SUPPLY CHAIN MANAGEMENT
This involves technology transfer to local manufacturers or inhouse production units . Backward integration offers control and stability , balancing commercial viability with operational efficiency .
However , cost considerations often arise when comparing in-house manufacturing with external options , particularly for commercial molecules where the overhead costs may be prohibitive . In other words , where lowcost molecules are involved , external manufacturing tends to be more commercially viable . A key factor to focus on here is to identify reliable and competent partners who have appropriate systems , processes and technology in place to ensure smooth operations and data integrity .
Opportunities in India
Another strategy involves not only shifting sourcing from China to India but also localising within India itself . For example , companies divide procurement into two categories , domestic sourcing across India and hyper-local sourcing within 200 kilometres of facilities . This approach brings multiple benefits , including faster turnaround times , reduced transportation emissions , and stronger local economies . Having partners nearby also reduces the need for extensive inventory and minimises lead times .
To improve the domestic Indiabased supply chain , we need supportive regulations in addition to the well-implemented PLI scheme . Under Aragen ’ s CEO , Manni Kantipudi , a group of Indian CDMOs has come together to form an alliance that will work closely with the government and suggest areas to streamline the regulatory processes or create other supportive regulations . The
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