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Corporate Responsibility Report 2008

Security of supply

Ensuring a continuous supply of high quality medicines is essential to the patients who depend on our products, as well as to the success of our business.

It is vital that security of supply is not compromised at any stage of the distribution chain. We prepare for major incidents that may disrupt supply, ranging from large-scale theft of products to natural and man-made disasters near a facility.

Strategy directors from each therapy area have overall responsibility for security of supply. Divisional heads meet our procurement teams every month to discuss any potential issues.

GMS (our manufacturing business) implements contingency plans for ‘medically critical’ products. We define products as ‘medically critical’ if life-saving or those where if they were not available to patients, there is likelihood of serious detriment to health and there is no known alternative. These plans are defined on a product-by-product basis and may include holding sufficient stocks of products or active pharmaceutical ingredients.

We work with all critical suppliers to encourage them to implement their own contingency plans. In high-risk countries we will set up joint ventures to ensure that we maintain control over the distribution chain. We have three global contracts for suppliers that deliver goods between GSK facilities and distribute products to market. We conduct regular high-level operational reviews of these suppliers, which include security elements.

Read about the measures we are taking to protect our employees in the event of a pandemic flu outbreak to ensure the supply of critical medicines is not disrupted.