Omron Healthcare, established in Japan in 1948 as part of the Omron Corporation, is a leading manufacturer of medical equipment for health monitoring and therapy, with current annual sales of US $825 million. The company implemented a Toyota production system with positive results in 2006, however, distributors of Omron Healthcare faced conflicts between holding too much inventory in order to protect sales and holding too little in order to control costs, with stock keeping units (SKUs) fluctuating between both in short amounts of time.
Dr Reddy’s Laboratories Ltd has fashioned an intricate and complex supply chain which has ramped up its growth. Pamela Cheema investigates.
Our car swings in through the black iron gates into the verdant campus of Dr Reddy’s Laboratories on the outskirts of Hyderabad. The peaceful 140-acre campus, with its atmosphere of unhurried calm, belies the stature of a company which is today one of the top pharmaceutical companies in the country. Founded in 1984 by entrepreneur scientist, Dr K Anji Reddy, Dr Reddy’s Laboratories Ltd. has leapfrogged over most other Indian pharmaceutical companies to cross $1 billion in revenue. According to the latest figures, its consolidated revenues are at `74.7 billion ($ 1.7 billion) in FY ’11, surpassing its revenues of `70.3 billion ($ 1.6 billion) in FY 2010. Its growth year-on-year has been a steady and encouraging 6 percent.