Procurement Goals & Performance

Managing our supply chain

Our manufacturing, procurement and logistics functions provide more than 100 medicines, over 140 diagnostics instruments and over 850 diagnostic tests to patients, laboratories and healthcare professionals worldwide.

We seek to build a resilient supply chain by adhering to best practices, developing novel approaches and working in partnership with our suppliers. Business continuity planning and risk management are the cornerstones of our approach.

Supply Chain Strategy Targets

Our strategic focus for Roche’s manufacturing procurement organization is to “Accelerate Roche’s goal to bring innovative solutions to patients quickly and efficiently through business and supplier partnerships”.

Our top priority is ensuring the sustainable supply of medicines and diagnostics to our patients.

Our supply chain goals are aligned with the Roche business objectives. For example, some 2022 key targets of our pharmaceutical manufacturing organization are listed below:

  • On-Time-In-Full (OTIF) Supply: sustain >97,5%

  • Stock-out of medicines: approaching zero

  • End to End Leadtime (E2E LT) for Manufacturing, Quality Analysis and Release for Sales: Top quartile in benchmark in pharma industry

  • Finished goods order lead time: 30 days for 80% of sales

We monitor target achievement and we are fully committed to ensure uninterrupted supply to patients.

ESG Goals

Our supplier goals are aligned with the Roche Group strategy. Our targets are as shown in the table below.

Commitment
Supplier Code of Conduct (or equivalent) included in all new supplier agreements
Reduction in Scope 3 Greenhouse Gas emissions
Goal
>90%
15%*
Target Year
Every Year
2025
Status
On Track
On Track

*In November 2021 the Roche Corporate Executive Committee endorsed the decision to commit to the Science Based Targets Initiative in 2022. The setting of science based targets for this programme will include, re-establishing baselines for all fifteen categories of Scope 3 GHG emissions using a combination of primary and activity based proxy data to allow for granularity and accuracy. Our primary focus will be on Category 1 (purchased goods and services) and category 11 (use of sold products). Long term and short term targets for all fifteen categories of Scope 3 GHG emissions will be set in 2023 and future eco-balance targets and performance will be updated accordingly.

Spend analysis

In 2021, our total spend with suppliers and service providers was approximately CHF 20.3 billion: CHF 15.3 billion by the Pharmaceuticals Division and CHF 5.0 billion for the Diagnostics Division. The spend with the top 1000 suppliers accounted for 81% of Roche’s total spend. Approximately 15% of the total spend was with suppliers in non-OECD countries.

2021 Spend by region (in billion CHF):

  • North America 6.4

  • Europe, Middle East and Africa 12.3

  • APAC 1.2

  • LATAM 0.4

2021 Spend by category (in billion CHF):

  • Research & Development 3.7

  • Supply Chain 8.0

  • Engineering and Facilities 2.7

  • General & Administration 2.5

  • Marketing & Sales 1.6

  • Information Technologies 1.8

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