Biopharmaceutical Industry Challenges
As biopharmaceutical companies move from a scientific frontier to a business mainstream, players will have to confront some pressing challenges similar to those faced by other industries. The main challenge here is to maintain competitiveness by delivering consistent performance, ensuring affordability, and quality. The other major challenges for biopharmaceuticals companies include:
The growing demand for affordability and access
Downward cost pressures are expected to intensify as biopharmaceutical companies fight it out to balance the ongoing demand for affordability with declining profit margins.
Increasing complexities of biopharma supply chain functions
With the emergence of new products and process technologies such as continuous manufacturing, the complexities associated with biopharma operations and the biopharma supply chain is poised to increase.
The emergence of new manufacturing technology platforms
New classes of molecules including drug conjugates, cell therapies, and gene therapies are expected to bring about major disruptions in the biopharmaceutical industry, with each requiring its own novel manufacturing and quality-assurance approaches.
Regulatory scrutiny and quality compliance
With compliance, robustness, and process efficiency taking center stage, biopharmaceutical companies will have to devise effective strategies to keep up with the demands of regulators.
About the Client
The client– one of the world’s leading biopharmaceutical companies in the world, responsible for developing drugs for therapeutic and medicinal purposes.
The client – a biopharmaceutical industry player was focusing on shifting its goals to a more diverse, strategic viewpoint, with specific attention to the ‘new cancer drugs’ segment. This prompted them to restructure their goals and procurement functions. With several business units being divested and reorganized the biopharmaceutical industry player needed to make several changes to their procurement and strategic sourcing processes to meet the evolving demands. Since this seemed to be quite challenging they sought the help of SpendEdge to entirely transform their strategic sourcing process.
The biopharmaceutical industry player transitioned 15+ indirect sourcing categories to SpendEdge for end-to-end sourcing and category management. Their goals included- improvements of key metrics and multimillion-dollar savings. The key objectives of this collaboration included- outsourcing category management, improving spend management capability, and undergoing procurement transformation to become best-in-class while achieving a TCO reduction and value beyond savings in terms of innovation and the strategic sourcing process.
SpendEdge deployed a team strategic sourcing experts to drive end-to-end sourcing and category management of the 15+ mature indirect categories totaling approximately $3 billion. The services and scope of the categories covered three key regional markets including – Europe, Asia-Pacific, and North America.
The deployed strategic sourcing process empowered the biopharmaceutical industry player to exceed the $10 million savings target and achieve a total savings of $15 million. Moreover, it is essential to note that all other targets of the biopharmaceutical industry player exceeded, with progress pulling into the next year as well.
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