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The Optimization of the Pharmaceutical Supply Chain Transportation (on the Example of "ILAR" LLC)

Student: Georgiev Georgii

Supervisor: Alexander Kolik

Faculty: Graduate School of Business

Educational Programme: Innovative Technologies in Supply Chain Management (Master)

Final Grade: 7

Year of Graduation: 2021

The relevance of the topic is determined by the fact that in recent decades, one of the main directions of development of the pharmaceutical industry, developing at a faster pace, has become biotechnology: the creation of cellular and protein medicines, as well as vaccines. Biotechnological preparations are thermolabile, sensitive to temperature changes and usually have to be stored and transported under strictly defined temperature conditions, the output of which leads to the destruction of their medicinal properties. Such strict requirements for the logistics of biological products have led to the development of a separate area of pharmacology – cold chain logistics. Due to the peculiarities of pharmaceutical products, cold chain logistics involves slightly different formats of commodity flows, specialized logistics infrastructure and more complex methods of supply chain management, which should take into account more stringent storage and transportation frameworks, features in inventory management and much more. The aim of the work is to provide theoretical justification and develop recommendations for optimizing the transport supply chain of pharmaceutical products in a logistics company on the example of «ILAR» LLC. To achieve this goal, the following tasks were formulated: - to conduct an analysis of the economic activity of the company "ILAR" LLC»; - to analyze the financial and economic activities of the company "ILAR" LLC»; - identify the main problems of logistics activities of the company " ILAR»; - give a description, determine the structure and factors that affect the supply chain; - describe the specifics of the organization and management of the pharmacological supply chain; - to characterize cold chains in pharmacology; - to determine the main ways of development of transport support of the supply chain of pharmaceutical products of ILAR LLC»; - give suggestions for improving the transport supply chain of pharmaceutical products of ILAR LLC»; - to assess the economic efficiency of the introduction of new mechanisms in the business processes of ILAR LLC. The object of research in this work is the supply chain of pharmacological products of a logistics enterprise. The subject of the study was supply chain processes. The analysis suggested that the company moves on the market for logistics services in Eastern Europe, for transport of the Russian vaccine Sputnik V, thus, in terms of the epidemiological situation, as well as growth in demand for pharmaceutical products, the company will increase profit, including due to savings on the range and scale of transportation. Ensuring the company's work in a new market segment should be ensured by the introduction of a KPI system, which should solve the problem of insufficient reliability of the service by creating a clear system for evaluating the effectiveness of performing functions. The effectiveness of introducing a system of bonuses and allowances depending on labor productivity and working conditions is shown. A strategic map has been developed that includes KPI systems and bonuses\allowances, showing their direct impact on the final efficiency of the company's activities. A method of rapid selection of suppliers of equipment and spare parts for refrigeration units of cars and trailers – refrigerators has been developed, the use of which is fast and with sufficient quality to choose a supplier of refrigeration equipment and components. The comparative calculation of international transportation (using the example of Dolgoprudny-Warsaw-Dolgoprudny) vs. regional (Moscow and Moscow region) allowed us to calculate the difference in profitability of 5.7% for cold chain transportation and 9.1% for conventional transportation. The introduction of international transportation in 2021 and the contracts of a state for the transportation of vaccines, combined with other factors, can increase the company's profitability. A strategy was proposed to expand the company's transport services with access to the segment of international transportation of pharmaceutical products, primarily through the cold chain. It was proposed to reorganize the organizational structure in connection with the entry into the international market, as well as the introduction of additional departments to reduce organizational errors in supply chain management.

Full text (added December 25, 2020)

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