White Paper

Relying On Third Party Organizations For Strategic Equipment Acquisitions

By Adam Covitt, Vice President, Federal Equipment Company

Meeting

Considering all Variables in Outsourcing

One of the most critical decisions for a pharmaceutical company is the choice to outsource operations, which leads to determining the optimal supplier with which to partner. For those lacking in-house capability, there is often little choice but to work with an external contract manufacturing organization (CMO) that can meet production needs effectively and efficiently. However, when choosing an organization, a company must prioritize risk minimization and choose a dependable supplier with a strong track record. The CMO will not only be relied on for production — which means that the company’s market reputation is in the hands of its supplier. In addition, any delay in manufacturing could result in failure to deliver drugs on time. Although there are many different operations that can be outsourced, the core of all production is the equipment. A facility is only as strong as the equipment that it runs, and production is only as effective as the equipment operators.

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