How do you align your outsourcing strategy with your business objectives and customer needs?

Outsourcing is a common practice in the pharmaceutical industry, especially for activities related to Good Distribution Practice (GDP). GDP is a set of guidelines that ensure the quality and safety of medicinal products throughout the supply chain, from the manufacturer to the end user. However, outsourcing GDP-related tasks, such as storage, transportation, or quality assurance, can also pose some challenges and risks. How do you align your outsourcing strategy with your business objectives and customer needs? Here are some tips to help you make the best decisions for your company and your customers.

1 Assess your core competencies

Before you decide to outsource any GDP-related activity, you need to evaluate your own strengths and weaknesses. What are the core competencies of your company? What are the areas where you have a competitive advantage or a unique value proposition? What are the activities that are essential for your strategic goals and customer satisfaction? These are the activities that you should focus on and invest in, and avoid outsourcing if possible. On the other hand, what are the activities that are not part of your core competencies, or that require specialized skills, equipment, or resources that you do not have or cannot afford? These are the activities that you can consider outsourcing, as long as you can find a reliable and qualified partner.

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Sarantis Kosmas

Business Development Director @ Strategnos | Master's in Supply Chain Management
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Furthermore the question should be asked, what is the consequence of getting it wrong. Particularly in relation to compliance elements, this can result in impacted patient safety or regulatory risk.

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2 Choose your outsourcing partner carefully

Outsourcing GDP-related activities does not mean that you can transfer your responsibility or liability for the quality and safety of your products. You are still accountable for ensuring that your outsourcing partner complies with the GDP guidelines and meets your quality standards and customer expectations. Therefore, you need to choose your outsourcing partner carefully, based on their reputation, experience, qualifications, and performance. You also need to establish a clear and detailed contract that defines the roles, responsibilities, expectations, and deliverables of both parties, as well as the communication, monitoring, and evaluation processes. You should also conduct regular audits and inspections to verify that your outsourcing partner is following the GDP requirements and maintaining the quality and integrity of your products.

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Sarantis Kosmas

Business Development Director @ Strategnos | Master's in Supply Chain Management
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Additional considerations to add would be certifications such as ISO and after sale service. In the GDP environment one is typically looking for a service provider who will is a specialist within the Health Sciences environment and is committed to long term relationships.

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3 Align your outsourcing strategy with your customer needs

Outsourcing GDP-related activities can have an impact on your customer satisfaction and loyalty. For example, if you outsource your transportation or delivery services, you need to ensure that your outsourcing partner can deliver your products on time, in the right condition, and with the proper documentation. If you outsource your quality assurance or testing services, you need to ensure that your outsourcing partner can provide you with accurate and timely results and reports. You also need to consider the expectations and preferences of your customers regarding the origin, traceability, and transparency of your products. Some customers may prefer to buy from local or regional suppliers, or to have access to more information about the production and distribution of your products. You need to align your outsourcing strategy with your customer needs and communicate effectively with them about the benefits and risks of outsourcing.

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4 Review and improve your outsourcing strategy

Outsourcing GDP-related activities is not a one-time decision, but an ongoing process that requires constant review and improvement. You need to monitor and measure the performance and outcomes of your outsourcing partner, as well as the feedback and satisfaction of your customers. You need to identify and address any issues or problems that may arise, such as delays, errors, damages, or complaints. You also need to adapt and adjust your outsourcing strategy according to the changes and trends in the market, the regulations, the technology, and the customer behavior. You should always look for ways to optimize your outsourcing strategy to achieve your business objectives and customer needs.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you align your outsourcing strategy with your business objectives and customer needs?

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1 Assess your core competencies

2 Choose your outsourcing partner carefully

3 Align your outsourcing strategy with your customer needs

4 Review and improve your outsourcing strategy

5 Here’s what else to consider

Good Distribution Practice (GDP)

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