Our approach to supporting our customers involves short-term and long-term strategies:
Diverse Manufacturing/Sourcing Networks
Our manufacturing and sourcing strategy for Lekarone brand products focuses on reliably and efficiently providing high-quality, cost-effective products our customers need. We achieve this by employing a diverse manufacturing and sourcing network with sites around the world. Many Lekarone brand products are sourced from multiple locations in two or more countries. This approach reduces exposure to regional market issues and gives us the versatility to shift volume across sites to help mitigate issues affecting supply availability.
Personal Protective Equipment (PPE) Inventory Allocation
Like many in the industry, we depend heavily on production in China for a number of products in our PPE portfolio, including isolation gowns, caps & gloves, and facial protection. Given industry-wide supply challenges, we proactively placed these PPE products and select exam gloves on allocation to protect inventory for existing customers based on recent historical demand. We are building more robust contingency plans with our existing suppliers, aggressively exploring new sourcing partners outside of China, and assessing capabilities and capacity within our own manufacturing network to increase production.
Over the counter (OTC) medications and prescription pharmaceutical product
Lekarone is partnering with our suppliers to continuously monitor supply chain implications related to the Coronavirus. This involves pharmaceutical products (brand and generic), seasonal cough, cold and flu over the counter products and medical products (masks, gloves, gowns and hand sanitizers). Given the potential impact of extended company shutdowns on the global pharmaceutical supply chain, our partners have been actively collaborating with suppliers to understand any potential impact of the coronavirus on current and future product supply. During times of increased demand, Lekarone implements a fair share allocation process to ensure all primary customers have access to the supply of the available products on hand.
The COVID-19 pandemic continues to be fluid and constantly evolving. We are closely monitoring the situation and will provide additional information as it changes.