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Driven. For Client Success.
Ensuring a safe, stable and secure supply chain is an important factor in delivering success to our clients, ultimately allowing them to make a difference for patients with unmet medical needs. As part of this integral drug manufacturing and production process, materials sourcing is crucial in delivering the highest quality of raw materials without delay, and nobody is more familiar with the intricacies of it than Yongkwan Ma.
As a senior buyer on our procurement team, Yongkwan not only purchases the raw materials, but he also identifies and mitigates supply risks due to unforeseen circumstances, like in the case of the COVID-19 pandemic.
Hear how he sees Samsung Biologics evolving its supply chain capabilities in the future and why “Driven. For Life” is meaningful reminder of his social responsibility to the health of society.
What are your job responsibilities at Samsung Biologics?
I purchase raw materials, like media, resin and chemicals, so that we can use them to make the final products. Planning this purchase requires an attention to detail, such as how much we need, by when, and with what kind of manufacturing [taking into consideration the expiration date]. This needs to be communicated with the vendor on a daily basis, otherwise there’s the possibility of a shortage or excess inventory.
Beyond that, my role is also to be a first responder if there is a supply risk caused by market change for specific items or unexpected circumstances such as what happened with the COVID pandemic. We acknowledge that most of us are going through exceptional supply constraints recently due to not only the COVID pandemic, but also because the pharmaceutical market is expanding more rapidly than expected. Therefore, as a supply chain manager, I ensure that all stakeholders are aware of these risks early on and provide possible scenarios to resolve any problems that arise.
Can you please briefly explain the role of materials sourcing in the pharmaceutical supply chain?
As a manufacturing company for biomedical products, we certainly keep our focus on bringing about a better life for all humanity at the forefront, so it is vital to provide our product stably with perfect quality for our clients and also for the patients who need the product. Our manufacturing ability along with the process of quality control is the key to achieving the perfect quality product. But it also would not be possible to achieve this without having quality raw materials. So, it is our goal to manage and source suppliers that meet our quality requirements, while enabling the stable supply of the raw materials in time.
How has the Supply Chain Management team at Samsung Biologics been managing supply chain since the start of the COVID-19 pandemic?
Most of the biopharmaceutical companies including Samsung Biologics have been challenged with supply constraints for raw materials. This is simply because most of the raw materials have been prioritized for the COVID vaccine or COVID-related treatment, which has led to an extreme increase in market demand while suppliers’ manufacturing capacities are limited.
So, in order to take steps to remedy the situation, we first set up a Supply Chain Management (SCM) task force early last year with relevant departments. This allowed us to make an efficient organizational system and decision-making process as well as prepare Risk Management assessments through our Business Continuity Management System to be able to take timely actions against last-minute changes in the supply plan.
Furthermore, to hedge our risk we took various actions including multi-sourcing, changing safety stock strategy, categorizing items based on supply stability, and establishing close partnerships with key suppliers, clients and the government. I believe that all of these activities are allowing us to manage stable production without any critical raw material issues so far.
What trends in Supply Chain Management (SCM) do you see forming in the post COVID-19 era, and how do these connect to our company’s long-term strategies?
I am quite certain that there will be dramatic changes in the post COVID-19 era. Especially in the biopharmaceutical industry, it takes a long time to develop and commercialize bio-medical products. However, things have changed now due to COVID-19; the market demand has expanded, and we are innovating to become ‘Faster and Better’.
Consequently, I’ve perceived many changes requested by the market in relation to Supply Chain Management. The main role of SCM is becoming more focused on effective risk management along with a stable supply chain, rather than the traditional role of procurement with routine operation.
Our SCM team always prepares a mitigation plan in advance based on the risk analysis, while attempting to improve the process and enhance the system against an emergency. For instance, we are very focused on multi-sourcing and making the best effort towards localization, targeting to be in an 80% range in the localization ratio of our raw materials supply by 2025.
What unique capabilities do we offer compared to the rest of the industry in regards to Supply Chain Management?
We have a “3-S” philosophy: Simple, Speedy, and Scalable. ‘Simple’ implies creating supply chain cost optimization by removing waste. ‘Speedy’ refers to the streamline process that allows us to adjust supply chain activities within the target timeline and lastly, ‘Scalable’ defines our policy and standard that can be applied to any new business area or trend. Our SCM team always fulfills their commitment based on this 3S philosophy and it encompasses the capabilities that SCM can offer to our valued clients. To sum it up, we simply deliver scalable outcomes to our clients with speed in respect to their time.
How will we continuously evolve our supply chain capabilities in the future?
Our ultimate goal is to become an SCM solution provider capable of creating the best plan against any unexpected situation as well as developing and maintaining knowledge of best practices, market conditions, trends and supply sources. On top of that, we continually train our internal resources and enhance our capabilities with key suppliers. In recent years, we have been undergoing a system transformation to integrate our system with suppliers to achieve a Digitalization of the Supply Chain process. All of this innovation is part of our long-term strategy to expand in capacity, geography and modality.
What makes Samsung Biologics’ culture unique?
I think Samsung Biologics is very much a client-oriented company. If there is one single request from a client, we gather all different departments right away and make an immediate decision to accommodate the request, attempting to meet the client’s expectation.
Samsung Biologics also has a pioneering spirit, especially in the bold investments we have already started with Plant 4’s construction, even right after completing Plant 3, and there’s more to go. I believe this hard-working culture comes from the strong will of our management and more importantly the effective work process within the organizational structure.
When you hear the phrase "Driven. For Life.", what comes to mind?
When I first heard “Driven. for Life,” I was reminded of our social duty - that what I am doing at Samsung Biologics can hugely influence other people’s lives. For instance, a raw materials shortage can cause a full stop in manufacturing, which of course can be costly, but also it can affect the lives of the patients who are waiting for the product. I believe all of the employees here feel the same commitment in what we do at Samsung Biologics.
Related Contents
Webinar Maintaining robust supply chain management during COVID-19 and strategy for post-pandemic
Whitepaper Beyond COVID-19: How Localization Can Help Strengthen Supply Chain Capabilities
Ensuring a safe, stable and secure supply chain is an important factor in delivering success to our clients, ultimately allowing them to make a difference for patients with unmet medical needs. As part of this integral drug manufacturing and production process, materials sourcing is crucial in delivering the highest quality of raw materials without delay, and nobody is more familiar with the intricacies of it than Yongkwan Ma.
As a senior buyer on our procurement team, Yongkwan not only purchases the raw materials, but he also identifies and mitigates supply risks due to unforeseen circumstances, like in the case of the COVID-19 pandemic.
Hear how he sees Samsung Biologics evolving its supply chain capabilities in the future and why “Driven. For Life” is meaningful reminder of his social responsibility to the health of society.
What are your job responsibilities at Samsung Biologics?
I purchase raw materials, like media, resin and chemicals, so that we can use them to make the final products. Planning this purchase requires an attention to detail, such as how much we need, by when, and with what kind of manufacturing [taking into consideration the expiration date]. This needs to be communicated with the vendor on a daily basis, otherwise there’s the possibility of a shortage or excess inventory.
Beyond that, my role is also to be a first responder if there is a supply risk caused by market change for specific items or unexpected circumstances such as what happened with the COVID pandemic. We acknowledge that most of us are going through exceptional supply constraints recently due to not only the COVID pandemic, but also because the pharmaceutical market is expanding more rapidly than expected. Therefore, as a supply chain manager, I ensure that all stakeholders are aware of these risks early on and provide possible scenarios to resolve any problems that arise.
Can you please briefly explain the role of materials sourcing in the pharmaceutical supply chain?
As a manufacturing company for biomedical products, we certainly keep our focus on bringing about a better life for all humanity at the forefront, so it is vital to provide our product stably with perfect quality for our clients and also for the patients who need the product. Our manufacturing ability along with the process of quality control is the key to achieving the perfect quality product. But it also would not be possible to achieve this without having quality raw materials. So, it is our goal to manage and source suppliers that meet our quality requirements, while enabling the stable supply of the raw materials in time.
How has the Supply Chain Management team at Samsung Biologics been managing supply chain since the start of the COVID-19 pandemic?
Most of the biopharmaceutical companies including Samsung Biologics have been challenged with supply constraints for raw materials. This is simply because most of the raw materials have been prioritized for the COVID vaccine or COVID-related treatment, which has led to an extreme increase in market demand while suppliers’ manufacturing capacities are limited.
So, in order to take steps to remedy the situation, we first set up a Supply Chain Management (SCM) task force early last year with relevant departments. This allowed us to make an efficient organizational system and decision-making process as well as prepare Risk Management assessments through our Business Continuity Management System to be able to take timely actions against last-minute changes in the supply plan.
Furthermore, to hedge our risk we took various actions including multi-sourcing, changing safety stock strategy, categorizing items based on supply stability, and establishing close partnerships with key suppliers, clients and the government. I believe that all of these activities are allowing us to manage stable production without any critical raw material issues so far.
What trends in Supply Chain Management (SCM) do you see forming in the post COVID-19 era, and how do these connect to our company’s long-term strategies?
I am quite certain that there will be dramatic changes in the post COVID-19 era. Especially in the biopharmaceutical industry, it takes a long time to develop and commercialize bio-medical products. However, things have changed now due to COVID-19; the market demand has expanded, and we are innovating to become ‘Faster and Better’.
Consequently, I’ve perceived many changes requested by the market in relation to Supply Chain Management. The main role of SCM is becoming more focused on effective risk management along with a stable supply chain, rather than the traditional role of procurement with routine operation.
Our SCM team always prepares a mitigation plan in advance based on the risk analysis, while attempting to improve the process and enhance the system against an emergency. For instance, we are very focused on multi-sourcing and making the best effort towards localization, targeting to be in an 80% range in the localization ratio of our raw materials supply by 2025.
What unique capabilities do we offer compared to the rest of the industry in regards to Supply Chain Management?
We have a “3-S” philosophy: Simple, Speedy, and Scalable. ‘Simple’ implies creating supply chain cost optimization by removing waste. ‘Speedy’ refers to the streamline process that allows us to adjust supply chain activities within the target timeline and lastly, ‘Scalable’ defines our policy and standard that can be applied to any new business area or trend. Our SCM team always fulfills their commitment based on this 3S philosophy and it encompasses the capabilities that SCM can offer to our valued clients. To sum it up, we simply deliver scalable outcomes to our clients with speed in respect to their time.
How will we continuously evolve our supply chain capabilities in the future?
Our ultimate goal is to become an SCM solution provider capable of creating the best plan against any unexpected situation as well as developing and maintaining knowledge of best practices, market conditions, trends and supply sources. On top of that, we continually train our internal resources and enhance our capabilities with key suppliers. In recent years, we have been undergoing a system transformation to integrate our system with suppliers to achieve a Digitalization of the Supply Chain process. All of this innovation is part of our long-term strategy to expand in capacity, geography and modality.
What makes Samsung Biologics’ culture unique?
I think Samsung Biologics is very much a client-oriented company. If there is one single request from a client, we gather all different departments right away and make an immediate decision to accommodate the request, attempting to meet the client’s expectation.
Samsung Biologics also has a pioneering spirit, especially in the bold investments we have already started with Plant 4’s construction, even right after completing Plant 3, and there’s more to go. I believe this hard-working culture comes from the strong will of our management and more importantly the effective work process within the organizational structure.
When you hear the phrase "Driven. For Life.", what comes to mind?
When I first heard “Driven. for Life,” I was reminded of our social duty - that what I am doing at Samsung Biologics can hugely influence other people’s lives. For instance, a raw materials shortage can cause a full stop in manufacturing, which of course can be costly, but also it can affect the lives of the patients who are waiting for the product. I believe all of the employees here feel the same commitment in what we do at Samsung Biologics.
Related Contents
Webinar Maintaining robust supply chain management during COVID-19 and strategy for post-pandemic
Whitepaper Beyond COVID-19: How Localization Can Help Strengthen Supply Chain Capabilities