Build, Capitalize, and Sustain a Decisive Competitive Edge

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.

Whatever system the organization have – any kind of ERP – will not support the TOC concepts

Especially the differentiation TOC makes between Planning and Execution

ERP does planning, without full consideration of the uncertainty, and builds everything around it.

Execution in ERP means re-planning as much as necessary

Execution in TOC – buffer management – means prioritizing based on changing reality WITHOUT re-planning