Highlights
Conducted onsite quality audits of close to 400 potential and existing suppliers across the world during 2008.
Assessed the EHS and labor performance of 389 new or existing supplier facilities through onsite inspections during the last five years.
Provided 43 training sessions on improving EHS performance at 25 different facilities which were attended by 530 supplier colleagues throughout 2008.
Pfizer Global Manufacturing (PGM) supplies products to Pfizer's businesses. PGM is being transformed into a global strategic supply network, consisting of major plants located in Belgium, France, Germany, Ireland, Japan, Puerto Rico and the U.S. By the end of 2008, we had reduced our internal network of plants over a five-year period from 93 to 46. In 2008, as part of our Plant Network Strategy productivity initiative, eight plants were sold or closed in Canada, Germany, Italy, Sweden, Puerto Rico and the U.S. We plan to continue reducing our internal network of plants worldwide to 41 by 2010. It should be noted that often facilities are divested to other companies with an agreement to supply Pfizer for several years. This allows the acquiring company to develop additional business to make the plant sustainable. We never make these decisions lightly, realizing how difficult they are for our colleagues and their families who are impacted. However, we believe that the cumulative benefit to Pfizer will be a more focused, streamlined and competitive manufacturing operation.
PGM is establishing a competitive “make or buy” supply network. We expect to increase outsourced manufacturing of products from approximately 17 percent to 30 percent over the next three years. Key considerations for outsourcing decisions include the ability to supply, capacity flexibility, cost competitiveness, and technology, while assuring supply chain integrity/reliability, product quality, and regulatory compliance. Any potential supplier is evaluated on its ability to produce material in a manner that is fully compliant with all regulatory requirements.
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