Should the manufactures invest heavily in serialization and aggregation machines (CAPEX)?
Or should they outsource these activities as a service (OPEX)?
Compliance regulations expand across MENA, AFRICA, But the cost of aggregation equipment, printers, and IT integration can be a major barrier ,especially for small and mid-sized pharma companies.
That’s where Aggregation as a Service (AaaS) comes in.
What is Aggregation as a Service?
Instead of buying machines and building in-house capabilities, companies partner with specialized service providers who:
- Print and apply SSCC labels.
- Perform aggregation (unit → bundle → case → pallet).
- Ensure EPCIS data exchange with regulators.
- Provide compliance reporting as part of their service.
- This model converts capital expenditure (CAPEX) into operational expenditure (OPEX) ,making aggregation more accessible.
Pros of Outsourcing Aggregation & Serialization
Lower Initial Investment
Avoid amount of money spend as CAPEX for printers, vision systems, conveyors, and aggregation stations.
Scalability & Flexibility
Pay per unit/carton aggregated.
Easier to scale up or down based on production volume.
Speed to Compliance
Service providers are already validated and compliant, so onboarding is faster.
Ideal for markets with tight deadlines
Expertise on Demand
Leverage service providers who specialize in pharma serialization, reducing the learning curve.
Focus on Core Business
Manufacturers can focus on R&D, production, and distribution , while compliance is managed externally.
Cons / Risks of Outsourcing
Data Ownership & Security
Sensitive serialization data is handled by a third party. Requires strong contracts and data security controls.
Operational Dependency
Relying on an external partner for a critical compliance function can introduce risks (delays, vendor failures).
The transfer of products from one site to another Expose it to damage
Cost Over Time
While OPEX is easier short-term, for very high-volume manufacturers, long-term service costs may exceed CAPEX.
Integration Challenges
Service providers must integrate seamlessly with ERP/MES/WMS systems. Poor integration = reporting gaps.
-Regulatory Liability
Even if outsourced, the legal responsibility stays with the manufacturer. Non-compliance fines cannot be shifted.
Final Thought
Outsourcing aggregation can be a smart bridge strategy, helping companies meet regulations without heavy CAPEX. But in the long run, each company must balance cost, control, and compliance ownership to find the right mix between in-house and outsourced solutions.