Overview of the Pharmaceutical Industry
The pharmaceutical industry firms are involved in the discovery, manufacturing, and marketing of legal drugs, vaccines, biologics (toxins, viruses, serums, and analogous products), and medical devices such as prosthetics and pacemakers. Products of the pharmaceutical industry which include prescription and over the counter (OTC), account for a significant share of the aggregate health care spending and represent major account items in international trade transactions across developed and developing countries. Most spending growth, across the globe, is expected to be fueled by innovations in oncology, autoimmune, and diabetes treatments.
However, there a few factors influencing the growth prospects of the pharmaceutical industry in the coming years. They are:
- Rising customer expectations: With the commercial environment getting harsher, healthcare payers enforce new cost constraints on healthcare providers and analyze the value medicines offer much more carefully. Customers today expect new therapies that are economically and clinically better than the existing alternatives, coupled with real-world outcome data to support any claim about a medicine’s
- Capitalizing on knowledge: Finding a way to harness the full potential of technology adopted by an establishment, and the data in its possession, to benefit from the advantages it brings is crucial for firms across the pharmaceutical industry. Therefore, putting in place the essential tools and processes is a way to ensure sustainable profitability of investments.
Supply market intelligence is a perfect solution to the above factors as these solutions assist firms across the pharmaceutical industry in gaining an in-depth understanding of the latest trends, developments, risks, and recommendations on formulating procurement best practices. These solutions also help companies develop superior product and service offerings while reducing their procurement spends.
The Business Challenge and Journey
A leading pharmaceutical industry client wanted to migrate from their current decentralized, manual procurement processes and multiple systems to a robust, centralized and automated procurement solution with the aim of increasing its spend under management and realizing higher productivity and savings. Additionally, the client wanted to improve productivity and efficiency of their procurement function while enabling a robust pre-purchase approval system to accomplish informed purchases.
To provide a single view of the enterprise-wide procurement spend and drive higher efficiency, the supply market intelligence specialists at SpendEdge tailored a wide-ranging research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.
The supply market intelligence engagement helped the pharmaceutical industry client enhance integration with suppliers through portal connectivity. This helped them improve processes and manage indirect spend across the supply chain. The client was also recommended a faster payment cycle which aided them in capturing the early payment discounts and realize higher savings.
Fundamental questions answered in this supply market intelligence engagement
The supply market intelligence engagement assisted the client in gaining greater visibility on corporate spend across suppliers and categories, enhanced productivity, and achieved tighter control and compliance across their business units.