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Beyond COVID-19: How Localization Can Help Strengthen Supply Chain Capabilities
The success or failure of a business is directly dependent on how well its supply chain operations are managed, and this is even more so for the pharmaceutical industry that brings new therapies and life-saving medicines to patients.
Particularly for a service provider, such as a contract development and manufacturing organization (CDMO), a strong and sustainable supply network is essential. Product businesses often have stockpiles that can take the company through years of business, should a disruption to production occur.
But CDMOs have more complex supply chains – they must respond to a wide range of client demands and adjust quickly to market dynamics, new raw materials, new regulatory requirements, multiple product portfolios, etc.
So, CDMOs cannot simply rely on safety stocks as a risk management strategy, especially when facing a situation like the current coronavirus pandemic.
The success or failure of a business is directly dependent on how well its supply chain operations are managed, and this is even more so for the pharmaceutical industry that brings new therapies and life-saving medicines to patients.
Particularly for a service provider, such as a contract development and manufacturing organization (CDMO), a strong and sustainable supply network is essential. Product businesses often have stockpiles that can take the company through years of business, should a disruption to production occur.
But CDMOs have more complex supply chains – they must respond to a wide range of client demands and adjust quickly to market dynamics, new raw materials, new regulatory requirements, multiple product portfolios, etc.
So, CDMOs cannot simply rely on safety stocks as a risk management strategy, especially when facing a situation like the current coronavirus pandemic.