushar Mehta
Sr Vice President – Purchase and API Marketing, Alkem Laboratories Ltd.a central computer system, where people are sitting
and controlling the production. Many procurement
departments of companies have ERP systems. Even
small companies have SAP system.
How timely delivery from the vendor is
ensured?
Timely delivery is more to do with the your
(company’s) planning system. Supplier will have own
lead time as he or she has to procure raw material,
convert into goods etc. So, you have to plan according
to his lead time. It is more to do with your planning
than supplier’s planning.As part of reach out programme, BioSpectrum speaks to
procurement managers from India to understand procurement
process, and evolution of their role in recent past(^26) COVERStory BioSpectrum | May 2017 | http://www.biospectrumindia.com