In many industries this question is unnecessary.
The role of manufacturers’ reps (MRs) is well understood in those industries. For example, Baselodge Group represents electronics manufacturers in the EMS side of our business. The firms that we represent understand well the role of the rep. In fact, in nearly all cases, the manufacturer found us and convinced us to represent them and sell their services to our clients. Likewise, most of our customers are familiar and comfortable with the role we play. We call on the customer and offer them at least seven contract manufacturers with a variety of manufacturing services. Because of this we are seen as a valuable resource to our clients.
In the realm of contract pharmaceutical manufacturing and contract nutraceutical manufacturing (a realm that combined we refer to as pharmasourcing), however, manufacturers’ reps are an unfamiliar beast. In the interest of clearly communicating our role, let me state what you get out of it.
Drug Development Companies
If you are a pharmaceutical or nutraceutical drug development company, an MR can help you by offering a variety of contract chemistry suppliers, contract pharma manufacturers, contract packaging suppliers, and even R&D firms and consultants to help you with your trials and the approval process. The key is that the MR knows the capabilities of these suppliers and has already done the due diligence to be sure that the suppliers are quality firms with solid track records. The MR’s reputation is on the line with each firm they represent.
Can’t you find these services at a trade show? Yes, but you may have the need before the next big show. Also, there is a lot of time expended in investigating the many suppliers out there for the service you need. Can’t I find what I need on the web? Perhaps, but again the research is time consuming and cannot take the place of the due diligence of having first-hand knowledge of the facility, capabilities, certifications, etc. The MR has selected their suppliers in a logical way so that we can offer you a “line card” of quality suppliers that can meet your needs. In this way we become a valuable resource to our customers.
Contract Pharma Manufacturers
If the drug development company gains access to quality suppliers by using an MR like Baselodge Group, what does the supplier gain by using an MR? The supplier gains a sales organization that is expert in their geographical territory. We know the firms that are in the process of developing new products and that may be in need of contract manufacturing services. We stay up on the firms in our area that are working on new APIs and formulations. Additionally, we offer our sales expertise to the supplier on a commission basis. This means that, in most cases, all of this sales capability comes with no fixed costs, only variable costs. We get paid a commission when we find a customer that is a good fit and whose business you win. If we don’t sell, we don’t get paid. We are in business to get paid, so we work hard to win business for our suppliers.
Conclusion
The well established role of the MR in many industries is not yet well understood in the pharmasourcing space. We are convinced, however, that both drug development companies and contract pharma suppliers will find value in making use of the manufacturers’ rep model. We predict that the early adopters of the MR model will benefit from it and that in time the MR model will be as widely accepted in the pharmasourcing industry as it is in so many other industries.