Here lies opportunity for Procurement groups in the Pharma industry to drive competitive advantages:
Proactively Managing Spend
Reducing costs begins with understanding your spend. Procurement can aid their organization by providing that full view of spend history and patterns to identify areas for cost reduction. Conducting a Spend Analysis enables organizations to see how spending rolls up across various product lines, as well as operation expenses and professional services. Leverage this spend visibility by making smarter purchasing decisions and guide category management plans.
Fostering Supplier Innovation through Strengthened Relationships
Procurement groups in the Pharma industry have the opportunity to capture supplier innovation at the early stages of research and development and foster ongoing collaborative relationships. In today's constantly shifting marketplace, it is vital for Pharma organizations to establish formalized structure around their supplier relationships. SRM programs not only reinforce performance requirements, but also enables access to supplier-driven innovation by means of new product lines, process improvements and more.
In an industry with strict requirements, suppliers and vendors of pharmaceutical companies must meet high quality standards, and governmental mandates. Procurement plays a major role in ensuring Service Levels are met from a qualitative standpoint, as well as ensuring pricing matches that noted in the contract. Review contracts early and often to not only uphold performance expectations, but also as a starting point for future sourcing events.
These issues and more will be covered at ProcureCon Pharma 2016, a procurement and sourcing processes conference specific to the pharmaceutical industry in Philadelphia, PA this week. Source One Director David Pastore will be speaking at the event on translating savings into value from procurement initiatives in your organization. He also discusses how procurement has evolved beyond tactical purchasing function focused solely on year-over-year cost savings to more strategic function, driving competitive advantages for the organizations they serve. With this evolution, Pastore will discuss how demonstrating Procurement's value should reflect what the function delivers their organizations beyond cost savings, such as Supplier-Driving Innovation and more.