Issue link: https://www.e-digitaleditions.com/i/1267517
10 July 2020 Tablets & Capsules contracts to generic producers, government grants, tax incentives, and regulatory reform measures designed to expedite reviews of repatriating production that had been previously offshored. While suppliers will have an increased focus on preemptive disaster planning, producers will further their risk-mitigation efforts by expanding dual sourcing at all levels. Producers are more likely to gain transparency in the logistics portion of the supply chain and place more weight on local pro- viders, while suppliers will have an increased demand for forecast- ing. This will also likely impact the demand for skilled and semi- skilled labor, but there may be lingering issues for office staff working from home. While some employees have adapted well, other may struggle with the change in work environments. As with any test, some will pass, and some may fail. Adapting to the new normal will be imperative for sur- vival. Inefficient, slow, and inflexible suppliers will go out of business. Innovation and creativity play a big part in adaptation, so companies that can develop new ways to shorten their supply chains through domestic production, reduced turnaround times, creative consignment, or other ideas will succeed. Business has always been an ever-changing envi- ronment, so companies should be used to adapting to new circumstances. The advent of the internet in recent decades was a similarly disruptive paradigm shift. Com- panies that took advantage and developed new business models to secure their place in the market thrived, while companies that stuck to the old business model lan- guished or disappeared. COVID-19 will likely result in the same types of outcomes. T&C Ken Seufert is chief executive officer of JRS Pharma (845 878 8300, www.jrspharma.com), manufacturer of a wide range of excipients for the global health science industry. COVID-19 will undoubtedly have long-lasting effects, and there are many more facets to be uncovered as we progress. Drug supply will now be considered as a strategic and critical infrastruc- ture, changing the paradigm from reduced cost to protected supply. Locally sourced materials will defi- nitely weigh more heavily on pur- chasers' decisions. Secondarily, suppliers whose materials are pro- duced in countries with a stable geopolitical environment will also be at an advantage, with emerging markets facing setbacks. Shorter supply chains will win through a push for onshoring strategies. Accountants' desires for working capital may be offset by producers' contractual demands for inventory requirements. The US Department of Health and Human Services, along with the FDA, have already set forth a plan to develop a list of "essential med- icines" and further identify from among them "high pri- ority medicines." They have also proposed incentives for supply chain security, with long-term price and volume Innovation and creativity play a big part in adaptation, so companies that can develop new ways to shorten their supply chains through domestic production, reduced turnaround times, creative consignment, or other ideas will succeed. Sign up now by emailing kmyers@cscpub.com your name, company, and email address. To see a sample, please visit our website. SUBSCRIBE TODAY www.tabletscapsules.com