Managing The Complexities Of Global Supply Chain

By Kevin Lee, DPT Laboratories

With the increased globalization and accompanying complexity of the pharmaceutical supply chain, managing the role of materials sourcing 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. Current trends have forced life science industry companies to more rigorously optimize sourcing activities for raw materials, intermediates, active pharmaceutical ingredients (APIs) and other material components for both clinical supplies and commercial manufacturing. If managed improperly, sourcing can result in supply chain interruptions, significant unexpected expenses and quality control issues. As companies increasingly rely on highly qualified contract development and manufacturing organizations (CDMOs) to manage the sourcing role, how can you ensure effective sourcing?

Today’s risky, complicated 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 PriceWaterhouseCooper,¹ based on a survey of 112 industry executives worldwide, found that 50% see raw materials sourced outside of the U.S. as the greatest vulnerability to the supply chain and 61% view contaminated or nonconforming raw materials as the top threat, even as 78% believe global sourcing will increase. Only 25% stated they share common practices and information with suppliers, while nearly 60% said they are concerned about the willingness of suppliers to provide information to address regulatory requirements.