New Standard of Pharmaceutical Procurement after COVID-19

Abstract

Coronavirus, also known as, COVID-19, formed the new standard of pharmaceutical procurement today. Since the pandemic's start, the pharmaceutical industry has changed from purchasing scientific materials for daily lab use to purchasing in bulk in fear of manufacturers running out. The pandemic is still affecting production delays two years later. These product delays stem from a lack of raw materials for production, shipping delays, and increased demand. Therefore, Avantor and Johnson & Johnson have to find a solution to purchasing and obtaining products for lab services. If not, then the company will lose the contract. With the lab services that Avantor provides for Johnson & Johnson, lab products must be delivered on time to meet scientists' deadlines for their studies. To meet these deadlines, Avantor is testing new approaches to procurement business. One solution so far in motion is keeping purchased products off-site at a designated location. Another goal of this study is to find local vendors that will be an improvement in finding more resources to keep up with inventory demand. In addition to large orders, having three approved alternatives on stand-by is necessary. Utilizing the barcodes that show approved alternatives when checking inventory will be beneficial. Financially, this complicates business with scientists. If Avantor does not deliver material on time for a study, the customer (Johnson & Johnson) will go elsewhere to find the products and potentially contact a competitor company. It is imperative to have supplies on hand ready to be used to maintain good standing with the customer.