Supply chain resilience in the pharmaceutical industry.

The debate on whether part of the production APIs (Active Pharmaceutical Ingredients) should be relocated to Europe was superfluous until a few months ago, but COVID 19 has changed all our ways of thinking and working. 

The pandemic shows, in an exacerbated way, the high risk of disruption of supply of pharmaceutical raw materials coming from China. For its part, India had suspended the export of certain molecules in order to reserve them for the local market during the first wave of the epidemic in 2020. 

Pharmaceuticals companies and public authorities have realized more than ever Europe's dependence on China for the production of drugs, particularly with the example of Paracetamol, for which there is talk of relocating production to France for reasons of health independence. 

Of course, reducing the supply chain and the industrie’s dependence on China and India for APIs is not a new issue. Corrective measures at leading pharmaceutical companies are under study, particularly since the situation we are experiencing is uncertain and has no clear end in sight. The choice, for some companies, of bringing production closer at hand is reassuring, but it is not so simple and, in some cases, impossible. It is not a global solution and might not change the situation. 

What we can say with certainty, is that today, China is unavoidable. Furthermore, the global interdependence of the Supply Chain towards China is highlighted by the fact that while the Chinese market might not need Europe for its survival, it is much clear that Europe is still highly dependent on China to keep its pharmaceutical industry working. 

Faced with this challenge, and in response to this dependency, European pharmaceutical companies have the possibility to rationalize their choice of distribution partners, shortlisting those who do have access to the Chinese market directly, thanks to a well-established local presence and in-depth regulatory knowledge. 

A. Keeping up with the fast paced ecosystem of China and India 

B. Considerable cost saving for pharmaceutical companies (No need to bring production closer to home )

C. In-depth Regulatory Knowledge 

D. It is crucial to have a Local market and cultural understanding 

Language, trust, reliable local information, future information, reactivity, are a key factor for succeeding in the region, and by choosing a distributor established locally, companies can ensure the success of their sourcing without having to invest from internal resources to do so. 

As a global company, Safic-Alcan, serves its customers our customers are best served by intelligently strengthening their supply chains, particularly in the support of double sourcing, but also by relying on our business continuity experts - Selecting at least two or even three sources of key ingredients offering back-up options in case of shortage is an important and necessary task - Safic-Alcan customers, major players in pharmaceutical production, need a guarantee and security of supply and, especially in times of major crisis, experts in business continuity and resiliency planning on whom they can rely.

Our local implementation also comes with deep reglementary knowledge and a cultural immersion which allows us to quickly adapt to environmental changes, such as the one seen during the pandemic. 

The pandemic has forced companies to adapt due to the impossibility to travel and meet with their own suppliers. At Safic-Alcan, thanks to our local office in Chengdu, we organize virtual meetings with our customers and local producers. This allows us in this reinvented situation to organize meetings, develop business, gain confidence, efficiency and talk about innovation or regulations.  

Safic-Alcan by operating its digital revolution allows us to respond to its customers in a demanding way by answering all their concerns. 

Contact one of our experts today.