THANK YOU FOR SUBSCRIBING
Pharma Tech Outlook | Friday, August 02, 2024
For many pharmaceutical companies, this has resulted in a patchwork of subscale production facilities and contract development and manufacturing organization (CDMO) connections dispersed around the globe.
Fremont, CA: In the life sciences industry, a manufacturing network strategy that optimizes resources, embeds resilience, and provides a competitive advantage is becoming increasingly vital. However, for many, the approach to manufacturing has just been centered on reacting to trigger events like mergers and acquisitions, growth or capacity restrictions, demand surges, an urgent need to decrease costs, new product introductions, or regulatory changes.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
For many pharmaceutical companies, this has resulted in a patchwork of subscale production facilities and contract development and manufacturing organization (CDMO) connections dispersed around the globe. The COVID-19 disruptions highlighted the hazards of this haphazard approach, prompting many pharmaceutical companies to rethink their production networks and strategies, changing from reactive measures to a strategy based on manufacturing optimization.
Companies are investing time, effort, and money in developing their manufacturing strategy, which may reap enormous dividends. Users have seen organizations reduce their basic costs by 10 to 20 percent by revamping their production approach. However, there are several reasons to improve manufacturing networks and techniques beyond cost reductions, such as resilience, agility, and sustainability. We discuss four methods for optimizing a production plan and avoiding typical errors.
The experience with pharmaceutical businesses has shown five frequent errors that can stymie attempts to develop and implement an efficient production plan.
Reacting to triggers vs. driving production strategy proactively.
When a manufacturing strategy gets implemented in haste in reaction to a trigger event rather than as a strategic tool or continuing maintenance effort, it frequently falls short of its promises. Decisions taken under duress are rarely supported by thorough thought and are unlikely to be long-lasting.
Making judgments depends on feelings rather than facts.
Given the nature, scope, and danger of major industrial choices, fear and skepticism may push people to stymie rather than legitimize and support change. Employees may find it difficult to close a specific site, even if it is suboptimal since it has a distinct history in the firm, such as the original headquarters. Emotions and doubt gets best handled with a solid business case based on a thorough examination of requirements and evidence.
Prioritizing short-term aims above long-term potential.
Long-term bets are what adds value to a manufacturing plant. However, many considerations in selecting a new site are generally short-term. Because the appeal of a specific place might vary dramatically in the five to ten years before the site is fully operational, making judgments based on near-term factors can result in inefficient network designs.
ALSO CHECKOUT : Chemicals in Medical Industry
More in News