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Case study neelkanth drugs pvt

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Mrudula Swamy

Neelkanth Drugs Pvt. Ltd (NDPL) is a leading pharmaceutical distributor in Delhi and Uttar Pradesh with 205 employees and 47 outlets. NDPL has first mover advantage with no major competition in a non-competitive environment allowing for further expansion. NDPL implemented information sharing and IT systems from 1998-2012 to increase operational efficiency from 25% to 100% and reduce manual processes and HR requirements. However, issues arose with cloud computing implementation including limited experience of the software provider and connectivity and availability problems. An ERP system would have been a better solution than cloud computing for NDPL's needs.

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CASE STUDY-NEELKANTH DRUGS PVT. LTD SUBMITTED BY ADARSH SHARMA ANSHUL GARG DAVID YADAV GAURAV KUMAR MRUDULA SWAMY
OVERVIEW OF NDPL Leading Pharmaceutical Distributors in Delhi The distribution is in Delhi and Uttar Pradesh Number of employees-205 Number of outlets-47(Delhi and NCR)
NDPL ENVIRONMENT- PORTERS FIVE FORCE MODEL COMPETITION No major competition First mover advantage THREAT OF ENTRY BUYING POWER THREAT OF SUBSTITUTES SUPPLIER POWER NDPL is basically a distributor i.e, the middle man Non-Competative Environment Further expansion is possible Wholesalers bought from NDPL Retailors accounted for 70 to 80%of sales =low buyer power Stockist marketed only 6 to 8 pharma companies =low supplier power Very few chances of new wholsalers to enter as VAT charges are increased =low threat of entry Few Substitutes
Information sharing(IS) was used with the finance, sales and purchase division 1998-2001 INR80,000 to 100,000 spent on IT HR requirements reduced Operational efficiency increased from 25%to 100% 2002-2004 Manual system replaced by telephone system Integration and centralization of the modules Easy Sol Software 2005-2006 Manufacturers started interacting electronically with NDPL Automatic bill generation. Hence time reduction from 8 hours to 30 minutes TIME LINE OF NDPL IT
2007-2009 50 new systems were introduced,IBM Servers(Data and appications together) Hence 3 application server 1 data server W-LAN was introduced Software-From INR200,000 to 300,000 Hardware- From INR300,000 to 4820,00 2010-2011 Huge IT expenditure incurred ,hence cloud computing was suggested. 2012- Standalone systems were used with no integration with other departments. TIME LINE OF NDPL IT
KEY PROBLEMS WITH CLOUD COMPUTING IMPLEMENTATION The computing software provided to NDPL had limited experience and couldn't satisfy the requirements of pharmaceutical industry. Connectivity between the parties involved and availability of the software round the clock.
REASONS FOR THE USE OF IT NDPL wanted that to expand. Therefore IT would have been a better solution as it would have helped them to centralize the different departments and reduce the operation time.
RECOMMENDED SOLUTION AN ERP Would have been a better solution compare to that of cloud computing. If still interested in cloud computing then NDPL must make sure that the platforms shared by the interned provider and the cloud vendor must be same so that no connectivity issues happen.

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Case study neelkanth drugs pvt

  • 1. CASE STUDY-NEELKANTH DRUGS PVT. LTD SUBMITTED BY ADARSH SHARMA ANSHUL GARG DAVID YADAV GAURAV KUMAR MRUDULA SWAMY
  • 2. OVERVIEW OF NDPL Leading Pharmaceutical Distributors in Delhi The distribution is in Delhi and Uttar Pradesh Number of employees-205 Number of outlets-47(Delhi and NCR)
  • 3. NDPL ENVIRONMENT- PORTERS FIVE FORCE MODEL COMPETITION No major competition First mover advantage THREAT OF ENTRY BUYING POWER THREAT OF SUBSTITUTES SUPPLIER POWER NDPL is basically a distributor i.e, the middle man Non-Competative Environment Further expansion is possible Wholesalers bought from NDPL Retailors accounted for 70 to 80%of sales =low buyer power Stockist marketed only 6 to 8 pharma companies =low supplier power Very few chances of new wholsalers to enter as VAT charges are increased =low threat of entry Few Substitutes
  • 4. Information sharing(IS) was used with the finance, sales and purchase division 1998-2001 INR80,000 to 100,000 spent on IT HR requirements reduced Operational efficiency increased from 25%to 100% 2002-2004 Manual system replaced by telephone system Integration and centralization of the modules Easy Sol Software 2005-2006 Manufacturers started interacting electronically with NDPL Automatic bill generation. Hence time reduction from 8 hours to 30 minutes TIME LINE OF NDPL IT
  • 5. 2007-2009 50 new systems were introduced,IBM Servers(Data and appications together) Hence 3 application server 1 data server W-LAN was introduced Software-From INR200,000 to 300,000 Hardware- From INR300,000 to 4820,00 2010-2011 Huge IT expenditure incurred ,hence cloud computing was suggested. 2012- Standalone systems were used with no integration with other departments. TIME LINE OF NDPL IT
  • 6. KEY PROBLEMS WITH CLOUD COMPUTING IMPLEMENTATION The computing software provided to NDPL had limited experience and couldn't satisfy the requirements of pharmaceutical industry. Connectivity between the parties involved and availability of the software round the clock.
  • 7. REASONS FOR THE USE OF IT NDPL wanted that to expand. Therefore IT would have been a better solution as it would have helped them to centralize the different departments and reduce the operation time.
  • 8. RECOMMENDED SOLUTION AN ERP Would have been a better solution compare to that of cloud computing. If still interested in cloud computing then NDPL must make sure that the platforms shared by the interned provider and the cloud vendor must be same so that no connectivity issues happen.