Learning from pandemia experience

The impact of a pandemia on primary pharma packaging industry

The COVID 19 Pandemia made it visible on TV screens around the globe: the packaging of a vaccine in a multidose injection glass vial, sealed by a red (Moderna) or purple (bioNtech) overseal.

Indeed, the Covid experience highlighted the importance of pharmaceutical primary packaging capabilities, since the success of vaccinating millions of people in a record time would not have been possible without pharmaceutical primary packaging industrie’s ability to provide a proven high quality standard packaging in sufficient quantities. Namely: the multidose injection glass vial, a butyle rubber stopper and an aluminum overseal with plastic lid (Push-Off/ Flip-Off cap).

Over 1 billion of those vials have been allocated to package the precious anti-COVID vaccines, ordered mainly by governments/ government pools, namely the United States of America, European Union and UK.

The main challenge, to find a suitable vaccine within shortest lead-time, was coupled with the challenges towards packaging industry and logistics. The level of those challenges was put on a high range, because of the limited number of actors in the pharmaceutical primary packaging industry, being able to fulfil the requirements in terms of

• production capacities and scaling-up capabilities
• quality /compatibility with the new molecule

The priorization of existing production capacities and reallocation of resources towards the global Pandemic effort, caused an unprecedented stress on pharmaceutical filling sites of other essential and life-saving drugs. Procurement and Supply chain management found themselves confronted with the uncomfortable situation of having to secure supply on almost any cost.

In this situation, business continuity depended on

• the quality of trust and partnership that has been built with the packaging supplier in place
• the level of anticipation in securing supplies in times of crises

Trust and partnership reveal crucial in times of crises!

In terms of company size; do you matter as a customer, even in times of hard choices for your supplier?

In terms of values; if you share the same ambitions and visions as your supplier, it is likely that the choice to accompany you will be more favourable. Values are key: is your supplier sharing your vision of partnership, transparency, corporate responsibility?

In terms of Mindset and company culture; how is the company organized; pyramidal hierarchy or flat pragmatic structures? How accessible are key decision makers?

The necessity and responsibility of anticipation makes a deeper assessment of your key supplier’s visions, values and decision-making processes a highly important asset.

Is the structure and company culture suitable to quick investment decisions, agile and flexible handling of fast changing environments, open and transparent discussions, resulting in concrete and reliable commitments?

Why qualifying a SME rather than multinational corporations?

Qualifying a small and medium-sized enterprise (SME) alongside a leading multinational company can offer several advantages, including:

Agility: SMEs are often more agile and adaptable than large multinational companies, which can make them better equipped to respond quickly to changes in the market or to customer needs. They are able to make decisions quickly and pivot their business strategy more easily.

Customer service: SMEs often have a more personalized approach to customer service than large multinational companies. They are able to build closer relationships with their customers and provide a higher level of customer service, which can lead to greater customer loyalty.

Flexibility: SMEs have more flexibility in terms of their business model, which can allow them to experiment with new products or services and try out new strategies. They can be more creative and innovative in their approach to business.

Local focus: SMEs often have a strong local focus, which can make them more attuned to the needs and preferences of customers in their specific region or market. This can lead to a competitive advantage over large multinational companies, which may struggle to understand and adapt to local markets.

Lower costs: SMEs typically have lower overhead costs than large multinational companies, which can make them more cost-effective and efficient in their operations. This can allow them to offer lower prices to customers or invest more in product development and innovation.

In summary, qualifying a SME alongside a leading multinational company can offer advantages such as agility, personalized customer service, flexibility, local focus, and lower costs. While large multinational companies have their own strengths and advantages, SMEs can provide unique value and competitive advantages in certain markets and situations.