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Pharmaceutical Manufacturing and Packing Sourcer

When is a CMO not a CMO?

CMOs, particularly in Asia, are facing some interesting times and challenges. In their own countries, they are looking at how to respond to growth, different buying practices in China, and an ageing and maturing market. In the West, they have to satisfy growing complexity and an increasingly complicated demand model that is looking for much faster delivery, smaller batch sizes, and customer centricity.

So far, they have operated just as suppliers in traditional buying/selling relationships, which are completely cost-driven and transactional. They have worked in their own silos by optimising their own manufacturing. However, in order to compete successfully in this very different pharmaceutical world and to address these challenges, the CMOs will have to learn how to play a different game. They will have to learn to strike much closer relationships within an end-to-end value chain model, where their customer is the same as their customers’ customer, and where they have to be much more agile and smart. They will have to learn what it means to be one value-added step in a whole supply chain and also what changes in behaviour this must drive in their businesses.

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About the author

Hugh Williams joined EFESO Consulting in 2017 and has been working in end-to-end supply chain planning and optimisation for more than 30 years, focusing on SC specialised training and workshops through his own company, Hughenden. Hugh worked for six years with the guru of manufacturing and author of The Goal, Dr Eli Goldratt, introducing major corporations to new ways of thinking. The following years of his career have all been spent changing the way many global companies operate through performance behaviours and integrated work systems, including organisations such as Castrol, Kraft Heinz, Pernod Ricard, GSK, and Cargill. He now enjoys a global reputation as a lively and engaging speaker, conference chair, and facilitator.

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