Managing The Complexities Of Global Pharmaceutical Sourcing

With the increased globalization and complexity of the pharmaceutical supply chain, managing the sourcing of materials has become extremely challenging. Reducing time and costs are important goals of sourcing, but increased regulations and more rigorous enforcement make these goals difficult to achieve. These trends have forced life science industry companies to optimize sourcing activities for raw materials, intermediates, active pharmaceutical ingredients (APIs) and other material components for clinical supplies and commercial manufacturing. If the sourcing function is not rigorously managed, these challenges can result in supply chain interruptions, unexpected expenses and quality control issues. In this challenging environment, companies are increasingly relying on highly qualified contract development and manufacturing organizations (CDMOs) to effectively manage the sourcing role.

This risky supply chain environment has pharmaceutical and life sciences executives concerned about supply safety, legal and regulatory compliance, and the timeliness of receiving materials. A report co-sponsored by Price Waterhouse Coopers,* based on a survey of 112 industry executives worldwide, found that 50 percent see raw materials sourced outside of the U.S. as the greatest vulnerability to the supply chain and 61 percent view contaminated or nonconforming raw materials as the top threat, although 78 percent believe global sourcing will be increasing. Only 25 percent stated they share common practices and information with suppliers, and nearly 60 percent said they are concerned about the willingness of suppliers to provide information to address regulatory requirements.