AstraZeneca cuts could pave way for more outsourcing

By Kirsty Barnes

- Last updated on GMT

Related tags Supply chain management Logistics

AstraZeneca's cost-cutting announcement this week could pave the
way for the formation of future new outsourcing relationships.

The UK-based firm's fourth quarter and year-end results publication detailed a series of "productivity enhancing" and "cost containment" measures, and the culling of 3000 jobs.

The company also updated its externalisation strategy, stating that its "number one priority remains strengthening the pipeline by enhancing the productivity of its internal discovery and development and the continued pursuit of external opportunities."

As part of this externalisation strategy, company spokesperson Chris Dalton told that an increase in the company's outsourcing activities couldn't be ruled out.

"Outsourcing will be part of a mixture of steps taken, including acquisitions and research collaborations, in order to enhance productivity,"​ he said.

"All options are currently being considered. We will look to fill the gaps where we no longer have the in-house capability, including using various locations across the globe."

The firm already outsources parts of some of its activities such as manufacturing and marketing and is also stepping up its involvement in emerging markets.

Meanwhile, as part of its productivity drive, AstraZeneca also gave specific reference to a new three year "asset rationalisation programme" for its global supply chain, expected to save the company $500m (€376).

"This means we will be looking at our manufacturing supply chain to drive through efficiencies,"​ said Dalton.

"Whether we will involve third party logistics (3PL) providers in this will depend on what opportunities arise over the next three years."

Related topics Markets & Regulations

Related news

Show more

Follow us


View more