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AAM Inaugurates National Distribution Center to Remain Competitive in the Era of Free Trade


PT Anugrah Argon Medica (AAM) has inaugurated its National Distribution Center (NDC) located in Jababeka II Area, Cikarang, West Java, to increase capacity and improve the efficiency of drug distribution to all regions of Indonesia. This inauguration is part of the continuous effort to enhance AAM's competitiveness in the era of free trade (AFTA). The inauguration of AAM's NDC took place on March 22, 2010.


Since 2009, AAM has implemented the World Health Organization (WHO) version of Good Distribution Practices (GDP) as part of its efforts to achieve Total Drug Quality Management. GDP is necessary to ensure that patients receive drugs with the same quality and efficacy as when they passed Quality Assurance testing at the manufacturing plant (in accordance with GMP-Good Manufacturing Practices). GDP also ensures that there is no mix up, contamination, or cross-contamination of drugs throughout the distribution chain.


NDC AAM utilizes a Warehouse Management System that is integrated with wireless barcode scanners to record stock up to the batch level. This system allows for effective monitoring of the inbound-storage-outbound process. AAM is also supported by an Enterprise Resource Planning (ERP) System, Integrated Supply Chain Solution, and Customer Relation Management.

"I welcome the idea of NDC AAM as it will enhance AAM's distribution performance compliance with the requirements of CDOB (Good Distribution Practice). Our hope as a government is that NDC AAM will be well-managed in accordance with applicable laws and regulations, as well as CDOB technical requirements, in order to ultimately provide optimal assurance for the public health on good quality, effective, and safe drugs," explained the Head of BPOM RI, Dra. Kustantinah, Apt, M.App.Sc, in a speech read by the Deputy of Therapeutic Product & Narcotics Monitoring, BPOM RI, Dra. Lucky S. Slamet, MSc.


The inauguration of NDC AAM was marked by the signing of a plaque by Dra. Lucky S. Slamet, Apt, MSc - representing the Head of BPOM, accompanied by the President Director of AAM, Erwin Tenggono. Also present at the event were the Secretary of the Directorate General of Pharmaceutical and Medical Devices of the Ministry of Health of the Republic of Indonesia, Drs. Purwadi, Apt, MM, ME, the Chairman of the Indonesian Pharmaceutical Entrepreneurs Association, the Chairman of the Indonesian Pharmacists Association, the officials of the Bandung POM Center, the West Java Health Office, and several AAM principals.


The President Director of AAM, Erwin Tenggono explained that the purpose of the NDC AAM inaugurated on March 22, 2010 is to enable AAM as a national pharmaceutical and medical device distribution company to remain competitive in the context of AFTA. "All of this, we do to meet international best practice standards (GDP WHO 2006 and ISO 9001: 2008)," he said in his speech.


AAM obtained the GDP WHO Technical Series No. 937, 2006 certification from PT SGS Indonesia through a certification eligibility audit conducted on December 2-4, 2008. AAM has also obtained the ISO 9001:2008 certificate, as evidence of having implemented a good quality management system.


Good Distribution Practice (GDP) is a part of the quality assurance function, to ensure products are consistently stored, shipped, and handled according to product specifications.


GDP is essential to support the Good Manufacturing Practices (GMP) or Good Manufacturing Procedures (CPOB) standards, which are intended to ensure the quality of every drug product produced by the pharmaceutical industry. Therefore, a reliable distribution system that complies with GDP and/or CDOB requirements is also required, to ensure that the stability and effectiveness of drugs are maintained until they reach the patients.

For products related to life-saving, AAM has a mechanism to serve customer requests even outside working hours, such as in the middle of the night. The delivered products are treated according to standards and the needs of the patients, and can still be served for 24 hours.



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