Pharmaceutical companies face the need to build a robust supply chain and identify potential vulnerabilities with regard to suppliers to manage the uncertainty caused by the COVID-19 pandemic.
GlobalData has conducted a survey to assess how much consideration companies gave to coronavirus risks when awarding suppliers in the first and third quarters of 2020.
Analysis of the survey responses shows that an increasing number of companies are moderately considering the risks. A majority 38% of the companies in Q1 opined that they moderately considered the risks when awarding suppliers. The percentage increased to 55% in Q3.
Further, more companies have exercised caution over time, compared to Q1. COVID-19 risks were not considered while awarding suppliers by 32% of companies in Q1, which declined to 21% in Q3.
The level of caution has, however, come down by Q3, with a lesser 24% of the companies in Q3 highly considering COVID-19 risks when awarding suppliers, compared to 31% in Q1.
The analysis is based on responses received from the Pharmaceutical Trade and Supply Chain Survey between 07 July and 30 July 2020.