PHARMACEUTICALS
Figure 1 - Counterfeit drugs & supply chain traceability
macroeconomic events , and material and labour shortages . For example , global labour shortages have led to truck drivers not being available to pick up drug product deliveries from ports or factories on time , if at all . Additionally , the complexities of handling and moving hazardous materials are particularly challenging both for the availability and expediency of receiving and shipping high quality raw materials .
Proactive sourcing strategies
In the post-pandemic ecosystem , even greater emphasis in drug delivery and development is now placed on sourcing strategies and supplier selection . Global consulting firm
Reference : 1 : K . Alicke , E . Barriball , T . Foster , J . Mauhourat & V . Trautwein , Taking the pulse of shifting supply chains , McKinsey & Company , 26 August 2022 : https :// www . mckinsey . com / capabilities / operations / our-insights / takingthe-pulse-of-shifting-supply-chains
McKinsey & Company has surveyed supply chain leaders annually since the beginning of the COVID-19 pandemic . McKinsey ’ s third survey in 2022 revealed that many companies reported changes to their supply networks by implementing dual or multiple sourcing strategies for critical materials .¹
Dual-sourcing refers to the supply chain management practice of using two suppliers for raw materials , specific components , products or services . In the past , pharmaceutical and biopharmaceutical manufacturers often limited themselves to one preferred primary supplier .
With the supply constraints of COVID-19 they started seeking alternative suppliers for raw materials and other critical components . However , those alternative suppliers were viewed merely as a back-up if the primary supplier was not able to come through . Now , proactive manufacturers minimise risk by designating two primary suppliers , dual sources , or even more than two multi-sources . A dual-sourcing strategy does a much better job of keeping both primary suppliers equally engaged throughout a project . If there is an issue with one supplier , the other can respond more quickly . The dual-primary supplier is certainly more strategic . It lowers risk as well as addressing the challenge of raw material variability .
With multiple sourcing or multisourcing , the procurement strategy of obtaining products or services from several suppliers , there are considerable benefits , including more flexibility , reduced costs , better protection from material shortages and supply disruptions , and potential competitive advantage over singlesourcing competitors .
Just in case vs . Just in time
‘ Just in case ’ and ‘ Just in time ’ are two different inventory management strategies that impact supply chain optimisation . Both should be taken into consideration when planning inventory levels . Having the right amount of raw materials and supplies for production , at the right time , for the right order is always the goal .
In this context , Spectrum Chemical has a highly diversified supply base that enables us to act early to forestall or mitigate problems . The company partners with customers and ensures that needed high-quality raw material is readily available . It also stores additional inventory for specific crucial products and works with multiple suppliers in stocking critical materials .
Conclusion
There will be ongoing improvements and innovations in global supply chain management as well as the transformations that artificial intelligence and digitalisation will make . At the same time , global supply chain operations will experience disruptions due to a variety of circumstances . Supplier selection and collaborations will become more important .
Drug manufacturers should seek to partner with well-established suppliers who have well-secured supply operations and are able to act quickly in dealing with supply chain challenges . Both pharmaceutical and biopharmaceutical manufacturers demand consistency and timeliness in being supplied with the highest quality raw materials , products and supplies that support drug discovery development and can help speed time to market . ●
Dr Matt Szap
SENIOR TECHNICAL COMMUNICATIONS MANAGER
SPECTRUM CHEMICAL MFG . CORP . k + 1 732 214 1300 , x 5171 J mszap @ spectrumchemical . com j www . spectrumchemical . com
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