Outsourcing and Globalization have become increasingly prevalent in the Life Science Industries. Yet Global Supply Chains have created unintended results. Increased complexity and risk are driving Industry Executives to reevaluate globalization strategies, according to a major study conducted by Axendia.
In the drive to lower costs, manufacturing and sourcing of ingredients and components in countries such as China and India are playing a more prominent role. Yet, according to the research, outsourcing to manufacturers in developing economies carries significant operational risks. Industry Executives surveyed for the research said that Raw Materials sourced outside the US represented the greatest risk to the Value Chain, with 94% of those who responded seeing it as a significant or moderate risk. When comparing the risk profile of US vs. foreign raw material Suppliers, United States Suppliers were classified as low risk nearly 10 times as often as foreign suppliers.
The report provides a road map for Life Sciences Executive to achieve Real-Time Visibility and control of Global Supply Chains. It also calls for the implementation of better collaboration among Brand Owners and their suppliers, distributors, shippers and regulators. Because of the size and complexity of global supply chains, the most cost-effective option to oversee the end to end supply chain will require cooperation and the sharing of information across all stakeholders in Life Science ecosystem to ensure the safety, efficacy and effectiveness of products.
The complete findings of this research study are available in a new report entitled, “Global Supply Chain Visibility, Control & Collaboration: Business Imperative, Regulatory Necessity”.
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