Abstract

With Chimica Oggi we asked a panel of key players in the pharmaceutical industry value chain to explain the role and challenges of the SUPPLY CHAIN. Reading the remarkably interesting testimonials, we realize that supply chain management plays the key role expected for the industry in providing the service the customer expects and, beyond that, in keeping the chain link as strong as possible, allowing patients to have continuous access to medicines.

PANEL ON SUPPLY CHAIN MANAGEMENT (SCM) IN CHEMICAL AND PHARMACEUTICAL INDUSTRIES

Global Value Chain schematic deScription

A few decades ago, the Western pharmaceutical industry started to outsource the chemical part of its value chain, namely the production of APIs and related intermediates, to local European CDMOs.

Over the past 25 years, due to cost pressures and the development of skills in the Asia-Pacific region (China and India), a large part of the pharmaceutical value chain has been outsourced.

First, the basic intermediates used to produce registered intermediates (GMP) were outsourced to regions with lower costs (lower social costs and wages, as well as less environmental constraints). This was mainly in Asia (India and China).  Subsequently, some of these suppliers have successfully integrated into the downstream value chain, offering GMP intermediaries and final APIs. They were largely supported and trained by the big pharmaceutical companies. The latter have increased the intensity of competition among suppliers t ...