• About Us
  • Contact Us
Saturday, December 7, 2019
Pharmapproach.com
  • Home
  • Post Categories
    • General
    • Interviews
    • Pharma Companies
    • Pharmaceutical Machines
    • Pharmaceutical Technology
    • Pharmacy Practice and Management
  • Forum
No Result
View All Result
Pharmapproach.com
  • Home
  • Post Categories
    • General
    • Interviews
    • Pharma Companies
    • Pharmaceutical Machines
    • Pharmaceutical Technology
    • Pharmacy Practice and Management
  • Forum
No Result
View All Result
Pharmapproach.com
No Result
View All Result

12 Factors to Consider When Choosing a Pharmaceutical Plant Location

by Pharmapproach
July 23, 2019
in Pharmaceutical Technology
1
plant location: Factors to Consider When Choosing a Pharmaceutical Plant Location
0
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

One of the most challenging tasks you will face as an entrepreneur, irrespective of the type of business you plan to venture into is the problem of deciding the best site for your business, plant or factory. Whether a business thrives or flounders is greatly dependent on the location.

It is advisable that you do an in-depth research on all the factors that might hinder the success of your decisions before making a long term financial commitments and investing your time, energy and resources into any location.

This post is geared towards helping you make the right decision, quickly and effectively, and execute those decisions consistently as regards locating your pharmaceutical plant and businesses.

See also: Pharmaceutical Plant Layout

Contents

  • 1 Why you should make the right choice of pharmaceutical plant location
  • 2 Factors you need to consider in making the choice of your pharmaceutical plant location
    • 2.1 1. Availability of raw materials
    • 2.2 2. Nearness to the market
    • 2.3 3. Constant Power supply
    • 2.4 4. Supply of Labour
    • 2.5 5. Transportation Networks
    • 2.6 6. Communication
    • 2.7 7. Water supply
    • 2.8 8. Suitability of land and climate
    • 2.9 9. Integration with other group of companies
    • 2.10 10. Availability of housing, other amenities and services
    • 2.11 11. Local building and planning regulation
    • 2.12 12. Environmental impact, waste disposal and Safety requirements
  • 3 Conclusion
  • 4 References

Why you should make the right choice of pharmaceutical plant location

Your ability to select appropriate location is important as it

  • partially determines your company’s level of operating and capital costs,
  • determines the nature of investment costs to be incurred,
  • fixes some of the physical factors of the overall plant designs for instance heating and ventilation requirements, storage capacity of raw material taking into consideration their local availability, transportation need for raw materials and finished goods, power needs ,cost of labours, taxes, land construction, fuel, etc. 

Factors you need to consider in making the choice of your pharmaceutical plant location

1. Availability of raw materials

An ideal location for your pharmaceutical company is one where the raw materials used in the manufacturing processes are readily available. This ensures constant supply of raw material and reduction in the operational cost.

2. Nearness to the market

Reduction in your company’s overhead expenses and transportation cost can be achieved if your company is located near the target market. Also, important information about your company’s market can be easily obtained and analyzed by the management specifically for the generation of strategies, confident decision-making and formulation of production policies with regards to market opportunity, market development and market penetration strategy.

3. Constant Power supply

Constant power supply is a pre-requisite for the localization of pharmaceutical industries as the need for cheap, continuous, and adequate supply of electricity are of paramount importance. The cost of running a company using generators is usually high and this increases your company’s overhead cost and you might find it difficult paying your workers.

4. Supply of Labour

Since labour is one of the most important inputs required to transform raw materials into consumer goods, it is necessary that you locate your company where both skilled and unskilled labour are readily available at cheaper rate.

5. Transportation Networks

Efficient transportation service is very important for marketing and distribution of finished products, bringing raw materials and supplies, as well as allowing your customers to reach you without difficulty. Good road networks, railways, water and air transport systems are considered to be appropriate for the location of your company. Also the cost of the available means of transportation should be put into consideration.

6. Communication

Good communication facilities, such as, internet, postal and telecommunication links are of great importance towards the success of a business. It is very important that you open communication channels between you and your customers.

Areas with good communication system should be given priority when it comes to making choice of a pharmaceutical plant location.

See also: Factors Influencing Pharmaceutical Plant Layout

7. Water supply

The availability of constant water supply is another important require­ment for pharmaceutical industries. Even when you drill a borehole, it is advisable to check if the water in that area is good for manufacturing.

8. Suitability of land and climate

Most industries need flat expanses of cheap land on which they build their factories. The soil type of a proposed location should be able to support the load likely to be placed on it. Climate on the other hand affects the choice of a pharmaceutical plant location.

Extremely hot, humid, dry or cold climate are not much suitable for the establishment of pharmaceutical plants.

9. Integration with other group of companies

It is advisable to locate your pharmaceutical industries in an area where other factories are already in existence. Liabilities like repairing of roads, buying of transformer etc., can be shared among the companies whenever the need arises. Thereby reducing the amount your company would have spent in fixing such problem assuming it was to be located in an isolated area.

10. Availability of housing, other amenities and services

Setting up your pharmaceutical plant in an area where there is good housing facility, schools, hospitals, banking facilities, restaurants, local transport facilities, shopping malls water supply, drainage, disposal of waste, churches/mosque, etc., can easily attract good staff especially the skilled ones.

11. Local building and planning regulation

In some cases, there is already a plan either from the local government or from the state government that an area has been mapped out for some projects. Proposed location should not infringe local regulations and bye-laws.

To avoid losing what you have worked for, a discussion with survey department of the local authority is most desirable. Laws for the construction of buildings, local taxes etc. should be taken into consideration before you finally decide where to locate your company.

12. Environmental impact, waste disposal and Safety requirements

Full considerations should be given to the difficulty and cost of disposal of all waste products generated during production processes. The safety of your workers and the populace is very important and should be put into consideration especially if your industry is likely to cause pollution or process explosion.

Such industries should be located far away from residential areas. Workers who are allergic to some substances (e.g., lactams) should not be exposed  to such.

Conclusion

It is worth noting that these factors explained above influence your choice of pharmaceutical plant location at different degrees. The extent to which they affect your choice of pharmaceutical plant location is greatly dependent on the nature and size of the proposed business or company.

References

  • http://pharmaquest.weebly.com/uploads/9/9/4/2/9942916/pharma_factory_location.pdf
  • https://archive.org/stream/PlantLocationAndLayout/PlantLocationAndLayout_djvu.txt
  • http://www.freemba.in/articles.php?stcode=4&substcode=104
  • Signore A. A and Jacobs T. (2005). Good Design Practices for GMP Pharmaceutical Facilities. CRC Press.

Tags: Pharmaceutical Plant
Previous Post

10 Most Common Ways to Finance Your Business

Next Post

Pharmaceutical Plant Layout

Related Posts

Featured image for Quality control Tests for capsule Drug Products
Pharmaceutical Technology

Quality Control Tests for Capsule Drug Products

November 28, 2019
Featured image for manufacture of soft gelatin capsules
Pharmaceutical Technology

Manufacture of Soft Gelatin Capsules

November 28, 2019
Featured image for soft gelatin capsules
Pharmaceutical Technology

Soft Gelatin Capsules: Formulation and Manufacturing Considerations

November 28, 2019
Manufacture of Hard Gelatin Capsule shells
Pharmaceutical Technology

Manufacture of Hard Gelatin Capsules

October 9, 2019
Featured image for hard gelatin capsules
Pharmaceutical Technology

Hard Gelatin Capsules: Formulation and Manufacturing Considerations

November 25, 2019
Featured image for solid dosage forms: capsules
Pharmaceutical Technology

Solid Dosage forms: Capsules

November 25, 2019
Next Post
Pharmaceutical Plant Layout

Pharmaceutical Plant Layout

Factors Influencing Pharmaceutical Plant Layout

Factors Influencing Pharmaceutical Plant Layout

pilot-plant-scale-up

Pilot Plant Scale-up Techniques

Comments 1

  1. Kegelrollenlagern says:
    1 year ago

    Hello my friend! I wish to say that this post is awesome, nice written and include approximately all significant infos. I like to see more posts like this.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Popular Posts

  • List of Pharmaceutical Companies in United States of America

    List of Pharmaceutical Companies in the United States of America

    9 shares
    Share 9 Tweet 0
  • Quality Control Tests for Tablets

    7 shares
    Share 5 Tweet 0
  • Manufacture of Pharmaceutical Tablets

    1 shares
    Share 1 Tweet 0
  • Fluidized Bed Dryer

    0 shares
    Share 0 Tweet 0
  • List of Pharmaceutical Companies in Germany

    7 shares
    Share 7 Tweet 0
  • List of Pharmaceutical Companies in India

    4 shares
    Share 4 Tweet 0
  • Roles and Responsibilities of a Finance Department in a Pharmaceutical Industry

    0 shares
    Share 0 Tweet 0
  • List of Pharmaceutical Companies in The United Kingdom

    0 shares
    Share 0 Tweet 0
  • Solid Dosage Forms: Tablets

    2 shares
    Share 2 Tweet 0
  • Manufacture of Tablets by Direct Compression Method

    7 shares
    Share 7 Tweet 0

Follow Us on Facebook

Follow Us on Facebook

Recent Posts

Featured image for Quality control Tests for capsule Drug Products
Pharmaceutical Technology

Quality Control Tests for Capsule Drug Products

by Pharmapproach
November 28, 2019
0

Capsules are solid dosage forms in which the drug formulation in a powder, solution or suspension, a combination of miscible...

Read more
Featured image for manufacture of soft gelatin capsules

Manufacture of Soft Gelatin Capsules

November 28, 2019
Featured image for soft gelatin capsules

Soft Gelatin Capsules: Formulation and Manufacturing Considerations

November 28, 2019
Medical Terminology

Common Prefixes, Roots and Suffixes in Medical Terminology

October 23, 2019
Pharmaceutical Companies in Canada

List of Pharmaceutical Companies in Canada

November 29, 2019

Regulations, Guidelines and Clinical Trials

Drugs, Chemical and Herbal Regulations
Drugs, Herbal, and Chemical Guidelines
Clinical Trials

Important Links

Drug Manufacturing Companies in Nigeria
National Agency for Food & Drugs Admin & Control
Pharmacists Council of Nigeria
Pharmaceutical Society of Nigeria




Subscribe via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 579 other subscribers

Submit Articles

Click to Submit Your Article

Archives

  • About Us
  • Terms and Conditions
  • Privacy Policy
  • Contact Us

© 2019 Pharmapproach Limited. All Rights Reserved .

No Result
View All Result
  • Home
  • Post Categories
    • General
    • Interviews
    • Pharma Companies
    • Pharmaceutical Machines
    • Pharmaceutical Technology
    • Pharmacy Practice and Management
  • Forum

© 2019 Pharmapproach Limited. All Rights Reserved .

x
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.