Mapping the Life Sciences Supply Chain: A Geographic Analysis of U.S. Suppliers
(blog post 2 of 5)
Our team of interns from the University of IL-Chicago analyzed the geographical distribution of 70 suppliers that form the backbone of the industry and their impact on the scientific supply chain. We chose HappiLabs’ top 35 suppliers in 2023 (based on # of purchase orders processed) and 35 less known suppliers of general lab supplies, equipment, and reagents. We researched their headquarters and documented that as their location. We are aware that many suppliers, especially larger ones, have multiple locations and warehouses, but we focused on their HQ.
More than 50% of science laboratory suppliers are concentrated on the East Coast, particularly in the Northeast. The East Coast is the oldest region in the United States. Historically, the East Coast has been the cradle of pharmaceutical and biotechnology innovation due to its ecosystem of universities, research institutions, and the pharmaceutical industry. The West Coast, specifically California, is the second largest concentration of suppliers. This is could be due to convenient transportation that facilitates shipping of goods from Asia, in addition to Silicon Valley being a global biotech hub.
As a lab manager or buyer for your lab, it is very helpful for you to know the location of your suppliers. This will help avoid shipping delays and set appropriate expectations for when you can contact a supplier (ie. if your lab is on the west coast, east coast supplier’s customer service shuts down around 2pm PT).
The Critical Role of Supplier Location
The location of suppliers within the Life Sciences supply chain directly influences the efficiency, cost, and resilience of the sector. Fast and reliable access to supplies is crucial for maintaining the momentum of research and innovation. This regionalized distribution means scientists ordering from other parts of the United States besides the coasts need to wait longer for delivery and pay higher transportation costs. Further, shipments moving substantial distances can be disrupted by natural disasters such as storms that can significantly delay the entire scientific laboratory supply chain.
Conclusion and advice:
Relying on suppliers based far away from a lab increases costs & increases risk of delays to research
Robust and resilient labs should diversify their supplier base and know of suppliers in each region of the U.S.
IF YOU NEED SUPPORT WITH PURCHASING, SUPPLY CHAIN, SUPPLIER RELATIONSHIPS OR NEGOTIATING TACTICS, CONTACT HAPPILABS.
#SupplyChain #LifeSciences #Innovation #GeographicAnalysis #IndustryInsights
