Goals & Performance

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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 2020 key targets of our pharmaceutical manufacturing organization are listed below:

  • On-Time-In-Full (OTIF) Supply: sustain >97%
  • Stock-out of medicines: approaching zero
  • Reduce energy, water consumption, and Roche K6 Directive topics by 2% vs. 2019 levels on eco points corrected for volume changes
  • 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

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

Commitment

Goal

Target Year

Status

Supplier Code of Conduct (or equivalent) included in all new supplier agreements

>90%

Every Year

On Track

Priority Risk and Sustainability Risk suppliers risk assessed

100%

Every Year

On Track

High Priority Risk and high Sustainability Risk audited via onsite visits

100%

2025

On Track

% of spend with Green Suppliers (ISO 14000 or similar)

20%

2025

18%

Reduction in Scope 3 Greenhouse Gas emissions

15%

2025

On Track

% of Spend with preferred suppliers

90%

2025

On Track

Roche’s SHE Goals and Performance also include objectives for our suppliers.

Spend analysis

In 2019, our total spend with suppliers and service providers was approximately CHF 18.5 billion: CHF 11.8 billion by the Pharmaceuticals Division and CHF 6.7 billion by Diagnostics Division. The spend with the top 1,000 suppliers accounted for 74% of Roche’s total spend. Approximately 8% of the total spend was with suppliers in non-OECD countries.

2019 Spend by region (in billion CHF):
North America 6.8
Europe, Middle East and Africa 9.8
APAC 1.4
LATAM 0.5

2019 Spend by category (in billion CHF):
Research & Development 2.6
Supply Chain 5.5
Engineering and Facilities 3.3
General & Administration 3.7
Marketing & Sales 1.9
Information Technologies 1.5