RCI Newsletter - Issue XIV | February 2020
Key Raw Material Discontinued or Unavailable? Richman Chemical CAN Help!
(Case Study Approach)
Price increases, plant closures, poor product quality, discontinued product lines- all represent real-world problems that create urgent needs for new suppliers for critical raw materials. This task becomes increasingly daunting as deadlines approach and budgets remain tight. While each situation facing our customers is unique, Richman Chemical (RCI) custom manufacturing and sourcing project managers tackle these difficult problems head-on to achieve excellent results! Following are pertinent case studies showcasing our ability to aid customers facing compromised supply chains.
Case #1: The Disappearing Hydrogel…
A large multinational corporation approached RCI after receiving notice that a crucial hydrogel used in its flagship medical device would no longer be manufactured by its legacy supplier.
The chemical required manufacture under an audited quality management system, and the specifications were quite tight. Only a minimal amount of information regarding the starting material was available, namely the physical characteristics of the material and a few reagents used in its synthesis.
Through a collaborative development process with our client focusing on reverse engineering the non-proprietary material, Richman Chemical quickly developed an optimized production process for the key raw material.
RCI submitted a qualifying sample in line with functional specifications and- within six months- custom manufactured a robust supply of the important hydrogel.
Finally, Richman Chemical submitted raw material samples from the recent custom product lot for biological studies and quickly received regulatory approval as the only qualified material supplier. Case closed!
Case #2: Plant Closure- Now What??
A vendor of an important RCI customer issued an alert that a planned facility closure required an indefinite “production halt” for a critical raw material. The vendor itself suggested finding a competent toll manufacturer ASAP if additional and future quantities of the material would be needed.
Due to the complex nature of the chemical manufacturing process, RCI’s customer negotiated a final run at the incumbent manufacturer to allow time for us to tackle and optimize the chemistry on a custom basis. And, that’s exactly what we did!
In fact, within a three-month period, RCI effectively developed a more efficient process using a different manufacturing train and modified processing equipment. As a result, the custom supply ended up being less expensive- with a shorter batch production lead time- than the historical supply.
Ultimately- once the new process was integrated into the manufacturing space with only a minimal amount of additional capital- RCI’s customer signed a five-year supply agreement for the material. Case closed!
Case #3: M&A = Much Anxiety for Biotech’s Supply Chain!
A thriving life science start-up company encountered an unexpected supply chain issue this past year. The biotech company used antimicrobials in its personal care formulations and was notified that its supplier was immediately ceasing manufacturing as part of a pending acquisition of its site.
Anxious and desperate during one of the busiest times of the calendar year, the biotech company contacted Richman Chemical for assistance. We assisted in two separate ways. First, our sourcing department located inventoried material from the now-defunct supplier that could be used for immediate production. Second, the custom team at Richman Chemical developed a functionally equivalent alternative for the biotech firm in a short period of time. In the end, the alternative material performed at a higher level with a lower unit cost.
RCI and its biotech client established a multi-year supply agreement for the alternate material so that ANY such disruptions remain a thing of the past. Case closed!
To benefit from Richman Chemical’s 32 years of expertise, contact Christopher Kulp, Chief Commercial Officer, at (215) 628-2946 ext 13 or via email at clk@richmanchemical.com. For more information regarding our custom service offerings, CLICK HERE.
Richman Chemical Inc.(RCI) was founded in 1988 and pioneered the independent outsourcing model. It is the only company in the market that provides its services throughout many markets including biotech, pharmaceutical and medical devices, specialty chemicals, nanotechnology, food and beverage, and flavor and fragrance.
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