2016

Herbion Pakistan
(private limited)
Internship Report
We invest actively in our workforce, providing training, career
development and performance initiatives that focus on the
expertise, drive and innovation of our employees.

Abdul Mateen Ayaz

38852
02-111151-004
Herbion pharmaceutical Pakistan
 Herbion Pakistan (private limited)

Vision and Mission

Vision:
To become a globally renowned organization that innovates and develops Natural Healthcare
Solutions which facilitate mankind to live a better and a healthier life?

Mission:
To manufacture and market high quality natural products at an affordable price for its global
customers, while achieving and sustaining worldwide leadership in the Natural Health Care
Industry.

In addition to this, we as Herbion have a strong commitment to the community, with

responsibilities not only to our employees but also to millions of people around the globe who
use our products.

Research Collaborations
Herbion is actively collaborating with world renowned health care organizations, to foresee
upcoming opportunities which can be transformed into healthcare solutions, and provide it to
health care professionals and patients globally as an ultimate cure.

In order to strengthen its Research Unit, Herbion has strategic Research Collaborations with
leading international organizations such as:

VILAR (Research Institute, Russia)

Pharm-institute (Research Institute, Uzbekistan)
PCSIR (Research Institute, Pakistan)
HEJ (Research Institute, Pakistan)
IMPLAD (The Institute of Medicinal Plant Development, China)

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1. Introduction of the organization

The best people produce the best product that’s why Herbion is constantly on the lookout for bright,
ambitious team players who have a strong commitment to improve society, the environment, even
themselves.

● What we offer
Herbion is committed to provide its staff with an environment where they can flourish.
We seek people with energy, creativity and commitment and give them the necessary
resources to fulfill individual and company goals, giving attractive fringe benefits along
the way.
● Career Development
we invest actively in our workforce, providing training, career development and
performance initiatives that focus on the expertise, drive and innovation of our
employees. We encourage employees to undertake training to further develop their
professional skills, in the form of courses ranging from general management, marketing
management and sales management to leadership, financial management and corporate
governance.

● Building Winning Team

at Herbion, we develop and groom new team members to be a part of our winning team.
To optimize our performance, we encourage and deploy cross functional teams

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2. Introduction of the department visit

Supply chain department

● Planning
● Packaging procurement
● Raw material procurement
● Import procurement
● Ware house
Planning work Executive Umar Asif

Packaging procurement work Officer Shoaib

Raw material procurement work Officer Furqan Ahmed and

Manager Irfan Latif

Import procurement work Officer Zuhaib

Ware house work SR.Manager Naveed Naseem

3. Nature of the work

Planning:
Supply planning is the component of supply chain management involved with determining
how best to fulfill the requirements created from the Demand Plan. The objective is to balance
supply and demand in a manner that achieves the financial and service objectives of the
enterprise.

Supply and demand planning:

Demand planning is a multi-step operational supply chain management (SCM) process used to
create reliable forecasts. Effective demand planning can guide users to improve the accuracy of
revenue forecasts, align inventory levels with peaks and troughs in demand, and enhance
profitability for a given channel or product.

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Material Requirements Planning (MRP)

Material requirements planning (MRP) is a computer-based inventory management system
designed to assist production managers in scheduling and placing orders for items of dependent
demand. Dependent demand items are components of finished goods—such as raw materials,
component parts, and subassemblies—for which the amount of inventory needed depends on the
level of production of the final product. For example, in a plant that manufactured bicycles,
dependent demand inventory items might include aluminum, tires, seats, and bike chains.

Daily production report

The daily production report is one of the MIS tools for operation management used in the
manufacturing industry. The report, I have shared here is an example of the garment
manufacturing plant.

Forecasting and demand management

Demand Management. For businesses, demand management refers to the process of
balancing supply and demand. Companies use forecasts to determine future demand and then
build plans accordingly. If demand appears to outstrip resources, companies can increase
production or alert customers to changed shipment times.

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Forecasting demand and sales

Before they embark on implementing or changing the demand planning process,
companies should

✓ Ensure that you have the right skill sets for your needs.
✓ Put the right training programs in place.
✓ Engage in sales and operations planning where cross-functional planning is required.
✓ Define methods for measuring performance.

Packaging procurement
In this packaging procurement white paper, we present three strategic packaging sourcing
practices that can be executed with the assistance of advanced sourcing technology to help fast
moving consumer goods (FMCG) companies reduce costs, increase product innovation, and
improve supply chain efficiency through strategic.

Flow of packaging procurement

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Raw material procurement

Direct spend refers to the production-related procurement that encompasses all items that are part
of finished products, such as raw material, components and parts. Direct procurement, which is
the focus in supply chain management, directly affects the production process of manufacturing
firms.

Materials management
Material management is an approach for planning, organizing, and controlling all those
activities principally concerned with the flow of materials into an organization.

Process of material management

Material management is a scientific technique, concerned with Planning, Organizing &Control
of flow of materials, from their initial purchase to destination. AIM OF MATERIAL
MANAGEMENT.

Raw material management

Raw Materials Management. Purchasing, receiving, storing and transporting raw materials for
the production of samples can be very labor intensive. In addition to the labor cost, these tasks
also increase the time it takes to replenish your material swatches and sales literature.

Material and inventory management

Inventory management is required at different locations within a facility or within multiple
locations of a supply network to protect the regular & planned course of production against the
random disturbance of running out of materials or goods.

Types of Inventory
❖ Merchandise Inventory. It is the inventory of trading goods held by the trader.
❖ Manufacturing Inventory. It is the inventory held for manufacturing and selling of goods.
❖ Raw Materials.
❖ Work-In-Progress (WIP)
❖ Finished Goods.
❖ Packing Material
❖ MRO Goods.

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Different types of raw materials

Automobiles require a very wide variety of raw materials for their production, including iron,
which is made into steel; aluminum; glass; petroleum products used to make plastics; rubber; and
special fibers. First, raw materials are mined or otherwise extracted from the earth.

Flow of raw material procurement

Material flow is the description of the transportation of raw materials, pre-fabricates, parts,
components, integrated objects and final products as a flow of entities. The term applies mainly
to advance modeling of supply chain management.

Import procurement
The imports process differs from regular procurement, as it follows a series of steps which are
not applicable to materials procured locally. The materials purchased are subject to landed costs
and other clearing charges which are to be included in the material price.

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KNOWLEDGE OF INCOTERMS

FUNDAMENTAL FOR TRADERS. Incoterms are standardized international sales terms

codified by the International Chamber of Commerce to define whether a buyer or seller absorbs
certain costs incurred in the import transaction.

Supply chain network

A Supply Chain Network (SCN) is an evolution of the basic supply chain. ... Businesses are
often part of a larger network of organizations, a supply chain network can be used to highlight
interactions between organizations; they can also be used to show the flow of information and
materials across organizations

These costs can be planned at the PO stage. In the standard system, there are the following types
of delivery costs:

➢ Freight costs
➢ Customs charges
➢ Bank Charges
➢ Miscellaneous costs

Payment terms and payment mode

● Advance payment
● Letter of credit. (L.C.)
● Bank contract
● D.A.P or D/P basis - Documents against Payments

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Ware house
A warehouse is a planned space for the storage and handling of goods and material. In general,
warehouses are focal points for product and information flow between sources of supply and
beneficiaries. However, in humanitarian supply chains, warehouses vary greatly in terms of their
role and their characteristics.
Supply chain execution system
Supply chain execution (SCE) is the flow of tasks involved in the supply chain, such as order
fulfillment, procurement, warehousing and transporting.

Supply chain industry

Process modeling breaks down further into five management processes: planning supply chain
operations; sourcing goods or services; making or manufacturing products; delivering finished
goods; and handling product returns.

SAP

A German software company whose products allow businesses to track customer and business
interactions. SAP is especially well-known for its Enterprise Resource Planning (ERP) and data
management programs. SAP is an acronym for Systems, Applications and Products.

SAP warehouse management system

The SAP Warehouse Management system (WMS) provides flexible, automated support in
processing all goods movements and in managing stocks in your warehouse complex. The
system supports scheduled and efficient processing of all logistics processes within your
warehouse.

Function of SAP

Function Modules. ... Function modules allow you to encapsulate and reuse global functions in
the SAP System. They are managed in a central function library. The SAP System contains
several predefined functions modules that can be called from any ABAP program.

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Use of SAP
Their basic premise was to create a software program to process data whenever a user wants
access. SAP stands for “Systems, Anwendungen, Produke”, which translates to “Systems,
Applications, and Products”. SAP is a software program that can manage a corporation or
business as a whole, across different departments.

SAP ERP system

SAP ERP is enterprise resource planning software developed by the German company SAP SE.
SAP ERP incorporates the key business functions of an organization. The latest version (SAP
ERP 6.0) was made available in 2006. The most recent Enhancement Package (EHP8) for SAP
ERP 6.0 was released in 2016.

SAP system
SAP is a German multinational software company known for making enterprise resource
planning (ERP) software. ERP software allows organizations to manage business operations,
and usually refers to suite of modular applications that collect and integrate data from different
aspects of the business.

SAP in logistics

SAP EWM is part of SAP AG's Supply Chain Management Suite of solutions. The Extended
Warehouse Management product is an integrated software platform for flexible, automated
support for processing goods movements and for managing inventory in the warehouse.

SAP Logistics Module

It includes the Supply Chain Execution applications related to SAP SCM as well as core ERP
modules like: Material Management. Sales and Distribution, Production Planning. Ware house
Management.

The FI module in SAP

SAP FICO Stands for FI (Financial Accounting) and CO (Controlling). SAP FICO is the
important module of ERP and both FI and CO modules store the financial transactions data.

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FSCM in SAP
SAP Financial Supply Chain Management is a set of applications from SAP that manages
customer-related financial functions such as risk assessment, billing, receivables, and collections,
within an SAP ERP environment.

5. Work analysis
There are a few new products of Herbion

Herbion Anti Dandruff

Boost your confidence and enjoy dandruff free hair with Herbion Ginger & Lemon Shampoo
Herbion Ginger & Lemon Shampoo is a nature based traditional combination of garlic root and
lemon for elimination of dandruff. These ingredients are known for their astringent properties
that help to effectively promote a healthy and dandruff free scalp while lemon also acts as a
natural cleanser. It soothes the scalp and reduces skin irritation in addition to providing
nourishment to your hair. Altogether, it leaves the hair soft, adds volume and clears dandruff.

Pyro dent
Pyro dent mouthwash is the only herbal mouthwash that not only helps maintain oral health &
hygiene but also provides natural remedies for sore gums, mouth ulcers and dental bleeding.

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Indication
✓ Sore gums
✓ Mouth ulcers
✓ Dental bleeding

Directions for Use

✓ Use twice daily after brushing
✓ Fill the cap to its brim with PYRODENT herbal mouthwash
✓ Rinse for up to 60 seconds and then spit out

300 ml bottle. Available in Spearmint and Peppermint.

Key Ingredients
✓ Menthol
✓ Sodium Fluoride
✓ Clove Oil
✓ Tea Tree Oil
✓ Eucalyptus Oil

Toot Rus Syrup

Toot Rus is basically ‘Toot Siah’, that is also known as Black Mulberry (Morus nigra).
Additionally it contains ingredients that are effective in different types of coughs and related
symptoms. It has been traditionally used in irritation, sore throat and cough since many years and
is guaranteed to provide quick relief in the below mentioned indications.

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Indication(s)
✓ Sore throat
✓ Dysphasia & swelling of throat
✓ Pharyngitis
✓ Laryngitis
✓ Cough
✓ Hoarseness of voice
✓ Tonsillitis

Directions
✓ Adults: Two teaspoonful (10 ml) 3 -4 times daily
✓ Children: One teaspoonful (5 ml) 3 -4 times daily or as advised by the physician

Key Ingredients
Each 10 ml contains:

✓ Morus Nigra – (Toot Siah)

✓ Viola odorant – (Banafshan)
✓ Zizyphus vulgaris – (Unnab)
✓ Althea officinalis – (Khatami)
✓ Malva Sylvestris – (Khubazi)
✓ Glycyrrhiza glabra – (Mulethi)

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Plan
DEMAND PLANNING:
● Demand generated from the market
● Forecast from market
● Production Planning and Control Department (PPCD) develops material plan
● Material planning is periodic and efficient because they cannot afford production loss
● Material Requirement planning (MRP)
● Purchase requisition moves to supply chain department (PRQ)
● Supply chain department plans the ordering of purchase intervals.

How to PLAN?
● How many types of medicine should they produce
● Which types of medicine are in demand right now?
● Which raw materials they need to procure?
● How many medicines will they sell?

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Stock for how much time?

Supply planning
● Supply planning is according to the schedule of raw material shipments.
● Production times.
● Suppliers are contacted through alliances.
● Selection of suppliers.
● Local supply is through specified logistic agreements.

The supply chain management

● Pricing schemes
● Cost of product
● Requirement of raw material
● Planning according to lead time, shipping time
● Logistics

Source
 Efficient logistics
● Herbs are imported from India, Indonesia, and other countries.
● Herbs seed oil, and other chemicals are procured from both local and international suppliers
● The shipments are routed through sea.

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How to Source?
● Material procurement is very crucial.
● Alliances with reputable companies.
● Careful consideration of routes.
● Selecting best suited suppliers and routes.

Finish the sourcing

● Storage in raw material warehouse
● Due to in-house production, raw material is stored in specially designated warehouses
● Inventory stock is limited according to planning forecasts (e.g. 45-60 days stock)
● Company has its own warehouse as well as rented ones.

Make
● Material is issued to the production department as specified in the purchase requisition.
● Issuance according to daily requirement of production with some buffer.
● Buffer is moderate, to avoid production wastages.

Make
Manufacturing is based on:
● Build-to-order
• For orders received in advance from corporate clients i.e. Brooks pharmacy
(B-to-B)

● Make-to-stock
• For orders anticipated to be received at a future date
• To keep safety stock inventory of finished goods
(Either B-to-B or B-to-C)

Deliver
● Customer order induces production process (build-to-order)
● Local shipments: In Pakistan.
● Upcountry Shipments: SPECIFIED CONTAINERS.
● No retail services.
● Dealers throughout the country in Karachi, Lahore, Multan, Faisalabad, Sukkur, Hyderabad
etc.

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Deliver
● Lead times are different for different orders.
● The most efficient and reliable logistics service is employed.
● Customers can get their orders shipped to their vicinity or they are required to collect the order
themselves.
● Products are rechecked prior to the delivery of orders.

Return
● Not very frequent.
● Defected Medicines are scrap within the factory.
● Claim adjusted tyres are managed by the sales and marketing department.
● Either the complaining customers get a new Medicine or some compensation against the loss.

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