SUPPLY CHAIN MANAGEMENT to total cost of performance , including assured delivery .” A robust supply chain includes multiple suppliers in different regions , if possible , as well as sufficient inventory along the chain to cushion likely delays and disruptions . Using terminology common to insurance , Karim explains that some of those risks and costs can be transferred , while others must be retained . “ The specialty chemicals business is not like Costco ,” he says . “ You can ’ t beat up people over every penny . Strong supplier relationships respect that everyone has to make money . That understanding builds transparency and ensures flexibility .” Cristi Stiers , strategic executive advisor at SafeRock , notes that the midst of a global supply chain upheaval is an excellent opportunity to start or expand logistics conversations with suppliers and customers . Everything is on the table already , so the time is ripe to make common cause . “ Going back to the recession in 2008 , I was in purchasing and we lost a lot of suppliers ,” Stiers relates . “ Only a few actually went out of business ; most of them just stopped making some things . We learned that if we knew about their plans early enough we could try to make some arrangement .” That could be an adjustment in price , volumes , or frequency , collaborating on ordering or shipping raw materials , or shifting inventory or even operations from the supplier to the customer . “ In some cases we were able to delay the end of production , or make one last large delivery from which we could draw while we , or they , worked on reformulation .” Sometimes those conversations can lead to surprising developments . In February 2021 , Wavelength Pharmaceuticals , based in Israel , made a definitive capital investment to secure its upstream supply chain by acquiring a majority stake in Vanamali Organics , an Indian manufacturer of intermediates . That commitment was
Avni – Requirements for intermediates are stringent too
driven by quality and consistency as much as logistics . “ These days , the requirements for advanced intermediates are almost as stringent as those for APIs ,” says Ilan Avni , VP of business development . “ They go back through the entire supply chain . We have a team of auditors that work with suppliers to help them close any gaps . We are also working with them to qualify additional suppliers . We would like all of our suppliers to have at least two suppliers from two different regions .” The Vanamali acquisition grew organically out of those efforts . “ We started to evaluate Vanamali as a supplier ,” Avni says . “ As we came to know their performance and capability , we started to discuss something more serious - collaborations , perhaps an equity position . That grew into full back integration , bringing them in-house .” It might seem that the middle of a global pandemic would be an inauspicious time for any company to overhaul its entire supply chain , but Moshe Mizrachy , head of procurement at Wavelength , says that it was a singular opportunity . “ It gave me more flexibility ,” he says . “ We approach our supply chain in terms of risk mitigation . We are always conducting analysis on risk mitigation in security of supply , not just quality and price .” Avni emphasises that those three factors are intertwined . “ Before the pandemic , many people would only talk about low inventories , best prices and just-in-time delivery . But we had been investing in security of supply . As a result we had relationships with our suppliers , and sufficient warehouse ‣
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