Supply Chain: In-house or Out-source?

Enhancing your supply chain through effective employment of third party services

Credit: buddawiggi

Statistical results highlight the benefits which a third party service provider can bring. Controlled costs, accommodation of business fluctuations, management of compliance issues and return of focus to core competencies are just some of the benefits which a third party can provide.

In this day and age of rapid mergers and acquisitions of pharmaceuticals, outsourcing one's supply chain management can actually reduce the amount of instability within the organizations and improve the effectiveness of a chain. A short discussion with a supply chain expert from Sanofi-Aventis actually confirms that the supply chains are indeed stretched when pharmaceuticals of different foci merge to become a single corporation. A pharmaceutical that focuses on OTC production and delivery would not have the expertise to manage cold chain products, and vice-versa. Measures taken to restructure the supply chain management to accommodate the changes in product supply will not only be counter-productive, but also costly. All such issues can be resolved or minimized if the supply chain is outsourced to a third party service provider who has expertise in managing supply chains for an array of products.

A strategic relationship with third parties who provides packaging services can also help pharmaceutical giants attain sustainability in their production and manufacturing.  Packing providers are able to focus on their core competencies while achieving energy efficiency, conservation of natural resources, elimination of waste and etc, which are some practices pharmaceutical giants simply cannot achieve due to the lack of expertise. With strengthening environmental awareness among consumers, leveraging on packaging third parties to create an environmentally-friendly product can become one of the unique selling points in this increasingly competitive pharmaceutical landscape.

However, this is not to say that a pharmaceutical company should outsource its supply chain management wholesale, without any strategy. Survey results has also shown that it is most critical to have the transportation and warehousing stages of a supply chain outsourced to only 1 service provider. However, heavy reliance on a single service provider also increases the risk the pharmaceutical company is taking. What is the perfect balance of outsourcing in a supply chain? How should one go about in his selection of a reliable third party service provider?

If you are interested int the answers to these questions, join us at BioPharma Asia Convention 2013 to discuss the latest SCM industry standards at our Pharma & Biotech Supply Chain Management World Asia 2013 or download the event prospectus to find out how you can be a part of the largest gathering of pharma professionals in Asia NOW!

Article adopted from Packaging World and Greener Package