Should We Outsource Pharmaceutical Products?
September 14, 2010 1 Comment
Outsourcing became almost a must for most of the organizations. The electronics producers are a good example for outsourcing where most of the parts are outsourced or sometimes the products is completely manufactured by a different company. If you flip you iPhone and check the writing on the bottom of the phone you will notice “Designed by Apple in California, Assembled in China”!! Outsourcing eelectronic is more acceptable than other products like pharmaceutical products. The risk in outsourcing pharmaceutical products is very high because of the products nature. Melamine-laced mile products were responsible for the death of six babies and poison contaminants in cough syrup were responsible for the death of more than 100 people in Panama. About 80% of the prescription drugs sold in the U.S are made outside the U.S. (“Outsourcing safety,” 2009). Risk management is very important to overcome the risk in pharmaceutical products (Fiscus, 2009). Product liability lawsuit could wipe out the cost saving from outsourcing the product and have a permanent scare in the firm’s brand (Fiscus, 2009).
Fiscus, P. W. (2009). Global risks for drug manufacturers. Risk Management (00355593), 56(4), 50-54.
Outsourcing safety. (2009). Editorial, Nature Medicine, pp. 221-222. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=36818298&site=ehost-live