How to resolve the problem of rising costs and counterfeits?
In this age where material and fuel costs are increasing, the only way for pharmas to improve or at leats maintain their profit margin is by streamlining their supply chains, maximizing product flow within the chain. This is in line with what GBI Research commented, "pharmaceutical companies are paying more attention than ever before to their supply chains as they attempt to boost profits and clamp down on fake drugs." GBI do not stand alone with regard to this matter, with another report "Pharmaceutical Supply Chain in the US-Advances in RFID andÂ ePedigree Systems to Limit Drug Counterfeits" highlighting the same need to "maximize revenue for global pharmaceutical companies".
With fluctuating demand and supply for pharmaceuticals, it is of paramount that these pharmaceutical giants know how to cater and tailor their supply chains accordingly. One of our BioPharma Asia 2013 advisors Frank Binder, Senior Director International Logistics & Supply of Celgene, mentioned that excellent communication across the chain and outsourcing are the two ways to improve a company's ability to cope with such changes in supply and demand. Outsourcing is an increasing popular practises to better one's supply chain in light of the substantially lower labor expenses in certain development countries and also, lower transportation costs when branded products are produced close to one's customer bases. This brings in the role of third party logistical service providers who are able to help improve the supply chain's flexibility by allowing pharmaceutical companies to reduce their order volume, rather than ceasing operations for their expensive in-house manufacturing facilities.
In face of the problem of counterfeit pharmaceutical products, companies are looking into relying on Radio-Frequency Identification (RFID) to resolve this issue. This is a trend that was highlighted in the recent GBI Research report too. Statistics has shown that product call backs are on the rise in the last decade, at least in the United States. Reasons cited for this include poor quality packaging, defective labelling and contamination. Such problems could be easily overcomes through the employment of a reliable packaging service provider. However, excellent working relationship with these third parties is of great importance. Not only should the partners aim for similar goals, their company culture should be comparable.
If you are seeking to find suitable manufacturing or service-providing partners for your company, then BioPharma Asia Convention 2013 is an industrial gathering you definitely cannot miss.
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Article adopted from PharmaBiz.com