As the demand for pharmaceutical and biotechnology products increases around the world, the market for them is more competitive than ever before. This supply and demand relationship has contributed to the growing trend of globalization in the life sciences industry.
Supply Chain Management: How Globalization is Affecting Your Business
Globalization in a word is outsourcing; the outsourcing of ideas, products, and jobs. Its popularity stems from the attraction of cheap labor and fast production. What sounds too good to be true, is too good to be true indeed, as most companies know that outsourcing comes with its fair share of problems. It seems to have become a euphemism for sweatshops and below par products. Couple these issues with the lack of regulation in foreign countries and you have a disaster in the making. Counterfeiting and contamination are becoming rampant problems for pharma and biotech companies that engage in outsourcing. These dangerous product defects are gaining notoriety for the increasing amount of public health risks they are causing.
Even if your company does not outsource, this negative globalization affects you. The FDA and other regulatory agencies are tightening standards to ensure that products are protected in all steps of the supply chain. There is a demand for more information at each production stage so that activities can be monitored and validated by regulators. All companies must be compliant with the new standards by 2015, but until then, it is smart to start preparing your business for this transition.
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Published by Tita Tavares | Enterey Marketing & Communications Team