“ There is much less scrutiny on manufacturing a beer versus a vaccine ,” says Walker . “ Medicine is treated very differently not only from a supply chain perspective but also from a manufacturing and a sourcing perspective .”
Pharma regulatory environment is unique He adds : “ The entire supply chain looks a little bit different , and the regulatory environment is unique . In an automotive company ' s supply chain , for example , they don ' t necessarily have to tell a regulatory body the specific specs of the machines that they will use to make that product .“
And of course , like all businesses across all sectors , pharma organisations are getting hit from all sides . There ’ s a rising need to be more sustainable , materials cost more , increased energy costs – especially in Europe – which drives the impetus to do more with less cost . They ' re also getting hit from a geopolitical perspective , like the war in Ukraine but also , says Walker , economically from a global trade and tax perspective .
“ In China for example , there is an increase in operating costs of doing business in China , especially for manufacturers with aspects like minimum wage increasing between 30 % and 65 % in recent years . Tax rates are also higher across the board due to a unified corporate tax , and with China ’ s new cybersecurity and privacy regulations , they
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