The average operating margins for large size pharmaceutical companies was less than 20% in last five years as compared with over 25% from 2000 to 2010 period. This is a sharp decline than seen before the 2000s when there were fewer pharmaceutical products, more stable demand and comfortable margins. Growth and operating margins are further getting squeezed; whereas supply chains are stretched to reduce costs in the face of increasing regulatory scrutiny and expansion into new markets.
While Primary objective of pharmaceutical supply chain is to provide drug products in the right quantity, without impacting the safety, quality and effectiveness of the drug products, through the labelled handling, storage and distribution guidelines to the different set of customers, at the right time with optimum cost. Any risks affecting the pharmaceutical supply chain not only just waste the resources but threaten the patients’ life. That’s why mostly; supply chain function in pharmaceutical operations has traditionally been self-contained within the company. Reaching out to external stakeholders is mainly for transactional purposes.
In recent times, pharmaceuticals companies are facing an era of transformation from dwindling pipeline of branded products, expiring patents, heightened competition from generics, industry consolidation and all of these factors resulting in reduced profit margins as well as curbing the top-line potential of pharmaceutical companies. All of these factors, coupled with enhanced regulatory complexities are compelling the pharmaceutical supply chain which is already over stressed by ever increasing SKU proliferation, demand variability and lower margins.
It’s time when Pharmaceutical companies need to rethink their supply chains strategies to develop more collaborative models with 3Pl players that can help their supply chain to be more agile, flexible and compliant, while 3Pl player clearly understanding the essentials and specifics of pharmaceutical business.
We at Genex not only understand the value creation through a reliable 3Pl provider as we just not only deliver benefits everyday to our various delighted customers across different industries, but we also fully understand the essentials and specifics of Pharmaceutical Industry. We are helping rapidly evolving supply chain needs of pharmaceutical companies with our operational, technology efficient logistic models. This is integrated by the vast experience of our teams with pharmaceutical leaders to successfully offer synergistic collaboration and efficiency in these changing times in pharmaceutical supply chain.
Our value added healthcare specific solutions are helping companies to better manage their drug supplies in the face of increasingly unpredictable demand, gain better visibility into inventory, and reducing obsolescence across the value chain to efficiently service diverse markets. We demonstrate and deliver by optimizing inventory throughout the supply chain, Improving inventory visibility across the supply chain, customizing supply chains for regional products and markets, taking timely action, building business trust among stakeholders and by providing scalable and secure IT platforms that facilitate real-time visibility of data across the extended supply chain.
We will be happy to offer our healthcare specific value added approach and innovative solutions with you to help grow your business by strengthening your logistic needs. Try us to see the difference.