Overview of the Biotech Industry
The biotech industry is a highly unpredictable and a volatile sector due to the scientific intensive operations of companies that reside within this space. The biotech industry serves markets likes agricultural, medical, environmental, and industrial. Biotech firms are among the most research-intensive organizations across the globe. Companies operating in this space are focusing on the development of novel techniques and their implementation by collaborating with the other participants. For instance, some companies have started formulating superior grades of biofuels to guard harvests against insects and pests across the agriculture sector.
The rise in demand for therapeutic and diagnostic solutions on principles of sequencing, red biotechnology, DNA and recombinant technology is anticipated to fuel the growth of the biotech industry. Also, increasing prevalence of diseases such as cancer, hepatitis B, and other orphan disorders are expected to drive the demand in this space.
Let’s take a look at a few factors influencing the growth prospects of the biotech industry in the coming years. These factors include:
- Product Development: The competition in the biotech industry shows no signs of slowing down anytime soon. Therefore, staying ahead of the pack requires strategic thinking, with an increased focus on establishing systems for ensuring quality and reducing risk. For some companies, it’s an immense step, but it’s one that will pay off in the long run.
- Contract Manufacturing: Biotech industry firms use contract manufacturers to bring their products to market. This is because outsourcing elements of the production process decreases capital and costs, consequently helping companies increase their focus on core strengths like product design. Nevertheless, working with contract manufacturers introduces large uncertainties to the business, particularly where quality assurance is concerned.
These factors are compelling firms across the biotech industry to leverage the use of supply market intelligence studies. The supply market intelligence studies help companies develop superior product and service offerings while reducing their procurement spends. These solutions also firms gain an in-depth understanding of the latest developments, trends, risks, and recommendations on formulating procurement best practices to help them cement their place across the biotech space.
The Business Challenge and Journey
The client, a leading firm operating in the biotech industry wanted to improvise on their efficiency and productivity of their procurement function while enabling a stable pre-purchase approval system to achieve informed purchases. With the help of a supply market intelligence study, the client also wanted to migrate from their current manual and decentralized procurement processes to a robust, automated and centralized procurement solution which helps them in realizing higher productivity and savings.
The supply market intelligence experts at SpendEdge tailored a wide-ranging research methodology to help the client gain a single view of the enterprise-wide procurement spend and achieve higher efficiency. The research methodology included primary research coupled with qualitative and quantitative data collection procedures. The experts also gathered information from a wide array of secondary sources such as paid, company presentations, industry forums, and industry database within the biotech space.
With the help of the supply market intelligence engagement, the client gained insights into a faster payment cycle, thereby, helping them capture early payment discounts and realize higher savings. The client was also able to enhance integration with suppliers through portal connectivity and manage indirect spend across the supply chain. The engagement also helped the client rank their action plans, think strategically, devise best practices, and implement new sourcing strategies across business units.
Fundamental questions answered in this supply market intelligence engagement
During the course of this supply market intelligence, the biotech industry client gained visibility into the corporate spend across suppliers and categories. This helped them enhance productivity and achieve tighter control and compliance.