Strategic Outsourcing for Demand Management in Pharma PPT

This PPT slide, part of the 24-slide Pharmaceutical Supply Chain Reinvention PowerPoint presentation, outlines a strategic approach for pharmaceutical companies to manage demand fluctuations through outsourcing manufacturing to third-party suppliers. It emphasizes the importance of establishing partnerships with these suppliers as part of the fourth phase of the Pharmaceutical Supply Chain Reinvention framework.

The details section highlights the necessity of a Make-versus-Buy Strategy, which helps organizations decide whether to utilize third-party manufacturers or maintain in-house production capabilities. This decision is crucial during periods of low demand, where outsourcing can mitigate risks associated with underutilized manufacturing facilities and fixed costs.

It points out that outsourcing is particularly viable when product volume is low and the technology involved is not advanced. Conversely, in-house manufacturing is recommended for top-selling products that require high-tech processes and where preserving intellectual property is essential. This dual approach allows companies to balance operational efficiency with innovation needs.

The overview succinctly captures the essence of the strategy, indicating that shifting manufacturing to third parties can effectively address demand variability. The slide suggests that careful consideration of market conditions and product portfolios is vital to making informed decisions about manufacturing strategies.

Overall, this content serves as a guide for executives to navigate the complexities of supply chain management in the pharmaceutical sector, providing insights into optimizing production capabilities while managing costs effectively.

This slide is part of the Pharmaceutical Supply Chain Reinvention PowerPoint presentation.

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