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Supply Chain Management in the Drug Industry: Delivering by Hedley Rees

By Hedley Rees

This publication bridges the distance among practitioners of supply-chain administration and pharmaceutical specialists. It goals to assist either those teams comprehend different worlds they stay in and the way to together give a contribution to significant advancements in supply-chains in the globally very important pharmaceutical quarter. medical and technical employees needs to paintings heavily with supply-chain practitioners and different suitable events to assist safe responsive, good value and danger mitigated offer chains to compete on an international level. this could now not wait until eventually a drug has been registered, yet may still commence as early as attainable within the improvement method and ahead of registration or scientific trials. the writer means that CMC (chemistry production controls) drug improvement needs to reset the road of sight – from provide of drug to the health center and gaining a registration, to the development of a sufferer price move. able methods and providers, streamlined logistics, versatile plant and gear, shorter cycle occasions, potent stream of knowledge and diminished waste. these types of elements can and will be addressed on the CMC improvement degree.

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A Helpful Metaphor When civilizations were making crude tools to kill, cook, and eat food, supply chains only extended to the fairly immediate surroundings or were within easy walking distance. These were still supply chains, however, requiring the finding and forming P1: OTA/XYZ P2: ABC c01 JWBS050-Rees November 9, 2010 18 11:57 Printer: Yet to come SETTING A TRANSFORMATIONAL AGENDA of raw materials into finished products. The principles of SCM would have been exactly the same as today. The hunter must know where the best sources of materials are, secure the necessary supply, transport it to the site of manufacture, form tools as required, store the materials ready for use, and maintain them in good order.

For these companies, the profitability of the contract rather than the success of the sponsoring pharmaceutical company had to become the first priority. So began the wave of outsourcing and third-party commercial relationships, which has followed an upward trend to this day. The existence of this contractor base also made it possible to develop drugs without actually owning any of the facilities. From this, the business models now known as biotech and virtual pharma (because of their need to outsource to conserve cash) were spawned.

As the discipline matures, this should be less and less the case. We aim to contribute to that higher level of appreciation. 9 LIFE IN SCM It seems appropriate in this introduction to explain something about what life is like managing in supply chains. It is probably a bit like giving birth, in that unless you have done it, it is impossible to understand what it is like in practice—hence the value of a metaphor. A Helpful Metaphor To help understand life in SCM, consider the pilot of an oil supertanker.

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