Job Description

To manage strategic sourcing and procurement of raw materials for pharmaceutical formulation manufacturing, ensuring uninterrupted availability of APIs, excipients and other critical materials at competitive prices while maintaining quality standards, regulatory compliance and optimum inventory levels.

The role will be responsible for vendor development, strategic sourcing, commercial negotiations, cost optimization, supplier performance management and coordination with internal stakeholders to support production requirements.

Key Roles & Responsibilities

A. Strategic Sourcing & Procurement

Develop and execute procurement strategies for APIs, excipients and other formulation raw materials.
Manage end-to-end procurement activities, including sourcing, vendor identification, RFQs, price negotiations, purchase orders and delivery follow-ups.
Ensure timely availability of raw materials in line with monthly and annual production plans.
Develop alternate sourcing strategies to minimize supply risks and dependency on single vendors.
Identify cost-effective procurement opportunities without compromising material quality.
Monitor market trends, price fluctuations and raw material availability.

B. Vendor Development & Management

Identify, evaluate and develop domestic and international suppliers for APIs and excipients.
Coordinate with QA and QC teams for vendor qualification, material evaluation and approval.
Conduct supplier performance reviews based on quality, cost, delivery and service parameters.
Develop long-term strategic relationships with key suppliers.
Ensure availability of approved vendors for critical and high-consumption materials.
Drive supplier improvement initiatives and resolve recurring supply-related issues.

C. Cost Optimization & Commercial Negotiations

Lead price negotiations, annual rate contracts and commercial agreements with suppliers.
Drive cost reduction through strategic sourcing, bulk procurement and alternate vendor development.
Benchmark material prices against market trends and industry standards.
Monitor foreign exchange fluctuations, import duties, freight and other procurement-related costs.
Identify opportunities for value engineering and procurement savings.
Ensure adherence to approved budgets and procurement policies.

D. Production Planning & Inventory Management

Coordinate with Production Planning, SCM and Manufacturing teams to ensure uninterrupted raw material availability.
Monitor material requirements based on production schedules and demand forecasts.
Maintain optimum inventory levels while minimizing excess and non-moving stock.
Track purchase order ageing, material lead times and delivery commitments.
Ensure timely resolution of shortages and critical material procurement issues.
Develop contingency plans for long-lead-time and critical raw materials.

E. Quality & Regulatory Compliance

Ensure procurement is restricted to approved and qualified vendors.
Coordinate with QA/QC for material specifications, COA verification, sampling and quality approvals.
Ensure compliance with applicable GMP requirements and internal quality procedures.
Support vendor audits and supplier qualification activities.
Ensure proper documentation and traceability of procurement transactions.
Address quality-related supplier complaints and coordinate corrective actions.

F. Import Procurement & Supply Chain Coordination

Manage import procurement of APIs and excipients wherever applicable.
Coordinate with international suppliers, logistics partners, customs and finance teams.
Monitor import lead times, shipment schedules and documentation.
Ensure compliance with applicable import regulations and company policies.
Develop risk mitigation strategies for global supply disruptions.

G. ERP & Procurement MIS

Ensure accurate procurement transactions and documentation in SAP/ERP systems.
Monitor purchase requisitions, purchase orders, pending deliveries and material ageing.
Prepare periodic procurement MIS covering savings, vendor performance, purchase price variance and material availability.
Track procurement KPIs and provide regular updates to management.

H. Team Leadership

Lead and develop the raw material procurement team.
Establish procurement objectives and performance metrics.
Allocate responsibilities and monitor team performance.
Develop negotiation capabilities and sourcing expertise within the team.
Drive process improvements and procurement excellence.

3. Key Performance Indicators (KPIs)

Material availability - Zero production loss due to procurement-related shortages
Cost optimization - Annual procurement savings
Vendor development - New qualified vendors developed
Purchase efficiency - PR-to-PO turnaround time
Delivery performance - On-time delivery from suppliers
Inventory management - Inventory ageing and working capital optimization
Quality compliance - Procurement from approved vendors
Supplier performance - Vendor quality and delivery ratings
ERP discipline - Accuracy of procurement data and MIS

4. Professional Qualifications

B.Pharm / M.Pharm preferred.
B.Sc. / M.Sc. Chemistry or B.Tech / B.E. Chemical Engineering may also be considered.
MBA / PGDM in Supply Chain Management or Materials Management will be an added advantage.

5. Experience

12–18 years of experience in procurement and strategic sourcing within the pharmaceutical formulations industry.
Strong experience in sourcing APIs, excipients and formulation raw materials.
Experience in domestic and international vendor development.
Proven track record in commercial negotiations and cost optimization.
Good understanding of pharmaceutical quality requirements and supplier qualification processes.
Experience working on SAP/ERP procurement modules.