The global pharmaceutical industry is facing unprecedented supply chain challenges in the current climate of geopolitical uncertainty. Marco Gorgas, chief technical officer, Adragos Pharma explains.
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The intricate network of manufacturing, sourcing, and distribution that pharmaceuticals rely on is vulnerable to disruption due to rising tensions between major economies. These disruptions threaten the timely delivery of essential medicines, the availability of raw materials, and the stability of prices.
In light of this ongoing uncertainty, we spoke to Marco Gorgas, chief technical officer at contract development and manufacturing organisation (CDMO), Adragos Pharma, to explore how it is working with partners to develop a more resilient and reliable supply chain for its clients.
1. What key strategies is Adragos implementing to enhance supply chain resilience, especially in light of recent global disruptions affecting CDMOs, like geopolitical tensions?
At Adragos Pharma, we are addressing the risk of supply chain disruptions by diversifying our supplier base and establishing strategic partnerships.
We are also working with partners that specialise in predictive analytics to help us refine our approach to sourcing active pharmaceutical ingredients (APIs) and other key materials by allowing us to anticipate potential disruptions to supply. This will enable us to respond proactively, switching to alternative sources when needed to ensure we are able to maintain adequate safety stock, so we can deliver steady production output for clients, regardless of external events.
2. How is Adragos diversifying its supplier base to mitigate risks, and what criteria are you using to select new suppliers or partners?
To diversify our supplier base, we are seeking out partners who meet stringent criteria, including their:
- Ability to provide the required quality certification for our clients’ markets,
- Reliability of high-quality supply,
- Flexibility to adapt supply volumes and other criteria when needed,
- Alignment with Adragos Pharma’s own sustainability goals.
Our supplier evaluation process involves rigorous due diligence. We assess potential partners’ financial stability and their sustainability strategies, alongside reviewing their compliance with relevant industry standards and regulations. Carrying out this in-depth process ensures that we have robust partnerships in place so we can quickly pivot and adapt to supply chain changes as needed.
3. What role does digitalisation and data analytics play in monitoring and managing your supply chain risks, and how have these tools helped in improving visibility and decision-making?
They play a crucial role in our long-term vision by enhancing manufacturing precision, process integration and supply chain resilience.
The data analytics work we mentioned earlier that we are carrying out with a partner that specialises in artificial intelligence (AI) will help us apply predictive analytics to our API sourcing processes. This will play a pivotal role in enabling us to monitor and mitigate supply chain risks in the future.
By providing real-time data analysis, such tools can enhance our visibility and allow for proactive risk identification not just for our API supply, but also for every other aspect of our supply chain. The insights gained can aid in making more informed decisions to optimise inventory levels, predict disruptions and ultimately maintain a seamless supply chain operation.
4. Can you share examples of how Adragos has maintained supply chain operations during recent disruptions? What lessons were learned, and how are they being applied to future planning?
During recent disruptions, our ability to maintain operations was supported by an agile approach to sourcing. We further enhanced our multi-sourcing strategies and maintained open communication channels with our existing and new suppliers.
We are continuing to review our response to these disruptions to assess how we can further improve the resilience and reliability of our API supply chain in the future.
5. How are you ensuring the security and integrity of your supply chain, with regards critical raw materials to guarantee uninterrupted production for your clients?
Our work diversifying our suppliers is a key part of how we are ensuring the security and integrity of our supply chain, all to reduce dependency on a limited number of sources. We are also nurturing strategic partnerships to secure priority access to critical raw materials.
In addition to this, we are building and maintaining appropriate buffer stocks and inventory to mitigate the impact of short-term supply disruptions. With our new digitalisation approach, we are aiming to optimise visibility across the supply chain to identify risks that could affect our operations.
Finally, regular risk assessments and supplier audits are being carried out by the Adragos Pharma team to monitor the performance of our supply chain and to identify new vulnerabilities that need to be addressed.
6. What steps are you taking to guarantee uninterrupted production for your clients?
Our focus is to provide reliable production services to meet the demands of our clients and the broader market. In addition to the approaches we have previously mentioned - buffer stocks, the implementation of data analytics in API sourcing and the diversification of suppliers - we are expanding our manufacturing capacity to handle increased demand or mitigate against temporary shutdowns of individual sites. This will enhance our operational flexibility in the future, allowing us to respond more nimbly to changing market demand or unforeseen supply disruptions.
Finally, we are fostering closer collaborations with our key clients, allowing for better demand forecasting and even collaborative planning to anticipate and manage production needs efficiently.