UK Pharmaceutical Market Overview
The impact of Brexit in the UK pharmaceutical market is not fully known. Slowed market growth, Brexit implications and inflated drug prices are still a major concern for companies. In such a scenario, there is a greater need for investment in the role of procurement to help address complexities. Companies must take a more strategic approach to maintain increasingly complex supply chains and address pricing pressures. This a classic example of how we helped a leading company in the UK pharmaceutical market to reduce procurement spend.
Business Challenges Faced
Due to operations in emerging markets as well as legal, regulatory and supply-chain related challenges, a leading company in the UK pharmaceutical market was facing predicaments in addressing the diminishing margins. Their stock prices were getting impacted and efforts to find innovative ways to increase turnover were not rendering substantial results. The client, therefore, decided to collaborate with SpendEdge to reveal significant untapped value potential for the pharmaceutical market – procurement. The key objective behind this engagement was to identify new ways to raise revenue and improve efficiency in different business areas.
Inability to address the diminishing margins can impact the procurement function of companies in the UK pharmaceutical market. Request a free proposal to access our tailor-made solutions.Request Free Proposal
Our Research Approach
To cater to the specific requirements of the client, the experts at SpendEdge recommended standardizing processes and supporting information-sharing between cross-functional experts. The developed strategies involved planning and forecasting and setting supplier KPIs. In the next step, the experts analyzed the key suppliers and implemented service-level agreements to help companies improve supplier management, trim the list of suppliers and reduce indirect spend. In the final step, the team focused on innovation in sourcing and procurement. They conducted peer benchmarking to set up strategic partnerships with suppliers and vendors, involving them early in the product development phases and creating incentives for suppliers to bring in novel ideas about how to reach new markets via new sales channels.
The unmatched expertise offered by SpendEdge helped the client to introduce innovative concepts that go beyond ‘traditional purchasing’ to improve efficiency and realize new cost reduction opportunities in the UK pharmaceutical market. This reduced 30% of the total procurement spend and enabled CPOs to set up strategic partnerships with suppliers.
Identifying cost reduction opportunities is crucial for companies in the UK pharmaceutical market to minimize the procurement spend. Request free access to our web-based procurement platform to keep up with the latest market insights.
Steps to Devise an Effective Procurement Strategy
- Obtain data from internal stakeholders and suppliers to analyze the existing spend.
- Perform fact-based analysis to understand your organization’s needs clearly.
- Analyze market conditions to know your market and suppliers better.
- Identify procurement best practices that can eliminate the existing inefficiencies.
- Develop a measurable, time-sensitive, and realistic procurement strategy.