Pharmaceutical Technology Europe - July 2012 - (Page 9)

COLUMN CRUNCH Reflecting on 35 Parallel Trade’s Emerging Image Crisis Years of Procurement Transformation Nathan Jessop Although pharmaceutical manufacturers are firmly against parallel trade, there is little they have been able to do to prevent it. The parallel trade of goods, including pharmaceuticals, is based on the EU principle of free trade, which means that there should not be any obstacle to the free movement of goods between individual EU member states. The European Federation of Pharmaceutical Industry Associations (EFPIA) acknowledges the benefits of free trade, but believes that its application to the field of pharmaceuticals is not appropriate. Manufacturers have frequently argued that public safety could be compromised through parallel trade because products are not following the intended supply chain with its built-in measures for quality assurance. One of the complaints from pharmaceutical companies has been that parallel trade can lead to product shortages in certain countries as medicines are diverted elsewhere. Such views have relied on anecdotal evidence and so have easily been countered by parallel traders, who have blamed manufacturers for product shortages. However, the ongoing eurozone crisis in Greece and a parliamentary report in the UK have provided the sort of evidence that the pharmaceutical industry has needed to directly link parallel trade with shortages. www.PharmTech.com/IndustryInsider0712 Greg Brandyberry Procurement has witnessed a dramatic change during the past several decades as the simple, regionalised supply base has evolved into complex global supply chains. In the late 1970s, most purchases were from domestic, local sources. Companies had personal relationships with whom they were buying from and, as result, they were able to manage risk on a personal basis. Purchasers knew the character of their major suppliers and understood their financial health. It was easy to ensure every purchase was from a select pool of suppliers. The biggest supply risks were of a much different nature, such as temporary labour strikes or mechanical breakdowns of shippers. It was easy to compensate for these and other basic supply risks by carrying extra inventory of in-process and finished goods. Most organisations had at most, dozens of suppliers, not the thousands of suppliers that most companies have today. I have been lucky to have spent more than 20 years in procurement working for companies and leaders who were truly transformational. Reflecting on the total experience, there are five areas that have driven the purchasing evolution to the procurement revolution: value to the organisation, skills development, technology, bestpractice adoption and organisational design. www.PharmTech.com/ Outsourcing0712 2 ER injectable challenges 9 Column crunch 5 GMP deficiencies 11 Top Tech 6 Biologics drug delivery 12 Staff 7 News bites www.pharmtech.com http://www.PharmTech.com/IndustryInsider0712 http://www.PharmTech.com/Outsourcing0712 http://www.PharmTech.com/Outsourcing0712 http://www.pharmtech.com

Table of Contents for the Digital Edition of Pharmaceutical Technology Europe - July 2012

Pharmaceutical Technology Europe - July 2012
Contents
Meeting Manufacturing Challenges Tied to Extended-Release Injectables
EMA and MHRA Provide Insight into Increasing GMP Deficiencies
Optimising Drug Delivery for Modern Biologics
News Bites
Column Crunch: Parallel Trade; Procurement Changes; Highpotency Manufacturing; and Sustainable Biotech
Top Technologies

Pharmaceutical Technology Europe - July 2012