Ask the Expert:
End-to-End Manufacturing Outsourcing for Life Sciences: How It Works in Practice
Join us as we sit down with XX, Director of Functional Service Provision (FSP), to discuss how a Functional Service Provision Model transformed the operational performance of a life sciences manufacturing facility.
In this interview, we explore the fundamentals of the FSP Model, how Catalyx leveraged this approach to transform operations for a biopharmaceutical site, the key benefits for the customer, and the tangible results achieved.
Q1. Firstly, for those who are unaware of the Functional Service Provisional Model, what is it?
Our Functional Service Provision Model is a resourcing model designed to optimize key processes within your organization by taking ownership of the end-to-end function.
Our agreement with the customer is structured around operational KPIs, not headcount. We analyse and refine processes, aligning them with customer needs and industry best practices, while streamlining multiple functions into a single, high-impact solution for a leaner, results driven operation.
We supply the people and hands-on management – Catalyx essentially become part of your team. We provide dedicated onsite team leads embedded in the organization who oversee elements of the operation and drive performance and continuous improvement.
85% of the workforce are permanent employees of Catalyx which means for the customer, this model is agile and flexible, it can scale up or down instantly without vendor lock-in, excess costs, or inefficiencies.
Q2. In what circumstances would a manufacturing facility choose this model?
A manufacturing facility may choose the Functional Service Provision (FSP) Model when faced with challenges in workforce management, operational efficiency, and scalability. I can give you a few examples of what I’m talking about.
Another case for an FSP would be when internal resources are limited, and the client needs operational efficiency
Many manufacturing facilities run lean teams, limiting their capacity to manage growing workloads. For example, a facility expanding fill-finish operations may lack skilled technicians. Rather than overloading staff or facing lengthy hiring processes, they can leverage an FSP team to step in seamlessly and optimize operations.
A strong case is when the workload fluctuates, and a flexible workforce is needed
Manufacturing demands aren’t always steady—there are peaks and slow periods based on product demand, regulatory approvals, or scaling up production. For example, a CMO producing cell and gene therapies may see a surge in orders after a new approval. With an FSP model, they can quickly scale their workforce up or down, avoiding the challenges of hiring and layoffs.
Lastly, FSP can be a good solution when retention is an ongoing challenge
High turnover can disrupt operations and drive-up training costs. If a company is struggling with staff turnover—maybe due to limited career growth opportunities or inconsistent pay from different vendors - it can lead to inefficiencies on the floor. An FSP model helps address this by providing structured career pathways, competitive pay, and ongoing training, which boosts retention and keeps the workforce more stable.
Q3. As the Director of FSP, can you share an overview of the Functional Service Provision (FSP) program you manage?
In the FSP program, I oversee key operational functions for a pharmaceutical client across two sites, covering disciplines such as Tablet Inspection, Packaging, Manufacturing, QA, QC, Supply Chain, and Distribution.
Our team provides a comprehensive, end-to-end service, managing products throughout their entire lifecycle—from raw material receipt to the final shipment.
We are accountable for Safety, Quality, Delivery, and People across all functions, with onsite management ensuring service excellence and the achievement of agreed KPIs.
Q4. How many people are in this function?
Through continuous adaptability and operational success, the Catalyx model has grown from 29 resources in 2 functions to 180+ resources across 5 functions and multiple sites. This scalability highlights the model’s efficiency, flexibility, and ability to meet evolving business demands.
Q5. What are the Key benefits that your customer has seen by implementing this model?
We identified and implemented multiple Continuous Improvement initiatives, resulting in significant process improvements and cost savings
We provided an agile and flexible service enabling the customer to expedite batch release to meet changing market requirements
We ensured there was a quick turnaround on resourcing and agreed KPI’s have been met year-on-year for the last 7 years.
We created a talent pipeline and identified high performers for additional training and promotion, we developed and promoted 19 employees in 2024.
Q6. Is there anything you would like to add before we close out the interview?
Absolutely. The Functional Service Provision (FSP) model is more than just filling workforce gaps—it’s a strategic partnership that transforms manufacturing operations. By embedding dedicated teams, aligning with key performance metrics, and driving continuous improvement, FSP goes beyond traditional outsourcing to deliver lasting efficiency and stability.
In my role, I’ve seen firsthand how this model helps clients focus on their core priorities while we handle execution—streamlining processes, or building a strong talent pipeline. The impact speaks for itself.