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Components of the pharmaceutical industry manufacturing and distribution chain A pharmaceutical

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Components of the pharmaceutical industry manufacturing and distribution chain

A pharmaceutical supply chain is made up of the following stages-

• Primary Manufacturing

• Secondary Manufacturing

• Market Warehouses

• Distribution Centre

• Wholesalers

• Retailers /Hospitals.

Primary manufacturing

Primary manufacturing is the process of production of the AI(Active Ingredient) or API (Active Pharmaceutical Ingredient).
This process is comprised of multiple complex chemical synthesis also some separation stages to build the complex modules of AI.
The process could also involve a biochemical process like fermentation and recovery of product for generating the AI Typically, the process of AI manufacturing is a time consuming …show more content…

The consequence of such a mechanism is decreased responsiveness and it is one of the main factors that can be attributed to for the poor supply chain metrics displayed by the “Pharmaceutical Industry
Outsourcing of manufacturing of some of the AI and also intermediaries to contractors is a growing field and has added great level of convenience to the supply chain process. At the same time, it has also contributed to a great deal of complexity. These processes are hugely dependant on research and development and thus the dependence on a third party company can be risky and lead to problems in supply chain co-ordination.

.Secondary manufacturing

Secondary manufacturing involves the addition of the Active Ingredient (AI) produced in Primary Manufacturing to the Inert materials. In addition to this, it also includes further processing and packaging to produce the end product.The final product is usually in the form of SKUs.

Here is a list of typical steps involved in the formation of a pill in a pharmaceutical company:

• Granulation

• Compression

• Coating

• Quality Control

• Packaging.

The sites of primary manufacturing and secondary manufacturing are usually distinct.This is usually done to optimize the outcome of tax and transfer price optimization within the enterprise.
Also, there is a difference in the number of secondary and primary manufacturing sites. Usually, there are many more

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