Procurement lessons from India’s Pharma Sector
India’s pharma industry has traditionally been known as the ‘pharmacy of the world,’ exporting cheap generics and vaccines to the world. However, over the last few years, a sequence of disruptions ranging from border shutdowns and raw material supply disruptions to geopolitical tensions and logistics congestion have put the endurance of pharma supply chains to the test. These setbacks have transformed procurement into a strategic function that aims not just at minimizing costs but also at managing risks, ensuring continuity, and long-term viability.
Challenges of procurement in uncertain times
India’s pharma supply chains are highly reliant on imported Active pharmaceutical ingredients (APIs), especially from China, covering almost 70 per cent of demand. Global transport disruptions, export restrictions, and price volatility tend to equate into value chain bottlenecks. The procurement leaders now have to steer through these uncertainties and provide seamless supply of life-saving drugs, ensure compliance, and keep costs under control.
