Value chain of organic compounds
In the current situation, companies follow two kinds of activities for the production of drugs, medical and organic products. These occur as two kinds of activities for the companies.
The first step in the value chain process is inbound logistics. In this process the good are found to be highly specialized products. They are incubated at certain temperature having very small shelf life. Serum, bacteria, microbes, antibiotic and culture plates are stored by incubation. From this the operational procedure starts for the companies.
In the case of biotechnology industry there are three kinds of operations. It includes the discovery phase, testing phase and manufacturing phase. In the discovery phase there is a large amount of capital invested. It is important to ensure that there is proper storage to ensure that there is no degradation or contamination of the results. The next testing is clinical testing. Once the product has been produced,the patenting and the manufacturing protocols are followed. The companies need to have the right equipment that has been benchmarked to achieve this status.
Outbound logistics involves the transportation of the products or deliverables from the manufacturing unites or research facilities to the hospitals or pharmacies. This is the place of ensuring that there is proper storage and movement of the materials. Care is taken to ensure that the products are not degraded. The services are then rendered by the company to build relationships with the related stakeholders.
The procurement of the product from governments, labs or offices is from credible licensed sources. The raw materials should be obtained from known sources that are credible owing to this the companies try to obtain high quality products for the best price. The government policies and legislations regarding procurement are followed by the companies. They obtain the product from competing companies. The pharmaceutical companies invest in technological companies to gain competitive advantages from other companies. They use biochips, chromatography techniques, spectrometry techniques to check the quality and the available technology regarding production and manufacturing of these produces.
The Human resource management is also an important part of the value chain. There is focus given to build communication between the biochemist, molecular biologist and manufacturing divisions of the company.
Similar to other value chains, the infrastructure of the products is also given a lot of importance. Management information system plays an important role in such value chain.