Supply Chain Management at Nicholas Piramal IndiaCase study Supply Chain Management (SCM) is one of the leading cost-saving and revenue-enhancing strategies in use Today. Pharmaceutical companies are increasingly using this technique to improve the entire functional process. SCM has also helped companies improve their efficiency in managing resources and improving relationships. In the case of Nicholas Piramal, SCM has proven to be one of the most powerful drivers of business transformation. Since the company decided to enter the high-growth contract research and manufacturing services (CRAMS) segment, SCM has become central to the company's strategy. Following the acquisition of Avecia (UK) in 2005 and, more recently, Pfizer's Morepeth plant in the UK, the company's ability to integrate marine activities and increase supplies becomes critical to the profitability of the CRAMS business. Background Three years ago, India's fourth largest pharmaceutical company NPIL company came up with a total restructuring plan. After the patent regime, the company identified CRAMS as an important growth opportunity. As sales of patented drugs slow and research and development pipelines dry up, global pharmaceutical companies are increasingly exploring low-cost options to outsource research and manufacturing. According to industry sources, the global pharmaceutical outsourcing market, which currently stands at $24 billion, could reach $53 billion by 2010. Low labor costs and a large base of FDA-approved factories position the 'India tops the outsourcing list, Suven Lifesciences, GVK Biosciences, Jubilant Organosys, Nicholas Piramal and Shasun Chemicals & Drugs are now among the major Indian players in this segment. Custom manufacturing for innovators stands out as the most attractive outsourcing opportunity for pharmaceutical companies. This market could reach, according to estimates, 16 billion dollars