The consensus is that many Asian companies now have the expertise and capabilities to offer services comparable to their Western rivals but there are still region specific problems.

In particular, the panel stated that the high level of competition in Asia leads some companies to promise unrealistic timelines which cannot be fulfilled. This taints a company's reputation and, given the importance of word of mouth, their chances of securing business in the future.

Companies selecting an Asia-based service provider must account for this. Laurie Chipperfield, director, API (active pharmaceutical ingredient) strategic sourcing and planning at Pfizer, explained that she runs a few trial projects with a new supplier. The results of this inform whether Pfizer will continue working with the company.

Another problem raised by the panel is the Asian supply chain. Shipments can take too long to arrive and when they do are sometimes in unsuitable packaging.

Finally, the panel commented on the cultural differences encountered when working with Asian suppliers, noting in particular the impact Chinese New Year has on supply. However, cultural differences are encountered when working with any overseas company and experience will improve the situation.

Despite these issues the panel were broadly positive about working with Asian companies. The cost advantage, which is admittedly less significant than a few years ago, and quality of some operations were cited as reasons for continued outsourcing to the region.
These benefits have led some of the panel to consider outsourcing finished product manufacture to Asia. In this sector India is leading China, largely because its experience in manufacturing generics, according to the panel.

Latin America

The panelists are yet to begin outsourcing to Latin America, in part because of the wealth of contract manufacturing organisations (CMO) in the rest of the world and the experience companies have of outsourcing to these regions.

To overcome this Latin America must build word of mouth by achieving critical mass, something the panel believe it is yet to do. Reaching this level will be helped by the launch of established conferences in the region. Both CPhI and Informex now have conferences in Latin America.