Key Features of Report
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
Bulk Drug Raw Materials - Category Spend Analysis
According to analysts at SpendEdge, one of the key growth drivers for the bulk drug raw materials market is the technological advances in manufacturing processes. The pharmaceutical raw material industry registers strong technological advances over the past few years. Technologies such as nanotechnology help suppliers in improving the efficacy and customization aspect of drug materials. In addition, the increasing investment of suppliers in R&D aids to the technological advancement. Suppliers inculcate advanced technologies such as automation in lyophilization, modular continuous flow processing system, adoption of sensors for process control, and semi-automatic powder handling technology in the entire process of raw material manufacturing. These improvements of technologies support suppliers to enhance their productivity and quality of raw materials produced. The technologies mentioned above aid suppliers to achieve consistent cost savings through factors such as low-impurity rate and automation of the entire process, which also reduces lead time. This leads to rise in profitability for suppliers, which will help buyers grow and expand in untapped regions through expansion and add new business segment.
One of the market trends is the paradigm shift from batch production to continuous production. The pharmaceutical raw material industry, especially the biopharma segment, is heading toward continuous production from its traditional batch production. The shift is mainly because of the FDA's mandate on raw material manufacturers to switch to continuous production and the productivity is estimated to increase nearly by 30%. Manufacturers can achieve significant growth in productivity of continuous output compared with batch production due to the rationale below:
- It helps in cost-savings by reducing inventory and transportation costs of raw materials
- Enhances productivity – more units completed in less time compared with batch production
- Reduces overhead costs by increasing stability and reducing lead times due to the availability of materials throughout the year
For instance, Novartis employs continuous production to manufacture antimalarial raw material to meet the global demand for antimalarial drugs.
Bulk Drug Raw Materials - Procurement Best Practices
One of the procurement best practices for buyers is to integrate Big Data analytics into the procurement process. Buyers should adopt Big Data analytics in sourcing processes to achieve the following benefits:
- Valuable insights such as pricing trends from the historic data
- Demand projection of the bulk drug raw materials during the contract tenure
- Inventory management through analysis of required inventories, holding time, and time to purchase
- Analysis of the toxicity and impurity of drug materials
- Adoption of blockchain technology using Big Data can also improve the security of the patented drug and restrict API counterfeiting
Also, Big Data analytics will eradicate the challenge of transparency in the supply chain through real-time visibility of the data by either party.
Bulk Drug Raw Materials - Procurement Challenges
According to this procurement research, one of the key procurement challenges faced by buyers is the quality issues in materials procured from emerging countries. Emerging countries such as China, India, Brazil, and Israel constitute major share of production for bulk drug raw materials. The global bulk drug raw material market lacks regulations in terms of the production of suppliers and major production of raw materials comes from local players. As a result, the increase in local players and incompetence of regional regulatory standards, which is yet not equipped to control the quality standards, lead to counterfeiting and production of materials that lack industry standards.
Bulk drug raw materials refer to the substances that are used to manufacture active pharmaceutical ingredients. These ingredients provide therapeutic effects in a drug. This upcoming procurement research, which is part of SpendEdge’s pharma and healthcare category, would provide actionable insights on the pricing strategies, market trends, procurement best practices, and the supply landscape for the global bulk drug raw materials market.
Category overview of the global bulk drug raw materials market
Based on the application, analysts at SpendEdge categorize bulk drug raw materials into:
- Small molecules
Additionally, this report also considers segmentation of the market based on geographies including North America, South America, APAC, Europe, and MEA.
This upcoming procurement research report on the global bulk drug raw materials market would provide detailed analysis into the continuously evolving supplier landscape to help improve source-to-contract cycle performance. Moreover, it would help sourcing professionals develop enhanced category strategies, boost savings, understand supplier and market challenges, and implement sourcing best practices.