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Why Do I Need a Distributor of Pharmaceutical Raw Materials?

Advantages of Using a Distributor of Pharmaceutical Raw Materials

Distribution partners have become an important component in managing risk and cost in the chemical supply chain for many industries. In the pharmaceutical industry for example, manufacturers typically keep 3-6 months of chemical inventory in the supply chain in order to manage single source risk, long manufacturer lead times, quality testing lag time, testing costs, and fluctuating manufacturing schedules. The distributor plays an important role in helping to manage large amounts of chemical inventory that may exceed the drug manufacturers space allowance for certain chemical hazard classes. Distributors will often have well established freight lanes that allow for cost effective and timely movement of goods around the world. The microelectronics industry relies on the close proximity of their distributors to help ensure just in time delivery and to reduce freight and inventory holding costs.

Distributors outsource many aspects of the chemical supply chain such as raw material sampling and cGMP released goods storage. Services such as these allow biopharmaceutical manufacturers to establish a just in time model and take advantage of cost effective temperature controlled storage of critical raw materials. Distributors utilize consignment and other inventory management programs to help outsource planning of inbound raw materials from multiple manufacturers. Distributors will often have relationships with the chemical manufacturers that allow for more streamlined communication during supply shortages. And finally, distributors typically have vast market knowledge of the chemical industry and can be an invaluable source of information to support your sourcing and risk mitigation efforts.

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