Global pharmaceutical outsourcing is a huge potential demand growth in key supply chain - medicine - pharmaceutical industries

The near term, outsourcing will not be much change inof the expansion, the labor cost difference is gradually
medicine, but a better long term prospects, especially inshrinking.
the antibacterial field, because many will be waiting forLight of the current differences in the choice of Asian
approval of biological products outsourcing. As Asianoutsourcing customers Cooperation Project partners
companies mature, they became more and moreand to set strategic goals, usually require the ability to
experience and ability to meet the needs ofhave a commercial. On the whole, has a common
customers, which in itself has created moretechnology, common product quality and the general
opportunities for.supply chain capabilities of Western suppliers to bear
Drugs Extension of the supply chain on the current andthe greatest competitive pressure. Nevertheless, those
future medical outsourcing is extremely importantwho can provide a unique technology, or to ensure the
dynamic effects. To meet Pharmaceutical companiessafety of key raw materials supply chain companies,
Changing needs, contract manufacturers organizationswas able to use differentiation strategy, by providing
(CMOs) have begun to expand the geographicalvalue added products, to ensure the viability of which
scope in order to leave a footprint in the world.period.
Recently, the CMOs in Asia began to set foot in NorthDishman Pharmaceutical and Chemicals Division
America and Western Europe, production and REurope Sell Director ChristianDowdeswell that the
& D operations, and Western CMOs also begancurrent business pressures can be viewed in two
to strengthen its position in Asia. To understand theways: First, the key cost elements in some of the
impact of the development of pharmaceuticalprices rise, companies are slow in reacting to this; the
outsourcing key issues and factors, as well as theother hand, investment is still very low cost Asian
challenges facing the pharmaceutical outsourcing, thecountries, still promote the development of
European pharmaceutical industry, recently hosted apharmaceutical outsourcing in Asia.
"leading global pharmaceutical outsourcing organizationIndia PiramalHealthcare Chief Operating Officer N.
by contract manufacturers," the current and futureSanthanam stressed that while the cost of growth in
dynamics of the pharmaceutical outsourcing marketAsia than in Western countries, but as emerging
explored.countries have a strong technical gathering capabilities
Western and Asian countries, the cost differencein Asia and the West there is a big cost difference. In
between suppliersWestern countries, chemical or preparation of full-time
Compared with North America and Europe, Asia,staff costs accounted for the total cost of about 50%
CMOs are usually considered to have low-costto 60%. The next 5 to 7 years, the proportion is likely
advantages, but with rising labor costs, transportationnot change.
restrictions, and Energy Shortage, this difference isContrast, Asian companies face the challenge of
gradually diluted.competition is usually not an hour cost rate, but by the
Dr.Reddy "sLaboratories pharmaceutical services andmeans of production, technology and medicine R
active ingredients division president AbhijitMukherjee& D productivity problems caused way. The good
pointed out, traditional manufacturing competitive in thenews is, a large number of Indian and Chinese
global market already has. The cost differencescientists are from the West to return to their homes,
between India and the West to some extent still exist,to help the motherland and the training of more
but Western countries by shortening the productionscientific talent. Meanwhile, the high level of equipment
process and improve production efficiency, hashas also contributed greatly to achieve productivity
become more competitive in price. They use globalgains, however, to achieve rapid development in the
supplier network and improve the efficiency of thefuture there is still a long way to go. United States
price advantage of the completion of goals.Institute of Advanced Materials
Present, select provider can no longer focus on price,(AMRI), vice president of pharmaceutical production
but also the ability of the overall service provided.and R & D SteveHagen pointed out that the
Asian service providers need to demonstrate thecurrent economic situation has energy and raw
technical difficulty of their service and productionmaterial costs drop from the highest point in 2008
efficiency, which in the past is not needed. Of thedown. In a tight market, the more suppliers want to API
CMO, the cost is not a single competitive advantage.To negotiate on price. If we can continue to reduce
Want to be successful, the cost and quality, safety,the cost of raw materials and strict quality standard,
health, Environmental protection , Procurement andcan provide the customers with low cost high quality
supply chain programs together.assurance. Meanwhile, the employment and retention
SAFC Supply Division Vice President EdRoullard thatof qualified staff is also a way to win. Now, customers
Adam Smith's "invisible hand" theory is the role ofhave expressed Asia outsourcing projects the level of
Western and Asian markets. Driven by many factors,internal resources needed attention. Which the use of
increasing the cost Asian countries, the most obviousinternal resources is bound to increase the project
is that pharmacists and engineers in the labor costs.cost. If necessary, can be borrowed from the
Although still lower than the Western suppliers, but withAmerican mode of communication, use of solid project
the demand caused by economic development,management skills of its customers to reduce demand
transfer, resource competition and the relative wealthon internal resources.