Third party manufacturing
Manufacturing is a complex process and either companies get manufactured their products from other companies or manufacture in its unit. If a company chooses to manufacture its products in its own unit then it has to deal with many things like managing production cost, labor wages, machinery and equipment cost, electricity expenses and maintenance cost etc. So, managing all daily expenses and fixed as well as running cost are always matter of concern for every company besides running its core business. Usually companies do not prefer to manufacture products in their own unit instead they prefer to get products manufactured from some other company. These companies are called third party manufacturing companies or contract manufacturers.
Third party manufacturing in Pharma: The third party manufacturing practice is also followed in Pharma companies. Pharma companies get manufactured their medicines and drugs from other companies on contract basis. Pharma companies hire third party manufacturers and make deal with them to manufacture medicines as per their specifications and instructions. The contract manufacturer charges certain fee or amount in lieu of their manufacturing services. These third party manufacturing companies not only manufacture the medicines but also transport & supply the goods as per the contract.
Why Pharma Companies hire third party manufacturing companies? The answer is simple; Pharma companies want to save their time, money and resources. As manufacturing drugs is a complex & strenuous process. It takes not only time, money and resources but there are a lot of other production related activities that a company has to manage. Also, in house manufacturing of drugs demands detailed knowledge, updated technology, latest machinery, tool & equipment, many licenses and legal authorizations as well as approvals from state and various institutions. Usually Pharma companies do not possess so much knowledge and so, to avoid these fixed & variable cost and expenses companies prefer to get their medicines manufactured from third party manufacturing companies. In this fast changing world all Pharma companies wish to gain a competitive advantage against the others. Here time proper utilization of resources, time and money is very important. Third party manufacturing is a key to save time, money and resources. Also, it gives a boost to the business as there are many third party manufacturing companies which offer specialized, standardized and customized services to their clients. Besides manufacturing they also provide other services like ore-formulation, formulation, pre-clinical research, method development etc.
So, choosing a right and competent third party manufacturing company is also very important. A good drug manufacturer not only gives quality products but can also give you competitive edge against your competitors in the market. Make a proper market research online as well as online about the third party manufacturing company. Check their history, their clients, and their services, visit their manufacturing facility, get a detailed report of their unit. Hire a good and experienced quality auditor. He will visit the manufacturing unit of the drug manufacturer and provide a detailed report. Based on the report you should decide your third party manufacturing company. Ultimately it’s your decision. Be alert and be safe.
Third party manufacturing is wise choice for Pharma companies. It is cost effective as well as time saving practice. Pharma companies should choose a right third part manufacturing company and invest wisely. It’s always good to make a primary research about the manufacturer. It helps the Pharma Company in many ways.