CDMOs Supply Chain: capabilities and strategy


CDMOs Supply Chain: capabilities and strategy


By Marcelo Carrera, Head of Procurement AGC Pharma Chemicals

As we have seen in the first article, the industry has learned valuable lessons over the last few years, and it is now imperative to implement these learnings and create a transparent and collaborative pharmaceutical supply chain that can meet the demands of regulators and society. AGC Pharma Chemicals is pioneering the shift towards elevating supply chain operations to a higher level of performance through collaboration and transparency.  

Global Procurement Strategy 

One of the fundamental aspects of an effective supply chain in a CDMO (Contract Development and Manufacturing Operations) is a well-crafted global procurement strategy. AGC Pharma Chemicals has implemented a strategy that offers an agile and quality service tailored to the specific needs and budgets of its clients. This strategy includes several key components. 

AGC Pharma Chemicals boasts a global presence with strategically positioned procurement teams in key regions and countries, including India, China, Europe, and Japan. This serves as a reliable source, promotes accurate information and ensures seamless operations. Also, establishing several sourcing hubs in various regions reduces the risk associated with geopolitical factors and helps  ensure  a continuous and flexible supply of critical materials.

Collaboration across the global network is essential. The procurement strategy adopted by AGC Pharma Chemicals is comprehensive; aiming for a meticulously alignment between our partners’ production capabilities and processes (suppliers), AGC’s procedures and policies and our client’s requirements. The company prioritizes gaining insights into their business strategy, compliance policies, and sustainability efforts, fostering collaborative and mutually beneficial relationships. For example, AGC Pharma Chemicals has an extensive reliable network of raw material suppliers/partners, ensuring that materials and products are delivered in a timely and secure manner. 

Another key point is Risk Management. AGC Pharma Chemicals assesses global risks and creates contingency plans to mitigate potential disruptions in the supply chain. 

Addressing the specific needs of each client is also a priority. Customized solutions are tailored to address unique requirements, from materials sourcing to delivery schedules. For example, AGC Pharma Chemicals can support clients with tax optimization solutions related to import-export transactions. 

And of course, AGC Pharma Chemicals ‘s robust quality management system is instrumental in maintaining the highest standards in the supply chain, ensuring product quality and safety. The company is committed to maintaining regulatory compliance throughout the supply chain. The company stays updated with evolving regulations and ensures all processes are aligned. 

The scale of procurement and production at AGC Pharma Chemicals is substantial, reflecting the company’s prominent role in the pharmaceutical supply chain. Material master data management is efficiently handled through SAP, interfaced with batch records. The company also maintains customized safety stock levels and a robust contingency plan to manage production interruptions effectively. 

In conclusion, the supply chain challenges faced by CDMOs in the pharmaceutical industry are complex and multifaceted. AGC Pharma Chemicals is well positioned to meet these challenges, with its global purchasing strategy, robust logistics infrastructure, warehousing capacity, and commitment to quality 

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