Quality and Cost Competitiveness in Pharma Business- The two crucial factors to survive and grow International Generic Business
To survive and grow in the international generic business, organisations must embrace the mindset of delivering both quality and cost competitiveness.
While the pharmaceutical organisations understands the importance of delivering quality, it is equally important to understand some of the key areas to remain cost-competitive:
Optimise RM/PM Costs: Implement processes such as inviting Requests for Proposals (RFP), Requests for Quotations (RFQ), and conducting reverse auctions to maintain cost competitiveness continuously. Relying on a single vendor is detrimental, as it not only makes the organization cost uncompetitive but also exposes it to the risk of business discontinuation. Additionally, the development team must prioritize quality and cost-effectiveness during the development stage itself.
Manufacturing Plant Location: Choose manufacturing plant locations that offer numerous concessions and attractive incentives on capital investments, central excise duty exemptions, income tax holiday subsidies, subsidies on working capital, and insurance cover for plant and building. Forward-looking companies often position their manufacturing units to be relocatable to take advantage of these benefits and remain cost-competitive.
Manufacturing Process: Optimise manufacturing process costs by utilizing the latest machinery that delivers high productivity and cost efficiency.
Optimise Utilities Costs: Utility costs and subsidies vary by location. Analyzing these variations should also be a crucial factor in the decision-making process.
Manpower Costs: Select manufacturing locations that are less prone to labor unrest and have lower manpower costs.
India has the competitive advantage of delivering quality pharmaceuticals at lower costs, which has earned it the title of the “pharmacy of the world.” Maintaining this advantage and increasing market share is crucial.
To survive and grow in the international generic business, organisations must embrace the mindset of delivering both quality and cost competitiveness.
While the pharmaceutical organisations understands the importance of delivering quality, it is equally important to understand some of the key areas to remain cost-competitive:
Optimise RM/PM Costs:
Implement processes such as inviting Requests for Proposals (RFP), Requests for Quotations (RFQ), and conducting reverse auctions to maintain cost competitiveness continuously.
Relying on a single vendor is detrimental, as it not only makes the organization cost uncompetitive but also exposes it to the risk of business discontinuation. Additionally, the development team must prioritize quality and cost-effectiveness during the development stage itself.
Manufacturing Plant Location:
Choose manufacturing plant locations that offer numerous concessions and attractive incentives on capital investments, central excise duty exemptions, income tax holiday subsidies, subsidies on working capital, and insurance cover for plant and building. Forward-looking companies often position their manufacturing units to be relocatable to take advantage of these benefits and remain cost-competitive.
Manufacturing Process:
Optimise manufacturing process costs by utilizing the latest machinery that delivers high productivity and cost efficiency.
Optimise Utilities Costs:
Utility costs and subsidies vary by location. Analyzing these variations should also be a crucial factor in the decision-making process.
Manpower Costs:
Select manufacturing locations that are less prone to labor unrest and have lower manpower costs.
India has the competitive advantage of delivering quality pharmaceuticals at lower costs, which has earned it the title of the “pharmacy of the world.”
Maintaining this advantage and increasing market share is crucial.
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