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Pharmaceutical Manufacturing and Packing Sourcer

Packaging and Labelling Postponement - The Antidote to Stock Keeping Unit Proliferation

With an integrated market and a single European currency, the hope was that business would become simpler and more harmonised across Europe. The reality has been something different - at least in one important part of the business, namely product packaging and labelling. These activities remain as costly and complex as ever at many companies. The situation is particularly acute in highly regulated industries such as pharmaceuticals, consumer/industrial goods and chemicals.

A number of factors are driving this complexity. Foremost among them are country-specific regulations mandating language and product information requirements. For example, the forthcoming seventh amendment to the EU Cosmetic Directive will introduce a number of new requirements for the labelling of cosmetics. One provision would require some of the proposed language combinations, currently provided for by a single stock keeping unit (SKU), to be split into two separate SKUs.

Internal factors play a big part in this complexity as well. Sales and marketing departments, for example, often insist upon country-specific labelling variations to support differentiated pricing. Inefficient product portfolio management is equally problematic, and results in unnecessary variations in the packaging and labelling processes. The cumulative effect of these factors, whether external or internal, is SKU proliferation - a condition that adds cost and complexity to a company's supply chain.


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By Mithu Kundu, Manager and Brian Gibbs, Director at PRTM
Mithu Kundu, Manager of Consumer and Industrial Business at PRTM, has extensive supply chain management experience in a broad range of chemical and packaged goods companies.

He holds an MBA from the Cranfield School of Management, an MSc in Applied Energy and a degree in Chemical Engineering from the University of Sheffield.

Brian Gibbs, Director of Consumer and Industrial Business at PRTM, has expertise in supply chain management across the chemical and packaged goods industries. For the last 12 years he has been responsible for PRTM's operations in Germany.

Brian holds a Master's in International Business Operations and Technology Management and a BA in Business Administration from Tufts University, Massachusetts.


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Mithu Kundu
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Brian Gibbs
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