As Chief Supply Chain Officer at Suanfarma, my responsibility is to ensure that our global supply network is not only efficient, but also resilient, flexible, and prepared to anticipate disruptions. In an increasingly complex geopolitical and regulatory environment, strategic API sourcing has become a critical lever to protect business continuity and strengthen our value proposition for customers and partners.
At Suanfarma, we do not view sourcing as a tactical purchasing decision, but as an integrated strategy for risk management, diversification, and competitive advantage creation.
For years, globalization enabled cost optimization through manufacturing concentration in regions such as India and China. However, recent health crises, trade tensions, and logistics bottlenecks have demonstrated that efficiency based solely on cost can compromise resilience.
At Suanfarma, we apply a strategic sourcing model based on four key pillars:
- Geographical diversification – We focus on avoiding critical dependencies on a single country or manufacturer for strategic APIs or raw materials.
- Risk assessment – We evaluate not only price and capacity, but also financial robustness, operational maturity, and regulatory compliance.
- Long-term relationships – We build stable partnerships with key manufacturers, promoting transparency, joint planning, and strategic alignment.
- Continuous monitoring and cross-functional coordination – We maintain ongoing communication with partners and internal teams, conducting regular supply reviews to anticipate potential disruptions and activate contingency plans when needed.
This approach allows us to balance economic competitiveness with supply security, a combination increasingly valued by our customers.
Head of Procurement Perspective
From the Procurement function, the challenge lies in transforming strategy into operational execution. Strategic sourcing involves rigorous qualification processes, technical and regulatory audits, continuous monitoring of the global API market, and the development of alternative supply scenarios.
Dual sourcing for critical molecules, while operationally more complex, significantly reduces systemic risk. In addition, negotiations are no longer based solely on volume and price, but also on responsiveness, upstream supply chain transparency, and commitment to ESG standards.
In an environment where volatility has become the norm, Procurement plays a key role in preventive risk management and in ensuring stability across the organization.
Practical example
A recent case within our network involved identifying an API with a high concentration of supply in Asia. Through a joint strategic analysis between Supply Chain and Procurement, we qualified a second manufacturer in an alternative region.
Although the initial unit cost was slightly higher, we achieved:
- Reduced exposure to logistics disruptions
- Improved negotiation leverage
- Increased supply security for strategic customers
- Greater resilience to regulatory or geopolitical scenarios
This decision demonstrated that the total cost of risk can far exceed apparent unit savings.
Traditional Model vs. Suanfarma Strategic Model: from region-concentrated sourcing to a diversified network
Meritxell Torrecilla, Chief Supply Chain Officer
