Leveraging Spend Analysis Helps a Leading Pharmaceutical Products Manufacturer Improve Spend Efficiency
Overview of the Pharmaceutical Products Market Pharmaceutical products are commonly referred to as drugs or medicines and form a fundamental component of both traditional and modern medicine. The pharmaceutical products includes companies that are responsible for the production, development, and marketing of drugs. The growth of the pharmaceutical products market can be attributed to the […]READ MORE >>
Overview of the Pharmaceutical Products Market
Pharmaceutical products are commonly referred to as drugs or medicines and form a fundamental component of both traditional and modern medicine. The pharmaceutical products includes companies that are responsible for the production, development, and marketing of drugs. The growth of the pharmaceutical products market can be attributed to the rise in aging population. Moreover, with the growing global middle-class population and rising per capita expenditure on medicines, the growth opportunities for pharmaceutical products has increased. Also, the regional demand for pharmaceuticals may differ based on the developments in emerging economies.
In the coming years, the global pharmaceutical products market is expected to proliferate owing to the increase in tailored R&D and product portfolio changes to meet emerging markets’ healthcare needs.
The Business Challenge and Journey
The client, a well-known pharmaceutical products manufacturer, was looking at leveraging SpendEdge’s spend analysis solution. The client was facing several issues in analyzing their spending patterns. Also, instabilities in their supply chain increased their maverick spend and supply chain risks. The client wanted to commission a spend analysis engagement to improve their spend efficiency and optimize customer base. Additionally, they also wanted to identify and mitigate risks to overcome substantial financial losses.
To identify challenges in the supply chain functions, the spend analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the pharmaceutical industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage spend analysis?
In today’s economy, spend analysis is gaining respect as a potent weapon in the battle to squeeze new savings out of the procurement processes of various business segments. Spend analysis enables organizations to reduce inventory, improve sourcing cycle time, and assists in long-term planning and economic forecasting. It also provides a realistic picture of future spend requirements based on the forecasted data.
Fundamental questions answered in this spend analysis study include
SpendEdge’s spend analysis solution offered meaningful insights that enabled the pharmaceutical products manufacturer to identify the potential bottlenecks in the supply chain. Also, the solution enabled the client to develop a strategic sourcing model to reduce supply chain risks and establish their presence in the pharmaceutical industry. It also helped the client in analyzing and evaluating the current state of their purchasing practices and implement strategies to improve their spend efficiency. Implementing spend analysis eventually led to improvements in compliance, reduced cycle times, and uncovered maverick spend.
Future challenges and opportunities
- Patient-centric healthcare: Advancements in technology are driving a shift towards patient-centric healthcare, as evidenced by wearable biometric devices and telemedicine. This has enabled the patients to take a more active role in any treatment plan their doctor may prescribe. It also offers several growth opportunities for companies in the pharmaceutical industry to reach the consumer through wearables and other devices.
- The growth of biosimilars: The growth of biosimilars will present competition for biologics and represent significant savings to the consumer base. They also present new opportunities for companies in the pharmaceutical industry and those who excel at marketing biosimilars within their product range stand to gain an edge over their competitors.
- Policy reform: Any changes to healthcare with a new presidential administration will undoubtedly have an impact on the pharmaceutical products manufacturing industry. However, the challenge for players in this sector will be to enforce changes while maintaining a steady market growth.