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.
*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 2022, our total spend with suppliers and service providers was approximately CHF 22.2 billion. The spend with the top 1000 suppliers accounted for 70% of Roche’s total spend. Approximately 9% of the total spend was with suppliers in non-OECD countries.
2022 Spend by region (in billion CHF):
North America 7.0
Europe, Middle East and Africa 13.4
APAC 1.3
LATAM 0.5
2022 Spend by category (in billion CHF):
Research & Development 3.5
Supply Chain 9.2
Engineering and Facilities 2.7
General & Administration 2.9
Marketing & Sales 1.8
Information Technologies 2.1