Types of sourcing

"Due to its complexity and involvement of numerous stakeholders, the pharmaceutical supply chain presents many challenges that companies must overcome to deliver necessary medications to patients efficiently."

-TechTarget (2023)

The type of sourcing undertaken will depend on many factors, for example an abundant source of the required products or services that are deemed ‘fit for purpose’ available close to the organisation point of consumption would naturally align with localised sourcing.

However, products or services from a monopoly supplier located in another country would dictate global sourcing is required.

Localised

Sourcing conducted with suppliers who are geographically close to the buying organisation or point of consumption.

Regional

Conducted with suppliers in the same area but slightly further away than the localised choices. The World Health Organisation (2023) held a workshop in Kigali, Rwanda and stated, ‘Strengthening vaccine production in Africa is essential to improving access to vaccines, particularly for diseases that disproportionately affect the continent.’

National & Transnational

Conducted throughout an entire country or continent for example suppliers may be hundreds of miles away from the buying organisation but they are still controlled by the same legislation and regulations.

‘In addition to economic growth Africa has exceptional sourcing opportunities due to abundance of resources and free trade agreements across the continent’.

-According to McKinsey (2022)

Global

Conducted worldwide this type of sourcing often involves different legislation and regulations to those of the buying organisation. Often geographically dispersed organisations have distribution facilities worldwide although access to consistent inventory can be challenging.

With USA, Europe, Canada, Australia, Japan, China, and India being the countries of origin for the top 50 pharmaceutical companies worldwide, the need to source globally is constant.