JAS had been plagued by supply chain problems since its inception in 2008. The medicines were supplied to the Jan Aushadhi stores through a network of distributors, C&F agents, and a central warehouse. They were procured from the manufacturers by the central warehouse and distributed to the C&F agents, who in turn supplied the medicines to the distributors appointed in each of the states. The distributors delivered the medicines to the stores, which sold them to the customers...

Operations Case Studies | Case Study in Management, Operations, Strategies, IT and Systems, Case Studies

PayPal (7 USD)

OVERCOMING THE CHALLENGES

To revive JAS, the GoI revamped it in September 2015 and named it the Pradhan Mantri Jan Aushadhi Yojana (PMJAY). In November 2016, the scheme was again renamed as the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP) with new incentives such as reimbursement of expenses for the opening of new stores. The incentive given for starting a store was increased from Rs 150,000 to Rs 250,000. There was also an increase in the profit margins for the distributors from 8 % to 10 % and in the retailer’s margins from 16% to 20%. ..

EXHIBITS

Exhibit I:Vision, Mission and Objectives of Jan Aushadhi Stores
Exhibit II: Comparison of Medicine Cost between JAS and Branded Medicines
Exhibit III: Progress of JAS from 2008 to 2017
Exhibit IV: Comparison of Annual Turnover of PMBJP