Consolidated supply badly damages responsiveness
The following is a copy of an article first published in Pharmafocus Jan / Feb edition 2017
Over the past 10 years, aggressive acquisition activity has seen significant consolidation of carton and leaflet supply in the UK. Market share of the top two players has risen from around 30% to nearly 80% of the market.
Not only do buyers face less choice but often the larger businesses can be less reactive to those customers who require short lead time and responsive customer service.
Bigger isn’t always better
Once any business has significant market share and limited growth potential, their strategy naturally switches to maximising profit by consolidating sites and limiting spend on indirect activities like sales, customer services and product development.
Lead times are extending
Clients often face extended lead times from the large players due to two factors; firstly, global contracts with very large runs become the focus, where three to six month planning schedules are common. Nimble short term planning is lost in favour of co-ordinating massive jobs. Secondly, it is simply harder to communicate with suppliers that have reduced their sales force and so responses to requests, complaints and even new business can be delayed.
Responsiveness is increasingly needed
The pharmaceutical market is in flux and changes in buying trends, regulation and product specification are all accelerating. Pharmaceutical companies, contract manufacturers and packers face a growing need to respond to unpredictable demands and make product changes quickly and efficiently.
Agile suppliers offer the solution
Medica Packaging one of the few remaining independent carton and leaflet suppliers dedicated to pharmaceutical and healthcare clients. ‘We are passionate about customer service and delighting clients. We promise a five day lead time for repeat orders and ten for new artworks. We care about every order large or small’ Gerard Harford, Medica Packaging.