Suppliers See Cost/Quality Disconnect in Big Pharma Decision Making

Suppliers are experiencing a significant disconnect between big pharma’s avowed quality-by-design-based supply chain objectives and the actual purchasing decisions it is making based only on price.

An inside look into the negotiation process between suppliers and pharmaceutical company purchasing departments and the implications of this disconnect was provided by Colorcon Global Regulatory Affairs Director David Schoneker at the Xavier University/FDA Global Outsourcing Conference in Cincinnati, Ohio in early October.

Schoneker plays a leadership role in the International Pharmaceutical Excipients Council (IPEC), which he recently chaired, and his comments at the conference reflected the breadth and depth of his cross-industry awareness and understanding of the current pharmaceutical regulatory landscape. Colorcon produces custom coatings for specific applications in the pharma industry.

He explained how long-standing relationships important to achieving a drug company’s product quality objectives are sometimes being undermined during the negotiation process by cost-centric purchasing departments and provided two compelling case studies from Colorcon’s recent experience that highlight the disconnects in pharma’s approach to fulfilling its supply chain needs.

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See recent related IPQ story:

Pharma Purchasing and Outsourcing Approach Needs Overhauling, Supply Chain Expert Asserts