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In Outsourcing - A New Paradigm in Supply Chain Management

The leader of a large pharmaceutical company once asked the question: "How do pharmaceutical companies effectively integrate outsourcing partners into an already sub-optimised set of supply-chain processes?" Most pharmaceutical executives will agree that the pharmaceutical industry as a whole has not embraced 'operational excellence'. Their focus has been on the development of technology and new and innovative blockbuster drugs.

However, recent cost pressures, expiring patents and increased government regulations have changed the content of many boardroom discussions. Executive discussions have started to centre around effective planning, supplier partnerships, internal and external development and manufacturing excellence, and global distribution capabilities. In comparison with other industries, supply chain management in the pharmaceutical industry is still a relatively new concept.


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By Keith Clinkscales of PA Consulting Group
Keith Clinkscales is a Member of PA Consulting Group's management team, responsible for developing PA's global life sciences and technology business in North America. Keith has served as an industry professional and consultant in pharmaceutical and high-tech industries for more than 15 years and has particular expertise in the procurement and supply chain areas.

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Keith Clinkscales
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