9. The Pharmaceutical Industry - PMMI

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D) Last Packaging Machinery Purchase Over the last three years, the company has invested approximately US $2.75 million in the purchase of packing machinery. These purchases resulted from the need to replace machinery, and to improve the efficiency of the packing operation. The most recent packing machinery purchase took place in 2007, when it acquired the following: Machinery Brand Country Cartoning machine Markesini Italy The purchase was made though the manufacturer’s distributor in Mexico. E) Future Packaging Machinery Ordering Plans Astra Zeneca develops its budget for the purchase of machinery based on the expected demand growth for it products or new plans for the introduction of additional lines to the market. The company is currently undergoing a production expansion phase and is evaluating the purchase of packing machinery in the near future. One of the purchases that has already been defined will consist of the following: Machinery Brand Units Origin Motive of purchase Strapping machine Multipack 2 Italy Expansion This purchase has an estimated budget of about US $210,000 at a 1.5 US dollar-to-euro exchange rate. F) Purchasing Policies and Financial Arrangements The decision process for the purchase of packing machinery results from the combined input of several departments within the company, including production, maintenance and management. The decision also is reached after each of these areas has reviewed a minimum of three alternative proposals that are normally requested from interested suppliers. Once a decision is reached, the technical staff of the company travels to visit with the machinery manufacturer and reviews that the machine meets the proposed specifications. The company provides an initial payment when the purchase order is signed, and the balance once the machine is in operation at the plant. G) Factors That Influence Purchasing Decisions The most important factors considered for a packing machinery purchase decision include: 1. Equipment quality and efficiency. 2. Price. 3. Technical support. H) Comments on Preferred Brands and Existing Business Arrangements With Packaging Equipment Suppliers Astra Zeneca said that it has never used U.S. machinery, as the leading suppliers for the pharmaceutical industry are European manufacturers. The company considers European machines as being more efficient and having more advanced technology. The company indicated a preference for two German machinery brands, specifically Ulhman and Klockner. 175
Astra Zeneca only provided comments about Italian and German suppliers, as those are the only ones with which it has had experience. Origin Technology Flexibility Service Price Germany Very Good Very Good Very Good Good Italy Very Good Very Good Good Good I) Strengths and Weaknesses of the Installed Machinery Brand: Ulhman Strengths: • Ease of use. • High speed. • Easy maintenance. • Simple technology. Weaknesses: • Inadequate technical support in Mexico. Brand: Klockner Strengths: • High speed. • Fast to reconfigure production. • Easy maintenance. Weaknesses: • Inadequate technical support in Mexico. • Technology too advanced for Mexican technicians. J) Trade Show Attendance / Trade Publication Information Technical staff and management from the company visit trade shows in Mexico, including ExpoPack and Expo Farma. K) Specific Interest The company is interested in receiving information from suppliers with expertise in serving the needs of the pharmaceutical industry. L) Contact Information Company Name: Astra Zeneca Contact: Mr. Javier Avila Position: Maintenance Manager Address: Super Avenida Lomas Verdes No. 67 53120, Naucalpan, Estado de Mexico Telephone: (52 55) 5374 9600 Fax: (52 55) 5374 9600 Mail: Javier.avila@astrazeneca.com Web page: www.astrazeneca.com 176
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9. The Pharmaceutical Industry - PMMI

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