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BDM-Capstone-Project : Expiry/ breakage Management for a wholesale Pharmacy

Overview

This repository contains all the necessary files and documentation for the capstone project titled "Expiry/ breakage Management for a wholesale Pharmacy".This project is part of the BDM Capstone Project for the IITM Online BS Degree Program, submitted by Shruti Sinha.

Project Description

The issue at hand is nominal profits due to large amounts of returns happening on account of expiry of medicines. The expiry comes from the customers (retailers) which is transferred to the supplier.
The problem will be addressed by doing a demand forecast of every SKU and proposing a plan of product procurement as well as effort will be made to optimize the return transport and handling cost. The outcome of the project will help in increasing the profit by releasing the working capital stuck with the supplier as well as the working capital exhausted in handling and transport of returns.

Key Objectives

  1. Returns done by the business: The business is returning expired medicines.The returns block the capital. This is a latent problem that is reducing working capital and eventually effecting profits.

2 Expiry medicines coming from retailers: The business is receiving expired medicines. The returns increase expenditure for transportation cost on executing returns to the supplier. This problem seems to be ongoing and exhaust capital.

Research Methodology

  1. For collection of data available with electronic billing system is used.

  2. This is an offline software that provides limited no. of features and most of these features are not used frequently by owner and his staff.

  3. The reports generated in the system are generated in PDF format of which was then converted to Excel after copy pasting.

Results and Findings

Profitability Analysis Graded the medicines as High (>10% profit), Standard(5%-10%) profitability, Below standard (1%-5%) and loss making (0% and below)

Month on month trend analysis Recognised low sale quarter and month. The sales is stable throughout the year.

Recommendations

Suggested selling to large reatil chains and getting the shop listed on online platforms.

Providing free/ gift medicine to customers having high ticket purchase.

Files in the Repository

  • capstone_project_proposal.pdf: Initial project proposal outlining objectives and methodology.
  • capstone_project_mid_term.pdf: Mid-term report with preliminary findings and analysis.
  • capstone_project_final_report.pdf: Final report with comprehensive analysis, results, and recommendations.

Contact

For any questions or further information, please contact:


This project was conducted as part of the BS Degree Program at the Indian Institute of Technology Madras. The findings and recommendations are based on the data provided and are intended for academic purposes only.

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