Abdi İbrahim Increases Domestic Supply Volume Fivefold

Abdi İbrahim Quintuples Local Supply Volume Abdi İbrahim continues to increase the share of local suppliers in its procurement operations under its sustainability strategy named HEAL2030. Abdi İbrahim Board Chairman Nezih Barut stated that since 2018 the company has pursued a strategy prioritizing local sourcing in the purchase of products, machinery, services, chemicals and equipment. He noted that supply chain disruptions during the pandemic period made them more insistent and attentive on this matter, stating: "In 2021, our business volume with domestic suppliers increased five-fold compared to the 2018-2020 period. By working with domestic producers instead of importing, we support local manufacturing, reduce our carbon footprint from transportation, prevent the current account deficit from widening, and create additional value for the national economy." Under its HEAL2030 sustainability strategy, Abdi İbrahim achieved striking results through its "Localization of Procurement" initiative, which prioritizes domestic producers in sourcing products and services required for its pharmaceutical sector operations. The company completed 55 projects in 2021 across five main categories—machinery and equipment, spare parts, chemicals, laboratory devices and consumables, and small devices and equipment—redirecting over 500 orders that were planned for overseas sourcing to domestic producers, thereby quintupling its local supply volume. From 2018 through the end of 2021, through projects implemented under the "Localization of Procurement" initiative, Abdi İbrahim converted a total of TRY 50 million in foreign-sourced orders to domestic orders. Abdi İbrahim uses products and equipment sourced from domestic suppliers not only in Turkey but also at its production facilities in Kazakhstan and Algeria, where it has made a total investment of USD 110 million. In this way, Abdi İbrahim reduces imports to the country through purchases from domestic suppliers, and through new export channels opened to local suppliers to access international markets, it supports them in becoming internationally competitive firms and continues to contribute to increasing Turkey's exports in these product and service categories.

We Launched a Sustainable Benefit Movement Through Localization of Procurement

Abdi İbrahim Board Chairman Nezih Barut stated that since 2018 the company has aimed to benefit more from domestic sourcing options in procurement, announcing that through numerous projects it has quintupled its local purchasing volume by 2021. Emphasizing that the "Localization of Procurement" strategy implemented under the HEAL2030 sustainability framework is an important sustainable benefit movement befitting Abdi İbrahim's leadership, Barut stated: "Through this practice we support domestic producers and make additional contributions to the national economy by curbing the current account deficit. On the other hand, by procuring from closer distances rather than abroad, we reduce the carbon footprint from transportation in the supply process, maintain greater control and flexibility in supply processes, and support our goal of becoming a carbon-neutral pharmaceutical company by 2030." Nezih Barut continued: "In this period when significant disruptions are experienced in conventional global supply chains, we see that national and regional trade have gained importance from both strategic and sustainability perspectives, and by replacing imported goods and services with domestic alternatives we ensure the continuity of our production."

"We Work with Our Suppliers as Project Partners"

Noting that Abdi İbrahim works in close contact with domestic suppliers from cost analysis to experience transfer, Nezih Barut stated: "The pandemic clearly exposed the vulnerabilities in the global supply chain. When borders closed, the business world struggled to ensure production continuity. Before the pandemic, based on our procurement items determined within our company's sustainability priorities, we decided to increase our local supply volume. The pandemic proved how foresighted our assessment was. We work with our suppliers as project partners. Authorized personnel from many units of our company and our suppliers sit around the same table to discuss projects that could create value, and we evaluate what we can produce and how we can increase our suppliers' capacity in terms of sustainability, then develop project plans accordingly. We share our views and knowledge about different products and services they can offer to the pharmaceutical sector beyond their current production. By bringing together suppliers producing complementary products and services, we create an environment for them to undertake joint projects. By transferring our experience in incentives, sustainability, foreign trade, exports, customs, directing them to important trade fairs and especially in freight matters, we support both their commercial development and reducing their operational costs. We do not limit ourselves to purchasing from them; as a company with 110 years of experience, we also endeavor to support their development in international markets," he concluded.