Variance Analysis Cycle And Delivery Performance Measures In Pharmaceutical Firms

Abstract

The outbreak of the COVID-19 pandemic has major global impact in a short period of time. Almost all sectors were affected by this outbreak, one of which was the pharmaceutical industry. All sectors have been affected by this pandemic, including the pharmaceutical sector. The pharmaceutical supply chain has also been disrupted, one of which is pharmaceutical distribution facilities. In this research, we collect data on pharmaceutical company PT. Kimia Farma, Tbk analysis of variance cycles and delivery performance metrics, this study uses secondary data collected from official company reports, journals, and publications. The research method is qualitative-descriptive, also known as case study research. Based on the results of our analysis, PT Kimia Farma, Tbk has taken action in accordance with the principle of the variance analysis cycle to evaluate and improve the company’s performance, there was an increase in sales by increasing manufacturing (production) as well. The success of this sales performance also has a positive impact on net profit. The company has maximized the production of pharmaceutical granules, capsules and tablets to mostly produce COVID-19 medicines, so the company has made positive variants. Likewise with the distribution strategy in its supply chain management which is quite successful, through an end-to-end (upstream to downstream) distribution strategy and digitization, especially to reduce delivery cycle times, and this is the company's main concern.