Continuously committed to the needs of our customers
DRIVING STRATEGIC SOURCING AND SUSTAINABLE PRACTICES
An Interview with Edin Hodzic, Director of Procurement at Bosnalijek JSC
In this insightful interview, Edin Hodzic, the Director of Procurement at Bosnalijek JSC, shares his impressive career journey and strategic vision for procurement within the pharmaceutical sector. With nearly 15 years of experience in the industry, Edin has played a pivotal role in transforming Bosnalijek’s procurement function, ensuring a resilient and compliant supply chain. He discusses the importance of building longterm supplier relationships, navigating regulatory complexities, and leading the company’s sustainability efforts. From optimising sourcing strategies to embracing digital transformation, Edin provides a comprehensive look at how Bosnalijek is positioning itself for continued success in the dynamic pharmaceutical market.
Career Journey:
Can you share your career journey and what led you to your role as Director of Procurement at Bosnalijek JSC? What key experiences have shaped your approach to procurement in the pharmaceutical industry?
Thank you for the opportunity to share insights into my career journey. My professional path began almost 15 years ago right here at Bosnalijek JSC as a Procurement Officer. In this initial role, I developed foundational skills in sourcing, contract negotiations, and supplier relationship management. This dynamic environment has been invaluable to my growth, offering daily challenges and opportunities to collaborate with industry experts, from whom I continue to learn. It has truly been a rewarding experience.
As I advanced into leadership roles, I gained experience in both direct and indirect procurement. This progression has been instrumental in deepening my expertise within the pharmaceutical sector, particularly in navigating complex supply chains, regulatory compliance, and ensuring quality assurance.
Currently, as Director of Procurement at Bosnalijek, I lead a team focused on strategic sourcing, supplier development, and cost management across various therapeutic areas. Key experiences that have shaped my approach include building strong, long-term supplier partnerships, collaborating closely with R&D and manufacturing teams to align procurement with the broader business needs, and implementing innovative solutions that drive efficiency and sustainability.
Procurement in the pharmaceutical industry requires more than just cost management; it demands strategic oversight, risk mitigation, and, above all, a focus on quality. My goal is to ensure a reliable, compliant supply chain that supports Bosnalijek’s long-term growth while navigating the complexities of this highly regulated industry.
Role of Procurement in Pharmaceutical Operations:
Procurement plays a crucial role in pharmaceutical manufacturing. How does your team at Bosnalijek support the company’s mission to deliver high-quality healthcare products?
At Bosnalijek, procurement is a critical enabler of our mission to deliver high-quality healthcare products. Our dedicated team, of which I am extremely proud, plays an essential role in ensuring we source the best materials, components, and services needed for pharmaceutical manufacturing, all while adhering to the highest standards of quality, regulatory compliance, and cost-efficiency.
We ensure that all raw materials and suppliers meet stringent regulatory requirements and quality standards. Once a supplier is approved through our quality system, the Procurement department takes over to ensure consistent sourcing from reliable partners who align with our commitment to product integrity and patient safety.
In addition to ensuring compliance and quality, we prioritise building strategic supplier relationships. By fostering long-term partnerships with key suppliers, we ensure continuity of supply, mitigate risks, and encourage innovation within our sourcing practices. We also focus on cost optimisation, ensuring we can deliver high-quality products without compromising on pricing or availability.
Ultimately, our procurement strategy supports Bosnalijek’s broader mission by maintaining a resilient, compliant, and efficient supply chain. This alignment helps the company provide life-changing therapies to patients while upholding the standards of excellence that are essential to our work.
Sustainable Sourcing in Pharmaceuticals:
Sustainability is becoming essential in pharmaceuticals. How does Bosnalijek integrate sustainable practices within procurement, particularly in sourcing and supply chain management?
Sustainability has become a key priority at Bosnalijek, and our procurement team plays a pivotal role in embedding sustainable practices across sourcing and supply chain management.
In 2024, Bosnalijek was honored with the Sustainable Development Business Leaders Award in Bosnia and Herzegovina (BiH). For years, we have integrated sustainable practices into our operations, emphasising not only our social responsibility toward the community but also our commitment to employee well-being. This includes education programs and fostering a healthy work environment while upholding human rights and prioritising environmental protection. Bosnalijek is proud to be a pioneer in BiH in raising awareness about the importance of sustainable practices.
Our sustainable sourcing strategy focuses on selecting suppliers with strong environmental, social, and governance (ESG) credentials. We prioritise ethical labor practices and aim to reduce the carbon footprint of our supply chain. Additionally, we collaborate with our suppliers to explore eco-friendly alternatives, such as sustainable packaging, raw materials like titanium-free capsules, fully recyclable closures, and products made entirely from green energy sources.
We also strive to optimise transportation and logistics to minimise emissions and waste. This includes consolidating shipments and selecting energy-efficient transportation options whenever possible. By integrating these sustainable practices into our procurement process, we are not only supporting Bosnalijek’s commitment to sustainability but also contributing to the long-term viability and resilience of our supply chain.
Supplier Relationships and Quality Assurance:
What strategies does Bosnalijek use to maintain strong, transparent relationships with suppliers? How do you ensure that suppliers consistently meet the high standards required in the pharmaceutical sector?
At Bosnalijek, we place a strong emphasis on building long-term, transparent relationships with our suppliers, as these are essential to maintaining the high standards required in the pharmaceutical industry. We focus on creating mutually beneficial partnerships that prioritise quality, compliance, and continuous improvement.
Open communication is key to fostering strong partnerships. By ensuring alignment on quality expectations, regulatory requirements, and business objectives, we can engage in joint problemsolving and work closely with suppliers to address challenges. This collaborative approach paves the way for continuous improvement in both quality and service delivery.
To ensure that suppliers consistently meet the required standards, we implement a rigorous supplier qualification process. This includes thorough assessments of their capabilities, quality control measures, and adherence to Good Manufacturing Practices (GMP). Regular audits, quality checks, and performance reviews are integral to our ongoing commitment to ensuring that all suppliers meet the high standards necessary for the production of safe and effective pharmaceutical products.
By maintaining strong relationships and implementing a structured quality assurance framework, we ensure that Bosnalijek’s systems and products meet the highest quality standards.
Digital Transformation in Procurement:
How is Bosnalijek leveraging digital technologies to streamline procurement processes, and what recent advancements have had a significant impact on efficiency and transparency?
Bosnalijek is embracing digital transformation across our procurement processes to enhance efficiency, transparency, and strategic decision-making. Having all operational capacities centralised at one location greatly facilitates the rapid implementation of new solutions. A key initiative in this transformation has been the integration of SAP S/4HANA, an advanced ERP software, along with Document Management Systems (DMS) and data analytics tools to automate routine tasks such as order processing, invoicing, and supplier management. This significantly reduces administrative overhead and minimises the potential for human error.
Additionally, we leverage real-time data analytics to gain deeper insights into supplier performance, inventory levels, and market trends. These insights empower us to make data-driven decisions, optimise costs, and refine our overall procurement strategy. However, sourcing raw materials remains a challenge, as data is not readily available on digital platforms for e-sourcing and tendering, which limits the efficiency of competitive sourcing through these channels. As a result, we rely on one-onone interactions with suppliers to ensure we are securing the best possible value.
By incorporating these digital tools into our procurement function, we enhance our ability to collaborate with suppliers, monitor supply chain performance, and adapt swiftly to changing market conditions. This ultimately drives greater efficiency, cost-effectiveness, and supply chain resilience.
Pharmaceutical lysozyme from chicken egg albumen
For use in nasal and throat preparations, tooth and mouth care, against certain viruses, as an antibiotic replacement in animal applications
Full production from egg breaking to finished product on one location
Cost Management and Quality Balance:
Aakstraat 14, 8102 HH Raalte
The Netherlands
www.bouwhuis-enthoven.com +31 572 347 100
In the pharmaceutical industry, balancing cost with stringent quality standards is crucial. How do you achieve this balance while ensuring that Bosnalijek’s products meet regulatory requirements?
Balancing cost with quality in pharmaceutical procurement is an ongoing challenge, especially considering the stringent regulatory standards that govern our industry. Since quality is paramount, we manage this balance through a multi-faceted strategy that focuses on cost optimisation while ensuring compliance.
First, we prioritise long-term relationships with suppliers who share our commitment to quality, efficiency, and regulatory compliance. This allows us to negotiate better pricing over time without compromising material quality. We also work closely with our suppliers to identify cost-effective alternatives that maintain product integrity, such as sustainable raw materials or efficient packaging solutions, which contribute to overall cost savings. Additionally, we ensure that we stay updated on global supply conditions and adjust our cost levels accordingly
Another strength of Bosnalijek is our precise short- and long-term planning, which enables timely ordering. By continuously analysing production requirements, supplier performance, market trends, and demand forecasts, we can anticipate cost fluctuations and manage inventory more effectively. This approach helps us avoid overstocking, reduce warehousing and logistics costs, and maintain a consistent supply of high-quality ingredients.
Ultimately, regardless of the strategy we implement, we ensure that cost savings never come at the expense of quality, safety, or compliance with regulatory standards.
Risk Management in Global Pharmaceutical Sourcing:
With global supply chains facing disruptions, how does Bosnalijek’s procurement team manage risks to maintain continuity and quality in its supply chain?
Global disruptions have shown us the significant impact they can have on securing materials and the ripple effects they create throughout the supply chain. Currently, geopolitical issues are the primary drivers of market volatility, making risk management even more critical.
At Bosnalijek, risk management is central to our procurement strategy, particularly in the context of a global supply chain. To manage these risks, we maintain a diversified supplier base, focusing on suppliers across the EU and Asia to reduce reliance on any single source. This flexibility enables us to pivot quickly to alternative suppliers when challenges arise. Additionally, we collaborate closely with key suppliers to assess their risk management capabilities, ensuring we take proactive steps to prevent shortages. By conducting joint risk assessments and continuously monitoring supplier performance, we are better able to anticipate disruptions and implement preventative measures.
Strong inventory management practices further support our risk mitigation strategy. We analyse market trends, track supply levels, and forecast demand daily to identify potential bottlenecks. This data-driven approach helps us adjust procurement strategies and order cycles, preventing stockouts while maintaining the high-quality standards we are known for.
To stay agile, we regularly review and update our risk management framework, integrating lessons learned from past disruptions and adapting to emerging global challenges.
F. & A. PHARMA-Handels-GmbH is a German based innovative and dynamic pharmaceutical service provider, GDP- / ISO-certified, having main activities in distribution and warehousing of well-documented APIs for human and veterinary medicines, Excipients and Nutraceuticals, as well as service and consulting in the pharmaceutical sector. Solutions today, for tomorrow’s challenges.
Our complete range of products and services include:
Distribution of Active Pharmaceutical Ingredients (APIs), Excipients and Nutraceuticals.
Intermediation and sale of registration dossiers and marketing authorisations
Coordination of development projects for products prior to patent expiry
Agency for cooperation agreements between developer, manufacturer, registration vendors and generic marketing companies
Temperature monitored storage under GDP conditions (2-8°C, 15-25°C)
Transport management (Just-In-Time distribution with GDP certified trailer)
4, D – 48734 Reken, Germany
Challenges in Pharmaceutical Procurement:
What unique challenges do you encounter in procurement within the pharmaceutical industry, and how does Bosnalijek address these to stay competitive and ensure product integrity?
Procurement in the pharmaceutical industry presents several unique challenges, largely due to regulatory complexity, the need for high-quality standards, and ever-evolving market dynamics. At Bosnalijek, some of the key challenges we face include navigating strict compliance requirements, managing increasing supply chain risks, especially regarding materials sourced from India and China, and addressing vulnerabilities exposed during events like the COVID-19 pandemic.
To tackle these challenges, we diversify our supplier base and maintain strategic stock levels. We also work closely with suppliers to ensure they have contingency plans in place to mitigate risks. In cases where materials are sourced from limited suppliers, we monitor these relationships very closely to prevent disruptions in the supply chain.
Regulatory compliance is another constant challenge. The pharmaceutical industry is subject to a wide range of regulations—from EU GMP to local and international standards—that require careful management of every aspect of sourcing and supply chain operations. As a holder of the EU GMP certificate, Bosnalijek ensures rigorous supplier qualification processes, conducts regular audits, and sources only from suppliers who comply with international regulations.
Additionally, the competitive nature of the pharmaceutical market demands constant innovation while keeping costs in check. At Bosnalijek, we foster a culture of innovation and cost optimisation, collaborating with suppliers to explore alternative materials, new technologies, and sustainable sourcing options. This allows us to remain competitive without compromising on product quality. By proactively addressing these challenges, Bosnalijek ensures the integrity of our products and continues to deliver safe and effective medicines to patients worldwide.
Future Trends in Pharmaceutical Procurement:
What emerging trends do you see impacting procurement in the pharmaceutical industry, and how is Bosnalijek preparing to adapt to these changes?
Several emerging trends are reshaping procurement in the pharmaceutical industry, and Bosnalijek is actively preparing to adapt to these changes to remain competitive and resilient.
One significant trend is the increasing demand for digitalisation and data-driven decision-making. Technologies like AI and advanced analytics are revolutionising how procurement processes are managed, improving transparency, and enhancing supplier relationships. At Bosnalijek, we are investing in digital tools and platforms that automate routine procurement tasks, enhance supplier performance tracking, and improve forecasting accuracy. We are also integrating ERP systems with suppliers to streamline ordering processes, which will drive cost reduction and foster a more agile supply chain.
Another important trend is the growing emphasis on sustainability. With rising regulatory pressure, increased consumer demand, and heightened awareness of climate change, companies are under growing pressure to adopt greener practices. Bosnalijek is committed to sustainability by working with suppliers to source eco-friendly materials and improve the environmental footprint of our operations.
In response to recent supply chain disruptions caused by geopolitical circumstances, the pharmaceutical industry is placing more focus on localisation and building resilient supply chains. While localisation presents challenges—especially given the wide range of generic drugs Bosnalijek produces—many raw materials cannot be sourced locally. To address this, we remain committed to maintaining strong global partnerships to ensure the availability of critical materials while mitigating risks.
Advice for Aspiring Procurement Professionals:
As a leader in pharmaceutical procurement, what advice would you offer to those pursuing a career in procurement within the healthcare sector?
To anyone aspiring to pursue a career in pharmaceutical procurement, my advice would be to focus on developing a deep understanding of both the technical and strategic aspects of procurement. In the pharmaceutical sector, procurement is not just about purchasing materials—it’s about building strong, compliant, and resilient supply chains that ensure patient safety and product efficacy.
A solid foundation in regulatory knowledge is crucial. Understanding the compliance requirements specific to the pharmaceutical industry, such as GMP, ICH, and ISO, is essential to ensure product quality and patient safety. A strong grasp of these standards will undoubtedly set you apart. Regardless of the industry you are in, always focus on building strong supplier relationships. The ability to collaborate effectively with suppliers and internal stakeholders—such as R&D and quality control—drives innovation and helps maintain high standards.
Finally, stay adaptable and embrace digital tools. As the industry evolves, digital transformation will continue to drive efficiencies and innovations in procurement. Familiarity with data analytics, e-sourcing platforms, and supply chain management systems will not only be an asset to your career but will also keep you competitive in the ever-changing landscape.
Most importantly, whatever the challenge, always keep the end goal in mind: delivering safe, highquality medicines to improve patient outcomes. This commitment to quality, patient safety, and regulatory excellence should be at the heart of every decision you make.
Bosnalijek, founded in 1951, is the largest pharmaceutical company in Bosnia and Herzegovina. With a focus on quality and innovation, Bosnalijek produces a wide range of medicines and supplements, serving over 20 markets across Europe, Asia, and Africa, and improving healthcare for millions worldwide.
Edin Hodzic Director of Procurement