A brief introduction of the outsourcing methods in Pharma Supply Chain, Types of Outsourcing, Framework to decide correct outsourcing partner, factors to consider while selecting a partner, Process of outsourcing and Outsourcing models.

1. Presented by:
Komal Hambir(B008)
Nikita Jain(B009)
Ruchira Mohite(B015)
Ishita Patil(B017)
Bansri Shah(B023)
In Supply Chain of Pharma Industry

2. Outsourcing
The strategic use of
outside resource to
perform activities that
were traditionally
handled by internal
staff and resource.
Also known as
facilities
management.
The current
mantra of
pharmaceutical
industry.

3. Reasons to Outsource
Shortens cycle time
Decrease required inventory
Reduces expenses
Increase productivity
Increase profitability
Increase consumer retention

4. Advantages and Disadvantages
Advantages
• Focus on other business aspects
• Minimize overall cost
• Meet customer demand
• Focus on your product
• More flexibility
Disadvantages
• Unanticipated cost
• Potential for setbacks
• Integration difficulties
• Quality suffers
• Choosing wrong outsourcing
partner

5. Structure Outsourced by Supply Chain in Pharma

6. Types of Outsourcing
R & D outsourcing
Clinical trial outsourcing
Manufacturing outsourcing
Packaging outsourcing
Warehousing
Sales and marketing outsourcing
Transportation

7. Who outsources?
Small and
medium sized
company
Organization
who lack in
expertise
Business with
budget constrain
Large
companies

8. Framework to decide correct outsourcing partner
High Don’t outsource to
such supplier
Critical/ very high
value components
Low Non critical/low
value component
Highly critical/high
value components
Low High
Distancefromorganizationorleadtime
Supplier capability or cost advantage

9. People
Technology
Process
Factors to be considered
•Company’s financial stability
•Business experience
•Reputation
•Values and ethics
•Chemistry and compatibility
•Technology capabilities
•Security
•support
•Capability
•Commitment to continue
improvement
•Growth potential

10. Motivation for
outsourcing
Consider
outsourcing?
Evaluate Organizations
functions for possible
outsourcing
Select which
functions if any to
outsource
Continue
Factors:
•Costs
•Environment
•Strategy
•Function
•characteristics
End
Yes
No
Process of Outsourcing

11. Outsource models
Project based
outsourcing
Build operate
and transfer
Staff
augmentation
Out-
tasking
Managed
services

12. Outsource models
• Hiring of dedicated
team at third party.
• Used when, there is
shortage in workspace
and difficulty in
personnel requirement.
Staff
augmentation:
• Specific task or
department are handed
to third party.
• Used when company
wants to concentrate
on core activities
rather than non-core
Out-tasking

13. Outsource models
• Specific projects
are out sourced.
Project based
• Day to day
management
responsibilities are
outsourced.
Managed
services
• Third party builds
the facility as per
company’s
requirement and
specifications.
Build operate
and transfer

14. Risk of using a third party
The process is broken
Reduced customer/supplier
contact
Leakage of sensitive data and
information
Ineffective contracts
Loss of supply chain visibility
Negative reputational impact