White Paper –
A Move to Outsourcing - Ensuring Continuity of Supply

The Customer Situation

One of SAFC’s long-standing customers, an industry-leading manufacturer of diagnostic products, came to the decision to stop in-house production of a number of non-GMP raw materials needed to make their products and outsource them instead. The customer recently underwent an internal restructuring. Unfortunately, the restructure meant that the client could not transfer products to another internal production site because of the complexity of their equipment and technologies. As a result, they were looking for a partner who could manufacture those raw materials while ensuring continuity of supply. SAFC was one of four companies that were approached to take on the project.

The customer wanted to outsource a list of 21 raw materials. Annual volume requirements varied between 6 kg and 400 kg. Although some of these products were in inventory, it was important for the customer that they were manufactured according to their specifications, as this had been built to their regulatory filings and could not be easily changed.

SAFC’s Operational Support

SAFC set up a dedicated and personalized team that worked with the client to fully understand its needs and evolving requirements. The client was able to leverage SAFC’s extensive manufacturing expertise during the technical transfer of their original specs and manufacturing techniques. Once the transfer was complete, SAFC partnered with the client to optimize a manufacturing solution in three of SAFC’s global facilities. This approach allowed for the development of a plan that ensured uninterrupted continuity of supply that meets the highest possible quality and regulatory requirements.

The Customized Solution

SAFC utilized its extensive outsourcing capabilities across multiple sites to propose the right manufacturing solution for the customer. Its broad technology portfolio enabled SAFC to quote on 18 of the 21 products, and it is now in the process of providing production samples for 10 of them. The process of providing all 18 samples should be complete by the third quarter of 2012.

The 18 samples SAFC is in the process of supplying represent a varied collection of chemicals requiring numerous different manufacturing technologies. These products are manufactured in SAFC facilities located in Steinheim and Hamburg, Germany and St, Louis, Missouri. The wide spread of capabilities across the different facilities allows for a secure back-up capacity in the unlikely event of problems. This is essential for SAFC to ensure continuity of supply on an ongoing basis.

Prior to the customer closing down its manufacturing facility, the client stockpiled sufficient raw materials to keep the manufacturing facility fulfilled until the third quarter of 2013. This has given them the necessary time to source and validate external suppliers for the materials they need while making the final decision on their sourcing partner. Meanwhile, SAFC was able to lay the groundwork for a solid relationship based on communication and follow-through, and is looking forward to the final customer decision.


The customer is very satisfied, and feels that they have found a trusted manufacturing partner in SAFC. Not only were they able to tap into SAFC’s expertise for the initial phases of the project, but now that the transfer is complete, the client is now able to focus on its new internal projects. Part of what makes the relationship a success is knowing that the supply of quality raw materials is secure when they are working with SAFC.

Through the whole process, SAFC was able to create a manufacturing solution that was an extension of the client’s operation. This type of partnership allows SAFC to provide the client with complete confidence that their critical raw materials will be delivered when and where they need them. As a trusted supplier, SAFC is able to ensure continuity of supply as they get over the hurdle of transferring to outsourcing; and this has also laid the groundwork for partnering with the client on future production requirements.

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