9 Factors to Consider Before Switching Pharmaceutical Packaging Suppliers

Packaging in the pharmaceutical industry is central to product quality, patient safety, and brand integrity. The decisions packaging suppliers make about materials and formats can impact any or all of these areas, which introduces substantial risk for pharmaceutical manufacturers.

Understandably, manufacturers exercise an abundance of caution when choosing a packaging partner. Once established, however, the partnership tends to stay in place as collaborative expertise and experience mitigate risk and build trust.

While a seamless, uninterrupted partnership is the preferred outcome, there are times when manufacturers are faced with making a change in packaging suppliers. Reasons vary, but there is one constant: the decision shouldn’t be taken lightly. If you ever find yourself in a position to sign on with a different packaging supplier, take the time to objectively evaluate the potential implications using the following key considerations as a guide.

1. Quality
2. Materials selection and equivalency
3. Innovation
4. Time to market/market share
5. Compliance and regulatory requirements
6. Supply chain management
7. Channel penetration
8. Qualification costs
9. Sustainable packaging options

What Compels a Pharmaceutical Manufacturer to Switch Packaging Suppliers?

Defective packaging, performance inconsistencies, and service concerns are obvious reasons why a pharmaceutical manufacturer would end a packaging supplier partnership. Or, perhaps unanticipated events such as a plastics supply company closing or discontinuation of resins, films, or other materials necessitate a switch. These are all valid reasons, but not all changes are predicated on less than ideal experiences.

Pharmaceutical manufacturers could as easily identify needs that a specific packaging supplier may be uniquely qualified to meet related to:

• New product launches require specialized packaging, equipment, handling, etc.
• Strategic growth goals targeting expansion into new markets
• Industry innovations driving development or reconsideration of packaging solutions
• End user demands and expectations shifting how packaging is perceived, used, and indicative of product quality and brand values (i.e., sustainability trends)

The causal event behind the transition isn’t always neatly defined or singular. Likewise, the potential consequences of switching pharmaceutical packaging suppliers are generally clustered around several key factors.

Before the Switch: 9 Key Considerations

Any supplier change has some sort of impact. Determining the degree and willingness to absorb it requires careful consideration of product, process, and operational areas that could be affected.

Manufacturers contemplating a switch in pharmaceutical packaging suppliers should weigh what it could mean to:

1. Quality: Consistent, reliable high quality is the most important deliverable for a pharmaceutical packaging supplier. Gain a clear understanding of where your expectations and the supplier’s quality control capabilities intersect and diverge. What are the prospective supplier’s quality assurance methods? Continuous improvement strategies? QC track record?

2. Materials selection and equivalency: In addition to vetting a new packaging supplier, becoming familiar with how they handle their supply chain and leverage vertical integration is important in understanding the breadth of materials availability and how options align with your needs.

3. Innovation: Packaging for the pharmaceutical industry is increasingly complex as trends and end user preferences push toward new solutions that address sustainability, dosing and ease of use, tamper evidence, etc. Driving innovation requires a combination of practical experience in pharmaceutical packaging and the future-focused vision to bring concepts to fruition.

4. Time to market/market share: Major packaging format and production changes require materials qualification and stability testing, which are lengthy processes. Completing the required testing can mean delays and slower time to market, which could negate competitive advantage.

5. Compliance and regulatory requirements: Local and federal regulatory agencies stringently govern pharmaceutical packaging. Might a change in packaging suppliers cause compliance concerns?

6. Supply chain management: Pandemic-related disruptions put unprecedented pressure on supply chains. Resource constraints and ongoing uncertainty may hamper integration of a new packaging supplier.

7. Emerging ecommerce channel: Ecommerce has changed the game for pharmaceuticals. As large pharmaceutical companies subdivide to serve prescription-based and retail markets, packaging needs are also shifting. Packaging suppliers must be able to pivot to accommodate a wider base of end users and help manufacturers increase channel presence.

8. Qualification costs: Price is a reality. Scoping costs to compare investments, value, and ROI of current and prospective suppliers is prudent budget management.

9. Sustainable packaging options: Depending on the pharmaceutical packaging supplier, making a switch could potentially limit choices in sustainable packaging solutions. Prioritize a supplier with proven experience and a breadth of packaging innovations centering around sustainability.

Switching pharmaceutical packaging suppliers isn’t desirable, but change can — and does — happen. Turning to experienced, innovative leaders in pharmaceutical packaging such as Amcor is the best way to prevent unwanted supplier transitions while also gaining the largest advantage for your brand and business.