Query:
Thank you so much for the wealth of information available on your website Pharma Franchise Help, which provides all the practical info required when stepping into the Pharma industry.
We are looking to start our own cosmetic brand through a third party manufacturing deal. We are currently situated in —– and are looking for manufacturing companies all over India and getting quotes.
QUESTION: Does it matter where and how far the Manufacturing Unit is situated? Does it affect the logistics later? Would there be more damages and losses when products are shipped all the way
Response:
Transportation and shipping of the products is one of the most important aspects. We can’t neglect it. Let’s take your query in part’s:
Does it matter where and how far the Manufacturing Unit is situated?
It matters where and how far the manufacturing unit is located. It increases your transportation cost so indirectly affects your cost. If you have good margin in products then you can consider a manufacturer situated far from your location that is providing best quality but if your product is tough margin competition then you need to think about it.One more thing here to consider that you loose some control over visiting manufacturing unit frequently if manufacturing unit is situated far from your location. But that doesn’t much matter.
Does it affect the logistics later?
Logistic network is good all over India. You may not have any logistic related problem in future. It may take more time to reach goods at your destination depend at distance. But if some time you need goods at urgent basis then you can ask to send through courier air services.
Would there be more damages and losses when products are shipped all the way
Damage and loss depend at which transport you are considering. Most of reputed transport have better services and there is no possibility of damage and looses. This is no going be an issue if you prefer good logistic and transport service providers. Himachal/Uttarakhand/Gujarat is hub for pharmaceutical sector and supply medicines all over India by using logistics and transportation services. There is no issue for any pharmaceutical company to send or receive goods at its location.
You may face some issue:
- Minor Breakage occasionally
- Delayed Delivery occasionally
- Extra Freight Charges