Originally Published on: SpendEdge |Need of Procurement Process in the Pharma Industry | SpendEdge

In the ever-evolving business landscape, forward-thinking corporations are increasingly recognizing the crucial role of effective procurement management. Beyond mere cost reduction, procurement emerges as a key factor in maintaining competitiveness. Positioned as more than a cost-cutting tool, procurement becomes a catalyst for efficiency enhancement by curbing waste and optimizing resources. The pharmaceutical industry, facing challenges like generic drugs, personalized medicines, soaring research and development costs, and costly clinical trials, is poised to reap substantial benefits through an elevated procurement process.

Driving Pharma Innovation via Procurement Excellence

Innovation within the pharmaceutical sector extends beyond drug development. By infusing innovation into procurement and sourcing processes, pharmaceutical companies can unlock significant savings opportunities. Visionary players in the pharma domain can establish inventive incentive models for suppliers, fostering the generation of novel ideas to reach untapped markets through innovative sales channels. Emphasizing spend control and fostering collaboration across divisions, functions, and supplier networks creates a fertile ground for innovation.

Facilitating Collaboration Across Business Functions

In the realm of clinical trials, skepticism often surrounds outsourcing decisions handled by the procurement team. However, when procurement takes charge, it brings strategic prowess to identify the optimal partner and negotiate terms that drive overall performance and output. Clearly defined roles and responsibilities within the procurement function are essential to ensuring seamless operations and effective collaboration.

Mastering Indirect Spend Management in Pharma

A substantial portion of a typical pharma company's expenditure is directed towards indirect spend categories like IT, MRO, office supplies, travel, logistics, and marketing. Leveraging a refined procurement process has the potential to yield substantial savings in these areas. Implementing stringent policies, harnessing appropriate tools, and ensuring full spend visibility empower pharma companies to enhance savings from indirect spends and enforce regulatory compliance.

For in-depth insights into pharmaceutical industry procurement, covering aspects like pharma procurement, the procurement process in the pharma sector, and strategies for managing indirect spends, connect with our experts .