What is the significance of pharma market intelligence and it’s role in the pharmaceutical industry?
The pharmaceutical industry value chain is known to be among the most complicated across industries, causing companies and professionals to struggle with planning, strategizing and optimizing constantly. Procurement and sourcing are the most imperative functions in the pharma supply chain, and improving operations, spend, and communication in these departments can transform any business, which has led to the widespread adoption of pharma market intelligence. As a pharma company grows, the amount and quality of products and services required increases exponentially, and consumers’ preferences and demands become more challenging. Therefore, leveraging pharma market intelligence can often be the sole differentiator between competitors in this rapidly evolving and highly challenging market. Although the barriers to entry for the pharma market are exorbitantly high, competition continues to rise at a rapid pace, and companies must ensure their offerings are significantly differentiated from that of competitors. There are various procurement best practices that can help companies across industries improve their overall organizational, operational, and monetary performance, while improving customer satisfaction, meeting industry standards, and overcoming all market risks and challenges.
Five Significant Procurement Best Practices for Pharma Market Intelligence
Transparency: Due to the complex and challenging composition of the pharmaceutical value chain, ensuring that all involved parties are well-informed, collaborative, and supportive is imperative to efficient functioning. When planning, organizing, or executing any action pertaining to the supply chain, companies must ensure that stakeholders, supply chain managers, procurement officers, sourcing teams, and all other relevant departments are given the required information. Transparency regarding spend, operations, costs, and profits is imperative to collaborative growth for any company. When making procurement-related decisions, companies often struggle to ensure that all involved parties are kept informed which may lead to confusion, inefficiency, and other operational challenges at later points, making pharma market intelligence a necessary tool in the pharmaceutical industry.
Cloud-Based Tools: The elaborate systems involved in ensuring the smooth and efficient functioning of a supply chain require regular oversight, data-driven plans, collaborative improvement efforts, and clear communication. Cloud-based tools help companies keep track of supplier management, invoices, purchase requests, purchase orders, spend data and analytics, and other finance or sales platforms and systems. The rising integration of technology across industries has provided companies with the opportunity to streamline all systems, automate repetitive processes, create a better managed and well-divided structure, and minimize the possibility and impact of human error. Cloud-based tools help chief procurement officers efficiently delegate, oversee, and manage all necessary activities, while receiving regular, accurate data, gaining crucial insights, and supporting pharma market intelligence within their systems.
Contract Management: Proper contract management is an imperative function for any department to succeed, making it one of the most crucial procurement best practices. Pharmaceutical companies are highly dependent on suppliers and partners to maintain efficient functioning and enable sustainable growth while meeting consumer demands. Contract management includes the development, negotiation, execution, and analysis of any contracts signed between the company and a supplier, and overseeing these processes is imperative to ensuring efficiency. CPOs aim to utilize contract management and pharma market intelligence to develop strong business partnerships, enable collaborative growth, reduce costs, increase profitability, and improve overall performance significantly.
Plan for TCO: Procurement involves various major costs and expenses, and efficiently planning for them is imperative to increase savings, minimize losses, track spend, and avoid unnecessary expenses. Therefore, when making procurement or purchasing decisions, CPOs must always account for the total cost of ownership (TCO) of any product or service, and plan accordingly. TCO includes initial purchase price, logistical costs, any future repair, service, or maintenance costs, and other costs that may arise through the lifetime of the product or service, and enables a more accurate understanding of all expenses. One of the major procurement best practices, planning for TCO can reduce the chances of incurring unexpected costs, mitigate various unexpected risks, preemptively strategize for upcoming costs, and enable sustainable planning.
Constantly Review: Tracking, reviewing, and understanding changing factors is crucial for maintaining a healthy supply chain, and for the procurement department there is a plethora of changing and crucial components that require regular oversight. This has led to companies adopting various procurement best practices, including maintaining scheduled reviews, overseeing required changes, assessing dynamic factors, addressing challenges, and leveraging pharma market intelligence. This best practice helps companies stay ahead of the curve, adapt to industry developments, reduce the chances of unexpected losses and changes, and maintain an agile, flexible, and streamlined supply chain. In the complex pharma industry value chain, staying ahead of changes and challenges is crucial to achieving and maintaining success.
Success Story – SpendEdge Advantage
With rising technological advancements and various transformations in the pharmaceutical industry over the past decade, companies face various challenges with effectively implementing the right technologies, streamlining their supply chain, and efficiently maintaining operational congruence. A pharmaceutical company based in North America struggled to meet industry standards, overcome the rapidly changing regulations, and maintain an efficient supply chain in the long run. The company faced various challenges, including unnecessary expenses, unexpected challenges, non-compliance of contracts, and a lack of coordination between departments. To tackle these issues, the company approached SpendEdge and chose to leverage our expertise in advising and implementing procurement best practices, addressing supply chain complexities, overcoming other inefficiencies, and utilizing pharma market intelligence. Our experts closely studied the company’s procurement processes, inter-departmental relationships, strategic partnerships, and supply chain functions. With the data procured, our experts advised the incorporation of various crucial procurement best practices, including determining clear goals, maintaining transparency, utilizing data and cloud-based tools, efficiently managing contracts and supplier relationships, leveraging data procured form pharma market intelligence and accounting for all potential current and future costs for accurate plans. Incorporating these changes helped the company overcome the challenges impacting them, enable sustainable growth, make the necessary changes, and build a robust and flexible supply chain.