Innovation shakes up pharma supply chain

John E. Kaye
- Published
- Home, Technology

One of the world’s leading credit insurers has joined forces with a pioneering pharmaceutical platform to create the ultimate in buy and sell sophistication
Technology and digitalisation are disrupting traditional trading ecosystems more than ever before. A great example of such innovation is Atradius, who in partnership with Kemiex, is setting new standards for security and trust in the B2B pharmaceutical sector. Swiss-based Kemiex is an independent online trading platform for buyers and sellers of additives, vitamins, amino acids, active pharmaceutical ingredients (APIs) and other substances for the pharmaceutical industry. The two companies have created a digital solution for exchanging generic raw materials between buyers and sellers on the global spot market. The platform aims to reduce the number of touch-points within the pharmaceutical sourcing process – and yet ensure that all stakeholders comply with restrictions and regulations accordingly.
Strategic partnership
Operating across 54 countries, Atradius is one of the world’s leading credit insurers and a true advocate of technology that delivers total efficiency throughout the supply chain. Apart from credit insurance, Atradius also applies its expertise to other financial services, such as the bond market, debt collections, and reinsurance. Kemiex’s success speaks for itself. Its platform has attracted hundreds of companies across the B2B pharmaceutical sector and its network is flourishing.
Through a groundbreaking partnership with Atradius, transactions occurring in the platform can be insured immediately. Atradius will provide Kemiex customers with credit risk analysis and credit insurance for single transactions among traders, sellers and buyers.
In order to build a holistic network and assure high levels of trust among stakeholders, Kemiex has outlined strict onboarding rules. Using a scoring system, the platform continually evaluates the trading standards of those involved after every transaction.
Kemiex: Adding true value to pharmaceutical trade deals
The annual trade volume for APIs, vitamins and other food/feed additives is estimated at $300bn, whereby approximately 90% are traded based on long-term contracts. With a secular shift of production to China and India and increasingly volatile markets, the share of spot transactions is growing. Traditional brokers and agents often charge commissions between 3-6% to arrange spot transactions.
Being a Kemiex stakeholder minimises transactions lead times and allows businesses to achieve more competitive prices, staying in full control of trading activities from A to Z. Simultaneously, Atradius is using its indepth risk mitigation expertise, supporting Kemiex’s customers to make smarter decisions across their trade deals.
The platform has already benefited buyers of raw materials, as they were able to reduce costs by 3% to 8% while the sellers kept their margins stable. These savings have helped boost businesses’ growth in the short- and long-term, and the advantages of utilising this new trading system are undeniable.
Further information
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