SUSTAINABILITY REPORT 2013-15

People Overview Self Managed Teams Mechanisation Safety Overview The Parivartan     Journey Progress on     Roadmap Incident Statistics Robust Governance Standardised     Processes Enhanced Awareness Capability Building Safety Infrastructure Safety Audits Quality Overview Top-down    Accountability Quality by Design Quality Culture     Transformation Quality Assurance Quality     Best Practices All Time Audit     Readiness Availability Overview Strategic Sourcing Risk Management Product    Rationalisation Success stories Environment Overview Roadmap Energy Management Emissions Water Waste Case Study KPIs Community Overview Focus Areas Education Livelihoods Healthcare Infrastructure     Initiatives Creating Change     Makers Productivity Overview Productivity Streams Case Study PACE Update Initiatives Engineering Excellence Overview Digitisation Automation Mechanisation Lean Manufacturing Capital Equipment Strategy Predictive Maintenance Continuous Improvement Overview Continuous     Improvement     at Work Best Practices Annexures GRI Index Acronyms Assurance Statement   Summary Report     AVAILABILITY SUCCESS STORIES We are driving availability of our medicines across geographies by making more drugs in shorter time, bridging supply chain gaps, charting newer territories, and making medicines more affordable. Below are some of the interventions where we have gone the extra mile to drive availability of our medicines:     Ensuring Availability of Life-saving Drug One of Europe's largest pharmaceutical companies was facing a manufacturing slowdown due to audit related procedures and was on the lookout for an external supplier who could step in quickly to meet the challenging requirement of delivering 20 tons of the penultimate stage of a complex, multi-stage API in just three months.   Our Customer Pharma Services (CPS) team sprung in to action and did a thorough evaluation of the requirement. The team faced two major challenges including the provision of a facility to manufacture drug substance using the requested route and to source the necessary raw materials.   Taking these challenges head on, CPS team delivered the required quantity of API ahead of schedule. Subsequently, the team also delivered an additional 30 tons of the drug substance to ensure continuous availability of a critical life-saving drug on the shelf.   Showing Courage in War-torn Ukraine Last year, Eastern Ukraine virtually turned into a war zone due to anti-government protests. Employees of most other companies either fled the region or went on leave. However, our Ukraine team continued to demonstrate courage by staying committed to the goal of providing good health to people.   Our team decided to work around the crisis by reorganising territories and stationing themselves in villages and towns that were not gripped by conflict, at the same time remaining in touch with doctors in the conflict zones on phone.   The team ensured that our medicines are available even in the areas under separatist occupation by working closely with a pharmacy chain. As the situation began to ease, they even managed to conduct two CMEs for physicians. Our effort gained the trust of the medical fraternity as a Company that goes the extra mile to ensure availability. Several of the team members continue to work there even as their families have moved to more peaceful regions.   Bridging Gap in the Supply Chain Process in Russia Given the weather and terrain conditions in Russia, medicine distribution to rural and remote locations is complex and challenging. It can take up to 30 days for supplies to reach their destination from Moscow and the probability of stock-outs is really high.   We worked closely with the distributors, and started assessing their inventory and sales data on a daily basis, so that we could react instantly to possible shortages in the system. By establishing a synchronised supply chain and integrating our systems – sales, supply chain and IT – we have become true partners to distributors.   Our efforts have had a deep impact. Shortages were halved, inventory turns were doubled. Efficiency and profitability of our partners increased, and they can now respond to the exact need-profile of patients in a way that was not possible before.   Demonstrating Commitment to Patients Venezuela is going through a huge balance of payments crisis and the exchange rates have fallen dramatically. While we are paying a huge price due to the devaluation, we have persisted in this market, once again demonstrating our commitment to patients.   Analysing the sales patterns from different regions, the team made an   Making Medicines Affordable Valganciclovir, an antiviral, is used to treat CMV retinitis (eye infection that can cause blindness) in people who have acquired AIDS, and in people who have received an organ transplant (heart, kidney or kidney-pancreas).   We decided to address access to this critical medicine by accelerating the availability of a more affordable version. Using information available in the public domain about the API supply chain, an IP strategy and litigation, we were able to launch the product much ahead of other generic manufacturers.   Since its launch in December 2014, nearly 40% of patients in the US are using Dr. Reddy's Valganciclovir.   extraordinary finding that availability was the most critical factor for patients in choosing a brand.   The team immediately ironed out the supply chain and ensured that our products are available through independent pharmacies, retail chains and insurance pharmacies so that patients could get them when and where they needed them.     Integrating Intelligence in Supply Chain Challenge   Action       To have a system in place which can integrate all the processes from demand management to sales and procurement, planning to production, and ensure a smoother and faster journey of the medicines from suppliers to customers.   The Intelligent integration (i2) project has been taken up for end-to-end integration of supply chain and operations management.       Key Modules of the System   Demand Planning Net Requirement Planning Procurement Planning Deployment Planning builds demand based on market intelligence and latest consumption trends calculates unconstrained demand of manufacturing locations triggers procurement plan based on material requirements plans movement of finished goods to sales warehouses in a cost effective manner   Long-term Capacity Management Analytics integrates future demand with the upcoming launches provides lead and lag indicators to fine tune the new operating model   Outcome Integration of all demand     Refined demand projection based on past consumption and market intelligence     Stock keeping units categorised in to runners, repeaters and strangers considering their sales value, demand variability and plant volume     Input material planning based on constrained production plan over the planning horizon     Long, medium and short-term capacity planning on the system     Faster and effective decision making as demand input, supply constraints, material plans are on the same solution       Enabling Financial Assistance Programme Resof is a tablet which is a boon for patients suffering from chronic Hepatitis C. Several companies have launched this product based on licenses from Gilead.   At Dr. Reddy's we decided to walk the extra step and created a patient assistance programme to tackle the issue of affordability of the medicine. Our specially designed financial assistance programme enabled patients to pay for Resof in easy instalments. With therapy periods ranging from six months to almost a year, this is a wonderful way to bring good health to the many chronic Hepatitis C patients, who cannot otherwise afford the treatment.